New unit for label printing and packaging saves US$ 28,000 per year
Many Armenians see the products of Nor Astgh LLC every day – the company produces a wide range of plastic wrapping and labels for food containers, e.g. for milk, ice cream and many more.
After the production equipment was destroyed by fire, the company decided to replace it with more energy-efficient equipment and approached GEFF for funding.
The GEFF project team performed the analysis of the investment, primarily the potential for energy savings, and determined the financial-technical parameters.
The project included installing a new unit for plastic wrapping and label production from Turkey.
The US$ 200,000 investment allowed Nor Astgh to reduce its electricity costs by US$ 28,000 per year. This means that the investment will repay itself out of energy savings in seven years, turning future cash flows into company income for many years to come. In addition, the new equipment means that there are now fewer production stops, which happened in the past, further optimising the production process.
This is a good example of how new technologies can bring energy savings and other production process benefits to companies in different sectors and types of production. Therefore, it is worth checking potential energy-savings when considering company investments, energy-efficiency investments often turn out to be among the most profitable ones.
The EBRD supports the cost-effective financing and implementation of sustainable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.