Announcement of IFC Supports Turkish Industry Ten Million US Dollars for Textile Expansion on June 18, 1974

. f'O~ IMMEDtATJ;.Jf'ELEA.SE • ... • • lt INTERNATIONAL FINANCE CORPORATION 1818 H STREET. N.W., WASHINGTON 0. C. 2.0433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 74/13 For use in morning newspapers.of Tuesday, June 18, 1974 IFC Supports Turkish Industry US$10 million for textile expansion ,'l1he .,[nternat5 -:;>nal Finance Corporation ( IFC), a member of the World ba.nk Group, is lending US$10.0 million to Aksa Akrilik Kimya San~yii A. S~ (AKSA), a synthetic fiber manufacturer in Turkey, to help the company finance a US$51.8 million expansion. Background AKSA was formed in 1968 by four Turkish textile companies and their • principal shareholders as a means of bacltward integration. to ensure a regular supply of acrylic fiber for spinning, knitting and weaving. r/AJ other share- holders include Turkiye Is Bankasi A. S. • a. major commercial-, bank in Turkey, : Turkiye Sinai Kalkinma Bankasi A.S. (TSKB), a development f~~ance company in 1/ which IFC has invested, and about 200 local private investors. AKSA's commercial operations began in 1972. The company presently produces about 9,000 metric tons per year of acrylic fiber, prim&"ily for domestic consumption and, to help meet the growing local demand for synthetic fiber, will increase production to 25,000 tons in 1977. The additional ,,faci- lities will be built adjacent to the existing plant located near Yalova., on the Sea of Marmara, south of Istanbul • •  • - 2 - Financing Equity capital totalling US$21.l million equivalent will be obtained from an increase in share capital and from cash generation. Loan capital a.mounting to US$30.6 million equivalent will be provided as follows: US$10.0 million by IFC, us$10.7 million by Turkiye Is Bankasi and US$9.9 million by other lenders. Economic Effects The project represents a substantial expansion of an already successful venture. It will make Turkey more self-sufficient in an important material for the domestic textile industry. The textile and apparel industries account for approximately one-third of total manufacturing employment in Turkey. The project will also provide additional :foreign E:Xchange savings to Turkey and improve the competitive position of the com-pany. This will be the fifteenth IFC investment in Turkey, a country where • the Corporation's gross commitments now total approximately US$54.4 million • •