Announcement of One Hundred One Million US Dollars Flat Glass Project Sharply Expands Turkish Capacity on April 30, 1979

DC?@ I nternationa1 Finance Corporation • 1s·1 a H Street. N.W. Washington, D.C. 20433. USA 202-477-i 234 ~-~J IFC Press Release No. 79/30 Monday, April 30, 1979 $101 Million Flat Glass Project Sharply Expands Turkish Capacity Turkish investors, the International Finance Corporation (IFC) and Societe Generale de Banque, Belgium, are joining to finance Trakya Cam Sanayii A.S., which has been established to undertake a $101.2 million, 135,000 metric tons a year, Pilkington float glass project that will increase Turkey's flat glass capacity by 80 percent. The venture will substantially modernize the domestic flat glass industry, help meet growing Turkish demand and enabJ.~ the country to sustain glass exports. It will further benefit the economy by creating some 560 direct jobs and an addi- • tional 7,000 indirect jobs in supplier industries, in distribution, and in flat glass processing and installation. The principal sponsor of the project is Turkiye Sise ve Cam Fabrikalari A.S., the leading Turkish glass products producer and a subsidiary company of Turkiye Is Bankasi A.S. Turkiye Sise ve Cam Fabrikalari is investing approximately $15.2 million equivalent in equity. Turkiye Is Bankasi is investing about $14.4 million equivalent in equity and providing a local currency loan of $28.3 million equiva- lent. A $5.9 million equivalent share offering will be made to other private Turkish investors. IFC, the World Bank affiliate that supports the economic growth of developing countries by assisting the private sector, is investing $4 million in equity and lending $31 million. Societe Generale de Banque is taking up $11 million (330 million Belgian francs) of IFC's loan. French suppliers' credits of $2.5 million equivalent, providen by Banque Francaise de Connnerce Exterieure, complete the financial plan. The Trakya Cam Sanayii plant will be located near Luleburgaz, a developing area in the Kirklareli Province, about 90 miles northwest of Istanbul. The bulk • of necessary raw materials will be obtained from relatively near Turkish sources . Pilkington Brothers Limited, of the United Kingdom, is providing the license and  - 2 - technical assistance for the float process. Complementary technological support • will be provided by Turkiye Sise ve Cam Fabrikalari, based on its more than four decades of experience in the glass industry. The project is in line with-the Government's economic objectives. It will utilize domestic raw materials, introduce new technology into the country, pro- vide products for the commercial and housing construction industry, and earn foreign exchange through exports, principally to neighboring countries. IFC's investment is its second in the Turkish glass industry. In 1970 it provided loan and equity for a $33.4 million flat and container glass venture near Mersin on the southern coast. • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-2032.) •