The European Bank for Reconstruction and Development (EBRD) will purchase 20 per cent of the stock owned by Holcim, which gained a controlling interest in the company back in 1999 following privatisation. The factory’s Director General, Uve Kehler told local news reporters that 89.4 per cent of stocks are owned by the company and the rest by small stock holders, he said.

The total cost of the deal is just US$10m; it will be approved at the EBRD Council of Directors meeting on April 25. EBRD is planning to become a medium-term stock holder of the company, for 5-7 years term, Kehler said. He is confident that the bank will then sell its holding back to Holcim.

EBRD finances will be spent to install an electro-statistic filter to the acting oven. In general, US$100-110m will be invested in the cement factory reconstruction, in case if the new kiln is build. “We are planning to achieve European ecological standards by 2010,” Kehler said.

More than US$40m has been invested in the Garadag-cement since it was privatized; US$30m of came in the form of loans from Holcim, some US$5m of which has yet to be repaid.

The last year was very profitable for the factory; its annual income reached US$32m with 30% growth, the similar results are expected in 2006. Although, last year no dividends were paid due to the some problems including additional taxes and other expenditures. However, the factory’s director did not exclude the possibility that this year they will be paid. Production growth will also be kept at around 1.3Mta of cement.