DUSHANBE, June 19, Asia-Plus — The European Bank for Reconstruction and Development (EBRD) is supporting the expansion of CCI (Coca-Cola Icecek of Turkey), the exclusive Coca-Cola bottler for selected countries in Central Asia, the Caucasus and the Middle East, by providing a $40 million loan for the expansion of production in Kazakhstan and by acquiring a stake in the company’s new subsidiary in Tajikistan for up to $3.4 million, press release issue by the EBRD said.
In Kazakhstan, the company currently operates two plants in the city and at the outskirts of Almaty, which produces sparkling beverages, juices and bottled water. Under an ambitious expansion program it is planned to install two PET and a hot filling lines for the production and packaging of juice and soft drinks, and construct a new warehouse. The new production lines will increase annual capacity to meet strongly rising market demand for sparkling and still beverages.
The investment will specifically benefit local and regional producers of fruit which are providing the company with concentrate. Meeting the company’s strict quality standards will require local producers to improve production techniques and introduce best practice, which will boost their competitiveness.
Whereas CCI is already well established in Kazakhstan, the advance into Tajikistan means exploring new grounds: The planned greenfield plant in the capital Dushanbe will be the first significant consumer sector investment in the country by a foreign investor. The facility will have a production capacity of about 110 million liters of soft drinks. As a result local consumers will be able to enjoy a wider choice of beverages at competitive prices.
Sevki Acuner, EBRD Deputy Director for Agribusiness, said the two projects will be beneficial to consumers and producers in both countries. Furthermore, staff training will help overcome a shortage of technical skills in Kazakhstan, whereas in Tajikistan local suppliers for the first time will have to meet the strict specifications set by an international investor. “We have no doubts that both investments will be highly successful and we hope this is only just the beginning of a long term cooperation with a partner as strong as CCI”, he added.
To date, the EBRD has invested in over 300 projects worth around €4.5 billion with both multinationals and local companies in the agribusiness sector in its countries of operations spanning from central and south eastern Europe to Russia and Central Asia.
