Many Armenians see the products of Nor Astgh LLC on a daily basis – the company produces a wide range of plastic wraps and labels for food product containers, e.g. for milk and ice cream.
Energy efficient labels' production, Armenia
After the production equipment was destroyed by fire, the company decided to replace it with the energy efficient equipment and addressed Energocredit for funding.
The Energocredit team performed the analysis of the investment, primarily the potential of energy savings, financial-technical parameters and risks.
The project included installation of a new unit for plastic wrapping and label production from Turkey.
The $200,000 investment allowed Nor Astgh to reduce its electricity costs by $28,000 per year. This means the investment will repay itself out of energy savings in seven years, turning the future cash-flows into company's income for the years to come. In addition, the new equipment allows to avoid frequent production stops, which happenned in the past, and thus optimize the production process even more.
This is a good example of how new technologies bring energy savings to companies of different sectors and types of production, in addition to other benefits within the production process. Therefore, it is worth checking the energy saving potential while considering investments in the company, as often the energy efficiency investments might be among the most profitable ones.
The EBRD through Energocredit supports the sustainable financing and implementation of sustainable 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.
30 Jul 2015