Pioneer Cement Industries Plans Plant in Georgia
Pioneer Cement Industries has purchased a license to mine lime in Marneuli district for USD 3.3 million and plans to invest USD 150 million in construction of a new cement plant in two to three years, the Georgian Economy Ministry said.
Pioneer Cement Industries is a joint venture of Ras Al Khaimah Investment Authorities from United Arab Emirates and the Indian company Penna Cement Industries.
The Economy Ministry said that 100 hectares of land would be handed over to Pioneer Cement Industries to build the new cement plant.
The same license was obtained last October by a Tbilisi-based investment company, RUGE Capital, which also planned to build a cement factory in partnership with Firebird Management. RUGE Capital is founded by Lasha Shanidze, a former chief executive officer of Millennium Challenge Georgian Fund. Firebird owns shares in the Bank of Georgia through its two daughter companies Firebird Avrora Fund and Firebird Republics Fund, 4.7% and 4.6%, respectively.
The Economy Ministry said that RUGE Capital had been deprived of its license because of a failure to pay over USD 6 million license fee in full. The company paid only USD 450,000, according to the Economy Ministry.
Heidelberg Cement operates two cement producing companies in Georgia, including the market leader in the country, Saqcementi.
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