German Bosch plans to expand on the Georgian market.
Director of Bosch in the Eastern region says in an interview with Financial that due to increased construction activities in Georgia, in particular in Tbilisi, Bosch has decided to start operation of a new warehouse in Georgia. The new 1 600 sq.m Bosch warehouse will be opened on 16 December. The warehouse is located near to Tbilisi International Airport on a base belonging to Gebrüder Weiss, an Austrian company involved in logistics. The warehouse will store construction power tools.
Gerhard Pfeifer, Bosch President of the Eastern Region, speaks about a 17% growth in sales in Georgia in 2014.
Bosch representative predicts a building boom in Georgia, new hotels, office space will be built which will require the provision of construction equipment, Gerhard Pfeiffer explains that Bosch is in favour of every form of free trade, but for building up a factory they need a big and strong local market.
A preliminary data provided by the National Statistics Service proves a revival of the construction sector. In particular, in the third quarter of 2014, the largest share of foreign direct investments in Georgia fell on construction. During the reporting period, in total USD 181 million were invested in the sector that is 36% of the total investment.
George Kapanadze, the CEO of the development Company Axis notes that country is experiencing a construction boom. In the words of Kapanadze, a stable environment promotes economic development and inflows of investment.
Kapanadze confirms an increase in investments in the construction field on the company’s example saying that over the past one year more than USD 12 million were invested in the sector. In addition, the signed contracts envisage investments in the amount of USD 8 million in 6 months.
Kapanadze does not name the investor countries, but specifies the regions: the post-Soviet countries, Europe and Asia. He predicts that if stability maintains in the country, construction industry will continue to grow.
According to Irakli Rostomashvili, President of the Georgian Developers Association, mostly Azerbaijani and Chinese companies, in particular, the Chinese Hualing and Azerbaijani Dirsi, made their investments in the Georgian market. In his words, much more amount was invested in the construction sector this year compares to previous , which is welcomed.
“Construction growth and investing in real estate is the first symptom of the country’s economic growth,” – Rostomashvilistresses.