More furniture for Mongolian citizens

ULAN BATUR

A resident walks with a bicycle in front of the national Parliament building at Sukhbaatar Square in the Mongolian capital of Ulan Bator. REUTERS photo

Mongolia’s economy is growing at a fast pace, and the country is now faced with new challenges: to diversify its economy and improve living standards.

The European Bank for Reconstruction and Development (EBRD) continues to support businesses outside the dominant mining sector of Mongolia, a growing economy, particularly the manufacturing and retail sectors which account for a third of the Bank’s deals in the Asian country.

The EBRD is extending a loan to a leading local manufacturer and retailer of home furniture and distributor of kitchen appliances in Mongolia, under the brand name Kitchenall.

The growing Mongolian middle class is eager to invest in comfortable homes; residential construction is on the rise, and the sales of Kitchenall kitchen cabinets grew by one fifth in 2012.

The EBRD loan will finance a major expansion of the company’s manufacturing capacity, including a new and modern production facility, warehouse and office space.

The company’s plan is to expand into the production of children’s furniture, bedroom sets and office furniture that will be more standardized – and therefore more affordable.