Mongolia: Mongolian brewer borrows from the EBRD to expand beer production

The EBRD is providing $25 million loan to APU, a private brewery operating in Mongolia, to support company's drive to expand production capacity and diversify its product range, Flex News reported on May, 24.

Established in 1924, APU is the leading beverage producer in Mongolia and one of the first privatised companies in the country.

The company, which is locally-owned, is aiming to launch production of canned beer to provide consumers with a competitively priced substitute for imports. APU operates the largest distribution network in the country and it has been recognized for its excellence in management and continuous innovation.

The proceeds of the EBRD loan will help APU to upgrade the brewery facility, increase beer production capacity and to purchase a beer canning line. In addition the project will finance APU’s working capital needs related to beer production.

This project will help APU double its beer production capacity by 2014 and create new jobs. Additionally, due to the implementation of advanced technology, APU will be able to significantly improve its energy efficiency, cutting emissions and production costs.

“The EBRD’s investment is helping APU to bring to consumers quality and competitively priced products and to raise the environmental standards at its production facilities. The project will enable APU to improve its energy efficiency, which will have a strong demonstration impact on other businesses in Mongolia”, said Philip ter Woort, Head of the EBRD Office in Mongolia.

“We at APU feel proud for becoming a recipient of the EBRD financing in Mongolia. Modern production technologies, best management practices, food safety, and environmental and corporate responsibility have always been the main principles of our operations. The partnership with the EBRD will help us further in our quest to become a world-standard manufacturer that delivers best value to consumers,” said Batsaikhan Purev, Chairman of APU Company.

26 May, 2010