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Two German-equity companies established in western Azerbaijan

18 December 2009 16:25 (UTC +04:00)

Baku. Nijat Mustafayev - APA-ECONOMICS. Azerbaijan Investment Company (AIC) and Germanyâ€™s RAO AgroMilk and RAO Global Group have signed a memorandum of understanding on the establishment of two Complex Agstafasud and Agstafa Agroservis companies.

The document was signed by AIC executive director Afgan Isayev, RAO AgroMilk executive director Frits Hofmeister and RAO Global Group executive director Slava Afanasiev.

Afgan Isyaev said that the project is of great importance in the development of agriculture in the region.

According to the documents, Agstafasud Production Complex and Agstafa Agroservis will be established in Aghstafa region.

" Agstafasud Complex will produce 50 tons of milk a day and 5 kinds of dairy products, including heat-treated milk, yogurt, sour cream in the first two years. The complex will produce more than 18 million liters of milk products per year, as well as breeding animals, milk, meat etc. Butter and other products will be produced from the third year.
The construction of the complex is scheduled to begin at the end of the first quarter of 2010 and will be put into operation in the same period in 2011. The enterprise will create 130 permanent jobs. According to preliminary calculations, the total project cost will amount to â‚¬30 million. Of these, â‚¬5 million will be initial capital, of which â‚¬4 million will come as foreign investment, and â‚¬1 million from the AIC. The remaining â‚¬25 million will come from European banks and credit agencies. The AICâ€™s share will be 20% ", he added.

Referring to Agstafa Agroservis, he added that the total project cost will amount to â‚¬3 million, of which 25% will come from the AIC, and the rest from foreign investors.

The authorized capital of the company is â‚¬1 million.

"Construction will be launched at the end of the first quarter of next year and it will be operation after 6 months. It will employ 17 people,â€ he added.
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The development and supervision of the construction of Agstafasud Complex will be carried by the representatives of German companies - Wolf System, SHS Architecture-Engineering Management, and from the Azerbaijani side - the specialists of the Azermemarlayihe State Institute of Planning.