Automated energy efficient furnace, purchased with GEFF loan helps local glass manufacturer increase its market competitiveness and exports.
The Egyptian Company for Glass Manufacturing, Al-Gawhara started glass manufacturing in 2008. The company produces glass tableware; glasses, mugs and plates which is sold mainly in the Egyptian market, where about 30% of production goes to exports.
The increasing energy prices forced the company to look for energy saving solutions in order to cut costs that resulted in their product price increase. The company was looking to replace an old manual furnace with a new automated one that saves on energy, accordingly, decreasing expenses.
The GEFF team studied the project proposal, assessed the potential of energy savings, financial-technical parameters and risks.
The US$ 1, 240,000 investment allowed the company to reduce the energy consumption by 67% per year. This means the investment will be repaid out of energy savings in 2 years, continuing to generate profit for many years to follow.
The new equipment led to a reduction of the CO2 emissions by 8,700 tonnes per year, making a valuable input towards mitigation of negative effect of human activity on climate.
“The increased efficiency enabled us to increase our market competitiveness in terms of quality and pricing”.
The Green Economy Financing Facility in Egypt was developed by the European Bank for Reconstruction and Development (EBRD) and is supported EBRD’s Shareholder Special Fund and SEMED Multi-donor Account.