Two new factories opened their doors in Manlai soum

Two factories that will supply concentrate bags and single use coveralls to Oyu Tolgoi opened their doors in Manlai soum, creating 64 jobs. Ikh Shankhiin Dugant LLC and Khanbogd Industry LLC are the first Oyu Tolgoi suppliers from Manlai soum. The capacity of Ikh Shankhiin Dugant LLC’s factory can produce more than 60,000 concentrate bags per year, whereas the Khanbogd Industry factory can produce up to 150,000 single use coveralls in a year. These companies signed three-year contracts with Oyu Tolgoi to supply concentrate bags and single use coveralls.

Oyu Tolgoi is committed to supporting small and medium-sized enterprises as part of our ‘Made in Mongolia’ strategy. Last May, Oyu Tolgoi signed agreements worth of MNT27.8 billion with nine small and medium enterprises of Umnugovi province. The agreements set the base for the cooperation with Ikh Shankhiin Dugant LLC and Khanbogd Industry LLC.

Ikh Shankhiin Dugant LLC and Khanbogd Industry LLC have also been trained at the Business Growth Centre (BIG), established by Oyu Tolgoi, and GIZ to facilitate small and medium-sized enterprises’ growth and capabilities. Mr. Sugir, the Chairman of the Citizen’s Representative of Umnugovi aimag and Oyu Tolgoi Operations Director Tim Eckersley participated in the opening ceremony of the two newly minted factories.

On the same day, the construction of a flood embankment has started in Khanbogd soum, Umnugovi aimag. The flood embankment construction is financed by the Gobi Oyu DSF, Oyu Tolgoi-sponsored development support fund. The Gobi Oyu DSF supports projects and programmes aimed towards sustainable development of the Umnugovi region with an annual budget of US$5 million. Since 2015, the fund has financed 83 projects and programs worth MNT45.2 billion.

Additional information:

• Oyu Tolgoi paid US$2.4 billion in taxes, fees and other payments to the Government of Mongolia between 2010 and 2019.
• Oyu Tolgoi collaborated with 735 supplier in the first half of 2019, 513 of which are national businesses that account for 76 percent of total operations procurement spend. Between 2010 and 2019, Oyu Tolgoi spent US$2.9 billion on national procurement.
• 71 Umnugovi suppliers provided goods and services to Oyu Tolgoi as of March 2019. Between 2010 and 2019, Oyu Tolgoi spent US$472 million on procurement from Umnugovi.
• Oyu Tolgoi is aiming to sign additional 18 contracts out of 30 contracts with small and medium enterprises of Umnugovi province as part of our ‘Made in Mongolia’ strategy.