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EBRD’s loan enables Vitafit to compete with international brands. Credit: The European Bank for Reconstruction and Development.

The European Bank for Reconstruction and Development (EBRD) and the EU have agreed to provide financial assistance to fruit juice and dairy products manufacturer Vitafit.

As part of the agreement, EBRD will provide a $16.9m loan, which will be used to modernise its equipment and build a new warehouse.

The company also intends to increase its production capacity and grow its product portfolio with the investment.

Vitafit CEO Bolorsaikhan Sodnom said: “The EBRD’s support came at critical stages in our development when our business was ready to expand further.

“The company intends to increase its production capacity and grow its product portfolio.”

“The investments helped us not only to remain locally competitive, but they also allowed us to explore new opportunities for our goods on foreign markets.”

Vitafit currently exports seabuckthorn blackcurrant and cranberry juice to countries such as Japan, South Korea and China.

The company has also introduced milk drinks, fruit yoghurts and icy curd Pororo sirok in the region.

EBRD Ulaanbaatar office head Irina Kravchenko said: “Our investment in Vitafit is a good‎ example of the EBRD’s continued efforts to support the diversification of the Mongolian economy, which is one of the main bank’s strategic objectives in the country.

“We support a full range of companies and projects to achieve this goal across the country from windfarms to cashmere producers, electronics and engineering businesses to ice-cream makers.”