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GVC supports investment in energy efficient plastic drums manufacturing machine

Investor
Mady Plast
Location
Gharbia Governorate, Egypt
Investment
Energy efficient blow-molding machine
Investment Size
US$ 140,000
Financial results
11% of loan amount in year1
Energy savings
205 MWh per year
CO2 savings
119 tCO2eq per year
Impact
Climate change mitigation, increased profitability
Donor
EBRD SSF, EU, GCF

Mady Plast is seeking to increase its competitiveness by investing in a new energy-efficient blow-molding machine. The new blow-molding machine produces 60,000 high-density polyethylene (HDPE) drums per year, which are used for durable industrial storage and containment for different purposes, in the petrochemicals and food industries.

Mady Plast is a private sector SME specialized in the manufacturing of plastic drums for clients in the petrochemical and food industries. Its production facility is located in Kotoor Town, Gharbia Governorate, Egypt.

The new blow-molding machine will enhance the company’s competitiveness by increasing annual production and reducing energy consumption. The new energy-efficient machinery will allow for the production increase of 60% additional drums per year. Compared to standard technologies, the new blow-molding machine is expected to deliver 39% energy savings.

The GVC team evaluated the technical and financial feasibility of the project and provided advice on the best available high-performance technologies that will enable the company to reduce energy consumption, thus generating financial savings to be re-invested in the business. The evaluation confirmed that the investment will help increase competitiveness, annual revenues, and promote sustainability through reduced energy consumption. The project will be supported by an investment incentive through the Egypt Green Value Chain financing facility.

The US$ 140,000 investment is expected to result in 205 MWh per year of energy saving, leading to financial savings of 11% of loan amount in the first year of operation. The investment is also expected to increase production capacity by 60% generating additional revenues. The estimated reduction in greenhouse gas emission of 119 tCO2eq per year will have a positive impact on the sustainability of operations. Additionally, this investment will create 20 permanent jobs for males and 10 for females to operate the new machines installed and for other related activities related to increase in production.

The Egypt Green Value Chain Financing Facility was developed by the European Bank for Reconstruction and Development (EBRD) and is financially supported by the Green Climate Fund (GCF), the European Union (EU) and the EBRD Shareholder Special Fund (SSF).

The Sub-borrower will receive an investment incentive for successful project implementation, provided by a grant from the EU.