Jun. 9, 2015


Sarkhan Babayev

Azerbaijan

Sarkhan Babayev

Director, Det.Al Holding

BIO

Sarkhan Babayev is the Director of Det.Al Holding. He holds a Law Degree 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.

How has the global aluminum market affected the production of the company?

The peak of the aluminum crisis has now passed, and recently prices of primary aluminum on the London Metal Exchange (LME) have increased by 10% or more. Global demand for aluminum is increasing annually by 6-8%. However, this indicator does not apply to all sectors. Major increases can be seen in the car-manufacturing sector, as well as in the construction and packaging industry. Aluminum is three times lighter than steel, and as a result, the automotive industry is increasing its use of aluminum in the process of car manufacturing. The use of lightweight aluminum increases the performance potential as well as efficiency levels. Lighter cars use less fuel and produce fewer harmful emissions. Without any doubt, this is a great export item on our list.

What are the export plans of your holding, in terms of volumes, production, and geographical coverage?

Today, we are exporting our products to Italy, Switzerland, Turkey, Germany, Poland, Russia, and Belarus. Our evaluation of the export potential of Azerbaijan is high—every year the industrial capacity of the country is growing. Aluminum production is a good example of this growth.

Due to the scale of its production, Det.Al Holding has turned from an aluminum complex into a full industrial center. What new production lines are you planning to introduce?

Currently, our priorities are to create a full production cycle, enhance the mechanism of processing, and organize the extraction of the local alum stone in order to produce aluminum oxide, which until now the country has been importing from abroad at a high rate. Det.Al will increase its production and become a center with adjoining production enterprises that will form the main industrial zone of the Republic. Manufactured products are much more profitable than raw materials; the production cost of the product increases, but selling the end product is much more profitable for us. The difference between market price of metal raw materials and end product oscillates between $650-2,800, including expenditures. The difference is visible enough, and the final profit from the manufactured product is much higher.

How does Det.Al currently cooperate with other companies to further its presence on an international level

Aluminum, like petroleum, is sensitive to shifts in the global economy. The demand for aluminum keeps growing every year, demonstrating that it is the product of the future. Our holding is taking into consideration all current trends in manufacturing and for the realization of aluminum produce. For this, we are trying to participate in international forums on science, economics, and commerce. Today, Det.Al Holding is an indispensable part of the global aluminum industry. Det.AL AZE is an officially registered trademark, widely known all around the globe. We are collaborating with many international companies and financial institutions. This collaboration has a favorable impact on the enterprise's image as a global supplier of raw aluminum and aluminum products, and strengthens its trust in us as a partner. We are open to collaborations with all enterprises and companies that work according to modern principles of industrial and trade partnership.

What are your plans for the development of the complex and its transition to the industrial center?

The Det.Al aluminum complex will eventually turn into one of the best developed industrial centers in the region. Our main purpose is to organize aluminum production in Azerbaijan based solely on locally extracted raw materials, by introducing ecologically pure and economically sustainable technologies of aluminum extraction and alum stone processing. We have used local scientific potential and global economical experience, as well as the possibilities of leading scientific and research institutions in this sphere. Azerbaijan could become one of the leading suppliers of a wide range of aluminum products and we are capable of competing with other exporters. Det.Al Holding is the driving force behind this process, and we will use all our potential to improve the economic power of the country.

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