OREANDA-NEWS. The EBRD is supporting the modernisation of Tajikistan’s sole glass jar manufacturer LAL with a $2 million loan. The financing will be used for the acquisition of a glass forming machine which will allow the company to increase its output by 15 per cent, significantly reduce costs and energy use and diversify its product range. Currently, LAL is producing 60 tonnes of jars per day, reported the press-centre of EBRD.

The LAL factory is located in the Sogd region in northern Tajikistan which has a strong agricultural sector. The new equipment will allow for the production of twist off cap jars, providing local fruit and vegetable canning companies with glass packaging which can be sold directly to the end consumer. In addition to serving the local market, the company plans to increase exports to Kazakhstan and Russia, where LAL sees further room for development.

LAL is a joint-stock company and owned by a number of private Tajik business people. The raw material for glass production is procured locally. The company has further ambitious expansion plans for the near and medium-term future.

Matthieu Le Blan, Head of the EBRD’s Dushanbe office, said the loan was expected to have significant impact on the regional economy, benefiting both the company and the agricultural sector. This will help unlock the region’s significant potential and set it on course for sustainable development.

Mirzohalim Mirzokarimov, General Director of LAL, said that the EBRD loan is vital for the company to upgrade its equipment and to provide its local clients with up-to-date packaging solutions.

The EBRD loan comes under its Early Transition Countries Initiative which was set up in 2004 to stimulate market activity in Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan and Uzbekistan by using a streamlined approach to financing more and smaller projects, mobilising more investment, and encouraging economic reform.