Displaying items by tag: Georgian CoInvestment Fund

Georgia: Heidelberg Materials has completed the divestment of its joint venture in Georgia. It previously held a 45% state in CaucasusCement Holding BV (CCH), the parent company of HeidelbergCement Georgia Ltd and Terjola Quarry Ltd, Tbilisi.

Heidelberg Materials sold its share to its long-term joint venture partner Cement Invest BV, an investment company that is jointly managed and owned by the Georgian Co-Investment Fund and Hunnewell Partners. The joint venture’s scope included two integrated cement plants, 14 ready-mixed concrete plants and two aggregates plants. The partners agreed to not disclose the financial terms of the transaction.

Heidelberg Materials said that these latest steps reflect its continued simplification of its country portfolio and would help to position the company as front runner on the path to Net Zero and circularity in the building materials industry.

Georgia: Mamuka Bakhtadz, the prime minister of Georgia, has officially opened a US$100m upgrade to HeidelbergCement’s Kaspi cement plant. Work on the new dry production line at the site started in mid-2016. A filtration system and equipment for continuous emission control were installed to allow for online monitoring of the plant's dust and emission volumes. The project was supported by the Georgian Co-Investment Fund and Honeywell Partners.

Georgia: HeidelbergCement has sold 50% of the voting rights in its Georgian business to Cement Invest, an investment company jointly managed and owned by the Georgian Co-Investment Fund (GCF) and Hunnewell Partners. HeidelbergCement and Cement Invest will jointly control the resulting joint venture. The transaction will contribute in total about Euro115m to cutting HeidelbergCement’s net debt.

“The joint venture’s competitiveness will be improved with the modernisation of the Kaspi cement plant, where the construction of a modern dry kiln line already started in 2016 and is expected to be finalised by the end of 2018. The disposal is part of our portfolio review and optimisation with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns,” said Bernd Scheifele, chairman of the managing board of HeidelbergCement.

HeidelbergCement started operating in Georgia in 2006. The new joint venture operates three integrated cement plants, a cement grinding facility and a cement terminal on the Black Sea coast. The cement production capacity exceeds 2Mt/yr. A network of 13 ready-mixed concrete plants and two aggregate quarries supports the cement business.

Georgia: HeidelbergCement Caucasus has announced that it will spend US$120m on upgrading its Kaspi cement plant in the Shida Kartli region. HeidelbergCement will work with the Georgian Co-Investment Fund (GCF) and Hunnewell Partners, a private equity firm, on the project, according to government news source Agenda.ge.

Most of the budget will be spent on building a new dry cement production line at the site. The remainder will be invested towards developing the plant’s supporting network of ready-mix concrete and aggregate plants. Construction will start in July 2016 with completion intended for mid-2018. The three companies also said that they are investigating expanding their production base in west Georgia after completing the Kaspi plant expansion project.

Heidelberg Cement started operating in Georgia in 2006 after it acquired a stake of 75% in SaqCementi. It operates two integrated cement plants in Kaspi and Rustavi, a grinding plant in Poti and a cement terminal in Supsa.