Chinese companies are investing in Middle Eastern country Azerbaijan – representatives from both sides have signed memorandums of understanding (MoUs) worth US$821 million in total. A notable project will be the construction of a Chinese tyre plant in Azerbaijan’s Sumgayit Chemical Industrial Park by China National Electric Engineering (CNEEC).
The construction will be carried by the Chinese state electrical engineering giant, with a proposed annual output of 3.3 million passenger car/truck tyres. The Azerbaijan Investment Company will take a 10% share in the project.
The Minister of Economy of the Republic of Azerbaijan Shahin Mustafayev has said the new plant’s tyres will be exported to neighbouring countries to boost Azerbaijan’s export potential on top of economic returns from its local market. Mustafayev was a witness at the signing ceremony for China-Azerbaijan enterprise under the second Belt and Road Initiative in Beijing, which was also attended by the Board Chairman of CNEEC.
In addition, the President of Azerbaijan, Ilham Aliyev, has said that the country’s government will open two new trading houses to promote products on the Chinese market along with its three current trading houses operating in China.
Trade turnover between the countries reportedly exceeded US$1.3 billion in 2018, and doubled in volume in the first quarter of 2019. According to the Azerbaijani Economy Minister, “This market is especially interesting for us in terms of the supply of alcoholic beverages and agricultural products.”