President Aliyev inaugurates $34 million high-tech tobacco production hub in Aghdam PHOTO

On July 18, 2025, the President of the Republic of Azerbaijan, Ilham Aliyev, attended the inauguration ceremony of a new tobacco products manufacturing facility owned by “Tabaterra” LLC, located within the Aghdam Industrial Park.

Prior to the ceremony, Minister of Economy Mikayil Jabbarov briefed President Aliyev on the current status and development plans of the Aghdam Industrial Park, Caliber.Az reports, citing local media.

The Aghdam Industrial Park, which spans 190 hectares, was established by a presidential decree on May 28, 2021, under the direct leadership of Ilham Aliyev. It is managed by the Agency for the Development of Economic Zones and aims to revitalise Azerbaijan’s recently liberated territories by enhancing Karabakh’s industrial capacity, stimulating entrepreneurship, and increasing employment opportunities. Priority sectors within the park include the production of construction materials, packaging of agricultural products, food processing involving fruits, vegetables, meat, and dairy, manufacturing of feed and fertilisers, as well as the development of service facilities and cold storage infrastructure.

The Azerbaijani government has implemented a favourable investment climate to encourage business development in the park. Currently, the Aghdam Industrial Park ranks second nationwide in the number of resident companies, following the Sumgayit Chemical Industrial Park. To date, the park has granted resident status to 30 business entities and non-resident status to four others, with total investment inflows exceeding 270 million manat ($159 million). Of this amount, over 121 million manat ($71 million) has already been invested, creating more than 650 permanent jobs, primarily for residents of Aghdam and neighbouring districts. Over 70 per cent of the park’s territory has been allocated to entrepreneurs. With the commissioning of the “Tabaterra” LLC facility, the number of operational enterprises within the park has risen to 10.

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

Following the briefing, Elman Javanshir, Director of “Tabaterra” LLC, provided President Aliyev with detailed information about the new enterprise.

Situated on a 5.5-hectare plot, the tobacco manufacturing facility represents an investment of 58 million manat ($34 million). The company produces its own tobacco products and also manufactures internationally recognised brands under licensing agreements with British American Tobacco, Japan Tobacco International, and Imperial Brands. The facility offers a portfolio of more than 120 types of tobacco products spanning over 20 different brands. It operates nine production lines equipped with advanced technologies sourced from Germany, Italy, and the United Kingdom. The company exports its products, including both proprietary and licensed brands, to the United Arab Emirates, Georgia, Uzbekistan, and Iraq.

As a resident enterprise of the Aghdam Industrial Park, “Tabaterra” LLC benefits from various tax, customs, and other incentives provided by the government. Currently, the company employs 400 people. To facilitate workforce relocation, “Tabaterra” LLC has purchased 208 apartments in the “Aghdam Residence” residential complex, which are provided free of charge to employees throughout their employment period. In recognition of its significant contribution, last year the company was honoured as one of the leading exporters in Azerbaijan’s non-oil private sector and recognized as the largest taxpayer within that sector.

To further support the tobacco industry value chain, “Tabaterra Leaf” LLC was established in 2021 and subsequently won an investment competition to privatise “Azertutun” OJSC. The company has invested 15 million manat ($9 million) to modernize infrastructure and improve the quality of locally grown tobacco. Operating in the Sheki, Gakh, Zagatala, and Balakan districts, “Tabaterra Leaf” LLC manages tobacco collection and processing facilities, greenhouses, and a Tobacco Processing Plant with an annual capacity of 3,000 tons.

Looking ahead, the company plans to develop 500 hectares of land in the Gubadli district for tobacco cultivation and processing starting in 2027. These investments significantly contribute to the economic revitalisation, industrial and agricultural development, export potential, and job creation within Azerbaijan’s liberated territories.

In total, the projects implemented by “Tabaterra” LLC amount to investments valued at 79 million manat ($47 million).

By Tamilla Hasanova