Azerbaijan industrial clusters are undergoing rapid diversification, with key investments targeting automotive and chemical production. With strong state support and strategic planning, the country has established nine industrial parks and four industrial quarters, attracting a total investment of 8.1 billion manats ($4.7 billion). These zones have created over 10,700 permanent jobs and have produced goods worth 15.4 billion manats ($9 billion), including exports to around 70 countries.
Sumgayit Chemical Industrial Park (SCIP) leads this transformation. Established in 2011, it houses nearly 40 companies focused on polymer-based manufacturing and advanced technologies. Since inception, SCIP has attracted 6 billion manats ($3.5 billion) in investment and generated 14 billion manats ($8.2 billion) in output—35% of which has been exported. In Q1 of 2025 alone, production increased by 14.2% and exports by 17.2%.
Expanding Automotive Manufacturing in Azerbaijan
New Plants and Global Partnerships
The Azerbaijan industrial clusters are now entering the automotive sector. On April 30, President Ilham Aliyev attended the launch of a truck and special vehicle assembly plant by Az-Tex-Import LLC at SCIP. The plant, operating under Italy’s IVECO brand, will produce 100 vehicles and 300 bodies annually in its first phase. In the second phase, truck body production will be localised, creating 150 new jobs and initiating export plans.
Az-Tex-Import also plans to build a truck service centre in the Araz Valley Economic Zone and will later assemble light trucks with up to 5-tonne payloads. Meanwhile, Chinese automaker BYD is investing 29 million manats ($17 million) in an electric bus manufacturing plant at SCIP.
Nationwide Automotive Projects
Outside of SCIP, Azerbaijan industrial clusters have advanced automotive projects in other regions. In Neftchala, Azermash OJSC assembles Khazar cars with Iran Khodro. In Ganja, a joint venture with Uzbekistan—valued at 88 million manats ($51.7 million)—is building a plant capable of assembling up to 30,000 vehicles annually. The facility includes welding, painting, and assembly lines, with over 1,200 jobs expected.
From 2018 to 2024, vehicle production in industrial zones reached 442.5 million manats ($260 million), with 2024 alone witnessing a 34% increase from the previous year. The Ganja park assembled 3,761 vehicles worth 107.5 million manats ($63.2 million), while Neftchala produced 2,182 cars worth 54.65 million manats ($32.1 million).
State Support and Export Ambitions
All residents of these zones benefit from tax incentives, concessional loans, customs relief, and integrated infrastructure. These policies continue to position Azerbaijan industrial clusters as a regional hub for manufacturing and export.
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