In September 2013, OeEB signed a EUR 15 million credit line to the Serbian agribusiness MK Group. The funds are dedicated to the company's investments in the modernisation of its business and the enhancement of productivity.
|Project name||MK Group Serbia|
|Sector||Energy / Resource efficiency / Infrastructure|
|OeEB project volume||EUR 15 million|
|Total investment volume||EUR 78 million|
|Projekt partner(s)||MK Group, DEG, FMO|
The funds provided by OeEB will mainly be used to improve the sugar production process, enabling MK Group’s purchase of new technical equipment for producing sugar from molasses. This will reduce the energy costs per ton of sugar by approximately one fifth compared to current levels. The funds will also be used to purchase a dryer for producing pellets from the by-products of the sugar production, which runs on steam instead of oil and therefore reduces CO2 emissions. Finally, the funds provided by OeEB will be used to invest in modern, resource-efficient irrigation systems, energy efficient machines and the construction of silos and expansion of other storage capacities.
Agriculture in Serbia
The agricultural sector plays an important role in the Serbian economy and has a high growth potential. However, due to outdated machinery and insufficient infrastructure its productivity is very low. Moreover, there is hardly any long-term financing available for sustainable investments.
About MK Group
MK Group, based in Belgrade, is one of the leading agribusinesses in Southeast Europe and, among other things, produces sugar, corn and wheat.