Azerbaijan looks to China for technology and investment to expand the region’s only primary aluminium production hub

Azerbaijan is looking to deepen its aluminium and metallurgical industry through potential cooperation with Chinese companies. Economy Minister Mikayil Jabbarov recently met with Xinjiang Joinworld Co., Ltd. to discuss joint projects, modern technologies, innovative solutions, know-how and the transfer of expertise.

The talks are crucial because Azerbaijan already has an established primary aluminium industry. Azeraluminium is Azerbaijan’s primary aluminium producer. It has given the country an existing base to expand into more processed and higher-value products. The latest discussions appear to focus on strengthening these capabilities rather than simply increasing primary aluminium production.

For Azerbaijan, moving further into products such as rolled aluminium, sheets, profiles, components and specialised alloys could allow more value to be generated within the country before products reach export markets. This would also support the government’s wider efforts to diversify the economy.

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The country has already been exploring cooperation with other Chinese companies in the aluminium industry. In January, Azerbaijan held discussions with Wanji and Sunstone on potential aluminium projects. Sunstone is involved in carbon materials used in aluminium production, showing that Azerbaijan is looking at different parts of the aluminium supply chain.

Technology and expertise could be an important part of this strategy. Modern aluminium and metallurgical production increasingly depends on automation, efficient equipment, process management and energy efficiency. Working with international companies could help Azerbaijan modernise its plants and build more advanced processing capabilities.

Azerbaijan exported over 40,500 tonnes of aluminium, worth USD 114 million, in January–November 2022. Moving into processed aluminium products could help the country earn more from exports and go beyond selling just raw metal.

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Azerbaijan’s location could further support such a strategy. The country sits along the Middle Corridor between China and Europe. This will provide access to markets in Türkiye, Central Asia and Europe. Combined with its energy resources and existing industrial infrastructure, this could support the development of a regional aluminium-processing base.

However, the latest discussions have not yet resulted in a confirmed investment project. There are currently no announced details on investment value, production capacity, ownership or construction timelines.

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The bigger opportunity for Azerbaijan is not just to produce more aluminium, but to use foreign technology and investment to develop more advanced, higher-value products. This could help strengthen the country’s aluminium industry and move it further up the value chain.