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EBRD offers $2.28m loan to Berk to start salty snacks business in Turkmenistan

FBR Staff Writer Published 26 September 2016

The European Bank for Reconstruction and Development (EBRD) has offered a loan of $2.28m to Berk group, a Turkmen brewing company, to foray into salty snacks business.

The new salty business is expected to complement Berk’s beer business in Turkmenistan.

Through the new food business, Berk will diversify its operations while taking advantage of synergies coming from the beer and snack distribution chain.

Berk is looking to become a leading potato chip producer in Turkmenistan where most of the chips come only through imports.

It plans to gain a share in the market by pricing its snack products competitively and at the same time matching the quality of European brands.

Along with the loan, EBRD also will help Berk by assigning two consultants.

While one consultant will advise Berk on production equipment and processes, the other will advise it on selection and storage of potatoes.

EBRD’s loan will be used in buying the production equipment for Berk’s production site near Ashgabat.

EBRD had previously financed Berk in its brewery expansion and has a total investment of €240m in various sectors in Turkmenistan.

EBRD Ashgabat head of office Engin Goksu said: “The production of snacks is a new segment not only for the company but for the Turkmenistan market in general.

“I am glad that the EBRD was able to support the company in this step not only financially but also with extensive technical advice, which played an important role in making this project possible.”

Last week, EBRD announced a €2.5m loan to Maïsadour Maroc and Maïsadour Agri Maroc to expand its production of fruit and vegetables in Morocco.