HeidelbergCement Continues to Invest in Georgia

HeidelbergCement Continues to Invest in Georgia
03 September 2008

HeidelbergCement Company proceeds with its investment activities in Georgia regardless the recent developments in the country, - Meinhard Thrul, Country Director of HeidelbergCement Georgia said at a local news conference.
According to him, for the maintenance of producing capacity company’s annual volume of investments makes GEL 20m. As for additional investments, they will depend upon the volume of sales and profit of the company.
Meinhard Thrul said one of the company’s cement plants in Kaspi town was bombed during the hostilities.
Plant property, including garages, equipment and filtration system have been damaged. According to the estimates, the damage made Euro 200 thousand. At the same time, damage inflicted to the company as a result of a two-day downtime of Kaspi plant and five-day downtime of two plants in Rustavi has not been calculated yet. "This is the damage that is the most considerable," the businessman said.
According to the Country Director, due to the current situation in Georgia there have been problems with delivering equipment to the plant, in particular for the modern filtration system installation project.
Another problem for the HeidelbergCement Georgia Co. is the shortage of railway wagons to export its production. According to Meinhard Thrul, deficiency of railway wagons is the major constraint of growth of Company’s product sales. The company requires about 100-120 railway wagons daily.
Company HeidelbergCement started to work in Georgia in 2006. Acquisition of 51% of shares in the Company Kartuli Cementi was the first investment of Heidelberg Cement in the Caucasian region.
In 2006, HeidelbergCement acquired 75% of shares of the Company Saqcementi, the largest enterprise in the Caucasus. Total capacity of the plants in the possession of the "HeidelbergCement Georgia" - 1 plant in Kaspi and 2 in Rustavi makes annual 2 million tons of cement. Production is realized in Georgia, Azerbaijan and Kazakhstan.
"HeidelbergCement"’s total investment in Georgian economy in two years exceeded GEL 350 mln.
Published under Cement News