Mongolia is today one of the fastest growing economies in the world. The country is entering a “cement-intensive” phase in its development as it prepares for large infrastructure projects. The EBRD continues its support of local manufacturers of building materials with a new US$ 5 million loan to Remicon JSC, a Mongolian producer of ready-mixed concrete.
The loan will finance the expansion of the company’s production facilities, namely the instalment of a second production line and a mobile concrete batching plant, including distribution mixer trucks.
“Remicon is just the type of company we want to see grow in Mongolia: a local, dynamic medium-sized business which takes advantage of the mining boom to increase production and create jobs,” said the EBRD’s First Vice President and Chief Operating Officer, Phil Bennett, signing the deal in Ulaanbaatar. “Mongolia is ready to build and produce more locally; the EBRD is supporting that drive, with the highest number of our projects in the country being in the manufacturing sector,” he added.
Remicon JSC is a leading ready-mixed concrete producer, based in the capital Ulaanbaatar, which started operating in 2008. It is a subsidiary of Hera Holding LLC, a construction and mining holding company, and is publicly traded on the Mongolian Stock Exchange.
The Chairman of Remicon JSC, Mr. Kh. Gankhuyag, said during the signing of the loan agreement: “With Mongolia consistently ranked as one of the fastest growing economies in the world, we’re seeing a commensurate demand for construction materials in the building and infrastructure sectors. With the support of the EBRD we will be in a position to expand our production capacity and invest in training of additional skilled workers, which will enable us to make an even more significant contribution to our country’s development.”
Since commencing its operations in Mongolia in 2006, the EBRD has invested almost US$ 1 billion in 56 projects in various sectors of the Mongolian economy, of which the majority were in the non-mining sectors, and 18 individual projects were in the manufacturing and services sector. All of the projects have been in the private sector, engaging with companies owned by Mongolian businessmen and women.
The EBRD last week approved a new country strategy for Mongolia which emphasises diversification and private sector participation in infrastructure projects.