The FINANCIAL — IFC, a member of the World Bank Group, is providing a $55 million loan to Assan Aluminum, a subsidiary of Kibar Holding and a leader in flat-rolled aluminum products in Turkey, to support the company’s modernization, boost energy efficiency and spur growth.
IFC’s investment will help Assan, one of Turkey’s biggest exporters with a 70 percent export rate, refinance a recently acquired scrap recycling plant, modernize two existing furnaces, and install five new furnaces, as well as improve overall plant maintenance and energy efficiencies. Assan is expected to reduce energy and water consumption and improve its overall international competitiveness as a result, according to IFC.
“As one of Turkey’s leading exporters, our vision is to become a market pioneer in Europe,” said Dr.Tamer Saka, CEO of Kibar Holding. “Working with IFC, our strategic long-term partner, will help Assan achieve this objective, while enabling us to sustain our growth strategy and make new investments to increase our international presence and competitiveness.”
IFC has supported Assan’s growth since 1994 by extending $220 million in senior loans and syndicated long-term financing. These investments have helped Assan increase production capacity, boost efficiency and increase its international presence as one of Turkey’s leading exporters of value-added products.
“Helping our long-term clients like Assan become more competitive and expand internationally is an important part of IFC’s Turkey strategy,” said Carsten Mueller, IFC Regional Industry Head of Manufacturing, Agribusiness and Services in Europe, the Middle East and North Africa. “Such investments help boost Turkey’s export potential, while also enabling Turkish firms to become regional and global players.”
IFC’s work in Turkey is based on a joint country partnership strategy (CPS) from 2012 to 2016. Its key objectives are enhanced competitiveness and employment, improved equity and public services, and deepened sustainable development.
Turkey is the second-largest country of operations for IFC globally and hosts its largest office outside Washington DC. In fiscal year 2015, IFC invested $1.8 billion in Turkey.