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Avtomash project.

Project number : 34518

Region : Europe and Central Asia

Country : Kyrgyz Republic

Company name : Avtomash

Sector: M-DC - Other Machinery (Including Metalworking Machinery, Ventilation, Heating and Air-Conditioning, etc.)

Date SPI disclosed: June 2, 2014

Project Description: The project consists of a senior loan of $8 million to Avtomash-Radiator ( Avtomash or the company ), the leading manufacturer of heat exchangers (radiators) for commercial vehicles and wholesaler of agri-machinery in Central Asia, to support the company s $16.5 million capital expenditures program. This program includes: (i) expansion of aluminum based radiator production using advanced Controlled Atmosphere Brazing or NoCoLok technology; and (ii) provision of permanent working capital.

The company specializes in the manufacturing of large radiators (copper/brass and aluminum based) for trucks, tractors and combine harvesters; the product range includes 73 radiator types. Avtomash is located in industrial zone and is surrounded by other heavy industrial activities. The plant facilities include technological lines for production of copper/brass (1 line) and aluminum (2 lines) radiators, packaging (wooden) manufacturing line, storage facilities (separate for ferrous metals, non-ferrous metals, finished goods and materials respectively), a waste waters neutralization stations, , garage facility for tractors, and administration building. The expansion will not entail construction of any new facilities, but rather expansion of the current aluminum production and procurement activities, and installation of additional equipment that will be undertaken by the company workers.

The copper/brass radiator parts are manufactured by the methods of cold pressing on automated lines, and then the parts are joined together by brazing. Before brazing the parts are washed and degreased via a soda ash, caustic soda solution, or triodium phosphate and then washed again. Then the parts are treated with hydrochloric acid to remove rust and scale and with a water solution of zinc chloride (a flux). Following brazing, radiators are washed again. Thereafter they sent for a hermeticity (tightness) test, then to the dyeing chamber and subsequently they are dried in chambers.

The aluminum radiators are produced with the use of non-corrosive fluxes and thermal degreasing, which does not generate waste water.

IFC is considering supporting the expansion of Kyrgyz Avtomash, the leading manufacturer of heat exchangers in Central Asia and one of the top exporters in the Kyrgyz Republic. The Company specializes in the manufacturing of large radiators (copper and aluminum based) for trucks, tractors and combines. The product range includes 73 types of radiators, almost 100% of which are being exported.

The Company is undertaking a US$16.5 million capex program including: (i) expansion of aluminum based radiator production using advanced Controlled Atmosphere Brazing or NoCoLok tech

country :Kyrgyzstan

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Publication:Mena Report
Date:Jun 7, 2014
Words:443
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