A multi-million dollar construction manufacturing plant producing vital building materials has opened in Georgia, ultimately strengthening the construction sector and the country’s economy.

Officials gathered at the new Panex Plant on Rustavi Highway today to officially open the manufacturing plant, which will produce polyurethane sandwich panels that are primarily used in industrial construction.

The goal of the production factory was to replace imports of industry goods and provide the local market with competitive local products

Georgia’s Prime Minister attended the opening ceremony and noted the factory, equipped with modern Italian machines, would reduce production costs in Georgia and contribute to developing the local construction sector.

"Our Government’s priority is the development of production. I hope that this will replace imports with local production, which will be export-oriented,” said the PM.

Georgia's Prime Minister Irakli Garibashvili and PF executive director Irakli Kovzanadze at the red ribbon cutting ceremony. Photo from PM's Press Office. 

The plant has the capacity to produce 2.8 million m2 panels annually, of which around 60 percent will be sold locally and the rest will be exported to Kazakhstan, Azerbaijan, Ukraine and Russia. The price per m2 of product will be 40-50 GEL.

The Partnership Fund (PF), a state-owned shareholding company, teamed up with local business Industrial Construction Engineering Solutions (ICES) and began implementing the project in 2014.

A total of $6 million USD was invested in the project and the PF contributed 49 percent of total costs.

PF executive director Irakli Kovzanadze said the new factory would offer great support to the local construction sector.

"For the construction sector it will be a relief as using such panels in the construction sector will reduce expenses for construction companies and will replace imports. I think that the implementation of such project is very vital for strengthening our economy,” he said.

Standard polyurethane sandwich panels are building panels produced by injecting polyurethane foam between two galvanized ribbed metal sheets. It is recognised as the best material for cold and freeze stores, warehouses and production places; and commercial and residential booths as it is the best heat isolation material for siding industrial buildings.

The plant has the capacity to produce 2.8 million m2 panels annually. Photo from PM's Press Office. 

While the PF was proud to be involved in the establishment of the production plant, Kovzanadze said the PF would not remain part of the project forever.

"The Fund will eventually leave the project in three to five years’ time once the project is running successfully. Then we will find a partner who will replace the Partnership Fund. Supporting the production of sandwich panels in Georgia is a part of the Government’s strategy – to saturate the Georgian market with local production,” said Kovzanadze.

Last year when the contract was signed by representatives of the PF and ICES, the parties said using such panels would reduce expenses for local construction companies and products made here will replace imports by 90 percent.

http://agenda.ge/news/38347/eng