Azerbaijan, Baku / Trend corr. I.Khalilova / The Swiss Holcim company, which is the main shareholder of the Garadagh Cement (concrete plant) and Azerbaijani Investment Company (AIC) reached an agreement on transform of AIC's 10% of shares, Heydar Babayev, the Minister of Economic Development and chairman of the Supervision Council of AIC, said.
The privilege to sign the memorandum on intensions will be submitted within two days. According to the Minister, Urs Bolen, the manager on East Europe, CIS and Caspian Sea regions of Holcim as no privilege to sign the document.
"Purchase of 10% of participation in Garadagh Cement enables AIC to participate both in reconstruction of the existing plant and construction of the new one," Babayev added.
As a result of reconstruction the volume of production in the existing plant will exceed 1.4mln tons.
The construction of the new plant was planning in Garadag plant with 1.5mln ton capacity. The European Bank of Reconstruction and Development agreed with Garadagh Cement to participate at the project.
"Holcim invested € 5 or 6mln in purchase of equipments and machines for Garadagh Cement," Bolen said.
The new concrete plant is estimated on $150mln.
EBRD's Council of Directors made decision to purchase Garadagh Cement for $10mln in 2006.
Holcim privatized Garadagh Cement in 1999.