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| Assan CPLP |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27304 |
| Company name | Assan Demir ve Sac Sanayii A.S. |
| Country | Turkey |
| Sector | Primary Metals |
| Environmental category | C |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | May 13, 2008 |
| Projected board date | June 20, 2008 |
| Previous Events | Invested: August 18, 2008
Signed: June 26, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Assan Demir ve Sac Sanayi A.S. (Assan Demir or the company) has a series of projects targeting overall energy efficiency improvement in its aluminum processing plant in Tuzla-Istanbul, Turkey. Most of the company’s investments target reducing the heat loss in its melting and casting operations through measures including adjustments to furnace charging practices and furnace design. The company also plans to install variable speed controls on pumps, take measures to improve efficiency of internal lighting; and install a new generation degreasing machine that uses hot water instead of detergents. Together, these “Cleaner Production” investments qualify for funding via IFC’s Board-approved Cleaner Production Lending Pilot, a $20 million facility via which IFC can provide Cleaner Production sub-loans to its existing portfolio clients.
Assan Demir, established in 1977 and part of the family-owned Kibar Group, is the largest aluminum sheet, coil, and foil manufacturer in Turkey, and also ranks amongst the top Turkish steel galvanizing companies. Assan Demir is an existing IFC client. |
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| Project sponsor and major shareholders of project company |
The sponsors are represented by Kibar Holding A.S. and the principal owners:
- Mr. Asim Kibar;
- Mr. Ali Kibar; and
- Mr. Ahmet Kibar.
Kibar Holding A.S., founded in 1984, is the holding company of the family-owned Kibar Group. Assan Demir, the principal company of the Kibar Group, is fully owned by the Kibar family. |
| Total project cost and amount and nature of IFC's investment |
| The estimated total project cost is $4 million and the proposed IFC investment is an A Loan (Cleaner Production Loan) of $4 million equivalent for IFC’s own account. This investment in Assan Demir will be a sub-loan of the abovementioned dedicated lending facility established as part of IFC’s Cleaner Production Lending Pilot initiative. |
| Location of project and description of site |
| The Cleaner Production investments will be implemented in Assan Demir’s aluminum processing plant in Tuzla, which is located approximately 30 kilometers southeast of Istanbul. This is the same site where IFC holds an existing investment. |
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| Anticipated development impact of the project |
Assan Demir’s Cleaner Production investments are expected to result in:
- Reduced Greenhouse Gas (GHG) Emissions: The packaged of energy efficiency investments included within this project are expected to reduce the Tuzla site’s annual “GHG” emissions by some 7,000 tons CO2 equivalent.
- Cleaner Process for Coil Degreasing: The existing degreasing machine will be replaced with a new generation machine that uses hot water instead of detergents. This machine will have a positive environmental impact along with improving the product quality.
- Improved Product Quality: Better design of the proposed metal transfer system and the detergent-free degreasing system will positively impact the product quality.
This project will also serve to demonstrate that the investments proposed by Assan Demir at its Tuzla plant are cost-effective; this is expected to lead to their wider adoption within the industry. |
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| IFC's expected development contribution |
| IFC will assist Assan Demir with their objective to find solutions for more efficient use of energy and waste reduction via financing their Cleaner Production investments with an appropriately structured senior loan. IFC will work with the company to help quantify expected operational and environmental benefits from its Cleaner Production investments. This investment may have a demonstration impact as this is the first Cleaner Production loan IFC will be extending to a real sector client in Turkey. |
| Environmental and social issues - Category C |
| This is a supplementary loan at an existing IFC borrower, with the loan proceeds to be used entirely for the Cleaner Production projects mentioned elsewhere in this SPI. The project will reduce the environmental impact of manufacturing; this is therefore a Category C project. |
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| For inquiries about the project, contact: |
Mr. ADNAN SEN, Advisor to the Chairman of the Board
Kibar Holding A.S.
D-100 Karayolu 32.km Assan Tesisleri
34390 Tuzla/Istanbul – TURKEY
Tel: +90-216-581 1200
Fax: +90-216-395 2971
E-mail: adnan.sen@kibarholding.com
Website: www.kibarholding.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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