Announcement of Turkish Textile Company in Thirty-Four Million US Dollars Expansion on June 9, 1980

J/ / •• International FinanCe Co,poration IFC Press Release No. 80/29 1818 H Street. N.W. Washington. DC. 20433. U.S A 202-477-1234 Monday, June 9, 1980 Turkish Textile _Co~pa!!Y In $34 Million Expansion. Mensucat Sanyi ve Ticaret A~S. (MENSA), an established Turkish textile yarn producer, is expanding into manufacturing finished fabrics with an approxi- mately $34.2 million project financed by Company $hareholders, Turkish ffnancial institutions, the International Finance Corporation. (IFC) and a supplier's credit. MENSA currently produces from 4,500 to 5,000 metric .tons a year of cott~n and ~otton/synthetic yarns. The expansion is a forward· integration of its spin- ning capacity into .weaving and finishing and will produce 12 million meters of ~inished fabrics annually. Production is intended to help meet growing domestic demand -and ·for ~xport. · • Financing of the project includes approximately $16.5 million in equity from a s"11are offering to stockholders and from· internally g.enerated funds. Turkiye Is Bankasi A.S. is lending $5.7 million and other Turkish financial institutions, $3.9 million. IFC, the World Bank affiliate that assists the private sectors of deve~oping economies, is providing a $4 million loan. A Belgian supplier's credit.of $4.1 million completes the financial plan. Turkey is a major cotton producer and exporter. The textile industry is one of the strongest sectors of the economy but requires additional weaving capa- city to balance its yarn production. The MENSA project will provide some of the needed weaving capacity and generate estimated foreign exchange earnings of $3.4 million a year. It will also benefit the economy by creating some 615 newiuobs. The new facilities will be located adjacent to MENSA's spinning mill at Adana, in southern Turkey, which is in the center of the cotton growing region. The principal project components are weaving preparation, weaving, finishing, laboratory facilities, air conditioning, and utilities equipment and accessories • • [Any inquiries strictly reJ.:iting to IFC's participation in this project should be dircctcJ tr the ITC Tr.f..:ir::~.iticn Office, 20433, 1elcphcne (202) 67~-0394.l ~·ns F. Street, N.~:., ~':..tshington, ri.r..