Identifier
Created
Classification
Origin
06BAKU1595
2006-11-02 13:49:00
UNCLASSIFIED
Embassy Baku
Cable title:
THE IMISHLI SUGAR FACTORY: A NON-OIL SECTOR
how-toVZCZCXRO7588 PP RUEHDBU RUEHLN RUEHVK RUEHYG DE RUEHKB #1595/01 3061349 ZNR UUUUU ZZH P 021349Z NOV 06 FM AMEMBASSY BAKU TO RUEHC/SECSTATE WASHDC PRIORITY 1605 INFO RUCNCIS/CIS COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY 1811 RUEHIT/AMCONSUL ISTANBUL PRIORITY 0008 RUEHGV/USMISSION GENEVA SZ PRIORITY 0221 RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 BAKU 001595
SIPDIS
SIPDIS
USTR FOR CELIA KLEIN
DEPT PLEASE PASS TO USTDA DAN STEIN
DEPT FOR EB, EUR/CARC, EB/TRA/AN, EB/CIP GROSS, EB/CBA
MERMOUD
E.O. 12958: N/A
TAGS: ETDR ECON EAGR EIND PGOV PREL AJ
SUBJECT: THE IMISHLI SUGAR FACTORY: A NON-OIL SECTOR
DEVELOPMENT SUCCESS STORY
UNCLAS SECTION 01 OF 02 BAKU 001595
SIPDIS
SIPDIS
USTR FOR CELIA KLEIN
DEPT PLEASE PASS TO USTDA DAN STEIN
DEPT FOR EB, EUR/CARC, EB/TRA/AN, EB/CIP GROSS, EB/CBA
MERMOUD
E.O. 12958: N/A
TAGS: ETDR ECON EAGR EIND PGOV PREL AJ
SUBJECT: THE IMISHLI SUGAR FACTORY: A NON-OIL SECTOR
DEVELOPMENT SUCCESS STORY
1. (U) SUMMARY: The Imishli Sugar Factory is credited with
bringing much-needed development to the rural and
impoverished Imishli region. Owned by agricultural
import-export conglomerate Azersun Holding, the factory
processes 5,000 tons of sugar beets and refines 1,000 tons of
raw sugar daily. Annually, the factory produces 300,000 to
450,000 tons of crystal sugar, an accomplishment which has
allowed Azerbaijan to become a sugar exporter. 2,000 workers
are engaged in sugar production within the factory, and an
additional 45,000 employees work the 7,000 hectares of
sugar-beet seeded land in the rural regions. Azersun Holding
cooperated with the American company Valmont Industries, Inc.
to develop a successful pilot irrigation project for sugar
beet production. In addition, the Imishli Sugar Factory
supplies all of Coca Cola and Pepsi Cola's sugar needs in
Azerbaijan. END SUMMARY
AN INTERNATIONAL ENDEAVOR
--------------
2. (U) Located in the Imishli region, approximately 230
kilometers southwest of Baku, the Imishli Sugar Factory
occupies 108 hectares of land. The factory was constructed
over a two-year period, and became operational in March, an
occasion publicly commemorated by President Ilham Aliyev's
participation in the March 23 inauguration. Most of the
technical equipment for the factory was imported from Germany
- a whopping 90 percent - but equipment from Ukraine, Turkey,
the Czech Republic, and the United Kingdom was used as well.
Local companies completed most of the factory's construction,
with the assistance of specialists from Ukraine, Turkey, the
Czech Republic, and Poland. Approximately USD 87 million has
been invested in the factory.
PRODUCTION AND EMPLOYMENT
--------------
3. (U) Since becoming operational, the Imishli Sugar Factory
has processed an average of 5,000 tons of sugar beets and has
refined 1,000 tons of raw sugar each day - producing a total
300,000 to 450,000 tons of crystal sugar annually. Production
is expected to increase to 500,000 tons per year in the near
future, as Azersun Holding moves forward in its plan to
invest an additional USD 15 million into the factory. Within
the sugar factory Azersun Holding employs 2,000 workers, in
addition to the 45,000 employees involved in the farming of
7,000 hectares of sugar-beet seeded land throughout
Azerbaijan's rural regions.
THE SUGAR MARKET
--------------
4. (U) Prior to the opening of the sugar factory, due to the
lack of domestic-processing capability, Azerbaijan's sugar
beets were processed abroad. Now, due to the factory's high
processing ability, there is a demand for more raw product -
equally increasing the demand for more land to be designated
for sowing sugar beets. U.S. irrigation company Valmont
Industries is helping Azerbaijan increase its production of
sugar beets through a USD 5.7 million pilot project that
brings modern irrigation and farming technology to this
growing sector. Valmont hopes to expand its project through
an additional USD 15 million investment. In addition, the
factory processes and refines raw sugar from abroad, which
eliminates the need for sugar imports and allows Azerbaijan
to export sugar as a finished product - primarily to Russia,
Iran, and Georgia. Domestic production of sugar is expected
to counter foreign influence on the local market and to
prevent to outflow of currency abroad.
WORK WITH AMERICAN COMPANIES
--------------
5. (U) Mujahit Hun, the Director General of the Imishli Sugar
Factory told Emboff that the factory is the sole sugar
supplier for American companies Coca Cola and Pepsi Cola in
Azerbaijan. According to Hun, Coca Cola alone consumes three
percent of the factory's daily output. Azersun's cooperation
with Nebraska-based Valmont Industries is key to Azerbaijan's
ability to supply sugar beets to the factory.
BAKU 00001595 002 OF 002
COMMENT
--------------
6. (SBU) Viewed in terms of production as well as the
significant development it has brought to the Imishli region,
the Imishli Sugar Factory can be lauded as a success in
Azerbaijan's non-oil sector development. In addition, Azersun
Holding's work with American Valmont Industries, Inc. has
brought modern farming technology to Azerbaijan - critical to
the development of Azerbaijan's agricultural industry. We
hope to attract more U.S. firms to this and other non-energy
sectors.
DERSE
SIPDIS
SIPDIS
USTR FOR CELIA KLEIN
DEPT PLEASE PASS TO USTDA DAN STEIN
DEPT FOR EB, EUR/CARC, EB/TRA/AN, EB/CIP GROSS, EB/CBA
MERMOUD
E.O. 12958: N/A
TAGS: ETDR ECON EAGR EIND PGOV PREL AJ
SUBJECT: THE IMISHLI SUGAR FACTORY: A NON-OIL SECTOR
DEVELOPMENT SUCCESS STORY
1. (U) SUMMARY: The Imishli Sugar Factory is credited with
bringing much-needed development to the rural and
impoverished Imishli region. Owned by agricultural
import-export conglomerate Azersun Holding, the factory
processes 5,000 tons of sugar beets and refines 1,000 tons of
raw sugar daily. Annually, the factory produces 300,000 to
450,000 tons of crystal sugar, an accomplishment which has
allowed Azerbaijan to become a sugar exporter. 2,000 workers
are engaged in sugar production within the factory, and an
additional 45,000 employees work the 7,000 hectares of
sugar-beet seeded land in the rural regions. Azersun Holding
cooperated with the American company Valmont Industries, Inc.
to develop a successful pilot irrigation project for sugar
beet production. In addition, the Imishli Sugar Factory
supplies all of Coca Cola and Pepsi Cola's sugar needs in
Azerbaijan. END SUMMARY
AN INTERNATIONAL ENDEAVOR
--------------
2. (U) Located in the Imishli region, approximately 230
kilometers southwest of Baku, the Imishli Sugar Factory
occupies 108 hectares of land. The factory was constructed
over a two-year period, and became operational in March, an
occasion publicly commemorated by President Ilham Aliyev's
participation in the March 23 inauguration. Most of the
technical equipment for the factory was imported from Germany
- a whopping 90 percent - but equipment from Ukraine, Turkey,
the Czech Republic, and the United Kingdom was used as well.
Local companies completed most of the factory's construction,
with the assistance of specialists from Ukraine, Turkey, the
Czech Republic, and Poland. Approximately USD 87 million has
been invested in the factory.
PRODUCTION AND EMPLOYMENT
--------------
3. (U) Since becoming operational, the Imishli Sugar Factory
has processed an average of 5,000 tons of sugar beets and has
refined 1,000 tons of raw sugar each day - producing a total
300,000 to 450,000 tons of crystal sugar annually. Production
is expected to increase to 500,000 tons per year in the near
future, as Azersun Holding moves forward in its plan to
invest an additional USD 15 million into the factory. Within
the sugar factory Azersun Holding employs 2,000 workers, in
addition to the 45,000 employees involved in the farming of
7,000 hectares of sugar-beet seeded land throughout
Azerbaijan's rural regions.
THE SUGAR MARKET
--------------
4. (U) Prior to the opening of the sugar factory, due to the
lack of domestic-processing capability, Azerbaijan's sugar
beets were processed abroad. Now, due to the factory's high
processing ability, there is a demand for more raw product -
equally increasing the demand for more land to be designated
for sowing sugar beets. U.S. irrigation company Valmont
Industries is helping Azerbaijan increase its production of
sugar beets through a USD 5.7 million pilot project that
brings modern irrigation and farming technology to this
growing sector. Valmont hopes to expand its project through
an additional USD 15 million investment. In addition, the
factory processes and refines raw sugar from abroad, which
eliminates the need for sugar imports and allows Azerbaijan
to export sugar as a finished product - primarily to Russia,
Iran, and Georgia. Domestic production of sugar is expected
to counter foreign influence on the local market and to
prevent to outflow of currency abroad.
WORK WITH AMERICAN COMPANIES
--------------
5. (U) Mujahit Hun, the Director General of the Imishli Sugar
Factory told Emboff that the factory is the sole sugar
supplier for American companies Coca Cola and Pepsi Cola in
Azerbaijan. According to Hun, Coca Cola alone consumes three
percent of the factory's daily output. Azersun's cooperation
with Nebraska-based Valmont Industries is key to Azerbaijan's
ability to supply sugar beets to the factory.
BAKU 00001595 002 OF 002
COMMENT
--------------
6. (SBU) Viewed in terms of production as well as the
significant development it has brought to the Imishli region,
the Imishli Sugar Factory can be lauded as a success in
Azerbaijan's non-oil sector development. In addition, Azersun
Holding's work with American Valmont Industries, Inc. has
brought modern farming technology to Azerbaijan - critical to
the development of Azerbaijan's agricultural industry. We
hope to attract more U.S. firms to this and other non-energy
sectors.
DERSE