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%.

Background:

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.

phone:

551176470 ENG

phone:

577772203 GEO

phone:

595655655 RUS

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