Georgia: HeidelbergCement Caucasus expects July 2016 work start for Kaspi

Georgia: HeidelbergCement Caucasus expects July 2016 work start for Kaspi

HeidelbergCement Caucasus (HCC) announced it will renovate and develop its cement plant in Kaspi in the Shida Kartli region of Georgia in the next two years. Preparation works in Kaspi started at the end of last year with the main works anticipated to start in July 2016.

The development initiative represents a total investment of US$120m, of which US$100m will be spent on installing a new dry-process cement line at Kaspi and a further US$20m in upgrading and developing the supporting network of ready-mixed concrete and aggregates plants to create a vertically-integrated business.

To carry out the project, HCC is joining up with Georgian Co-Investment Fund (GCF) and Hunnewell Partners, a private equity, asset management and recovery firm. The final cooperation document is expected to be closed by June 2016.

Apart from financial contribution, the partnership will enable HC Caucasus to capitalise on GCF’s portfolio of cement-intensive projects and Hunnewell’s expertise in primary construction materials. Following the completion of the Kaspi project, the three parties will also look for further opportunities of expanding the west Georgian production base.

At present, HCC operates three integrated cement plants (one in Kaspi and two in Rustavi), a cement grinding unit in Poti and a cement terminal on the Black Sea coast. Since its entry into Georgia in 2006, the company has built up a production base with a capacity of 2Mta.