This relatively small investment project involves production of Polyvinyl Acetate Dispersion and PVA based glues. The project business plan has been developed in cooperation with “Plastopolymer Research Institute” located in Yerevan, Armenia. The organization has successfully launched several large projects within the CIS region. Currently Georgia imports all of its polymer adhesives. The uniformity of the product, the relatively simple production technology and the significant water content in imported goods gives this project an upper hand. The investment needed for this project is $0.6 million with a 10-year IRR of 42%.
- Regional Market: PVA Dispersion Market size (2014) – USD 40 million Adhesives Market size (2014) – USD 570 million Local Market: PVA Dispersion Market size (2014) – USD 0.6 million Adhesives Market size (2014) – USD 7 million
- Imports share – 100%
Advantages of Georgia:
- Duty free export to the EU, US, CIS and other regions with a total population of 2 billion
- Existing infrastructure and communications
- Inexpensive resources, such as electricity, labor and water
- Advantageous geographical location: easily accessible European and Asian markets via the Black Sea ports of Poti and Batumi
- Plant location – Western Georgia
- Manufacturing input – 50% imported raw materials
- Business activity – PVA dispersion, PVA glues
- Annual capacity – 3,000 tons, estimated min annual production – 1,000 tons
- A detailed business plan and any other information will be provided upon request. Feel free to email us at GIDG@economy.geor see the contact information below
- Total investment: USD 670,000
- Expected revenue for a year: USD 1,580,000
- EBITDA: USD 550,000
- 10 year IRR: 42%
The Government of Georgia provides the following financial incentives:
- Nominal price for land
- Loan/leasing subsidy through the “Produce in Georgia Initiative”
- Equity co-financing through the Partnership Fund
- Technical assistance through the Georgia Industrial Development Group
In Summary: Uniform Ubiquitous Universal!
One facility can produce products for various applications including gluing of: paper, cardboard, wood, leather, etc. The versatility of applications of the product ensures local market penetration. Also the economic sanctions imposed on Russia provide a rare opportunity for Georgian industry to gain ground in that market among other countries.