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Hansa Flex Georgia: Instability Scares Businessmen

The German manufacturer of hydraulic systems Hansa Flex has been working  in Georgia since 2011 and serves both  a small and large business.

A company manager Mariam Mazanishvili speaks about  the companies’ plans and the general situation in the country in terms of business climate: “We get from Germany finished materials and produce tubes of rubber and metal, which are used in construction and industry. Our products are used by such large enterprises as “Barambo”, “Coca-Cola”, “Nabeglavi”, “Marneuli.” Major construction companies,  concrete producers are among our partners as well, our products are used in the construction of the railway and gas stations. We also provide installation of our products.

What are your plans on the Georgian market? Do you plan expansion in the near future?

Yes, expansion is included in our plans. For example, we intend to more actively explore the regions of Georgia. While it is not a large scale project, but the companies operating in the regions show a great interest in our products.

If you plan to expand, whether it means that the business climate in Georgia is more or less satisfactory?

Political environment too often changed in Georgia, and it certainly has a negative impact on business.Many construction projects have stopped, including ours. Businessmen are waiting for something, do not rush to implement new projects, they have a feeling of instability.

But gradually the situation is improving, at least in the last 2 months such a trend is being observed. We started getting orders from large companies, for example, the Rustavi Metallurgical Plant.

In general, the construction business is unpredictable, for example, some companies suspend construction in the winter, and we also  have to  stands idle.

What should the government  make to improve the business climate and attract investors into the country?
Businessmen should have  more interest. Variability of the political situation and a feeling of instability create a sentiment among businessmen that they will be able to  do nothing in Georgia.

The state should give as much orders to business as possible, pay more attention to the construction of roads, factories and  industry.