BakuPack opens facility to boost cardboard production in Azerbaijan
Key takeaways
- BakuPack has inaugurated a new 30,000 square meters packaging facility in Sumgayit Industrial Park, backed by a US$1.18 million loan.
- The first phase focuses on cardboard box production, with a second phase dedicated to recycling local raw materials.
- The facility will create 64 jobs and benefit from tax and customs exemptions, while supporting domestic and overseas demand.
BakuPack, an Azerbaijan-based cardboard packaging company, has inaugurated a facility in Sumgayit Industrial Park, following a ₼2 million (US$1.18 million) loan from the Azerbaijan Business Development Fund, under the Ministry of Economy.
The nearly three hectare (30,000 square meters) facility will utilize Turkish and Chinese technology, aiming to produce 55 million square meters of cardboard and box packaging annually.
The first phase of the project involves the manufacture of cardboard boxes, while the second will focus on recycling local raw materials required for cardboard production.
According to the Azerbaijan presidency, the facility will support domestic and overseas market demand, creating 64 permanent jobs. In addition, the factory benefits from industrial park resident tax and custom exemptions, equaling approximately ₼1.3 million (US$764,400).
The Azerbaijan presidency adds that incentives are in place for residents of the industrial zone to promote entrepreneurship.
“Residents are provided with ready-made infrastructure created at the state’s expense, including gas, electricity, water, wastewater disposal systems, internal roads and railways, as well as fiber-optic internet lines.”
Expanding packaging presence
The BakuPack inauguration ceremony was attended by the President of Azerbaijan, Ilham Aliyev. Alongside the cardboard facility opening, Aliyev also laid the foundation stone for a PP and laminated bag production facility, also at Sumgayit Industrial Park.
The manufacturer Nun will incorporate German technology, aiming for an annual production capacity of 1,680 tons of laminated bags and 1,440 tons of PP bags.
In recent packaging industry investments, Polysmart Packaging announced a US$60 million expansion plan to build the largest plastic recycling facility in Nigeria. In addition, Sharp, a pharmaceutical packaging company, invested over €20 million (US$21.6 million) in its European packaging facilities in response to “strong market demand” for injectables.
Meanwhile, Borealis announced a €49 million (US$57.44 million) investment to scale up production of Borstar Nextension PP at its manufacturing site in Burghausen, Germany.
