Announcement of IFC Invests Four Million US Dollars in Turkish Welded Steel Pipe Plant Industry on April 23, 1974

JI 1 INTERNATIONAL FINANCE CORPORATION . 1 8 1 8 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 74/5 For use in morning newspapers of Tuesday, April 23, 1974 $4 Million in Turkish Industr Supports Million Welded Steel Pipe Plant The International Finance Corporation (IFC), a member of the World Bank Group~ pas approved a $3.6 million loan and a $430,000 equity investment in Borusan Gemlik Boru Tesisleri, A.S., which will establish a 130,000 metric tons-a-year steel gas and water pipe plant in northe,:n Turkey. • The approximately.$10.4 million project will be the first in the country equipped with a stretch reducing mill which represents the modern technology in modern manufacturing. The plant is designed to produce from one-half inch to 4-inch diameter black and galvanized pipe as well as some special pipe. '11he project is being sponsored by Borusan Boru Sanayii, A.S . , an Istanbul-b~sed company which has been producing welded pipe since 1959. The new plant will replace Borusan Boru's old, low-productivity plant which has limited expansion potential. It is expe~ted to beg~n production in mid-1975 The old plant will be converted to other: production. Financing Of equity financing of about $4.3 million, $2.2 million will be taken up by Mr. Asim Kocabiyik and Borusan ~Iolding, his family holding company; • $1.7 million by local private investors and $400,000 by IFC .  :\ • - 2 - Loan financing consists of the $3.6 million from IFC and $2.5 million from local private banks. Project Impact .. / The project will expand and improve pipe production to meet domestic demand which rose rapidly during the past decade as a result of continued growth of Turkey's manufacturing and construction industries. It will also contribute to foreign exchange earnings by providing additional pipe for e,xport and by upgrading the quality bf the pipe to comply·with the new standards being applied to the product. • • •