Azerbaijani companies are interested in gypsum from Karachay-Cherkessia and wood processing, Azerbaijani Minister for Economic Development Shakhin Mustafayev said after a meeting with Karachay-Cherkessian head Rashid Temrezov, Temrezov's official website says.
Temrezov noted benefits for foreign investors in the region. New businesses are exempt from taxes for property for 7 years and have an income tax of 13.5% for 3 years. Investors realizing priority projects will have beneficial use of natural resources.
The Karachay-Cherkessian head noted that cement is the main export product with Azerbaijan. He pointed out other spheres for business, such as production of melted mineral water, tourism, agriculture, husbandry, planting and gardening.
A project was developed called Sad Gigant (The Giant Garden) to cover 2,000 hectares with gardens. The region has industrial potential as well, with some of the best resource reserves in the North Caucasus. A new cement factory will increase production to 2.5 million tons of cement annually. The republic also has a woodworking industry which produced over 20% of all school furniture until the collapse of the USSR.
The sides admitted that there is potential to increase trade turnover. The Azerbaijani delegation visited the Derveis car factory in the south, opened in Cherkessk in 2002. The factory plans to increase car production to 120,000-150,000 units annually. Cherkessk is to become a Russian manufacturing center and plans to sign a set of agreements to turn it into a center for industrial assembly.
