The European Bank of Reconstruction and Development (EBRD) is providing a new loan of USD 5 million to wool and garment company Gobi JSC for partial financing of an equipment modernization program that will improve the quality of the group’s products and increase its product capacity. For the program, Gobi will purchase new equipment in such areas as spinning, knitting, linking, weaving, and finishing.

Established in 1981, Gobi is a fully integrated processor with capabilities ranging from primary processing to manufacturing cashmere and camel wool knitwear and woven products. The company is majority owned by the domestic firm Tavan Bogd Group and by HS Securities of Japan and is listed on the Mongolian Stock Exchange (MSE). During the past two years, Gobi has been restructured under new ownership and management following its privatization.

This latest loan is a follow-up financing to a loan provided by the EBRD to Gobi in 2009. The project will enhance Gobi’s competitiveness on both local and international markets. Cashmere processing is the second largest currency earner for the country after mining and is an important traditional sector where Mongolia can genuinely compete at an international level.