Date post: | 18-Jul-2015 |
Category: |
Documents |
Upload: | ivadavitaia |
View: | 1,383 times |
Download: | 1 times |
Woodimpex LLC
Residential -
January 2010
1
Adjara Group is pleased to announce the sale of equity stake in its subsidiary Woodimpex LLC. International or local investors are welcome to express their interest and get involved in the talks with owner regarding the deal.
Woodimpex is fast developing, vertically integrated wood processing businessmajorly located in port city of Poti (Western Georgia) producing high class wooden materials with major sales oriented on export.
This unique business model provides great opportunity for potential investors to diversify their exposure through stable and high return projects in emerging markets.
Vertically integrated business model, full control over manufacturing process from log to final product, 15 years license on sanitary felling of unique chestnut timber in Tkibuli region, well developed logistics scheme and attractive profitability margins, modern and computerized machinery with impressive production capacity, wide range of products from EURO standard lumber to ready to use furniture, big international demand on the variety of chestnut made products, flexible and tax efficient sales structure from FREE Industrial Zone … these are advantages that position this project at the top of agenda for potential investors interested in industrial sector of Georgia.
Tkibuli Region Forestry
Woodimpex holds 15 years lease license on sanitary felling of the chestnut forests in Tkibuli region (Western Georgia). Chest-nut forestry is located on the 30,000hectares of land with total debit of circa 600,000 m3 of fellable timber. Felled logs after initial processing are transported from Tkibuli base by the railways directly to the Poti Factory where the rest of processing and manufacturing is conducted. PotiFactory ensures highly efficient use of raw materials with lowest production waste.
Georgia Map
Maps of regions with chestnut forests in Tkibulileased by Woodimpex LLC
Chestnut forests
January 2010
Woodimpex LLC
Tbilisi
Poti
Tkibuli
Woodimpex LLC
Residential -
January 2010
2
Poti Factory - Asset overview
Woodimpex wood processing factory is located on 2.3 hectares land plot in Poti with connection to main rail line. Modern fully computerized equipment of the factory provides high production capacity and covers wide product range including processed logs, lumber, window/door details, wooden panels, wooden fittings and ready to use furniture.
The factory runs large manufacturing base of finger joint panels and medium sizeddecorative furniture workshop. There are 120 employees, among which 36 are senior technical or managerial specialists. The most advanced and computerized equipment from Italy, Germany and Turkey ensures the output of wooden products with capacity reaching 1,200 m3 per month.
High quality machinery of Weinig Group (Germany) and Italian advanced drying kilns with more than 1200 m3 capacity in combination with highly skilled/low cost labor force and strict quality control policies provides the guarantee of the best prices and quality of the production.
Factory processes wide variety of wood available in Georgia: Chestnut, Oak, Walnut, Beech, as well as tropic types of wood such as Iroko, Bahia, Papao, Framire, Niangon, Wenge, Faro, Tiama and others imported from Western Africa (Sierra Leone) on demand. The company has exclusive price options on more than 30 timber variety from wood processing factory in Sierra Leone – subsidiary of the Group.
Main Equipment and Machinery - Panel manufacturing
Raiman Profirip KP 310 Dimter Opticut 200 Weinig Unimat 0 23 SP Weinig Hydromat H 2000 Grecon Combipact Weinig Unimat Super 4 Weinig Unimat Super 4 Dimter Profipress T 5500HF Eima Typ 120 Altendorf WA 80 Butfering profiline SUR 313 RRF
Woodimpex Poti Factory Cadastral Maps
Woodimpex Poti Factory Photos
Woodimpex LLC
Residential -
January 2010
3
Exports and Free Industrial Zone
The company leased 5,000 m2 of land in Free Industrial Zone of Poti to capitalize on the tax benefits in import/export operations. The company currently exports modest quantities of itsfurniture to Germany and plans to expand its exports sales through aggressive offering of its product range to other European markets and beyond.
Rakia Georgia Free Industrial Zone in Poti was established in 2008 by Rakia UAE. Rakia Georgia plans to make Poti Free industrial Zone a global hub of manufacturing and services and an investment destination of choice for the investors in the region. The mission is to offer complete ‘end to end’ solutions to the needs of every investor and ensure complete customer satisfaction, ensure minimum transaction and conversion costs to businesses.
Advantages of Rakia Georgia Poti FIZ are: Non-discriminatory access to the zone and freedom of transit 100% of ownership in FIZ No foreign exchange controls 100% capital and profit repatriation Fully convertible currency No restrictions on hiring expatriates ‘One-stop shop’ system No trade barriers or quotas Goods produced in Poti FIZ and sold in Georgia are considered as exports and are
exempt from VAT (18%) Avoidance of double taxation with many countries Low cost of skilled labor
ContactsEvgeni (Iva) DavitaiaGroup CEOAdjara Group
Tel: +995 32 33 54 73GSM: +995 77 46 16 58e-mail: [email protected]
Poti Free Industrial Zone Google Map
Woodimpex’ leased land in Poti Free Industrial Zone
Tax Type Free Industrial Zone
Ordinary Zone
Tax on Land None 0.34 GEL per sq. m. per year
Property Tax None 1% of property value per year
VAT on imported plant assets
None 18% of invoice price
Customs tax on imported timber and other raw materials
None 12% of invoice price
VAT on imported timber and other raw materials
None 18% of invoice price plus 12% customs tax
Corporate profit tax None 15% of taxable profit per year
Price on purchases of materials within the FIZ
Invoice price only Invoice price plus 18% VAT
Comparative table of taxes within FIZ
Disclaimer: This presentation does not take into account nor make provision for any possible rise or decline in local or general economic conditions. The projections have been prepared based on information available and general experience in the industry, however neither Adjara Group nor any of its affiliated or subsidiary companies warrants, guarantees or makes any representation with respect to any of the projections set forth in this paper. Projections are subject to uncertainty and variation and therefore are not represented as results that will be actually achieved.
Leased land