Economy
Posted: 2 weeks ago

2021 for Kutaisi FIZ: Problems in Logistics and Expensive Transportation

Soso Nibladze, head of the Kutaisi Free Industrial Zone of Hualing, summed up 2021 and said that it was quite a difficult year due to the problems caused by the pandemic.

As he explains to Business Partner, Kutaisi FIZ this year returned to the data it had before the pandemic, in the same period of 2019.

"As for the number of companies, we have shifted our focus to companies that work in the industrial sector and use FIZs physically for import-export," Nibladze said.

According to him, in 2021 a special problem was created in terms of operating companies. As Nibladze explains, as a rule, the logistics factor is very important in the processing industry. Consequently, it is known that in the global logistics, specifically cargo from China, prices have risen, there were also problems with containers in the region.

The problem was the bureaucratic, covid-related transportation problems, both in terms of entering and leaving the country.

"Nevertheless, 2021 was much more progressive than 2020. The business fully understood that in these conditions it should be possible to work, activate, diversify. Many were able to adapt. Consequently, all activities were improved," Nibladze said.

According to him, in 2021, several projects were initiated in FIZ, including Turkish projects. We are talking about the production of recycled plastic and waterproofing materials.

Also, a large-scale project in the field of electricity supply was completed in FIZ this year, which involves the creation of appropriate infrastructure and platform for FIZ investors. 4 million GEL is invested in the project. As a result, in the first quarter of 2022, Kutaisi Hualing Free Industrial Zone will offer electricity to companies at the lowest prices.

The second major project the company has initiated is the expansion of the FIZ, under which the existing FIZ will become 58 hectares.