Caspian Energy (CE): Mr. Babayev, active development of non-oil sector has started in Azerbaijan. Reforms, offered by President of Azerbaijan Ilham Aliyev in this sphere, cover all areas, including industry. What are the prospects of development of the aluminum industry in Azerbaijan in particular?
Sarkhan Babayev, General Director of Detal Holding:Azerbaijan is an oil country. This factor has been efficiently used in both external and internal policy of our country as one of the major tools aimed at strengthening its economic power. In the meantime, development of the non-oil sector is also of paramount importance in the economic policy of the state. For this reason, the non-oil sector’s share, characterizing the development of our country, increased by 7-8 times over the past 13 years. Creation of Detal Alüminium complex has been the result of work carried out in this direction. After rapid decline of oil prices at the global market, the state started attaching more importance to the aluminum industry. Development of this industry has become one of the priorities of the economic policy of the country.
CE: To what extent have the economic problems at the global market, oil prices and other aspects influenced on this sector?
Sarkhan Babayev: It is commonly known that oil producing countries finance big infrastructure and construction projects at the expense of profits gained from oil. Naturally, decline of oil prices caused the decline in cost of aluminum and aluminum products.
In this regard Detal Holding mobilized all its capacities and advanced global practice in order to minimize the impact of emerged negative factors.
CE: Is the company planning to switch to the closed cycle production which leads to considerably saving of raw material as well as electricity?
Sarkhan Babayev: The Company’s strategic plans for the next 5 years are to use local resources in our production, further deepen processing of currently produced semi-finished products and accordingly ensure obtaining end products. We, as Detal Holding, hope that intensive transformations carried out by the government, will promote broad effectiveness in this direction. A large network of small and medium enterprises will be created in coming years around Ganja Aluminum Complex of our Holding. It is noteworthy that small business entities possess a substantial potential in this direction. Detal is ready to lend any support to these business entities so that to inspire them to produce aluminum products.
CE: What products can Detal Aluminum offer today to reach a value added from raw materials designed for end products?
Sarkhan Babayev: Detal has been currently exporting its products to over 17 countries of the world. These products are aluminum ingots, coils and sheets as well as several sorts of end products. Semi-finished products are used in the construction sector, packaging sector, manufacturing of industrial products vehicles as well as in production of different end products.
Our country is currently importing products of this category. The major part of these goods can be manufactured out of semi-finished products produced by us.
CE: Which areas does the Holding develop? Which areas are in particular demand at the market?
Sarkhan Babayev: At present, the priority for the holding is to increase the volumes of production of semi-finished products. The preferential is production of high cost semi-finished products, mainly painted aluminum sheets and coils 0.15-0.20mm in thickness. Production of these products requires high-tech knowledge and professional skills and in this regard our holding is relying on its professional team of engineers-technologists, who are also a major strategic resource of the holding. At the same time, the process to supply products manufactured owing to the introduction of know-how and advanced technologies is ongoing.
CE: To what extent has the export of finished products been increased?
Sarkhan Babayev: During the first years of activity Detal Alüminium sold semi-finished products only to Russia and Belarus. Later, accumulated experience, introduction of the European and ISO-standards, international certificates received by us made it possible to export products to the leading European countries.
Nowadays we are exporting 99% of products produced by us to the external markets. 45% of them fall to the share of the EU countries.
CE: Which projects does the Holding plan to develop in future?
Sarkhan Babayev: Aluminum is a widely used metal. Its properties cause versatility of its use. We prefer aluminum sorts which are widely used in construction, automobile industry, packaging sector, etc.
We hope to get high profits from production of new sorts of aluminum facing materials, which are mainly used in the construction sector.
Taking into account that aluminum is a broadly used material, it will stay in demand in future as well. Detal plans to use this potential and relies on support and further creation of the favorable legal and business atmosphere by the state.
Thank you for the interview
Interview made by Jeyhun Bayramov, Emil Mammadov