The State Property Service under the Ministry of Economy has announced the completion of the preparatory stage of privatization of the former shoe factory of Azerbaijan Industrial Corporation (AIC).

In the nearest future the enterprise will be offered to investors by means of investment competition. Assessment of property was carried out, the enterprise was corporatized and a new authorized capital was formed. The amount of the authorized capital of Baki Ayaqqabi Fabriki LLC has been determined at AZN 7.8 million which is down by AZN 3 million.

Recall that Baku Ayaqqabi Fabriki LLC was opened for privatization in October 2021 by the order of the AR President. The company’s financial indices for 2020-2021 were not disclosed. In 2019, with revenues of 3.4 million manats from sale of products, the loss of the enterprise amounted to 75.000 manats. The factory produces footwear for soldiers and law enforcement officers. The factory can produce up to 550 pairs of shoes per shift.

It should be noted that until 2015 this shoe factory was in private ownership. The factory was owned by a private businessman through privatizing the state property within the framework of the First State Privatization Program in 1997-1998. Owing to debts to the International Bank of Azerbaijan, the factory again passed into the state ownership and was transferred to the management of the AIC in 2018.

Total area of the enterprise is 27.000 m2. Area under the buildings (4 production shops, electromechanical workshop, laboratories, office space and warehouse) is 11.500 m2.

Source: Turan News Agency