The European Bank for Reconstruction and Development (EBRD) has announced a total loan equivalent to $12.9m to Land’Or, a Tunisian processed cheese maker. The deal is supported by the European Union (EU).
In Tunisia, the EBRD will provide a loan of 10m dinar ($3.7m) for new machinery and to increase production capacity.
Land’Or will also optimize the processes in its Tunisian plant by improving its industrial standards, investing in productivity, quality and safety.
Land’Or’s subsidiary in Morocco, Land’Or Maroc Industries (LMI), will receive a loan of 82.2m dirham ($9.2m) to purchase and install equipment at its new cheese manufacturing plant, to be built in Kenitra, north of Rabat.
This facility is expected to be operational by the end of 2021 and will have a capacity of 2,700 tons of processed triangle cheese per year.
It is also designed to manufacture new products and new packaging with the objective of increasing export potential.
The EBRD said it places a strong emphasis on providing finance for private sector firms in Morocco and in Tunisia.
The EBRD started investment in both countries in 2012. To date, the EBRD has invested almost €2.5bn ($3bn) in 66 projects in Morocco. In Tunisia, the bank has invested €950m ($1.1bn) in 47 projects.