“We are meeting with the representatives of Georgian government to catch their views about the foreign investments and cooperation, their view about how Georgia should develop and what we can do for this country,” said Joyce Zhang, Director of International Affairs Coordination from the South-South Asia-Pacific Finance Center. “Rustavi Steel is obviously our first possible partner in this region but in the future we are hoping to do much more then only one project. In terms of the fields and industries we believe this is a mutual interest. It is not just only for us to see what are we interested in, but this is also for us to explore what Georgia needs and how can the international society help with Georgia's development,” shesaid.

“From the United Nations’ point of view we believe that Georgia currently is going through the major transition period and will face the economic boom soon. We hope that we are able to cooperate in the future. When I saw Tbilisi and found out that in a small area there are about five churches of different religious, it shows how openminded Georgian people are and this is very impressive. Learning from the history, Georgia was always a center of lots of cultures. The country was a part of silk road and it was historically involved in trade. Georgia historically has huge experience in many directions including trade and foreign affairs.” Zhang added.

“We believe that Georgia is today also ready for foreigner investors to develop together. We are also impressed by people with whom we are negotiating. They are very good professionals and very motivated in terms of the development. We have very good feelings in terms of investing in Georgia,” Says Jing Zhang, Director of Oriental Patron Financial Group.

“Any investments would have risks. The question is how to manage these risks. We deal with the developing countries. It is expected that some risks would come out of any project – be it political, be it economical – anything could happen. But here we are to control these risks. The cooperation with Rustavi Steel is a very first seed that we are planting in the land of Georgia. I hope that our experts which are cooperating with Rustavi's experts can produce a report that would analyze the potential structure that we can use to maximize everyone's interest,” he added.

Leading the delegation, South-South Asia-Pacific Finance Center is a UN linked NGO that aims to bring together the public sectors, private sectors and international financial institutions, in order to support and facilitate potential projects in developing countries through triangular cooperation. The South-South Asia-Finance Center has established strong partnership with Oriental Patron Financial Group to facilitate foreign investment. Oriental Patron Financial Group is a well established Hong Kong based financial group, which has raised more than 450 billion Hong Kong dollars (nearly 60 billion US dollars) for its clients in the international market over the past 20 years.

The rest of the delegation from China visiting Rustavi thisweek includes representatives from a subsidiary of Hebei Iron and Steel, China's largest steel company, and Anyang Iron & Steel, another top Chinese steel company, and various EPC (Engineering, Procurement and Construction) companies.

“This is a big Chinese financial group and they are expressed their interest towards cooperating with us,” said Dr.Farooq Siddiqui, Director/CEO of Rustavi Steel. “They are potential partners and are looking for the possibility to invest in Georgia. Metallurgical plants are usually high value assets so the investments are hundreds of millions of dollars. So it is a serious affair. Any investor who comes has to look into all the details. This is their first visit in Georgia. We are providing all the details of the projects that we have and they introduce them,” he added.

“There are some projects that we are interested in to be implemented. One of them requires USD 100 million investment. I hope that this project will be interesting for South-South Asia-Pacific Finance Center as well. There is another project that we have which requires USD 30 million initially and later USD 70 million, which is another USD 100 million investment need for Rustavi Steel. So there are projects that we need to be implemented and we are looking for the financial partners. There is South-South Asia-Pacific Finance Center on the other hand, which also is looking for suitable projects that may enhance the sustainable development and bring investments to Georgia. I do hope that our interests will coincide,” he added.

In 2011, Rustavi steel LLC was established to acquire the assets of the Rustavi Metallurgical Plant. Rustavi Metallurgical Plant one of Georgia’s largest industrial enterprises, is situated 30 kilometres to the south of Georgia’s capital Tbilisi. The Plant is the largest metallurgical complex in the entire Caucasus region.

Today, the Plant’s new management and owners are embarking on a major programme of investment and re-structuring to re-establish the company in regional markets, and expand into new global markets.

The Plant is operating successfully and is manufacturing reinforcing bars, seamless pipes, square billets, pig-iron castings, metal constructions, mechanical parts, shaped castings, granulated slag, silicon-manganese, lime and limestone.

To strengthen its market position, management’s first task is to increase the Plant’s production capacity. A systematic modernization and re-equipment programme is underway, new technologies are being introduced, training of young employees with the help of experienced professionals, has been given a priority.

The Plant currently exports to the European Union, US, Russian and Middle Eastern markets as well as to Armenia, Azerbaijan and Turkey.

Rustavi Steel LLC employs over 2,100 people.

Mariam Papidze, The FINANCIAL