Noyan

completed

Euroterm (or “Noyan” or “the Company”) is focusing on the production of canned / preserved food, fruit juices and juice concentrates. Euroterm was originally established in 1998 for import of heating systems component, assembling and installation in industrial and residential customers; this business is expected to decline as the Company grows its food and fruit juice business. Most of food and fruit juice products are manufactured and sold under the brand name "Noyan”, whereas heating systems’ products and services are marketed under the brand name “Euroterm”.The Company has recently expanded its capacity in fruit concentrate and tomato paste processing and constructed the new production plant in Armavir region. The Company already financed the expansion with short- term loans as a bridge financing. The proposed investment entails providing a corporate loan to Euroterm, to be utilized for refinancing part of its existing debt and for additional working capital requirements to support the Company’s growth (the Project).The new plant in the Armavir region is located on a land plot of approximately 6.7 hectares and is almost constructed. Concentrate/ paste production and packaging in aseptic bags will be manufactured on brand new fruit and vegetable processing and packaging lines purchased from ING.A.ROSSI (Italy) and FMT (Italy) respectively. The new plant will produce vegetable paste and fruit concentrate from tomato, red pepper, pumpkin, peach and apricot. The Company owns orchards on approximately 150 ha that contains peach, apricot, walnut, white cherry trees and grape. Noyan plans to continue purchasing land on a willing buyer – willing seller basis to increase fruit production in order to reduce its sourcing from third-party suppliers in the future.