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EBRD takes equity stake in Azerbaijan's largest cement factory
The EBRD is investing $10 million for a 10 percent equity stake in Garadagh
Cement, the largest cement producer in Azerbaijan. Garadagh Cement, located
near the Caspian Sea 40km south of Baku, is currently majority owned by Holcim
Ltd, one of the world's leading suppliers of cement, aggregates and other
construction related services.
The Bank’s investment will finance an environmental and efficiency upgrade of
Garadagh Cement’s existing facilities to reduce dust emissions to comply with
EU environmental standards. Since Holcim acquired the formerly state-owned
plant in 1999, production capacity has been increased more than six fold
accompanied by substantial investments in environmental technology. As part of
this commitment, Holcim intends to invest into Garadagh’s wet kiln production
process to reduce raw material and energy costs.
This is one of the largest non-oil investments in Azerbaijan and will
substantially support the Government’s programme for the diversification of
the economy, said Mike Davey, EBRD Country Director for Caucasus, Moldova &
Belarus.
The transaction is subject to the approval of the relevant authorities of
Azerbaijan.
To-date, the EBRD has signed 54 investments worth more than $900 million in
Azerbaijan. The Bank is focused on the development of a strong financial
sector, the support of micro, small and medium-sized enterprises and the
development of the non-oil private sector.
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