KABUL - An oil refinery with an investment of $700 million will be constructed in northern Afghanistan by a joint US-Afghan company, Afghanistan Investment Support Agency (AISA) said Sunday. The American company, AFM Co., will help establish the facility capable of refining 60,000 barrels of oil a day when the plant opens in 2016, AISA officials said.

"Following the commencement of this company's work in Afghanistan, there will be no need to ship crude oil abroad," said Wafiullah Eftekhar, head of AISA.

The oil refinery news comes as Afghanistan Industries Union officials welcomed a 40 percent increase in tariffs on imported fruit juice to help domestic producers.

"We are optimistic towards these commitments of the government. This act will encourage [domestic] investments in the country," Shirbaz Kaminzada, Head of Afghanistan Industries Union.

The Union also asked the government to follow through on its promise to support all industrial sectors across the country.

AISA said that more industrial parks will be established in different provinces of country.

But they also demanded that the government move the military bases from the vicinity of the Pul-e-Charkhi industrial park because they pose security risks to factories.

An Afghan juice company suffered a $10 million loss after a suicide attack on a foreign military contractor located nearby. (Tolo News)