Azerbaijan, Baku, March 6 / Trend N.Ismayilova /
The project on construction of an accumulator pant in Azerbaijan together with Serbia will cost around 300 million euros, Serbia-Azerbaijan Commerce Chamber President Mirko Barac told Trend in Baku.
"The project will be implemented through a joint investment worth 300 million euros. The total amount of funding may exceed this amount, since the work will be carried out in phases," Barac said.
He said the negotiations are still underway and will be completed within two months. Preparatory work for holding the first tender on the project has been completed.
"Transportation of accumulators is quite an expensive process, so the establishment of production here will save 30 percent of costs that could be spent on payment of charges for shipping and customs duties," he said.
Barac said the project also has environmental significance.
"Earlier, Azerbaijan has not have a recycling of old accumulators, now they are gathered and in the future they might be used in production," he said. The project realization will take about 18 months.
"The first phase of the project stipulates production of 1.5 million accumulators a year, after which the plant's capacity will be increased, since we are interested not only in Azerbaijan's market, but also in the former Soviet Union's," Barac said earlier.
The Farmakom MB Company [Somborsky Accumlator Plant] has already presented its accumulators on the Azerbaijani market, in particular, well-known models such as the Black horse and the White horse.