The European Bank of Reconstruction and Development (EBRD) said on Wednesday that it would aid in the refurbishment of one of the largest cement production plants in Kazakhstan.
The support comes in the form of a loan equivalent to $24.7 million to Shymkentcement of the Italcementi Group. The loan will be used to replace some of the plant's wet process kilns with dry process kilns, which are more energy efficient.
The bank will also subscribe $4.9 million worth of shares in the company, leaving the bank with a stake of 21 percent.
“We are pleased to join forces with Italcementi Group to invest in local, energy-efficient production facilities which will support infrastructure development in the fast-growing region of Shymkent," EBRD Director of Kazakhstan Janet Heckman said. "This is an important step toward a more efficient, less carbon-intensive future for the industrial sector of Kazakhstan.”
This plant will aid the development of the local infrastructure by providing locally produced cement and increasing capacity. The company plans include the expansion of its energy and environmental systems and undertaking education initiatives.