Holcim is expanding into the rapidly growing building materials market in Azerbaijan
September 25, 2008 | by Holcim
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September 25, 2008, Holcim, through its Group company Garadagh Cement, has been producing and distributing cement in Azerbaijan since 1999. The Garadagh cement plant is located some 35 kilometers west of the capital, Baku, and its four small kiln units produce around 1.1 million tonnes of cement for the fast growing building materials market. Over the last four years, consumption of cement has increased by more than 65 percent and reached 3.2 million tonnes in 2007. Further strong growth is expected in the coming years as a result of the robust housing construction activities and major public infrastructure projects.
For this reason, Holcim has decided to build a new kiln line at the existing plant location with a capacity of 1.7 million tonnes of cement per year, which is expected to be commissioned by 2011. The investment cost of the new kiln line and further efficiency improvements at the existing plant is estimated to be around EUR 300 million. The investment program will enable Garadagh Cement to further strengthen its position as the leading cement producer in Azerbaijan while making a significant contribution to protecting the environment.
With 550 employees, Garadagh Cement achieved sales of EUR 110 million in 2007. The Holcim Group has a stake in the company of approximately 70 percent. The European Bank for Reconstruction and Development (EBRD) and the state-owned Azeri Investment Fund each hold stakes of approximately 10 percent.
Azerbaijan has a population of around 8.5 million people and the country's GDP is set to rise at an above-average rate in the coming years due to the booming oil and gas industry. From a European perspective, the country is gaining in significance as a supplier of crude oil.
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Source: Holcim, Press release