EBRD allocates AZN 4 mln loan to Azerbaijani furniture maker to upgrade facilities

EBRD allocates AZN 4 mln loan to Azerbaijani furniture maker to upgrade facilities
  • Clock-gray 14:18
  • calendar-gray 18 December 2019

Saloglu, the leading furniture producer and retailer in Azerbaijan, will increase its competitiveness and cut its carbon footprint thanks to an EBRD loan of up to AZN 7.6 million (€4 million equivalent), APA-Economics reports.

The loan will allow the company to build an energy-efficient production plant, a warehouse and a flagship store in the capital, Baku. Saloglu will also benefit from an international advisory project, funded by South Korea through the EBRD’s Small Business Impact Fund,* to improve its supply chain and inventory management practices.

Founded in 2000, the company specialises in producing soft furniture sets for living rooms and bedrooms, including items such as mattresses and chairs. Saloglu also distributes Turkish and US brands in Azerbaijan.

The company will make its existing and new facilities more sustainable by installing 3 MW biomass boilers to produce heat from production waste instead of from natural gas. This green investment will cut the equivalent of more than 1,000 tonnes of CO2 emissions a year, demonstrating better and more sustainable practices with regard to energy sources.

The investment will be complemented by Global Environment Facility-funded grants provided under the EBRD’s FINTECC programme.

Saloglu has previously worked with the EBRD to increase its competitiveness under the Bank’s advisory programme for small businesses, funded by the European Union and the EBRD’s Small Business Impact Fund. With the help of consultants, the company developed a business plan, conducted market research and improved its accounting system to meet international standards.

The EBRD is one of the leading institutional investors in Azerbaijan, where it focuses on supporting efforts to diversify the economy and develop the private sector. To date, the EBRD has invested €3.3 billion in 168 projects in Azerbaijan. The Bank also provides business advice to local small and medium-sized enterprises and has helped more than 1,000 firms to improve their performance and growth.

Nijat Mustafayev

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