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HeidelbergCement Announces Loss of €200,000 from Georgian-Ossetian Conflict

Business Materials 2 September 2008 18:40 (UTC +04:00)
HeidelbergCement Announces Loss of €200,000 from Georgian-Ossetian Conflict

Georgia, Tbilisi, 2 September/ Trend , corr N. Kirtskhalia/ HeidelbergCement of Germany, one of the largest cement producers announced that the Georgian-Ossetian conflict has inflicted loss of €200,000 to the plant of the company in Georgia.

Head of company Meinhard Tul said in a briefing on 2 September that Russian aircraft bombed Kasp  cement works of HeidelbergCement and electric cabins have been damaged.

"The cement works has not been damaged directly which enables the company to continue activities," Tul said.

The plant has been closed since the beginning of conflict which prompted rise in the loss, he said.

Meinhard Tul noted the company is not going to suspend its activities in Georgia and will continue investing in the economy of the country.

"In 2008, 20 millions of lari are expected to be invested in Georgia's economy," Tul said. The volume of investments amounted to 350mln lari for the last two years.

Tul touched upon the hardships in direct activities of the plant. "HeidelbergCement has problems concerning transportation because of shortage of railroad cars. State Railway Office of Georgia has submitted cars to the rivals of HeidelbergCement, Armenian and Turkish companies," he said.

"We understand position of State Railway Office of Georgia who earns more income from the transportation of cargo for longer distances. Talks are being held with both Railway Office and Ministry of Economic Development to address shortage of cars," Tul said.

The key stockholder of HeidelbergCement is German Spohn Cement (75%).

The correspondent can be contacted at: [email protected]

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