Azerbaijan, Baku, July 1 / Trend , E. Tariverdiyeva/
New joint venture launched by Ganja Automobile Plant and Belarus Tractor Plant in Azerbaijan has launched production, Belarus ambassador to Azerbaijan Nikolai Paskevic said.
"The work will be in full swing already this year. Our tractors are in high demand and I hope that Azerbaijan will soon be exporting agricultural equipment," Paskevic said.
The new joint venture will engage in production of Belarusian tractors in Azerbaijan and their marketing in a third country.
In early May, an agreement was signed by the Ganja Automobile Plant and Minsk Tractor Works (Belarus) to establish a joint venture. JV's production capacity will be 8,000-10,000 tractors per year.
Turkey is expected to be major sales market. Last year, import of tractors to Turkey totaled about 23,000 units, with domestic production totaling 8,000. Currently, the final negotiations underway to open plant's representation in Turkey which will be located in Istanbul. Products will be supplied to Iran, Georgia and possibly to southern Russia.
Ganja Plant intends to sell 300 to 500 tractors in per year. However, under the law, it is necessary to provide full after-sales service technology and repairs facilities throughout the country to market the products in Turkey. To address this issue, Ganja Plant intends to establish partnership with one of the Turkish companies. At present, negotiations on this issue are nearing end.
Today Ganja Automobile Plant assembles products of Minsk Tractor Works for the domestic market. According to market research, the plant has the capacity to produce to 5,000 tractors for the local market per year.
The contract for the assembly and sale of entire range of trucks and tractors produced by Minsk Automobile and Tractor Works in Azerbaijan was signed in Minsk in late November 2006.
Assembling is performed in an area of 15,000 square meters.
Ganja is located western Azerbaijan 265 kilometers outside Baku.
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