Azerbaijan Investment Company Announces Amount of Investments to Modernization of Cement Plant

Business Materials 8 February 2008 18:04 (UTC +04:00)

Azerbaijan, Baku, 8 February /corr. Trend I.Khalilova / Azerbaijan Investment Company (AIC) will invest €13.7mln to purchase 10% participation share in the capital of Garadagh Cement Plant, said the AIC Executive Director, Anar Akhundov. According to him, the gross cost of the project on modernization of Garadagh Cement and construction of a new cement plant is estimated at €327mln.

The purchase agreement will be signed on 13 February.

The AIC will receive pack of shares from Swiss Holcim Company, which possessed 89.4% shares before the European Bank of Reconstruction and Development became the shareholder. In 2006, the European Bank Council of Directors took decision to acquire the Garadagh Cement for $10mln with 20%. However, Akhundov said that additional investments are not expected from the EBRD.

The construction of a new plant with 1.5mln tons, is planned in the Garadag region. The initial conditions to take part in the European Bank of Reconstruction and Development were signed with Garadagh Cement.

As a result of the re-construction, the production volume will be increased from the current 1.4mln tons. The new cement plant is estimated with $150mln.

In 1999, Holcim privatized Garadagh Cement.