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Kioo receives $60 million loan for Tanzanian glass facility

Post Time:May 25,2024Classify:Industry NewsView:968

Tanzanian glass manufacturer Kioo will expand its production facility with a $60 million loan.

The expansion will meet the increasing domestic and regional demand for glass bottles and containers.

The International Finance Corporation (IFC) will provide a loan of up to $45 million to help Kioo grow its manufacturing capacity and reduce its environmental impact.

The loan will allow Kioo to increase the amount of recycled glass that it uses in its production process, helping to reduce energy consumption.

The manufacturer will also receive $15 million from the Standard Bank of South Africa.

The project will help Kioo meet growing demand in its regional markets and generate thousands of jobs directly and indirectly along its supply chain.

Kumar Krishnan, Kioo Director, said: "Kioo is already the largest glass manufacturer in the region and has become a supplier of choice to many of its customers.

“The new expansion will further boost the beverage industry's growth across East and Central Africa. This investment is a testament to the group's continued belief in Africa and a sustainable future.”

The beverage sector in East Africa, Kioo's primary market for refillable glass containers, is projected to grow up to 10% per year over the next five years.

However, a supply gap in the region means that about 40% of the demand is met by imports.

Tanzania is one of the few countries in East Africa with longstanding glassmaking and export capabilities.

By substituting imported glass with locally manufactured, cost-efficient products, the project will foster the growth of the region's beverage industry.

Source: https://www.glass-international.com/Author: shangyi

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