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Al Zaghal Industrial Co.: Profitability Through Efficiency

Investor
Al Zaghal Industrial Co.
Location
Sahab, Amman
Investment
Energy and Resource Efficiency in Manufacturing
Investment Size
US$ 414,668
Financial results
Payback of 1 Year
Energy savings
183 GJ per year
Resource savings
18 Tonnes per year
CO2 savings
68 Tonnes per year
Impact
Climate mitigation and adaptation
Donor
EU, GCF

Sustainable Innovation Secures the Future of Jordan’s Footwear Leader

For more than four decades, Al Zaghal Industrial Co., known by its brand TIGER, has been a household name in Jordan’s footwear industry — producing slippers, sneakers, boots, and safety shoes. But, as markets grew more competitive, the company realized its outdated machinery was slowing its production, wasting materials, and driving up costs.

With support from GEFF and Bank Al Etihad, Al Zaghal took a bold step to modernize its operations. The company invested in advanced machines for sole pouring, leather cutting, embroidery, and mold remodeling – replacing older equipment with systems designed to use less energy, reduce waste, and boost output.

The investment of about US$ 414,668, backed by a 15% cashback incentive of about US$ 49,754 , is already paying off. The new machines have cut material waste by more than 18 tonnes each year, lowered energy bills, and reduced labor requirements, while improving quality and expanding production capacity. With a payback period of only one year, the project quickly proves its value by cutting costs today, while setting the company up for strong financial gains in the future.

Beyond profitability, the project also avoids more than 68 tonnes of CO₂ emissions annually, showing how efficient technology can support both business growth and environmental responsibility.

As Al Zaghal’s management explained: “Modernizing our production was essential to stay competitive. The new machines reduce costs, cut waste, and improve quality.”

The Green Economy Financing Facility (GEFF) in Jordan is developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the European Union (EU) and the Green Climate Fund (GCF).

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