This is a fast growing sector, with the total output reaching 246.5 million AZN in 2013. Machinery for Oil and Gas constitutes 25% of the total machinery production. Azerbaijan has a well developed Oil and gas machinery with more than 150 years experience. Today this sektor has big export potential. The remaining 75% of production consists of consumer, agricultural and automotive equipment. Azerbaijan has a number of centres of machinery production. Baku is a centre of radio-electronics production. The Baku Shipbuilding Plant produces small back-up vessels. The Automobile Plant in Ganja, produces Belarus tractors and special trucks. The Nakhchivan Automobile Plant was put into operation in 2010, and manufactures the Chinese “Lifan” brand of automobiles.
Azerbaijan has a long heritage in the Chemicals Sector. Before 1990, it produced over 70% of key chemicals for the Soviet Union. Production declined after Independence, but since 2009, the value of chemicals produced in Azerbaijan has grown to reach 187 Million Manats in 2013. Chemical production is located in Baku, Sumgait, and west of Absheron in Ganja, Salyan and Neftchala, due to the availability of the main source materials. These include oil and gas, salt, iodine-bromide mine water, and waste of ferrous metals. The Government wants to move Chemical production towards high-technology techniques, and it is regulating production to the highest standards of environmental protection.
A key part of this strategy is Sumgait Chemical Industrial Park (SCIP). According to the master plan of the SCIP, the park will include territories planned for production of agricultural, medical, consumer, construction industry, electronics and automotive chemicals, polymers and industrial equipment. In particular, this location has rail access to the Alat Sea Port, giving market access to Central Asia. The European market is accessible through the Baku-Tbilisi-Kars railway. Although the chemical sector is dominated by the state chemical company, Azerkimya, there are successful foreign investors, including the German company BASF.