Baku. 16 January. REPORT.AZ/ In the first stage, 20.6 million USD investment will be made in the "Caspian Pharmed" pharmaceutical plant, to be built on an area of 5 hectares in Pirallahi Industrial Park.
Report informs, Azerbaijani Minister of Economy Shahin Mustafayev told reporters addressing today's groundbreaking ceremony of a new pharmaceutical plant in Pirallahi Industrial Park in Baku.
The minister said that the second pharmaceutical plant in the Industrial Park will produce analgesics, cardiovascular agents, non-steroidal anti-inflammatory drugs, antihistamine medicines, as well vitamins and nutritional supplements: "According to the instruction of the President of Azerbaijan, development of a new industrial area has been launched in the country. Foundation of the first plant was laid on November 2 last year together with Russian company. Today, construction of another plant was launched jointly with Iran. The plant will be supplied with equipment manufactured in Germany and Italy. Construction works will last nearly 1.5 years. Production will launch in the third quarter, 2018. Medicines to be manufactured here will meet the highest standards".
Sh.Mustafayev noted that however, a large part of the medicines will be directed to the domestic consumption in Azerbaijan, certain part will be exported: "According to the presented business plan, the medicines will be exported to Russia, Georgia and Kazakhstan. 90 jobs will provided in the first stage, minimum wage will make 700 AZN. Also, the plant will benefit from state concessions for business entities for the period of 7 years. Internal rate of return will make 17.24%, which is high level of profitability".
The minister stressed that foundation of the third plant will be laid in March this year: "Other proposals are being considered. I think that several plants will produce medicines in Azerbaijan in 2-3 years. Today, Azerbaijan is a 100% importer of medicines. The situation will change within 2-3 years. This will lead to decline in price of medicines in the country".
"Also, discussions are underway to implement several projects as a result of expansion of cooperation with Iran in the future. These are construction of bus and agricultural machinery production plants," Sh.Mustafayev said.