€7 million to MSM Group will modernise its facility
The EBRD is continuing to support the Mongolian economy with a €7 million loan to MSM Group, the leading distributor of chemical supplies, equipment and construction material for the mining sector.
These funds will finance MSM capex investments needed for the upgrade and modernisation of its new chemical facility to increase chemical production and trading business. MSM Group serves a fast-growing market in the construction and mining sectors and this increased productivity will contribute to its competitiveness.
The Bank’s funds will also contribute to the improvement of the company’s management practices and the introduction of ISO 9001:2015 quality management standards. In addition, during the first phase the project will see health and safety standards improved through the establishment of a modern, specialised chemical facility including a laboratory to ensure quality control.
The EBRD previously provided MSM Group with a senior loan of US$ 6 million in 2008 to finance the construction of a new mixed-use facility which included offices, a car showroom, a mining and industrial tool shop, a warehouse and workshop and servicing areas. The project was successfully implemented and completed in 2015.
The EBRD works in Mongolia to build a diverse economy by developing the private sector and supporting infrastructure improvements. The Bank has invested more than €1.5 billion in almost 100 projects in the country since it started operations there in 2006.