Industry

Industry - is one of the main areas of Azerbaijani economy. Natural resources, skilled human resources, labor resources, labor skills and potential consumers defining its development of the country is enough. However, these opportunities are not being used effectively, industrial fields producing end product is less.

There are a lot of variances in territorial organization of the industrial areas in the country. 60% of the industrial products produced in the country, 57% of the main production funds are located in Absheron economic region.  

The country\'s economic sectors, particularly industrial enterprises are located in different industrial junctions formed under the influence of natural and socio-economic factors. Baku- Sumgait, Ganja-Dashkesan, Shirvan-Salyan, Mingachevir-Yevlakh, Goychay-Nakhchivan, Lankaran-Shaki, Khachmaz are the major industrial networks.

Fuel and energy complex is based on local energy resources (oil). The main sources of fuel: oil and gas, hydropower resources of rivers, sun and wind.

Oil (mainly spread in Neozoic layer) industry

More than 100 years the oil is extracted with technical equipment and rich experience is collected in this area. The first oil fields drilled in Azerbaijan include: Balakhany, Sabunchu, Ramana, Surakhany, Bibi-Heybet, Binagadi, etc. During World War II Azerbaijan produced 75% of Soviet oil. In 1949 Oil Rocks was established in the sea, in the 70-es Sangacal-Sea and Duvani-sea was drilled.

Kura River depression: there are Kurovdag, Muxadkhanlı (Mesozoic layer), Mollakend, Kamaladdin deposits. In 1998, 11.4 million tons of oil extracted in Azerbaijan. Although on-shore oil reserves decreased, but a lot of new oil fields were discovered in the Caspian Sea (Azeri, Gunashli, Chirag, Shahdeniz, Karabakh, etc.). Among them the largest is the Azeri field, which is rich both with the oil and gas. 90 oil products distinguished with structure in the world are produced from Azerbaijani oil. The most important of them is oil, gasoline and oil, etc. Oil from Azerbaijan are being transported by the Baku-Novorossiysk, Baku-Supsa (Georgia) and Baku-Tbilisi-Ceyhan (Turkey, since 2006) pipelines.

90% of the gas in Azerbaijan is extracted from from the Caspian Sea off-shore. The largest onshore fields are the Karadag-Gobustan, Gurgan-Zira and others. 6 billion m3 of gas extracted in the country. The largest natural gas fields in the Caspian Sea are Shah Deniz. In the future, the Azerbaijani gas will be sold to Turkey through the Baku-Erzurum gas pipeline.

Azerbaijan is rich in power base. Total capacity of all electrical stations is 5 million kwt. The most of them, 80% is produced by TPP, and 20% by the HPP. Annually 3300 Kilowatt per capita of energy is produced. 

TPP-s are divided into 2 parts: 1. SDPS (state district power station); 2.TPC (thermal power center) – it produces the steam besides the electricity. TPC-s were mainly established in Baku, Sumgait, Ganja, Mingechevir, Shirvan. The most powerful TPC (1.2 million Kwt) is the first open state district power station in Shirvan and Europe. The first TPC (Red Star and Sabunchu) have been constructed in Baku. Then 2 TPC were built in Sumgait. Then the thermal power plant was built in Ganja and Mingechevir. Latest state district power station established in the north of the Absheron peninsula, The North TPC.

In addition, the HPS (hydroelectric power stations) have been operating in Azerbaijan, which are  built on rivers with hydropower resources. the first hydroelectric power station was built  in country in Qalakand of Gadabay region. Cascading HPS were built on the Kura River, too. The most powerful (360 thousand kW) HPS is Mingachevir HPS. The water reservoir here serves for irrigation and regulation of stream, and also to prevent floods. Varvara HPS in Yevlakh, Shamkir HPS, Yenikand HPS, Sarsang (Tartar) HPS, Araz HPS do not use full of hydroelectric power of the Azerbaijan\'s rivers. The electricity network of Azerbaijan is coordinated with Russia, Georgia, Iran, Turkey. There is ecologically clean, long-term, wind, solar and geothermal (hot water) sources in the country.

Machine-building complex covers energy, electrical engineering, radioelectronics, instrument-making, machine-tool construction, transport, agriculture, etc. fields of engineering, which interact with each other. The machine-building is ranked 1 for number of employees, for the value of manufactured products among the industries. Although the demand for various products of the engineering industry, many areas of modern engineering do not developed. Until the last years the engineering industry of Azerbaijan specialized in the field of petroleum engineering. It produces ¼ of the gross output in this area. 

One of the largest enterprises in the oil machinery is Bashneflkimmash Union. This enterprise exports its products to 40 countries. Stationer platforms manufactured in Baku deep sea water piles plant located in Sahil settlement, it is possible to drill well in 200-300 meter of dept in the Caspian Sea. Other large enterprises related to the oil machinery of Azerbaijan are plant named after Sattarkhan, Keshla engineering plant, Binagadi clay and steel plants. After construction of electric plant in Baku, Azerbaijan does not purchase from abroad the cast steel more.  For recent years in addition to oil machinery electrical engineering, electrical devices, radioelectronics etc newer areas were developed. The field of electronics requires highly skilled personnel and raw materials. The largest electrical engineering companies in Azerbaijan are as follows: in Baku: air-conditioners, refrigerators, battery, lamps, transformers manufacturer factories, in Shamakhi Star TV, cable plant in Mingechevir, Salyan water heaters plant, etc. Radio electronics factories in Baku: ECM plant, the Baku radio, Nord, Azon, etc. plants. Transport machinery are the car and shipbuilding plants. In shipbuilding plant in Baku small tugs are manufactured. In Baku car plant cargo and passenger motor vehicles are manufactured. In Ganja automobile plant Oka cars and Belarus tractors are manufactured. In a car plant in Shamakhy Azsamand and Aziz cars are manufactured. 

In Zayam and Mingachevir agricultural machinery are being manufactured. For the volume of products manufactured the chemical industry of Azerbaijan occupies the 3rd place after the fuel and energy industry among the heavy industry and machine-building. The chemical industry of Azerbaijan functions based on oil and gas, table salt, iodine-bromine mineral (bore) water, non-ferrous metal waste and partly on the basis of imported raw materials. The  1st chemical plant in Azerbaijan was built in 1879. But Sumgayit is Azerbaijan\'s largest chemical center. In chemical facilities synthetic rubber, car tires, plastics, synthetic fiber, mineral fertilizers, soda, chlorine, iodine, washing powders, soap, medicines, etc. are produced. There are favorable conditions in Baku-Sumqayit industry junction abundant with raw materials, labor force and energy for the development of the petrochemical industry. Baku\'s oil and gas plants, oil and the New Baku refinery manufactures oil, diesel fuel, lubricating oils, etc.  

Azerbaijan\'s largest chemical enterprise is Kimyasanaye union in Sumgayit. Other large-scale chemical plants of Azerbaijan in Sumgayit are Superphosphate, Household Chemistry, Organic Synthesis, Synthetic rubber, Tyre in Baku; Salyan Plastics; Ganja, soap, paint and varnish; pharmaceutical entities in Baku, Boyuk Shor, Bakikhanov settlements, Neftchala iodine-bromine plants. Chemical plants manufacture cheap products saving the valuable natural raw material. However, these plants pollute the ecology (air, water, soil). It is possible to solve the problem by installing modern cleaning technology, equipment and plants.

The country has the following opportunities for the development of metallurgical industry: 1 Availability of abundant and diverse raw material base and various metal wastes. 2. Availability  of local energy resources - oil and natural gas. 3. Availability of industrial and construction sectors using metal. 4. An experienced staff and labor resources. 5. The possibility of creation of new areas on the basis of existing material-technical base. Metallurgy is divided into 2 parts: ferrous and non-ferrous metallurgy.

Ferrous metallurgy includes iron ore extraction and refining, iron and steel melting, rolling and ferroalloys manufacture. The largest centers of ferrous metallurgy are Sumgayit, Baku and Dashkesan. Dashkesen is the largest mining industry center of Azerbaijan. In Dashkasan ore purification plant is operating near the iron ore deposit. Then the ore from this plant is sent to  Georgia\'s Rustavi metallurgical plant. Because there is no coke coal for melting the iron ore in Azerbaijan. And in tube-rolling plant in Sumgait the last product of ferrous metallurgy pipe and rolling are manufactured. The creation of the tube-rolling production is associated with the development of oil and gas industry. In connection with the development of mechanical engineering and metal waste the secondary metal processing plants and small metal shops function on the Absheron peninsula. The role of bentonite clay field in Dash Salahli village of Kazakh region is big in development of ferrous metallurgy. This clay is used in steel melting. As seen from the above the ferrous metallurgy passes thru the following steps: mined iron ore is refined and cast-iron-steel-rolling.

A strong enough electric power alunite, molybdenum, mercury, polymetallic ore deposits for the development of non-ferrous metallurgy is available in Azerbaijan. Non-ferrous metallurgy consists of the following entities: Sumgayit and Ganja aluminum plants, non-ferrous metals processing plant in Baku and Ganja, Sumgayit aluminum rolling mill. As a result of abundant raw materials and electric power the non-ferrous metallurgy industry has developed more in Absheron, Ganja-Kazakh regions; but it is possible to develop in the future in Sheki-Baku, the Upper Karabakh and Kalbajar-Lachin regions. Aluminum industry in Azerbaijan developed more in Sumgait, Ganja and consists of stages of the production of aluminum oxide and aluminum. Thanks to Zaylik alunite field in Dashkesen and plenty of electric power the plant has been operating in Ganja. The factory manufactures the aluminum oxide, sulfuric acid, potassium fertilizer, etc. Powder metallurgy is the youngest in the field of metallurgy. The plant has been operating in Baku manufacturing fabricated metal products from various scraps. There are all conditions for the development of metallurgy: abundant raw materials and energy, highly qualified staff. As metallurgy consumes much raw material and fuel, so such type of plants are built in vicinity of raw base and sometimes among them.

Azerbaijani forests are not for supply. There are mainly the sanatorium, soil and field, water and road forests. Forest industry is divided into: mechanical processing (wood, ply, construction wood) and chemical processing (paper - cellulose). The mechanical process dominates in Azerbaijan, i.e. the furniture industry - the wood, log required, is imported from Russia. Furniture factories mainly are located in consumer areas (Baku, Ganja, Sumgayit, Nakhchivan, Baku, Shaki, Lankaran, such as large cities).

Local solid oak, beech, hornbeam, walnut, mulberry, chestnut wood are used for manufacture of furniture, doors, windows, frame, parquets.

The building industry consists of 3 main areas: 

1. Mineral construction raw materials - sand, gravel, stone, marble.

2. Masonry materials - cement, lime, gypsum.

3. Construction materials - concrete and iron - concrete wall material, panels.

Construction has developed mainly in the Absheron peninsula. There are a lot of stocks of stone, glass, construction sand, and ceramics. Sawn stone is manufactured in Gozdak, Shuvalan, Korgoz quarries. In Garadagh - cement plant, in Baku – ferroconcrete construction plant, asbestos, brick, plants are located.

The second place in construction comes to the Ganja - Kazakh economic region. In Ganja - house-building and industrial construction plant, in Gazakh - reinforced concrete, in Dashkesan and Tovuz - a variety of construction plants are available.

The 3rd place occupier by Mingechevir -Sheki region. In Mingechevir reinforced concrete, In Sheki, Baku, Yevlakh - brick, pottery, lime are manufactured.

The fourth is for economic region of Karabakh. Stone and reinforced concrete were manufactured in Agdam, Khankendi, Shahbulag.

Fifth place is fro Nakhichevan with glass manufacture.

The leading area in Azerbaijan is light and food industry.

Light industry is in second place for the volume of products. 80% of manufactured industrial goods belong to textile industry. Mainly cotton, silk, wool fabric is woven in country.

The wool raw historically was much in Azerbaijan. The wool\'s share in textile is 11%. It serves to weaving of local carpet and very old area. Carpets woven in Guba, Shirvan, Ganja, Kazakh, Baku, Karabakh, Nakhchivan and Ganja in particular are the famous carpets. Cotton also serves carpet weaving. Threads are dyed with local color.

Silk fabric is a traditional area. In this area, Sheki, Shamakhi, Ordubad, Basqal (Ismayilli) are distinguished. The main raw material of sericulture is silkworm. Silk and cotton historically have been carried out from Azerbaijan to European markets on the Great Silk Road.

Cotton cloth manufacture has historically dominated by primitive treatment and weaving. At present, in addition to cotton cloth factory there are 14 cotton-refining plants. In this field Ganja and Mingechevir cities are distinguished in particular. 

Clothing industry has developed mainly in the big cities. At the same time there are shoe and leather plants in Baku and Ganja.  

The food industry constitutes 30% of Azerbaijan’s industry. It specialized fields are wine making, fruit and vegetable-canning, meat, milk, etc., is

Wine-making is the most profitable area of the food industry. The initial production is carried out in grape growing regions and filling in bottles in Baku, Ganja, Shamkir, Goychay, and Nakhichevan. 

Canning industry - is located in vegetable growing and gardening regions. The largest plant of fruit and vegetables is in Khasmass. Furthermore, there are canning factories in Guba, Gusar, Khudat, Ordubad, Gakh, Lankaran, Ujar, Goychay. Nut factory in Zagatala, the plant of olive canning operates in Mashtaga.

Meat and dairy industry - mainly located around the city. There are meat factories in Baku (Khirdalan meat), Ganja, Sheki, Mingechevir, Shirvan, Baku and Nakhchivan.

Fishing - based on the Caspian Sea and the Kura River. The largest one is located in the mouth of Kura River, the Banka fish plant. Here sturgeon and black caviar are processed. In addition, the fish plant is available in the settlement of Hovsan in Baku. Fish plants function also in Lankaran, Khudat (Khachmaz), Mingechevir. Fisheries were established in order to reproduce fish. Fish is grown in Sansu and Hajigabul lakes, too.