EBRD boosts production of building materials in Uzbekistan

• EBRD provides loan of up to US$ 29 million to Khorezm Insulation Group
• Company to triple its production capacity at its facility in Urgench
• Loan to support KIG’s financial stability and expansion

The European Bank for Reconstruction and Development (EBRD) is supporting the operations of Khorezm Insulation Group (KIG), one of the leading manufacturers of basalt wool insulation panels in Uzbekistan.

A loan of up to US$ 29 million (€25 million) to KIG will be used to strengthen its financial position by restructuring its balance sheet and to support its expansion programme. The funds will also help the company to procure specialist equipment and commission a new production line, enhancing its operational efficiency and product quality.

KIG is planning to increase the capacity of its principal production site in Urgench from 30,000 tonnes of basalt wool panels to 100,000 tonnes annually.

Through this project, the company will strengthen its domestic and regional presence, and be better placed to meet the rising demands of Uzbekistan’s rapidly growing construction market in Uzbekistan and the rest of the Central Asia.

The project is part of the EBRD’s strategy of supporting private business and green economy drive in the country.

To date, the EBRD has invested almost US$ 6.9 billion (€6 billion) in Uzbekistan across 210 projects, with most of the funds supporting private entrepreneurship. The country has been the leading recipient of EBRD funding in Central Asia for each of the past six years.