Announcement of IFC to Help Finance New Industrial Joint Venture in Turkey December 2, 1988

L.December 2, 1988 Monique Amaudry Press release no. 89/24 (202) 473-9331 IFC HELPS FINANCE NEW INDUSTRIAL JOINT VENTURE IN TURKEY The International Finance Corporation is providing a $25 million loan to help finance a $75.6 million private joint venture company in Turkey between Haci Omer Sabanci Holding (Sabanci) and E.I. Du Pont de Nemours and Company (Du Pont), of the U.S., to produce industrial nylon yarn. IFC, an affiliate of the World Bank, is the largest source of direct financing for private investment in developing countries. The company, Dusa Endustriyel Iplik Sanayi ve Ticaret A.S. (Dusa), will be the first to produce industrial nylon yarn in Turkey, the main ingredient in textile tire cord. Dusa will produce 22,700 mty of nylon 6,6 industrial yarn, which will replace a major portion of the textile tire yarn now being imported. The output will be sold to Du Pont (one-third) and Kordsa Kord Bezi Sanayi ve Ticaret A.S. -- a Sabanci subsidiary and major international tire cord manufacturer -- (two-thirds). The project will be completed by March 1990 and will be Du Pont's first involvment in an industrial nylon-yarn manufacturing facility in Europe and the Middle East. Dusa's plant is located on a six hectare adjacent to Kordsa's facility in Izmit, about 90 kilometers from Istanbul. The project will help support the expansion of Turkey's estimated $600 million sales per year tire manufacture industry. Turkey's tire production grew to 6.3 million tires in 1987 from 3.9 million tires in 1985. - 2 - IFC's investment is providing a major part of the foreign exchange component of the project's financial requirement. Irving Trust Company, an international commercial bank which has a representative office in Istanbul, is taking an $8 million participation in IFC's $25 million loan. Akbank T.A.S., a leading private commercial bank in Turkey, is providing local currency financing. IFC currently holds investments in 22 firms and institutions in Turkey for a total exposure of approximately $160 million. An IFC representative office was opened in Istanbul in 1986 to encourage and facilitate contacts between IFC and the Turkish business community. - END -