The Business Year

Aydin Karimov

Managing Director, Metak

Mahir Huseynov

General Director, NJT 2000 Plastic Industry

Could you provide an overview of your companies’ activities? AYDIN KARIMOV We started out by importing steel pipes from Russia and Ukraine for sale in the local market. We were […]

Could you provide an overview of your companies’ activities?

AYDIN KARIMOV We started out by importing steel pipes from Russia and Ukraine for sale in the local market. We were also importing various transitional components of different metals, and today, steel pipes are still a mainstay of our business. Generally, Metak’s operations focus on two areas: imports and production. We produce plastic polypropylene pipes, their fittings, forged products, scaffolds, and molds, and since becoming an industrial producer we have always reinvested profits in upgrading the fields we are present in, or entering new arenas. The economic crisis of 2008-2009 affected Azerbaijan less than many other countries. Nevertheless, some markets, such as construction, were partially impacted, and this was also reflected in our own activities. We had the choice of either reducing our staff, or cutting costs from other areas; we chose the latter. In 2009, both the economy and the country recovered and there were greater cash flows in play, which enabled Metak to begin its expansion. We continued investing in the abovementioned fields. Nonetheless, the priority was to invest in two vital spheres: plastic and mold production, which are tightly related to one another. Our country gradually became a giant construction site, and then we managed to see the increasing demand for plastic goods, mainly for pipes and fittings. In the meantime, we reinvested profits to expand our plant threefold. Another indicator of our advance is the fact that while in 2008 we had 150 employees, today we employ closer to 400. We can now afford to hire highly skilled staff to boost our performance.

MAHIR HUSEYNOV The company started in 2000, when one of the company founders traveled to Europe as part of an Azerbaijani official delegation. The aim of the trip was to attract foreign investment, and it proved successful, when German and Turkish plastic-producing companies founded NJT 2000. At that time, we did not have sufficient qualified human resources to work in the plastic production sector. Therefore, we decided to provide training to our employees overseas in both Germany and Turkey. Later, we started importing new equipment. At the moment, the company has achieved a monthly production capacity of 3,000 tons. We produce PVC, polypropylene, and polyethylene products, essentially the materials used for water systems and canalization. In addition to the plastic materials factory, we have a production line for sandwich panels and metal constructions. We also produce plastic consumer goods—packaging and disposable kitchenware, in particular. NJT 2000 was the first company to produce plastic materials in Azerbaijan; hence, we have developed extensive knowledge and experience.

What are your plans for 2014?

AK Thanks to the endorsement of President Ilham Aliyev, the business environment, especially the construction sector, is highly promising. For example, the Crystal Hall was built in just nine months. And now that the Olympic Stadium is in the works, all large projects boost activity in the construction market, and positively impact Metak. In this manner, Metak will grow in step with the construction sector and the broader economy.

MH The President of Azerbaijan proclaimed 2014 as the Year of Industry, so we hope to participate in some of the projects. There will be significant investments made in the development of infrastructure beyond Baku, although the exact amount has yet to be clarified. This year seems particularly promising. The government’s development policy has had a major impact on the economy, and significantly affects production companies such as ours.



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