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EBRD strengthens agriculture in Kazakhstan
Bank increases loan to sunflower oil producer
The EBRD is increasing a $16 million loan provided to sunflower oil producer
Turkuaz Edible Oil Industries in 2005 by $4 million to support the company’s
further expansion in Kazakhstan and neighbouring Central Asian markets. Due to
strong demand the company has decided to install a new sunflower oil refinery
with a capacity of 200 tons per day, rather than the previously planned 100
tons per day. In the last year Turkuaz’ market share has increased from less
than 3 to more than 15 per cent in Kazakhstan.
The company, which is a 90 per cent-subsidiary of the Saudi Arabian company
Afia International Company (previously Savola Edible Oils), and the EBRD have
been partners since September 2005 when the Bank extended a $16 million loan
to the sunflower oil producer. As sunflower oil production in Kazakhstan is
still small compared to Russia and Ukraine the potential is strong. Turkuaz’
growth over the past 12 months has confirmed this assessment.
The extension of the new refinery, located in the Aktobe region in western
Kazakhstan, will also strengthen local agricultural producers. The company’s
target is to eventually purchase at least 50 per cent of the sunflower seed
locally. The Bank is working with Turkuaz to provide technical assistance for
the training of farmers. State of the art packaging, marketing, labelling and
product development will raise the standards of retailers and distributors.
Giles Mettetal, EBRD Director of Agribusiness, said the Bank was proud to
support the successful expansion of an innovative company with a clear vision
and a long term strategy for the region. It is one of the EBRD’s strategic
aims to unleash Central Asia’s strong potential in sectors like agribusiness.
Turkuaz Edible Oil Industries was established in 2003. Afia International
Company, a leading producer in Africa, the Middle East and central Asia where
it operates in more than 8 markets, bought a 90 per cent stake in TEOI in
October 2004 and has invested $20 million since. Afia International Company is
a subsidiary of the Savola Group, a major Saudi Arabian food and retail
company.
Since its establishment in 1991 the EBRD has signed 296 transactions worth
€4.3 billion in the agribusiness sector alone.
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