The largest steel producer in the South Caucasus, Baku Steel Company CJSC (hereafter – BSC), has completed the first phase of a large-scale modernization project at the Azerboru Production Area in Sumgayit city. The project is being implemented within the framework of the company's long-term development strategy and is an important step in transforming Azerboru into a modern, high-tech production facility focused on export-oriented products.
Strategic initiatives of the Company in the seamless steel pipe manufacturing sector are supported by two factors:
• The international certification obtained from the American Petroleum Institute (API) in November 2024. Following an annual inspection in May 2025, the full compliance of manufacturing processes with API requirements was confirmed, opening up opportunities for expanding the export of pipe products, including the U.S. market.
• Technological modernization implemented at BSC's Steelmaking facility in Baku during 2024-2025 aimed at improving the quality of steel billets for the production of new grades of pipes. The commissioning of the Vacuum Degassing Unit, mastering the closed cycle billet casting technology, and the use of modern equipment for the addition of alloying elements to the melt are among the significant projects. Internal quality management standards are also continuously being improved.
The main objectives of the first phase of Azerboru's modernization are:
- Increasing the pipe production volume;
- Expansion of the product range for both local and export markets in new size ranges and strength classes;
- Establishment of a technological base for future product development.
- Entering markets with high-tech products that offer significant added value is what will distinguish BSC in the region.
Partners specialized in equipment and engineering from Spain, Italy, Germany, Russia, India, the Czech Republic, and Ukraine have been involved in the implementation of the project. The main partners include Danobat, Lazzari, GH, Karl Deutsch, Nordinkraft, Prestar and other leading companies in the sector.
The main projects according to the stages of the production cycle are:
In the hot rolling section, as part of the modernization, a major overhaul of the TPA-250 rolling mill was carried out with the elements of equipment upgrades. The main components of the rolling mill and heating furnace were replaced, preparations were made for the installation of an induction heating system for the pipes in the rolling line manufactured by GH Induction/Ajax TOCCO and a new Lazzari straightening machine. The new equipment enhances the productivity of the line and enables the production of new types of pipes. All these works have been completed safely, with the total work volume exceeding 15,000 man-hours.
Significant changes took place in the field of protective pipes. Modern Danobat equipment for threading pipes and couplings, automated pipe transportation lines, and coupling installation complexes have been put into operation here, which significantly increases productivity and ensures stable quality of coupling connections.
The quality control system has also been significantly strengthened. A new ultrasonic device of Nordinkraft company and a magnetic particle flaw detector from Karl Deutsch have been put into operation – equipment enabling precise diagnostics of the quality of pipes and couplings.
The modernization allowed the company to create a modern production environment that meets the principles of energy efficiency and sustainable development. New generation equipment reduces energy consumption, minimizes raw material losses, and ensures the consistent quality of the manufactured products. Thanks to automated control systems, technological processes are monitored precisely and flexibly.
Additionally, the installation of a wastewater treatment plant in the coupling zinc-coating area has been completed, and its commissioning is expected in the near future. This system reflects the company's commitment to minimizing its environmental impact and adhering to principles of sustainable development.
Results of the first phase of modernization:
- Production capacity has been doubled, reaching up to 60 thousand tons.
- Production in the new size range has begun, up to 245 mm in diameter and 20 mm in wall thickness.
- The serial production of new product classes, including the P110 class, has been mastered.
- Personnel have been trained to work with modern equipment, and the overall qualification level of employees has increased.
The implementation of the first phase of the Azerboru modernization is not only an important production result, but also a proof of the BSC's ability to build a sustainable development model based on technological solutions, international partnerships, and strategic vision. The company will continue to develop its production capabilities, expand the range of products, and improve their quality, strengthening its role as a leading player in the metallurgical sector of Azerbaijan and a reliable supplier in the global market.