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Energy efficient pipe production in Azerbaijan

Investor
Metak
Location
Azerbaijan
Investment
New production line for metal fittings and PVC components, LED
Investment Size
$967,000
Financial results
Payback of 4 years
Energy savings
5,147 MWh per year (-50%)
CO2 savings
1,725 tonnes per year
Impact
Improved production and increased production capacity

METAK, established in 1997, is a large trading company in Azerbaijan with 400 employees supplying more than 2,500 pipe products from the CIS countries. The growing activities urged the company to diversify its functions and start the production of all kinds of welded, steel and polymer products. The company, however, is not satisfied with own achievements and sets out new goals.

To reduce the high energy consumption of 4,783 MWh per year, the company decided to replace the outdated production lines with brand new equipment.

Metak contacted Energocredit for a loan and advisory package.

The Energocredit team performed the analysis of various aspects of the investment, primarily the potential of energy savings, financial-technical parameters and risks.

The project consisted of a new production line for metal fittings and PVC components, as well as replacement of lighting with more energy efficient LEDs.

The $967,000 investment allowed Metak to reduce own electricity consumption by 50 per cent, improve the efficiency of production of metal fittings and PVC components and increase the production capacity. The investment will repay itself out of energy savings in just four years, turning the future cash-flows into company’s income for the years to come. In addition, the company reduced the noise level and air pollution, to the benefit of own employees and local community.

This way, Metak gets stronger grip at both local and international markets and allows itself to develop even further, to reach out to new horizons.

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