Announcement of IFC Assists Turkish Tractor and Automotive Industries Eight Million Ninety Thousand US Dollars for Castings Plant on June 18, 1975

FOR 1MMED1ATE RELE~,si) .. ' .. • • ' • ' ' r.';:"- ~ ..: lo. international Finance Corporation 1818 H Street, N .W. Washington, D.C: 20433, U.S.A. 202-393-6360 IFC Press Release No.75/11 Wednesday, June 18, 1975 IFC Assists Turkish Tractor and Automotive Industries $8.9 Million for Castings Plant The In~ernational Finance Corporation (IFC), an affiliate of the World Bank, is joining private Turkish investors to est~blish a 22,000 metric tons- a-year gray iron cast1ngs plant that will supply a substantial portion of the castings requirements of the tractor·and automotive manufacturing industries in Turkey. The $1.4 million IFC equity investment and $7.5 million loan is for Doktas Dokumculuk Ticaret ve Sanayi A.S., which will build.a facility at Orhangazi, near the Sea of Marmara. The $1~.7 million of equity for the.project is being provided by Koc • Holding A.S., Koc Yatirim ve Sanayi Ma.mulleri Pazarla.ma A.S., Uzel Ticaret ve Sanayi Limited A.S., Tatko T.A.S., Yapi ve Kredi Bankasi A.S., approximately 900 private investors, and by IFC. of IFC's loan, suppliers' credits and local bank loans. Debt financing of $20.9 million consists Doktas' production will be sold principally to the Turkish tractor and automotive industries, and through import substitution, will result in net foreign exchange savings of about $12.5 million a year at full production. The plant will be equipped with one a~t~matic and one semi~automatic casting line and employ more than 750 worker~1. The project will enable the do~mestic tractor and automotive industries to 01:>tain economies of scale by conc!entrating their castings production in one large plant which would produce at internationally competitive costs. {Any inquiries strictly relating to IFC's participation in this-project should be directed to the IFC Business Relations Unit, 1818 H Street, N~W., Washington, D.C. 20433~ Telephone (202) 477-2355) • •