HeidelbergCement faces pressures in Georgia
HeidelbergCement is facing serious pressures in Georgia and is under high risk of leaving local market. The company is unable to export to Azerbaijan, a market that occupies biggest part of HeidelbergCement export share. Source at the company told The Financial that Azerbaijan is blocking imports due to the opening of Larsi checkpoint, land border with Russia.
“The only serious problem is refusal of Georgian produced cement in Azerbaijan cement market. On the border we have five stopped loaded trucks at present and we hope that the problem will be solved in the nearest future,” says Nino Subeliani, Public Relations Manager at HeidelbergCement Georgia.
HeidelbergCement entered the Georgian market in 2006 investing in two cement production companies: SaqCementi and Kartuli Cementi.
HeidelbergCement Georgia operates in only two markets: Georgia and Azerbaijan and the majority of its revenues are generated from the latter country. With exports being blocked from by the Azerbaijan market, the company has registered losses and consequently there is the high probability of plants being closed.
Source: The Financial Published under Cement News
