EBRD funds modernisation of single industrial glass manufacturer in Central Asia

By Ina Coretchi

The EBRD is supporting the modernisation of Interglass, the largest industrial glass manufacturer in Central Asia, with a €10 million loan to upgrade the plant’s facilities.

Interglass, a wholly-owned subsidiary of the German company Steinert Industries, is the biggest industrial enterprise in the Kyrgyz Republic, producing around 10 million square meters of glass annually.

The proceeds of the EBRD loan will be used to upgrade the plant’s equipment and improve its energy efficiency. Steinert Industries will co-fund the project with €3.8 million in equity investment.

The project will help Interglass to raise its production capacity by over a third, to 600 tonnes per day, while significantly reducing the production costs and improving the quality of the float glass. The upgrade works will double the service life of the plant’s main furnace to up to 12 years.

“This project is a continuation of the EBRD’s successful collaboration with Interglass, and we are pleased to support the company in its endeavour to become more energy efficient and improve the quality of its products,” said Masaru Honma, EBRD Director for Central Asia, during a signing ceremony in Bishkek.

Mr. Honma is accompanying a delegation of the EBRD’s Board of Directors, who arrived yesterday to the Kyrgyz Republic for a two-day consultation visit.

“On behalf of Steinert Industries and Interglass, I would like to express my appreciation to EBRD management and bankers. The loan has been provided to us in a very timely manner particularly while we are facing challenges after the global economic crisis,” said Mr. Wladimir Steinert, General Director of Steinert Industries.

In 2004 the EBRD has provided a €5.5 million loan to Interglass, viewed as one of the most successful investments in the region with significant demonstration effect on economic development of the Kyrgyz Republic.

Since the beginning of its operations in the Kyrgyz Republic, the EBRD has invested over €185 million in more than 50 projects in the infrastructure, corporate, energy and financial sectors. The EBRD funds attracted additional investments worth over €100 million.