We are pleased to announce that we have signed a new agreement to develop our continuous growth further and expand our business lines and fields of activity. GEN, Azerbaijan Investment Company (AIC), all of its shares owned by the Republic of Azerbaijan, and SIA Pharmaceutical LLC have signed a shareholder agreement to establish the first pharmaceutical manufacturing facility in Azerbaijan. This agreement is an essential milestone in our goal of becoming a global player. This agreement, signed between our company and the Azerbaijan Investment Company (AIC), is also a sign of trust in GEN in Azerbaijan, where we have been operating for many years.
With this manufacturing facility, we aim to take our activities in the Azerbaijani pharmaceutical market, where we have been operating for many years and have had a representative office since 2016, to a higher level and increase our effectiveness in the CIS (Commonwealth of Independent States) region, where we have gained experience with our activities for many years.
The shareholder agreement signed in Baku on 31.07.2023 states that Gen Pharma Caucaus Manufacturing Operations Ltd company, in which GEN has 66% shares, AIC has 29% shares, and SAI Pharmaceutical LLC has 5% shares, will be established. This company will own and operate a pharmaceutical manufacturing facility in the 52,000 m2 area within the Pirallahi Industrial Zone allocated by the Republic of Azerbaijan. The manufacturing facility will serve as the first domestic producer in the $900 million Azerbaijani pharmaceutical market, entirely dependent on imports and aims to export to neighbouring countries strategically.
The manufacturing facility will be implemented with an investment of approximately $36 million in the first phase. It will focus on producing drugs that the Azerbaijani people and the healthcare system need. The employment expected to be created by completing the project is over 200 people. Employment opportunities will also be provided to students who have just graduated from Azerbaijan's pharmacy and chemistry sectors.
This manufacturing facility will also contribute to Azerbaijan's technological development in medicine as the first pharmaceutical manufacturing facility in Azerbaijan. Moreover, this facility will be our second manufacturing facility globally and our first abroad.
The closed area planned for the first phase of the factory is 14,000 square meters, and it will produce 50 million boxes of medicine per year in a single shift, including 550 million tablets, film tablets, hard gelatin capsules, soft gelatin capsules, powder suspension, sachets and liquid type. The plant will start operating at total capacity in 2026.
We hope it benefits both our country and the people of Azerbaijan.