DUSHANBE, October 16, 2013, Asia-Plus /Zarina Ergasheva/ -- The European Bank for reconstruction and Development (EBRD) will provide a US$ 900,000 loan to the Fortuna – a timber processing company operating in Khujand, in northern Tajikistan – to modernize and increase the capacity of its wood processing facilities, press release issued by the EBRD said.

The financing will help Fortuna meet the rapidly increasing demand for good quality timber house fittings in Tajikistan.

Fortuna was established in 1996, as an importer of wood and construction products for local markets.  As demand grew, the company started a domestic wood processing facility in 2000, introducing a range of locally produced wood products, such as doors and window frames.  The company’s equipment had become outdated and was unsuitable for large-scale industrial production.  With this EBRD financing, Fortuna will invest in automated wood processing equipment, which will enable it to consolidate its position as a market leader.

Ulf Hindstrom, Head of the EBRD’s Resident Office in Tajikistan, said: “Wood processing is a growing market in Tajikistan, and by supporting Fortuna we will be contributing to the growth of a successful company, as well as to economic growth.”

Dado Ochilov, the founder and director of Fortuna, said: “We are very happy to receive the EBRD’s support, which will play an important role in implementing our modernization strategy.”

The EBRD’s Small Business Support team and the Enterprise Growth Program have been advising the company in relation to its production management and about setting quality standards.

To date, the EBRD has reportedly invested almost US$ 400 million in 77 projects in various sectors in Tajikistan.