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Kraft solutions more competitive through energy efficiency

Investor
Karton-Tara LLC
Location
Yerevan, Armenia
Investment
Kraft paper production line
Investment Size
US$ 490,000
Financial results
Payback in 5 years
Energy savings
3,480 MWh per year
Natural gas savings
2,830 MWh per year
Electricity savings
645 MWh per year
CO2 savings
851 tonnes per year
Impact
Decrease of operational costs
Donor
GCF, CIF

Leveraging company potential through energy efficiency

Established in 2007, Karton-Tara LLC is one of the main paper producers in Armenia. The company’s primary products are kraft paper, kraft boxes, egg cartons, and almost any type of primary and secondary packaging.

The equipment used for the production of kraft paper was outdated and frequent malfunctions caused delays in the delivery of orders. In order to modernise the production process, at the same time meet increasing market demand, the management decided to replace the existing production line with one that has a 21% higher energy-saving ratio. With the new equipment, the company expects to increase the production of kraft paper by 25%.

The GEFF team performed the project analysis, assessing the potential energy savings, the financial-technical parameters and the risks. The US$ 490,000 investment allows the company to save US$ 108,591 annually through energy savings, which means the investment, will be repaid in 5 years, continuing to generate increased value for many years to follow. The new equipment will reduce CO2 emissions by 851 tonnes per year, thereby contributing towards the mitigation of the production process’s negative effect on the climate.

“Karton-Tara has a great potential for development, as it has a strong customer base and strives to deliver quality and competitive pricing for its products. With this new investment we wish to be more accessible and sustainable,” explains company director Khachik Avdalyan.

This project was supported by the Green Climate Fund (GCF) and Climate Investment Funds (CIF).

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