en

Bulgarian bakery cuts down energy costs by 64%

Investor
Eliaz Ltd., a bakery
Location
Sofia, Bulgaria
Investment
Production line modernisation, shift from electricity to gas
Investment Size
€660,000
Financial results
Payback period of 4.2 years; annual cost savings of €156,000
CO2 savings
1,920 tonnes of CO2 per year

 

Eliaz Ltd., established in 1990 in Sofia, manufactures flour and bread products. Being loyal to traditions, the company produces a great variety of quality goods – hand bread, special breads, catering cakes and snacks – respecting the healthy diet rules.

To keep production costs down, the company planned to modernisation the production line utilising up-to-date technology.

Eliaz Ltd. applied to BEERECL for a loan and advisory package. The BEERECL team performed the analysis of the investment, particularly, the potential of energy savings, its technical-financial parameters, risks, and environmental aspects.

The €660,000 investment allowed the company to increase productivity, improve quality, increase reliability of production, reduce energy consumption and operational and repair costs. The annual energy costs savings of €68,000 complemented by wages and maintenance costs savings result in the total annual savings of €156,000.

With such savings, the investment will be repaid in slightly over four years, with future cash-flows becoming company income further on.

This way, the company reduces its costs, increases margins and, hence, competitiveness on the market. This is a good example of how energy savings can originate from replacement of equipment and generate high cost savings.

print