Project profile:
As Eastern Georgia is rich in natural stones, such as huge limestones, granite and marble – the stone processing industry is a highly promising investment.
The project involves the investment of capital in the factory, located in one of the strategic locations of Eastern Georgia (in the center of Marneuli district or in the suburbs of Tbilisi). Both of them can produce dimension stone products that meet international standards and, at the same time, benefit from the industrial concentration in Marneuli / the capital, with its drilling construction industry.
According to the investor’s business plan, the Georgian government is ready to provide the industrial area with land, electricity, water, etc. for access to resources that include investment and infrastructure. Estimated investment of Eastern Georgia stone processing project is 2-3 million USD (depending on location), 5-year IRR – 30%.
Background:
The moderate global market of the stone industry (2013): – 54 billion USD
Annual growth rate 7.5%
Advantages of Georgia:
Georgia has a favorable investment environment, as evidenced by:
- Tax-free export to the EU, the US, the CIS, and other regions with a total population of 2 billion;
- Existing infrastructure and communication;
- Low-cost resource – for example, electricity, labor force and water;
- Favorable geographical location – easily accessible European and Asian markets (through the Black Sea ports of Poti and Batumi);
- A wide range of natural, decorative and building stones (231 registered ores, total 1.5 B m3);
- High quality physical-mechanical properties, wide range, texture and natural designs.
Dimension stone import (2014): 16 million USD;
Annual growth rate: 37%
Project description:
Company location: Marneuli, Kvemo Kartli;
Production input: Both imported and local Georgian natural stone blocks (granite, marble, diabase, basalt, etc.);
Finished product: Standard pavement tiles and other orders;
Target market: Local market and export to EU, Middle East countries, Russia, etc.;
Annual volume: 50, 000 m2;
Detailed business plan and any other information are available upon request. Contact us by email – GIDG@economy.ge or see the contact information.
Financial indicators:
Total investment: 2 million USD;
III year income: 1.9 million USD;
III year EBITDA: 1.4 million USD;
5 year IRR: 30%
Government resources
The Government of Georgia offers the following financial incentives:
- The nominal price of the land;
- Disbursement of the loan/lease within the framework of the initiative – “Enterprise Georgia” (www.qartuli.ge);
- Co-financing of capital through Partnership Fund (www.fund.ge);
- Technical assistance through the Georgian Industrial Development Group;
The East Georgia Stone Processing Plant will transform the entire region and develop the industry in Georgia. This long-term project has the potential to recycle an almost unlimited variety of stones; It will form the value chain from the quarry to the blocks and the finished products.