The FINANCIAL — Georgia is starting to expand the production of sandwich panels, a type of construction material, to strengthen the construction sector and the country’s economy.
Using such panels will reduce expenses for construction companies and will replace import by 90 percent, according to the representatives of the Partnership Fund, mainly financed by Georgian Railway and Gas & Oil Corporation. The goal of producing sandwich panels is to replace imports of industry goods and provide market with competitive local products.
In response to these plans, construction companies’ representatives say that sandwich panels are not in demand and that there is no need to buy them. Georgia’s main construction and developing companies: Archi Group, M2, Ideco, Arci, Redix and Axis LTD, all say that they do not use sandwich panels in construction in general. However, sandwich panel is best for building cold and freeze stores, warehouses and production places, commercial and residential blocks as well as industrial buildings, according to PF. Alex The production is not intended for individual consumers, but for companies only, explained Irakli Kovzanadze, CEO of the Partnership Fund.
Partnership Fund together with ICES, a local company and the only one producing sandwich panels in Georgia, has already signed a contract to implement a project that will be producing the largest amount of sandwich panels in the country. The capacity of the plant will be 2.8 m m2 panels annually. The first product will be available on the market within 10 months. The enterprise will be located on Rustavi Highway and will be equipped with modern Italian installations. 45 percent of the first flow of production will be sold in Georgia and the other 55 percent will be exported to Kazakhstan, Azerbaijan, Ukraine and Russia. The total amount of investment reaches USD 6 million. Supposedly, the price per sq.m will be GEL 40-50.
Populi, Goodwill, Barambo, Sante, Nabeglavi are among the customers of ICES.
The project is designed to cheapen construction in Georgia as using sandwich panels is less expensive then reinforced concrete, according to the Partnership Fund.
Sandwich panels generally consist of two outer metal sheets with a stabilizing core of insulation sandwiched between them. The metal sheets are bonded to the insulation core with specialized adhesives. The outer surface of the sheets can be flat, slightly corrugated or with a significant profile. Because sandwich panel installation requires only a limited number of mechanical fasteners, the resulting constructions avoid significant thermal bridging.
“For this sector it will be a relief, and I think that the implementation of such a project is vital for strengthening our economy,” said Irakli Kovzanadze, CEO of the Partnership Fund. “Today, the largest amount of sandwich panels is imported from Turkey. Our goal is to expand local production and replace import by 90 percent. Moreover, we want to export the product to our neighbouring countries. We expect to have the first production after ten months,” he added.
Despite the fact that local construction companies say there is no need for them to use sandwich panels, the director of ICES, Aleksi Morchiladze, claims that the demand for sandwich panels has increased in Georgia. “ICES is already producing sandwich panels in Georgia. Today we are expanding our production as the demand is increasing. We were producing 300,000 m2 of sandwich panels per year and now the production will be increased tenfold. The price and the quality will increase our competitive advantage. It is a thermal-efficient product and very useful for building flats. There is no other type of factory which produces sandwich panels within a 1,500 km radius, which means that this area will be our main market,” said Morchiladze.
The Partnership Fund is not going to remain a part of the project forever, as Kovzanadze says. “The Fund will eventually leave the project in 3 to 5 years’ time, once we are assured that 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.
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