KfW IPEX-Bank and Commerzbank to finance modern glass production in Uzbekistan
News from 2019-08-05 / KfW IPEX-Bank
KfW IPEX-Bank and Commerzbank are jointly financing the construction of a modern glass factory in the Uzbek city of Zarafshon. The total investment volume is approximately EUR 60 million. The two banks are financing the entire contract value, which consists of a commercial tranche and a tranche covered by Euler Hermes. KfW IPEX-Bank is acting as the facility and Hermes agent for this financing. The borrower is Asaka Bank, the third largest bank in Uzbekistan.
The German company Horn Glass Industries AG based in Plößberg, Bavaria, is responsible for building the production site in Uzbekistan. The mid-sized company is specialised in glass melting technology and turn-key projects. With its approx. 400 employees, the company operates around the world and has customers in more than 65 countries. As a traditional company, HORN Glass Industries AG has 130 years of experience in the glass industry and uses innovative methods to make glass, a sustainable material, suitable for daily use thanks to its low consumption of fossil resources.
Customers for the locally manufactured glass products will mainly be the local construction industry and the local automotive industry in Uzbekistan, which previously had to meet their demand for flat glass with imports. The construction of the glass works will create attractive local jobs that will provide opportunities for aspiring young people.
KfW IPEX-Bank is positioning itself in the Uzbek banking market with this financing while also supporting the German SME Horn Glass Industries AG in the export of technical components.