The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to $25 million to support the modernization and energy-efficiency upgrades of Uzbekistan’s leading private steel manufacturer, Tashkent Pipe Plant (TPP).

The financing will enable the company to replace and upgrade its drawing mill used in the production of long steel products, including wire rods, while also installing advanced energy-efficient equipment at its pipe insulation facility. Among the planned improvements is a medium-frequency induction heating system designed for metal hardening, forging, and industrial processing, The Caspian Post reports via EBRD.

The investment is expected to significantly reduce the plant’s energy consumption, cutting annual natural gas use by 22 percent and lowering electricity consumption by as much as 35 percent. These savings are anticipated to strengthen the company’s competitiveness and support sustainable industrial growth.

The project will also help expand production of insulated large-diameter pipes, positioning TPP to meet growing demand from Uzbekistan’s rapidly developing construction and infrastructure sectors.

Supported by the Japan-EBRD Cooperation Fund and the Bank’s FINTECC climate technology program, the initiative aligns with the EBRD’s Green Economy Transition Strategy, which promotes investment in cleaner and more efficient technologies.

Uzbekistan remains one of the EBRD’s key markets. To date, the Bank has invested nearly $6.9 billion across 210 projects in the country, with a strong focus on supporting private-sector development. Uzbekistan has been the largest recipient of EBRD funding in Central Asia for the past six consecutive years.