Project Profile:

This investment project provides a unique opportunity to restore and re-launch the production of refractories in Georgia after a decade of inactivity. Thanks to its owners and a dedicated management team, the last of the soviet Mohican plants remains in working condition in Zestafoni, the former industrial center of Georgia. All of the specialists and qualified management staff have been reunited and brought back to the facility. The enterprise needs only minor funding for overhaul. The demand for these materials is significant because there are roughly 15 factories across Georgia of various sizes requiring refractories. The enterprise owns extraction licenses for two quarries. Also the plant is capable of producing Portland cement and other building materials, such as bricks and roof tiles. In addition, the plant will produce the famous traditional Georgian product Qvevri for export purposes. Qvevri have recently gained worldwide popularity. The total investment for this project is USD 600,000 with a 5 year IRR of 200%.


• Refractoris world market
• Volume (for 2015): USD 30 Billion
• Annual growth rate (for 2015): 5%
• Value of 2014 imports across the region (Georgia, Azerbaijan, Armenia, Ukraine, Russia and Turkey): USD 250 million
• 2014 Local Market Volume: USD 18 Million

Advantages of Georgia:

• The unique plant staffed with qualified personnel has been preserved since Soviet times currently represented by “Zestafoni Refractories Plant LLC” could be considered as a local partner
• 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

Project Description:

• Plant location: Western Georgia
• Manufacturing input: 80% local raw materials
• Local partner: Zestafoni Refractories Plant, LLC
• Business activity: Refractory bricks and powders. Building bricks, roof tiles, Portland Cement
• Annual capacity: 15,000 tons combined, estimated at a minimum annual production of 10,000 tons
• Funds needed for overhaul: USD 600,000
• Source of Funding: Credit from “Cartu Bank”

Financial Highlights:

• Selling price: USD 240 per ton
• Competitor’s price: >USD 1,000
• Total investment: USD 600,000
• Expected revenue for a year: USD 3,500,000
• EBITDA: USD 1,500,000
• 5 year IRR: 200%

Governmental Resources:

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


551176470 ENG


577772203 GEO


595655655 RUS

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