WELL MOBILIZED

Azerbaijan 2016 | INDUSTRY & MINING | INTERVIEW

TBY talks to Sarkhan Babayev, General Director of Detal Holding, on the role of the business in a diverse economy.

Sarkhan Babayev
BIOGRAPHY
Sarkhan Babayev is the General Director of Detal Holding. He holds a degree in law from the Azerbaijan State University and a degree in international economy from the International Minor Business Institution of Moscow. He has been in the aluminum business since 2002.

As aluminum demand continues to increase each year, how important is this industry to Azerbaijan as the country looks to diversify away from a reliance on oil revenues?

Azerbaijan is a country of oil. Within the borders of the internal and external politics of our Republic such an important factor is masterly used to strengthen its stunning power. At the same time, non-oil sector development has become one of the main aims of the economic direction of our state. Thus, in terms of the economic factors indicating the development of our country, during the last 13 years the share of the non-oil sector has increased over 7-8 times. The creation of the Detal Aluminum Complex is the visible result of works done in the stated direction. The critical landslide of oil prices in the world oil market has made the state pay great attention to the aluminum industry and such industry development has become one of the priorities of the state's economic politics.

In terms of ongoing projects for Detal, what further measures need to be taken at the Detal Aluminum Complex' electrolysis plant to raise the production capacity up to 200,000 tons?

It is true that in oil-producing countries huge infrastructure and construction projects are realized thanks to oil profits. Thus, the fall in oil prices has had a negative influence on aluminum and aluminum products. Detal Holding has mobilized all of its resources and modern world experience to minimize such negative influences.

Detal works with China Non-Ferrous Metals Processing Technology Co as one of its main contractors. What are the benefits of working with this company and what factors does Detal look for when you are investing in international partnerships?

The main aim standing before us in our company's strategic plan for the next five years is the provision of local resources used to organize the manufacture and provision of final products through the extended production of semi-finished products. Therefore, Detal Holding relies upon the high productivity of reforms carried out by the head of the Republic. A great network of small and medium entrepreneurial enterprises engaged with the manufacturing of aluminum products will be created around Detal's Ganja Aluminum Complex. Detal is ready to support such businesses in the manufacture of aluminum products.

Your company plans on reconstructing the Sumgait Aluminum Smelter according to the latest technologies. How big of a role does technology play in keeping Detal Holding competitive in this industry?

Nowadays, Detal is engaged with the export of goods to over than 17 countries all over the world. These products are: aluminum bullions, aluminum rolls, and aluminum sheets, as well as different kinds of final products. Those semi-finished products are used in the manufacturing of final products applied in construction, packaging, industrial products manufacturing, automobile contraction, and so on. At present, our Republic imports a great majority of such products. It is possible to manufacture a great number of them from our products.

The Aluminum Semi-Final Production Project created around 300 jobs. What are some other ways Detal Holding engages the local community?

Nowadays, the increase of semi-finished products manufactured is a great priority for Detal. We try to focus on the manufacturing of some semi-finished products, especially painted and not thick rolls because of their high sales prices. The manufacturing of those products requires higher technological knowledge and proficiency. In this work, Detal has confidence in its professional engineer-technology team and provides them with strategic resources. The marketing of our products created through new know-how continues successfully.

What has allowed Detal to build up the list of countries it exports to?

In the first year of semi-finished products manufacturing activity at the Aluminum Complex, Detal sold only to Russia and Belarus. Our high level of experience, European standards, ISO standards, and other international certificates have allowed for the export of products to leading European countries. Nowadays, 99% of products manufactured at the Complex are exported abroad and 45% are exported to EU countries.

What is your outlook for the company in 2016?

Aluminum is a widely applied metal. Considering the increase in need for aluminum in construction, the manufacturing of vehicles, and packing sectors year by year, we prefer the manufacture of aluminum types used in these fields. Especially so, we believe that the manufacture of a new generation of cover materials used in the construction sector will be profitable. Aluminum is a widely applied metal and its potential uses will only increase. Detal intends to use this potential effectively and in this effort relies on the high support and solid legal and business environments created by the Azerbaijani state.