Azerbaijan Investment Company Becomes Shareholder of Cement Plant

Business Materials 14 February 2008 20:54 (UTC +04:00)
Azerbaijan Investment Company Becomes Shareholder of Cement Plant

Azerbaijan, Baku, 14 February /corr. Trend I.Khalilova / On 14 Feb, Azerbaijan Investment Company (AIC) signed an agreement with the Swiss Company of Holcim after purchasing 10% participation share in the capital of Garadagh Cement Plant, where Holcim is the key shareholder. The participation totaled €13.7mln.

Thus, at the moment, the participants to the Plant are: Holcim - 69.4%, AIC - 10% and EBRD - 10%, individual shareholders - 10.6%.

Azerbaijan's Minister of Economic Development, Heydar Babayev, said in the signing ceremony that the contract is the initial stage of co-operation with Holcim. Favorable conditions were provided to the AIC, to join the Garadagh Cement. It will be a good signal to attract the foreign investors for the Azerbaijan's economy.

According to the AIC Executive Director, Anar Akhundov, this agreement covers several targets - including investing in significant sphere of Country's non-oil sector.

The Regional Manager for CIS countries and Caspian Region, Harold Babs, considers Azerbaijan's market very attractive, as it is rapidly developing and has good prospects.

Due to it, on 18 January Holcim Board of Directors decided to invest €300mln. "This agreement will strengthen our co-operation with Azerbaijan Government," he said.

He said that currently talks are being held with Azerbaijan Government to gain the right for production in the quarries in Garadagh region. The Minister said that it is intended to give the production rights to Holcim.

Project envisages increasing the volume of the production- at the expense of installing new stoves at the enterprise. If the project is realized, the production capacity of the plant will be increased up to 4,000 tons of clinker per day and 1.7mln tons of cement per year.

In 1999, Holcim privatized Garadagh Cement.

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