Sumqayıt, Azerbaijan – China National Electric Engineering Co (CNEEC) has signed a memorandum of understanding (MoU) to build a new tire plant in Azerbaijan.
The plant will be located in Sumqayıt Chemistry Industrial Park, according to an article published by Azerbaijan State News Agency on 26 April.
Under the MoU signed in April, the project involves an investment of around €270 million and 3.3 million units of designed annual capacity.
Output is to include 3 million passenger car tires and 300,000 unit truck tires, according to reporting by local newspaper Azeri Daily on 2 May.
CNEEC and private equity firm Azerbaijan Investment Company (AIC) currently plan to set up a 90-10 joint venture for the project.
AIC’s stake could be raised after further negotiations, said the Azeri Daily article, noting that plant construction will be carried out by CNEEC.
The tire plant will create 800 new jobs and is expected to supply to Azerbaijan and neighbouring countries.