Khagani Guluzade has been heading Akkord Corporation since August 2010. From 1996 to 2010 he held various management positions (Head of the Committee for Assets and Liability Management, First Deputy Chairman of Board and Chairman of the Board of Directors) at leading Azerbaijani banks. He was also in charge of the working group that carried out the successful placement of “euro-bonds” and gained broad experience in cooperation with international financial institutions, investment funds and leading global banks. He is a graduate of the Azerbaijan State Economic University with a Masters degree in “Finance” and the Faculty of Law at the Baku State University, both with honors. He holds Ph.D. in Economics, defended a dissertation: “Priorities of the state investment policy in the process of development of national economy.” Since 2013 enrolled in Executive Global Masters in Management at the London School of Economics and Political Science (LSE).

He was given a “top-manager of the year” award by the Europe Business Assembly in Oxford, UK in June 2011 and in London, UK in April 2013.

Born in 1977. Married and has three children.

Caspian Energy (CE): How would you briefly estimate the role of Akkord Corporation in the development of production industry in Azerbaijan?

Khagani Guluzade: As you know, Akkord Corporation is involved not only in construction business, but it’s also a production and investment company. In parallel with implementation of large-scale infrastructure projects we have been continuously investing in production and processing of building materials. As a leading building materials supplier, we produce cement, concrete and concrete precasts, asphalt, marble and granite, steel structures, gravel, sand, bricks and other materials not only for our own needs, but also for the wider market in Azerbaijan. As of today, the corporation owns and operates 40 manufacturing and processing facilities throughout the country.  These facilities are closely located to raw material sources and the project sites, which allow us to enhance production efficiency and optimize projects costs. 

Notably, at the conference dedicated to the results of the fourth year of implementation of the “State Program for Social and Economic Development of the Regions of the Republic of Azerbaijan for 2009-2013” held on February12, 2013 under the chairmanship of President Ilham Aliyev, the head of state restated the priority of development of the non-oil sector of the economy and strengthening of the export potential of the country. Through heavy investments into industry and manufacturing, the introduction of new technologies and know-how, and the creation of new work places, Akkord Corporation is making a substantial contribution to the development of the country’s production sector. 

CE: Akkord Corporation developed quite wide range of production business directions. What can you tell about the progress made in this area? 

Khagani Guluzade: The progress has been achieved in many production areas in recent several years. In particular, Akkord Corporation finalized the installation of the first production line of its brand new cement plant in the Gazakh region of Azerbaijan. The Gazakh Cement Plant using dry process technology was solemnly opened by President Ilham Aliyev in July this year. The plant construction was implemented in accordance with modern standards and technologies requiring less energy consumption and producing less waste. The feasibility study of the plant was worked out by Deloitte and Touche. The development of the plant was carried out by CBMI, a subsidiary of the world-renowned SINOMA of China. The plant, having prospective production capacity of 3 million tons of cement per year, will enable to increase meeting of domestic cement demand up to 75%. An automatic plant control system has been programmed by experts from Siemens and equipped with the most advanced technology. The overall construction complex of the plant includes 49 buildings and units. The majority of the plant personnel numbering 700 people is being recruited locally. Developed railway and automobile transport infrastructure allows easy distribution of cement inside Azerbaijan and easy delivery to main markets and sea ports on the Black Sea and Caspian Sea for further export by vessels.

Implementation of this project plays an important role in socioeconomic development of both Gazakh region of Azerbaijan and the country as a whole. We are aimed at expanding our cement production, exporting it to other countries and becoming a regionally competitive cement producer. 

We have also made significant progress in the development of production facilities for concrete with an annual production capacity of 4 mln tons as well as for asphalt with an annual production capacity of 2.3 mln tons. In addition, we have increased the production capacity of steel structure facilities located in Mingachevir and Khirdalan (Baku) to more than 10 000 tons per year. 

CE: Akkord Corporation managed to establish a brand well recognized not only in Azerbaijan but also in many neighboring countries. What is Akkord Corporation’s international exposure and professional affiliation?

Khagani Guluzade: We are currently active in several foreign markets including Turkey, Georgia, Kazakhstan, Uzbekistan and Ukraine. In addition, in 2012 the corporation opened a representative office in Frankfurt, Germany.

In April 2013, Akkord Corporation was awarded Best Enterprise in the Field of Construction in South Caucasus and Central Asia at the Institute of Directors by the Europe Business Assembly in London, while in mid 2013, the company became a corporate affiliate member of the International Tunnelling and Underground Space Association (ITA-AITES) and World Road Association (PIARC). Akkord Corporation is the first and the only private company from the South Caucasus which became a member of these organizations. 

ITA-AITES gathers 64 member nations and 310 corporate or individual affiliate members – world-renown companies in the field of tunnelling and underground construction. 

The World Road Association (PIARC) is a network that has existed since 1909. In addition to corporate members, the World Road Association (PIARC) unites 120 government members worldwide and retains consultative status to the Economic and Social Council of the United Nations.

Membership at these organizations has created an opportunity for Akkord Corporation, as an Azerbaijani company, to contribute to the activities of both associations as well as strengthen its international relations and cooperation. 

In our international projects we are closely cooperating with leading construction and engineering companies through establishing joint ventures, consortiums and other forms of partnership.

CE: What are new business directions that the Corporation is developing?

Khagani Guluzade: One of the new business directions for Akkord Corporation is metro tunneling and underground construction. A long-term Conceptual Development Scheme of Baku Metro prepared following the President’s decree of November 10, 2008 and the “State program for the development of Baku Metro in 2011-2015”, approved by the President’s decree of March 18, 2011, laid the groundwork for the metro’s expansion plans.

To participate in the project, the Corporation has established a joint venture with Bouygues Travaux Publics of France, which is one of the world-known construction companies, specialized in metro tunneling.

On November 7, 2012 Akkord-Bouygues JV signed an MoU with the Baku Metro Authority to reconstruct the “28”th of May Station. Currently, we are at the eve of signing a respective contract  for this project. In the future, together with our partner Bouygues Travaux Publics, we are looking forward to signing of new contracts for construction of the state-of-the-art metro stations and lines.

CE: Akkord Corporation is involving a lot of skilled workforce for its projects. How can you describe the importance of human capital in the Corporation?

Khagani Guluzade:  Akkord Corporation considers its people as the most important element of its successful business strategy. Our people are our human capital, which we are heavily investing in and caring about. Currently there are more than 6000 employees involved in daily operations across 7 countries.

The Corporation established and developed a thoughtful promotional system for its employees. We are keen to develop and promote our own employees within the company through trainings, educational programs and other motivation initiatives. An international team of engineers, technicians, designers and other specialists from UK, USA, Canada, Germany, Italy, France, Greece, Turkey as well as Azerbaijan has been built in the company. Such an internationally diverse staff enriches our corporate culture and values. In addition, a well-integrated corporate governance system was developed to add value to our human resources policies and business processes. With a support of our experienced staff we strengthened internal control and internal audit as well as risk management system in the Corporation. 

CE: Today Azerbaijan is a hosting country for many international events, conferences and exhibitions, particularly in construction industry. How do you estimate the efficiency of such activities in the country?

Khagani Guluzade: First of all, it must be noted that economic successes of Azerbaijan have created a solid platform for various political, economic and business initiatives and projects. Conferences, exhibitions and trade fairs held in the country bring together governments, businesses and general public from many different countries and backgrounds. These days there are two major international events in construction and production spheres being held in Baku – the BakuBuild 2013 and the 2nd Eurasian Cement Forum. Akkord Corporation generously supports and actively participates in both of these events. I strongly believe that such opportunities create very promising future prospects for our company, for Azerbaijani businesses and the country as a whole.