EIB lends EUR 60 million to major glass manufacturing company in Turkey
The European Investment Bank is lending EUR 60 million to Sisecam, a major glass manufacturing company in Turkey, for funding part of its investment program.
Investments to be supported include the construction of a new float glass line and the construction of a co-generation plant within an existing compound of a Soda Ash factory. While the co-generation plant will furnish reliable and clean energy for the production of Soda Ash, required as a principal ingredient of glass and glassware, the new float-line will produce flat glass for the local market. Both investments form part of Sisecam’s effort to reinforce its operational efficiency and cater for increasing demand.
EIB financing of this project will promote a sustainable, private sector investment and fulfils the priority objective of the industrial policy for Turkey on it’s way to EU Membership, notably to develop the private sector of the economy.
Wolfgang Roth, EIB’s Vice-President who oversaw the EU’s enlargement to the East and today responsible also for Turkey, underlined that the loan will help to boost private sector development in the country. Providing suitable funding to Sisecam will help the company to continue its development and proceed with investments in state of the art technologies and energy efficiency. Sisecam will thus benefit from improved competitiveness and continue to enjoy a leading position in the sector.
The Promoter, Sisecam Group, is a well established name in the glass sector, providing for 13 000 jobs, mainly in Turkey, but also in other neighbouring as well as Accession countries, such as Bulgaria, where it is among the largest foreign direct investors.
The EIB is an important investor in Turkey’s industrial sector and has at the same time a strong record in infrastructure and utility financing. The EIB provides long-term loans for sound investments in both the public and private sector. Its cumulative financing in Turkey stands at EUR 4 billion and relates to investments in a wide range of economic sectors. Municipal financing for investments in environment and urban transport represent some 31 % of which 11% was directed to earthquake damage reconstruction. Financing of SMEs account for about 29 %, energy 15% and industry 14 %.