Azerbaijan, Baku, May 6 / Trend , S.Aliyev/
A new joint venture for the production of Belarusian tractors in Azerbaijan will launch its activities in July, Head of the Ganja Automobile Plant (Azerbaijan) Khanlar Fatiyev said on May 6.
On May 4, the Ganja Automobile Plant and Minsk Tractor Plant (Belarus) signed an agreement in Belarus to establish a joint venture.
"By July, all issues will be solved on registration of the enterprise and then it will launch its activities," Fatiyev said. Capacity of the JV will be 8,000-10,000 tractors per year.
Turkey is considered as the main sales market. In 2008, the import of tractors to this country amounted to 23,000 units with domestic production at 8,000. Currently, the final negotiations are being held to open its own representation in Turkey which will be located in Istanbul. Products will be delivered to Iran, Georgia and, possibly, to the south of Russia.
In 2009, the Ganja Plant intends to sell 300 - 500 tractors. However, under the law, it is necessary to provide full after-sales service technology and establish facilities for its repair throughout Turkey to sell them in this country. To solve this issue, the Ganja Plant intends to establish partnerships with one of the Turkish companies. At present, negotiations on this issue are finishing, Fatiyev said.
The Ganja Automobile Plant assembles the production of the Minsk Tractor Plant.
According to market research, the plant has the opportunity to produce up to 5,000 units for the local market in the current territories.
The contract was signed in Minsk in late November 2006 to assemble and sell the Minsk Automobile and Tractor Factory's trucks and tractors in Azerbaijan.
The assembling is carried out in the 15,000-square-meters of territory.
Ganja city is located in the west of Azerbaijan and 365 kilometers of Baku.
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