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Implementation of a laundry line for a Moroccan textile SME

Investor
SABTEX
Location
Tangier, Morocco
Investment
6 tumble dryers/2 clothes wringers/3 washing machines/ 6 trolleys (0.8x0.7x1.8m)/10 trolleys (1.55x0.85x0.8m)
Investment Size
€ 77,598
Financial results
Payback period of 1 year and 6 months
Energy savings
305 MWh per year (81%)
CO2 savings
187 tCO2eq per year
Impact
In-house production line Saves time and money Quality control, increased competiveness
Donor
EU, GCF, KTACA, and EBRD SSF.

Investment in a new laundry line to internalize an external service that uses washing machines without speed control and an electric drying system without spinning.

Sabtex is a Moroccan SME operating in the textile industry, and is part of the industry’s value chain. It specializes in the manufacture of garments mainly for export. The company requested funding and technical assistance from the Green Value Chain (GVC) programme for its investment in a new laundry line.

The new investment consists of the installation of a laundry line for a total amount of €77,598. These efficient investments should enable the company to further improve its competitiveness through: the internalization of the service; quality control; and time savings.

The investment covered by this financing consists of the installation of a laundry line which includes the acquisition of 6 tumble dryers, 2 spin dryers, 3 washing machines, 6 trolleys (0.8×0.7×1.8m), 10 trolleys (1.55×0.85×0.8m). This efficient investment should enable the company to improve its competitiveness by integrating the washing and drying activity into the company’s business, thus enabling it to better control quality and save time and logistics costs.

The return on investment is estimated at 1 year and half thanks to the integration of washing and drying into the company’s value chain and an energy saving of 305 MWh/year. GHG emissions will be reduced by 187 t CO2 eq each year.

Green Value Chain (GVC) in Morocco is a credit facility of the European Bank for Reconstruction and Development(EBRD) to provide funding to local partner financial institutions for on-lending to Moroccan SMEs belonging to agribusiness, processing industries and logistics value chains and ecosystems. Supported by the European Union, the Green Climate Fund(GCF), the Korean Technical Assistance and Cooperation Account (KTACA) and the EBRD Shareholder Special Fund (EBRD SSF), the facility aims to improve competitiveness of SMEs and that of their value chains and ecosystems through highly efficient green investments.

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