Banner
Falorni Tech Glass Melting Technology
Filtraglass

Uzbekistan seeking German bank loan

Uzbekistan will seek a loan from Germany“s Vereins und Westbank AG for EUR 19.1 million to build a factory to produce glass bottles and jars, a source in Uzplodovoschvinprom reported. The government …

Uzbekistan will seek a loan from Germany“s Vereins und Westbank AG for EUR 19.1 million to build a factory to produce glass bottles and jars, a source in Uzplodovoschvinprom reported. The government has passed a resolution outlining the schedule for financing the project, he said. The loan would be provided for eight and a half years at 1.5% annually with a two-year grace period with backing from Hermes under Uzbek government guarantees. The loan agreement was to be signed in September. Uzplodovoschvinprom signed a contract worth EUR 22.5 million with Germany“s Heye-Glas to build the technical portion of the plant for glass bottle production. The company is financing about 15% of the project itself. Construction of the plant is to begin at the end of 2002 and is expected to be completed in the first quarter of 2004. The plant will have capacity to produce 124.7 million bottles and jars a year. Plans are for the production of several dozen different goods for canning fruits and vegetables, wine and beverage products, and also bottles for beer and mineral water. Uzplodovoschvinprom, the country“s main producer of canned fruits and vegetables and wine, can process 683,200 tonnes of fruit and vegetables and 214,800 tonnes of grapes a year. The construction of the glass plant is part of a programme to develop the company“s export potential by 2005. The program includes investmenst of US $33.76 million and 3.178 billion in 11 projects. The programme envisions upping fruit, vegetable and wine product exports to US$ 17.1 million by 2005 against the US$ 6.3 million in 2000. Of these, more than half will be tomato paste and canned fruits and vegetables. Right now, Uzbekistan has only one glass factory – Kvarts, Fergana region, which can make 320 million a year. The aggregate need among food industry companies for glassware packaging comes in at around 650 million units each year (for one-time use).

Sign up for free to the glassOnline.com daily newsletter

Subscribe now to our daily newsletter for full coverage of everything you need to know about the world glass industry!

We don't send spam! Read our Privacy Policy for more information.

Share this article
Related news