Leading Aircraft Manufacturer Opens Factory in Georgia

Elbit Systems, an Israel-based international defense electronics company, is set to open a factory in Tbilisi, Georgia.

Renown companies, such as aircraft manufacturers Bombardier, Boeing and Airbus – the world's most profitable companies in the aerospace industry – will be among its customers.

An estimated $85 million will be invested by the Israeli company in partnership with the Georgian State Investment Fund. The factory will produce civilian aircraft components.

According to Nino Cholokashvili, Georgia's head of the project, lower salaries, location and a favourable tax environment were key in the decision to start production in Georgia.

The average Israeli salary is $2,500, which is about 10 times larger than the Georgian. By locating the factory in Georgia, Elbit hopes to significantly reduce costs.

Construction of the factory is estimated to be completed in 2017. Production should begin in 2018.

Approximately 300 Georgians will be employed. However, currently there are no specialists in Georgia.

According to the investment agreement, Elbit representatives will train specialists in Georgian universities, after which, they will be employed. Universities where the training will take place have not yet been selected.

Georgia believes the project will attract other corporations as well. Georgia is 15th among 189 countries, in the business ratings (World Bank: Doing Business), 1st place among the Eastern European and the Central Asian countries, and 9th among the Western European countries. According to a Forbes study, Georgia takes 4th place in low taxes after Qatar, the United Arab Emirates and Hong Kong.

10 October 2015 18:26