Case Study

SME steel producer invests in energy efficiency

Newco Jugoterm International LLC produces panel and towel radiators and other steel products. The company holds around 80% of the local market, exports its products and has the overall sales of more than €3 million per year.
To maintain the low energy consumption rates, the company planned to modernize its production line which consumes electricity and diesel.
 
The company addressed KoSEP for loan financing. The investment project included installation of new state-of-the-art welding robots, press breaks, fibre laser cutting machinery and other equipment.
 
The KoSEP team assessed the project, in particular, verified the energy savings potential of the measures and analysed its technical-financial parameters.
 
The €1.3 million investment allowed the company to decrease its  energy consumption by €250,000 per year or by 30 per cent of the previous energy consumption level. The investment repaid from energy savings in just five years and new cash-flow will become company’s income for the years to follow. In addition , the investment allowed to increase the production capacity and profitability by 35 per cent.
 
“The quality of our products has now reached  the European standards,” says the owner. “Additional benefit is that this investment eventually contributes towards improved health and safety of our workers, as it allowed us to reduce acid gases and CO2 emissions by 1,212 tonnes a year.”
 
The EBRD through KoSEP supports the sustainable financing and implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential, and public sectors can make a change in the energy consumption patterns and contribute to environmental protection.
 
24 Mar 2014