EBRD Supports Efes Expansion in Moldova
OREANDA-NEWS. November 01, 2008. Efes Breweries International N.V. is expanding its operations in Moldova with the support of an US 18 million loan from the EBRD, reported the press-centre of EBRD.
The funds will be used to modernise and expand the current production facility of its subsidiary in Moldova, including the installation of the first industrial waste water treatment system at its Chisinau plant.
The investment follows strong demand for Efes products on the Moldovan market where the company is market leader and has been a forerunner in the development of the premium segment with a variety of beers on offer. A key element has been the introduction of strict hygiene and quality standards.
The Vitanta brewery, located in the capital Chisinau, has a long history dating back 130 years. Efes Moldova has undertaken a comprehensive modernisation programme which took the brewery’s strong tradition and local affiliation into account, and the capacity was increased to 2 million hectolitres this year. In addition to beer, the company also produces other beverages.
The EBRD loan will also benefit local suppliers as Efes Moldova tries to source as many of its raw materials locally as possible. For example, glass is procured from two Moldovan producers.
EBRD President Thomas Mirow, who signed the agreement in Istanbul today, said the loan “for us is the logical continuation of a strong and successful partnership with one of the leading breweries in the region.” The EBRD and Efes have been working together in many countries in eastern Europe and Central Asia and “we look forward to extending this cooperation”, Mr Mirow added. “The EBRD is a committed long term partner for local and international investors.”
Alejandro Jimenez, CEO and Chairman of the Board of Efes Breweries International, said “Efes has continually invested in Moldova in order to serve our consumers with the global standards of our group. We are very pleased to have the EBRD’s support and see this as evidence of the significance the Bank attributes to our role in the development of the economies where we invest.”
Efes Breweries International N.V. is the foreign investment arm of its parent company Anadolu Efes Birac?l?k ve Malt San A.S. The Efes group produces and markets beer, bottled water, malt and soft drinks, and is a one of the leading breweries in Europe and Central Asia.
By September 2008 alone the EBRD has invested more than EUR60 million in new projects in Moldova. The Bank sees the support of the private sector and foreign direct investors as one of its priorities. In the agribusiness sector, the EBRD has invested more than EUR 4.6 billion in over 320 projects across central and eastern Europe and the Commonwealth of Independent States.