Azerbaijan, Baku / corr Trend A.Badalova, I.Khalilova / The Azerbaijani Investment Company (AIC) and the Swiss company Holcim which is a major shareholder of the Garadagh Cement company; have concluded talks on the participation in the factory's capital.
Heydar Babayev, the chairman of the AIC Supervisory Council, continued: Along with the restructuring of Garadagh Cement, AIC will participate in the construction of a new cement factory.
The minister did not rule out possible signing of an agreement with Garadagh Cement by the end of 2007. The capacity of this plant is to comprise 1.5mln tons and the production rate will be also increased at the exiting factory through its restructuring. At present the capacity of Garadagh Cement is 1.4mln tons, which is ensured import clinker. "Garadagh Cement wishes to increase cement production without importing clinker," the minister stressed.
Azerbaijan Investment Company plans to acquire 20% of the shares in Garadagh Cement company.
The agreement will be signed by the end of 2007. The Investment Company will take its shares from the Holcim company's shares which possessed 89.4% until EBRD's joined the shareholders.
The EBRD Board of Directors made a decision in 2006 to acquire 20% share for $10 mln in Garadagh Cement.
Garadagh Cement plans to establish the production on the base of dry technology. The cross amount of the investments is estimated at $110-120 mln. The project aims to decrease the environmental impact.
The cross cost of the EBRD's project is estimated at $13.3mln. The project aims to decrease the environmental impact. All measures and investments put for environmental protection were included an action plan on ecology, which means EBRD's participation in this project.
Swiss Holcim privatized Garadagh Cement company in 1999.