(ArmInfo) - Armenian CJSC Hytex Plastic intends to invest $5 million in the establishment of a preform producing plant in Tbilisi, Hytex Plastic Board of Director Chairman Levon Meliksetyan said at a press conference, Tuesday.
He said that at the first stage, in the first half of 2007, the company will invest $2 million in the reconstruction of the premises provided to it, as well as in purchase of raw materials and up-to-date equipment with 60 million preforms annual production capacity. At the second stage, the plant is to extend the production and establish a second production line with the same capacity. L. Meliksetyan said that at present Hytex Plastic satisfies some 30% of the demand in the Georgian market, with the sales volume totaling $3 million. The key consumer is Coca Cola Bottlers Georgia, reports Trend.
Last week Hytex Plastic and Coca Cola Bottlers Georgia signed a Memorandum of Long-term Cooperation. Under the Memorandum, the parties pledge to build a preform producing plant in Tbilisi and to raise the sales volumes to $5 million yearly. L. Meliksetyan said that under the Memorandum, Coca Cola Bottlers Georgia will be the only buyer of Hytex Plastic till 2013, which is "a good guarantee for Armenian investments." The construction of the plant in Georgia will allow the company to reduce the cost value of preforms and to export the production to Russia and other countries of CIS in future, L. Meliksetyan said.
He added that the project will be implemented on the funds of the European Bank for Reconstruction and Development. The latter acquired 30 pct stake in Hytex Plastic in January 2006 and took an active part in the conclusion of the agreement with Coca Cola Bottlers Georgia.
The stake was acquired through an additional issue. However, L. Meliksetyan refused to specify the amount of the deal for commercial reasons. He added that in total EBRD issued $2.5 million credits, including for the 30 pct stake.
CJSC Hytex Plastic was founded in 1990. It started preform production in 1997. The company satisfied the 70-80% demand in the Armenian market. During the last 5 years, the company invested $4 million in the modernization of the production.