Mongolia and Italy to cooperate in value-added product manufacturing


Industry Minister D.Erdenebat’s visit to Europe continued in Italy on November 21, where the Minister met with Italian Deputy Minister of Economic Development Carlo Calenda, and the sides agreed to cooperate in producing value-added products in Mongolia.
Beginning the meeting, Deputy Minister Calenda thanked D.Erdenebat for visiting Italy and said that he is planning to conduct a visit to Mongolia. The sides discussed possibilities for cooperation in producing value-added products by utilizing Italian techniques and equipment and Mongolian raw materials.
The Government of Italy studied and evaluated Mongolia’s hide and skin market through the Italian Export Credit Agency (SACE), and agreed to collaborate by supplying equipment and providing a line of credit for producing finished products. The Italian side will also help with personnel preparation, and the parties will take complex measures to intensify cooperation between the two countries’ professional associations.
Mongolia and Italy also agreed to implement a financial scheme for the wool and cashmere, agriculture, and food production sectors of Mongolia. Mongolia is hosting the Asia-Europe Meeting (ASEM) Summit Meeting next year, and Italian officials discussed cooperation for ensuring security during the high level meeting.
Italian companies have expressed an interest in purchasing skin and leather from Mongolia. The two countries have decided to collaborate not only in raw material distribution, but the Italian side will be buying value-added Mongolian products, priced competitively at the international level. The parties will focus on jointly creating a value-added network in Mongolia.

SACE to take an active role in cooperation

Deputy Minister Calenda emphasized that providing an amendment to the law on investment was an important step for Mongolia to cooperate with Italian companies. In response, Minister D.Erdenebat said that finalizing project investment and insurance schemes for joint projects will intensify bilateral cooperation between the two countries. The sides underlined that SACE will be the basis for bilateral cooperation.
Mongolia and Italy will hold an intergovernmental meeting in December 2015, and the Government of Italy will open an embassy in Mongolia in 2016. A permanent representative from the Italian Trade Agency will be also appointed to Mongolia.
The Mongolian delegation accompanying the Minister of Industry visited SACE offices and met with Italian representatives led by Managing Director and Head of International Business at SACE Michal Ron.
The main objective of SACE is to promote the export of Italian products to the international market. SACE sees Mongolia as a gateway to Asia, and expressed interest in expanding mutual cooperation. The Italian side proposed the organization of training for providing advisory services, in cooperation with Development Bank of Mongolia.
In addition to purchasing equipment from Italy, the Minister also suggested collaborating to export products to foreign countries. The sides agreed that SACE will issue guarantees for low-interest loans for Mongolia’s small-and-medium enterprises to purchase necessary equipment. SACE also promised to cooperate with Mongolian entities by providing consultation on how to ensure project requirements.

18 million USD agreement signed

During the Minister’s visit, an 18 million USD agreement for producing mineral wool insulation material and purchasing a factory line was signed by Mongol Basalt LLC, an insulation manufacturing company, and Italy’s Gamma Meccanica. Loan negotiations have begun with Intesa Sanpaolo banking group for purchasing the equipment needed by Mongol Basalt, through a guarantee from SACE.
The Ministry of Industry underlined that the establishment of a cooperation agreement between the two companies was an important event laying the foundation for cooperation between the two nation’s industrial sectors.

Short URL: http://ubpost.mongolnews.mn/?p=17066

Posted by on Nov 25 2015. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply

7 + 4 =

Recently Commented

  • Oyun: www.theblueeconomy.org
  • Honheree: It is a sad and awful sight to see so many animals dead from dzuds. These have happened in the past and since 2004 there have...
  • Harvey Dent: Mongolia does not get 476,000 tourists a year. Its gets 476,000 arrivals, most of these are Chinese construction workers....
  • Honheree: It is good but unusual that a Mongolian is so forthright. I am D. Ganbold will be criticised by Mongolians for telling the...
  • Honheree: Be thankful Mongolia is so cheap. In USA lamb in stores costs 69,281 MNT /kg and sirloin which is cheaper cut of beef is...