President Ilham Aliyev attended opening of tobacco products manufacturing facility at Aghdam Industrial Park

On July 18, President of the Republic of Azerbaijan Ilham Aliyev attended the inauguration of a tobacco products manufacturing facility owned by “Tabaterra” LLC at the Aghdam Industrial Park.

Minister of Economy Mikayil Jabbarov first briefed the head of state on the Aghdam Industrial Park.

The Aghdam Industrial Park, covering 190 hectares, was established under President Ilham Aliyev’s Decree dated May 28, 2021, and is managed by the Agency for the Development of Economic Zones. It aims to revitalize the liberated territories, enhance Karabakh’s industrial capacity, promote entrepreneurship, and boost employment. Priority sectors include construction materials production, agricultural product packaging, food processing (fruits, vegetables, meat, and dairy), feed and fertilizer production, and the development of service and cold storage facilities.

The government has created a favorable investment climate to encourage entrepreneurship in the Aghdam Industrial Park. It ranks second among Azerbaijan’s industrial zones in terms of the number of resident companies, following the Sumgayit Chemical Industrial Park. To date, 30 business entities have received resident status and four non-resident status, with total investments exceeding AZN 270 million. Over AZN 121 million has already been invested, resulting in more than 650 permanent jobs, primarily for residents of Aghdam and neighboring districts. More than 70 percent of the park’s territory has been allocated to entrepreneurs. With the launch of the “Tabaterra” LLC facility, the number of operational enterprises in the park has reached 10.

Currently, Azerbaijan hosts nine industrial parks: Sumgayit Chemical, Garadagh, Pirallahi, Nakhchivan, Hajigabul, Mingachevir, Balakhani, Aghdam, and the “Araz Valley Economic Zone” in Jabrayil. In addition, four industrial districts have been established in Masalli, Neftchala, Sabirabad, and Sharur.

Elman Javanshir, Director of “Tabaterra” LLC, then provided the head of state with information about the enterprise.

Established on a 5.5-hectare site, the facility represents an investment of AZN 58 million. Alongside its own production, “Tabaterra” LLC manufactures international brands under license from British American Tobacco, Japan Tobacco International, and Imperial Brands. The facility produces over 120 types of tobacco products across more than 20 brands. It operates nine production lines equipped with advanced technologies from Germany, Italy, and the United Kingdom. Its products are exported to the United Arab Emirates, Georgia, Uzbekistan, and Iraq, including both the company's own brands and licensed products.

As a resident of the industrial park, the company benefits from various tax, customs, and other incentives. It currently employs 400 people. To support workforce relocation, “Tabaterra” LLC has purchased 208 apartments in the “Aghdam Residence” complex, providing them free of charge to employees during their period of employment. Last year, the company was recognized as one of the top exporters in Azerbaijan’s non-oil private sector and the largest taxpayer in this segment.

To further support the tobacco value chain, “Tabaterra Leaf” LLC was established in 2021 and won the investment competition for the privatization of “Azertutun” OJSC. The company has invested AZN 15 million to modernize infrastructure and improve the quality of locally grown tobacco. Operating in Sheki, Gakh, Zagatala, and Balakan districts, the company manages tobacco collection and processing facilities, greenhouses, and a Tobacco Processing Plant with an annual capacity of 3,000 tons. Starting in 2027, “Tabaterra Leaf” LLC plans to develop 500 hectares in Gubadli district for tobacco cultivation and processing. These investments contribute significantly to economic revitalization, industrial and agricultural development, export potential, and job creation in the liberated territories. The total investment value of the projects implemented by “Tabaterra” LLC stands at AZN 79 million.