By Olga Rosca

The European Bank for Reconstruction and Development (EBRD) is extending a €8 million loan to GemZA Group, a leading provider of engineering, procurement and repair services for rotating equipment, such as pumps and valves, in Azerbaijan.

The financing will enable the company to launch a new production facility that will increase the complexity of its repair work, produce a greater variety of spare parts and optimise costs and delivery times. The loan will also finance some of the group’s working capital needs.

With EBRD support, GemZA Group aims to expand its production capacity, grow the range of services it offers and become more competitive on pricing and quality. With greater financial flexibility, it will be able to offer more attractive terms and expand its client base.

GemZA Group has been operating since 2005 and has clients in Azerbaijan, eastern Europe, Central Asia, Turkey and the United Arab Emirates.

The loan is part of the EBRD’s work to support small and medium-sized enterprises (SMEs) in the Caucasus and help to improve their operations and standards.

The EBRD is a leading institutional investor in Azerbaijan. To date, the Bank has invested €3.2 billion(US$3.6billion) through 177 projects in the country.