In a new boost to the Turkish private sector, the European Bank for Reconstruction and Development (EBRD) is providing a US$ 150 million long-term loan to Brisa Bridgestone Sabancı Lastik Sanayi ve Ticaret A.S., a leader in the Turkish tyre sector and Europe’s seventh largest tyre manufacturer,
The company is a joint venture between one of Turkey’s leading industrial and financial conglomerates Hacı Ömer Sabancı Holding and Japan’s Bridgestone Corporation, the world’s leading manufacturer of tyre and rubber products.
With EBRD financing, the company is planning to invest in its new greenfield plant in Aksaray Province Organised Industrial Zone to produce tyres for passenger cars and light commercial vehicles under the Bridgestone and Lassa brands. Part of loan proceeds will also help Brisa expand their production of truck and bus tyres at its Izmit plant in north-western Anatolia.
The new production facility in Aksaray, a central Anatolian city, is set to become the company’s strategic hub, serving the growing market for tyres in Turkey and neighbouring countries. It will also provide a significant boost to the local economy. Brisa has already accelerated employment operations for the new plant in Aksaray and expects to create 550 jobs, offering opportunities in particular to young people. Brisa and the EBRD will join forces to develop technical and vocational training programmes that will provide young people with the skills that are currently in demand.
Jean-Patrick Marquet, EBRD Director forTurkey, said: “This EBRD loan is not only helping a tyre manufacturer expand its business and capture market growth. It is also enabling a leading global player and a local business giant to create jobs and opportunities in one of the developing regions of the country. The new plant will have a pivotal role for the city of Aksaray and the entire region. We are confident it will boost the wider local economy.”
Stating that in line with the investments, the company accelerated employment for its new plant in Aksaray, Yiğit Gürçay, CEO of Brisa, said; “Since the joint venture in 1988, the total sum of investment we have made in Turkey has exceeded US$ 1 billion. Through a well-planned strategy, we increase our investments each year. Brisa is an effective and important player in both domestic and international markets. While our country faces important developments and fluctuations, to continue the company’s investments as planned is a significant message of trust. Being one of the leading international financial institutions, the EBRD’s decision to trust in Turkey and Brisa despite the current conditions and provide a US$ 150 million loan with convenient terms is truly encouraging and promising.”
EBRD invests in Turkey
Boosting developing Anatolian regions of Turkey is among the EBRD’s priorities in the country.
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. Some 98 per cent of the Bank’s investments in the country are in the private sector and about half of them are in projects that promote the sustainable use of energy.
To date, the EBRD has invested over €7 billion in Turkey through more than 180 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised about €17 billion for these ventures from other sources of financing.
The EBRD’s strategic priorities for the period 2016-18 for its countries of operations are re-energising growth, strengthening regional integration and addressing global challenges.
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