Locally-made products replace imported goods

The Partnership Fund will invest $2.3 million USD in a local construction company with the purpose of replacing imported industry goods with locally made ones and support the development of local manufacturing.

The Partnership Fund (PF), a state-owned shareholding company, with Tbilisi-based industrial construction company ICES launched a project that would implement the production of Georgian made "sandwich panels” (a type of flat panels) used in construction.

PF Executive Director Irakli Kovzanadze believed launching the project would reduce the amount construction companies spend on materials, and replace imports by 90% in the country.

"This is the initial step for producing locally-made construction products in Georgia. It is the goal of the Government to reduce the amount of products imported and stimulate local production. This is vital to strengthen the economy,” Kovzanadze said.

In total, $6 million USD will be invested in the project. PF will invest 49% of the costs, ICES will spend $2.5 million USD (4.3 million GEL) and the rest will be provided by the local bank.

ICES General Director Alexi Morchildze believed the Georgian made products could also be exported to countries including Armenia, Azerbaijan, Kazakhstan and Russia.

"Nearly 45% of our products will be exported from Georgia. Furthermore, the products will compete against the panels imported from Turkey in Georgia with its price and quality,” Morchiladze said.

The first product will be available in the Georgian market within 10 months. The plant is expected to produce 2.8 million square-metre panels annually.