OREANDA-NEWS. The EBRD is supporting the modernisation of Tajikistan's sole glass  jar manufacturer LAL with a $2 million loan. The financing will be 
used for the acquisition of a glass forming machine which will allow  the company to increase its output by 15 per cent, significantly  reduce costs and energy use and diversify its product range, the EBRD press service reports. Currently, LAL is producing 60 tonnes of jars per day.

The LAL factory is located in the Sogd region in northern Tajikistan  which has a strong agricultural sector. The new equipment will allow  for the production of twist off cap jars, providing local fruit and  vegetable canning companies with glass packaging which can be sold  directly to the end consumer. In addition to serving the local market,  the company plans to increase exports to Kazakhstan and Russia, where  LAL sees further room for development. LAL is a joint-stock company and owned by a number of private Tajik  business people. The raw material for glass production is procured  locally. The company has further ambitious expansion plans for the  near and medium-term future.

Matthieu Le Blan, Head of the EBRD's Dushanbe office, said the loan  was expected to have significant impact on the regional economy,  benefiting both the company and the agricultural sector. This will  help unlock the region's significant potential and set it on course  for sustainable development.

Mirzohalim Mirzokarimov, General Director of LAL, said that the EBRD  loan is vital for the company to upgrade its equipment and to provide  its local clients with up-to-date packaging solutions.

The EBRD loan comes under its Early Transition Countries Initiative  which was set up in 2004 to stimulate market activity in Armenia,  Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan  and Uzbekistan by using a streamlined approach to financing  smaller projects, mobilising more investment, and encouraging economic  reform.