The European Bank for Reconstruction and Development is supporting the expansion of Khorezm Insulation Group, one of Uzbekistan’s leading producers of basalt wool insulation panels. The bank is providing a loan of up to USD 29 million, equivalent to around €25 million, to strengthen the company’s financial position and support its growth plans.
The financing will help Khorezm Insulation Group restructure its balance sheet, improve financial stability and invest in its expansion programme. Part of the loan will also be used to procure specialist equipment and commission a new production line, which is expected to improve operational efficiency and product quality.
The company plans to significantly expand production at its main facility in Urgench. Its annual capacity is expected to rise from 30,000 tonnes of basalt wool panels to 100,000 tonnes, more than tripling its current output.
This expansion is expected to strengthen the company’s presence in both domestic and regional markets. It will also help meet rising demand from Uzbekistan’s fast-growing construction sector and from wider markets across Central Asia.
The project supports the EBRD’s wider strategy of promoting private sector development and green economy growth in Uzbekistan. By expanding local production of insulation materials, the investment can contribute to more energy-efficient buildings and stronger industrial capacity.
To date, the EBRD has invested almost USD 6.9 billion, or around €6 billion, in Uzbekistan across 210 projects. Most of this funding has supported private entrepreneurship, with Uzbekistan remaining the leading recipient of EBRD financing in Central Asia for the past six years.
Overall, the EBRD loan to Khorezm Insulation Group represents an important investment in Uzbekistan’s manufacturing and construction supply chain. By helping the company increase production capacity, improve efficiency and strengthen financial stability, the project is expected to support private business growth, regional competitiveness and the country’s broader green economy transition.
