Corrugated Cardboard Production

Corrugated Cardboard Production

Project Profile:

The following investment opportunity will create a corrugated cardboard production facility in Gori. This facility will produce more than 15 different types of cardboard boxes. These products will meet a growing demand for cardboard packaging in both local and foreign markets. This project will employ 70 people. The total investment needed is USD 4.5 million with a 5 year IRR of 24%.


World market size (2014) – USD 173.5 billion
By 2020 world market projected to grow past USD 213 billion
Local market size (Georgia) – USD 9 million
94% of imported products in Georgia are from Turkey

Advantages of Georgia:

Duty free export to the EU, US, CIS and other regions with total population of 2 billion
Existing infrastructure and communications
Inexpensive resources – electricity, labor, water
Rapidly growing cardboard industry
Advantageous geographical location: easily accessible European and Asian markets via Black Sea ports of Poti and Batumi
Deep and Comprehensive Free Trade Area (DCFTA) between Georgia and the EU

Project Description:

Company location – Gori
Business activity – production of cardboard boxes
Target market – local and foreign markets
Company will produce over 15 different types of cardboard boxes
Employment – 70 employees

Financial Highlights:

Total investment – USD 4.5 million
3rdyear revenue – USD 7 million
3rdyear EBITDA – USD 9 million
5 year IRR – 24%

Governmental Resources:

The Government of Georgia provides the following financial incentives:

Nominal price for land
Loan/leasing subsidy through “Produce in Georgia Initiative” (ge)
Equity co-financing through the Partnership Fund (ge)
Technical assistance through Georgia Industrial Development Group

In Summary: It’s simply a matter of packaging!

Georgia’s export growth and its increasing domestic demand for high quality packaging will be driving factors for the local production of cardboard products. The production of a high quality cardboard that meets all the requirements—foreign and domestic—of the packaging industry is a worthwhile investment. A product as simple and ubiquitous as corrugated cardboard is a basic necessity for any economy. Demand for such standardized packaging will increase with local production as well as with any increase in export or import.


551176470 ENG


577772203 GEO


595655655 RUS

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