CONSUMER KNOWS: AZALSAN'S SECTIONS NEVER FAIL
Caspian Energy (CE): Mr Valiyev, could you kindly describe activities of AZALSAN Ltd. Does production manufactured at your facilities comply with international standards?
Mammad Valiyev: Our Company started operating in Azerbaijan's market in 2001 as a joint venture with Altas of Turkey as a cofounder. Since 2003 we became an independent entity with 100% Azerbaijani stock. The Company's primary purpose is manufacture of aluminum sections as a structural material. In a short run, the company developed the manufacture of quality production, obtained ISO 9001:2000 Quality Management Certificate and raised its production capacities year-by-year.
At present our production is highly demanded in the market. Last years our enterprise displayed a sustainable production growth. Our products are sold, even sold out, which evidences the compliance of our sections with international standards. We are committed to these standards, and such compliance is periodically inspected by the State Agency of Standardization, Metrology and Patents of the Republic of Azerbaijan.
We are progressing with our activities in the field, we established a laboratory that verifies chemical and physical-mechanical properties of produced sections. Furthermore, the laboratory is equipped with spectrometer and computer-analyzer that allow for special analysis of each aluminum fusion in order to obtain the necessary composition. According to chemical composition produced aluminum sections meet ADS aluminum alloys (aluminum-magnesium-silicon system). We take a specimen from this alloy and perform a spectral analysis, following which the composition is corrected if necessary.
We have established the QA/QC Department that employs designers, industrial engineers, engineers and supervisors. The three-shift work schedule enables organizing the round-the-clock operation at the enterprise. Naturally, in such conditions the possibility of low-quality products manufacture is completely ruled out.
At present, our facility incorporates a foundry, press-room, paint shop and plating shop. In the neatest time we are going to put in operation a warehouse with its own digital database.
CE: What was the production increase over the past year?
Mammad Valiyev: By the results of the past year the rates of production growth exceeded 150% and this year the sustainable increase continued. Regardless of considering January and February the bad seasons for production, the production in these months jumped 200 percent from the previous year. We are going to keep such growth rate through the entire year 2007. We already have a permanent circle of consumers that helps increasing production sales, and new customers appear as well. Partially this is linked to expanding construction activities across the republic, where our sections are broadly used as structural materials for windows, doors, as well as in coating and glassing.
CE: Could you possibly state the range of products you make?
Mammad Valiyev: We produce nearly 220 types of sections used mainly in assembly of windows, doors, display cabinets, rainwater pipes, suspended ceilings and so. By and large, aluminum today is widely used in construction for two reasons: first, it is a light metal and it doesn't rust and second, it has a good structure.
CE: What are the distinguishing features of AZALSAN's production?
Mammad Valiyev: Our production is distinguished by a number of parameters. First, it is the insulation system of products made from our sections. It is 30% more efficient than that of ordinary sections. Second, it is an electrochemical coating of various colors. We have installed and commissioned a special plating shop for application of decorative electrochemical coating in 2006. Such treatment of aluminum sections through chemical oxidizing and painting is still unmatched in South Caucasus or Middle Asia. Electrochemically coated sections, as against painted ones, do not lose their quality with time and therefore are most unlikely to get worn.
We use aluminum produced at Sumgayit Aluminum Plant, it is all local product. Our sections are 98% pure aluminum.
The distinguishing feature of our production is preparation for pressing. Upon the fusion, ingots are laid to homogenizing annealing hearth to fine aluminum structure to make it more homogenous and plastic, which enables us to intensify pressing and reduce industrial wastes. This lets us obtain by pressing the better material structure than our rivals.
Outwardly our production is distinguished with its package. However, specialists can clearly tell out our production from others as AZALSAN's sections thickness is higher and they comply with all standards. Consumers know - our sections will not fail them.
We consistently boost the corporate culture and our employees' welfare, as well as perform their certification. Alongside the manufacture expansion, we consider the possibility of increasing the salaries. So, by the results of 2006 our employees' salaries grew by more than 70%.
We erected a building for our employees leisure, installed showers and checkrooms. At the moment we are installing two tennis-courts. We provide our employees with free meals and landscape the facility areas.
CE: What are future trends of manufacture increase?
Mammad Valiyev: We constantly analyze our performance with account for specific details of the industry. This primarily concerns the foundry where 150mm diameter and 5m long ready aluminum rounds are molded and get cut to 500mm pieces and then loaded to the press magazine. The further process is automated and we obtain ready sections through pressing. Our press capacity is 1,000 ton but the market is changing and the high buildings erected will rather use glass as a structural material, which calls for frontal sections capable of withstanding such a load.
We have signed a contract with Chinese manufactures so far and we are planning to get a new 1,350 ton capacity press this April. With this press we will be obtaining bigger sections to supply the future market in our republic.
Our enterprise is a specialized one. In this connection we are planning to further upgrade our technologies and process management.
In order to boost our production we need information on how many buildings and constructions it is planned to erect in the outlook in Azerbaijan, what kind of material will be used and which companies and in which timeframes will be performing related construction operations. Sometimes the construction is lasting 5 years and so and it comes possible to schedule production activities. But the marketing researches led us to a conclusion that with time high buildings facades will be covered with glass that reflects nearby buildings and does not spoil the view of the building itself. In this aspect some attention will be paid to the sections our plant manufactures.
We have been exporting our products to Russia and Kazakhstan so far. Moreover, by the results of past year delivery to Russia grew in twice.
In Azerbaijan such products are available in specialized shops both in Baku and outside the capital.
CE: Are there any more fields AZALSAN's production is used? Could you make any aviation details in Azerbaijan and export them "as is"?
Mammad Valiyev: In its time aluminum was considered the best material for aviation due to its lightness and plasticity. But further aluminum was used just as a structural material. In general, our plants do not suggest any aircraft construction, although Azerbaijan earlier used to make Az1, Az2 conditioners and kitchen elements for aircrafts.
However, today even display cabinets are delivered from abroad. But these cabinets consist just of glass, aluminum and cooling compressor unit. With running aluminum plant, refrigerator plant, glass-works, tire factory (to make rubber seals), one can lay the basis for aluminum plant operated for the sake of domestic market and Azerbaijan delivering complete products abroad. The same concerns aluminum rolling the complete products can be made of.
Recently production of aluminum cables was launched in Azerbaijan. By and large, our market is not so saturated with domestic production so far and when we speak development we should think mostly the internal market. We can only limit delivery from abroad in case all required products are manufactured in the country.
I wish nobody would leave Azerbaijan for a better job. Our core idea is opening new workplaces. The same is stated in the program of President Ilham Aliyev. Furthermore, such workplaces shall be satisfactory in view of corporate culture and salary alike.