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HeidelbergCement shutters kiln line in Georgia

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World Cement,

HeidelbergCement has confirmed that it will cease operation of one of its kilns in Georgia. The kiln to be shuttered has a capacity of 0.2 million tpy of clinker, a spokesperson for the company told World Cement. HeidelbergCement is the only clinker producer in the country.

The closure comes after an increase in low-cost Iranian imports of clinker and cement caused a substantial drop in cement prices in Georgia. Prices in the country are now way below production costs, the spokesperson continued.

Neighbouring Azerbaijan has imposed an import tax of US$70 per tonne on Iranian clinker, forcing Iranian producers to turn dump production into the Georgian market. Iranian cement producers currently have free access to Georgia.

It is the latest blow to Georgian clinker production, after HeidelbergCement stopped production on two other kiln lines, following dumping from Azerbaijani cement producers. Currently only four of seven kiln lines are operational at the Rustavi plant.

In addition to the closure of the kiln line, the company is also scaling back limestone production at its Dedoplitskaro quarry.

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Heidelberg Cement news Cement news 2018