VEB.RF will provide a RUB 91mn loan to the non-woven fabric factory in Kotovsk, Tambov Region, at 1% per annum to expand the sintepon production almost two-fold. The project will create 25 jobs and attract above RUB140mn to the monotown economy.
VEB.RF’s funding will be allocated to purchase supplemental equipment, which will allow the factory to increase the annual sintepon output from 26 to 50 million running metres. To date, the demand for such products has increased by 50-60% among domestic manufacturers of clothing, bed linen, furniture, fluffy toys etc.
“The tasks formulated by Russian President Vladimir Putin include comprehensive development of monotowns, implementation of investment projects, reduction of tension on the labour market and targeted support for small and medium businesses. The Tambov Region is successful in achieving the tasks set. New investment projects facilitate the economic growth. New jobs and reduced dependence on imports have become possible due to efficient support measures, proactive and responsible entrepreneurs, as well as investors who are ready and willing to invest in the development of Russia’s businesses and economy and work for the benefit of the country,” said the Head of the Tambov Region Maxim Egorov.
The Kotovsk factory is one of Russia’s leading producers of non-woven fabrics (sintepon, paroplen) and other materials. Previously, the VEB.RF Group provided the company with above RUB90mn to purchase power generating units and above RUB20mn to build an approach drive. As a result, the project created more than 100 jobs and attracted above RUB310mn to the monotown’s economy.
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