The European Bank of Reconstruction
and Development is providing USD25 million in loan to APU, a private brewery,
to support the company”s drive to expand production capacity and diversify its
product range. Established in 1924, APU is the leading beverage producer in
Mongolia and one of the first privatized companies in the country. Its products
include beer, vodka, juice, UHT milk in Tetrapak packaging, mineral water and
soft carbonated drinks.

The company, which is locally-owned, is aiming to launch production of canned
beer to provide consumers with a competitively priced substitute for imports.
APU operates the largest distribution network in the country, and it has been
recognized for its excellence in management and continuous innovation.

The proceeds of the EBRD loan will help APU to upgrade the brewery facility,
increase beer production capacity and to purchase a beer canning line. In
addition the project will finance APU’s working capital needs related to beer
production. This project will help APU double its beer production capacity by
2014 and create new jobs. Additionally, due to the implementation of advanced
technology, APU will be able to significantly improve its energy efficiency,
cutting emissions and production costs.

“The EBRD’s investment is helping APU to bring to consumers quality and
competitively priced products and to raise the environmental standards at its
production facilities. The project will enable APU to improve its energy
efficiency, which will have a strong demonstration impact on other businesses
in Mongolia”, said Philip ter Woort, Head of the EBRD Office in Mongolia.