HEAD OF GRAND HOLDING INVESTS $4 MILLION IN JV IN GEORGIA

TBILISI, JULY 26. ARMINFO. A plant on production of tobacco of the
Armenian- Canadian JV LTD Grand Tobacco included in the largest
industrial group Grand Holding will open in Georgia, Black Sea Press
reports.

Talking to journalists, Georgian MP Baso Jugeli said the plant planed
to start production of cigarettes, some 32 names, already on August 5
2005. He said the new plant is located in one of the districts in
Tbilisi, Gldan. It was based on the enterprise functioning there
earlier, which was purchased by the well-known Armenian businessman
Grant Vardanyan. The latter invested in the new production $4
million. Jugeli said “the production will be Armenian and the
Georgian party will be engaged in distribution.” He said the
enterprise would employ 200 residents of Georgia. Raw materials for
production of cigarettes will be supplied from Armenia. Jugeli said
establishment of the plant in Georgia was necessitated by the
existing demand for tobacco production. “At the initial stage the
cigarettes produced at the plant will be sold only in the georgian
market,” he said.

Speaking of the potential of Tbilisi plant earlier, Grant Vardanyan
himself stated that the enterprise was built taking into account that
the cigarettes market in Georgia was 5 bln cigarettes yearly (in
Armenia this indicator is 2 bln). He said the plant planed to produce
such Armenian brands as “Gloria”, “MT” and others. Grand Tobacco was
established in May 1997 on the initiative of a Canadian company
“Grand Tabak.” The first output was in August 1997. At present the
assortment of Grand Tobacco is represented by some 60 marks of
cigarettes. The company unites several tobacco factories. Besides, JV
Grand Tobacco is engaged in production of aromatized and cigarette
holder filters.

From: Emil Lazarian | Ararat NewsPress