OREANDA-NEWS. October 27, 2011. Swiss company Holcim finishes work on expansion and efficiency increase of OJSC Garadagh Cement’s cement plant in Azerbaijan belonging to it.

Today in Baku CEO of Garadagh Cement Raoul Waldburger has reported that the realization of investment project for 300 million euro is coming to an end.

" The new kiln at Garadagh Cement will start clinker production by the end of the year ",- R. Waldburger said.

Earlier construction work on kiln erection was expected to finish by 30 June 2011 and testing production output – by the end of the year.

Construction work is being carried out by Chinese CBMI Construction Company (belongs to Sinoma International Engineering). Thanks to new kiln construction the plant will pass to dry cement production technology and capacity of the enterprise will increase from 2,616 to 4,000 tons clinker per day or from 1.3 million to 1.7 million tons per year. At the same time, power consumption for manufacture of one ton of cement will grow from 61.2 to 72.8 kW.

Cost of the project makes 325 million euros (USD 442 million), out of which 57 % (185 million euros or USD 251 million) will be provided by the basic proprietor of enterprise Holcim, and 140 million euros – by ADB (20 million or USD 27 million) and the European Bank for Reconstruction and Development (EBRD) (120 million euros). Loan for Garadagh Cement is the first investment of ADB in infrastructure of private sector in Azerbaijan.

Controlling block of shares of Garadagh Cement belongs to Switzerland-based Holcim Ltd. The plant, 35 kilometers from the Azerbaijan capital of Baku, is the only integrated clinker and cement producer in the country. In 2008, the European Bank for Reconstruction and Development (EBRD), a minority shareholder in Garadagh Cement, began to arrange loaning needed to help upgrade the plant.