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| Summary of Project Information (SPI) |
| This Summary of Project Information 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. |
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| Project number | 23182 |
| Project name | Assan IV |
| Country | Turkey |
| Sector | Primary Metals |
| Department | Global Manufacturing & Services |
| Company name | Assan Demir ve Sac Sanayii A.S. |
| Environmental category | B |
| Date SPI disclosed | June 10, 2005 |
| Projected board date | June 30, 2005 |
| Status | Active |
| Previous Events | Invested: February 14, 2007
Signed: June 30, 2005
Approved: June 28, 2005 |
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| Description of company and purpose of project |
Assan Demir ve Sac Sanayii A.S. (Assan or the company), 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.
The project comprises of:
- restructuring of the company’s balance sheet; and
- implementing a debottlenecking and modernization program, primarily at its aluminum plant.
As part of the project the sponsors have also committed to improve the corporate governance of Assan.
The project will significantly improve Assan’s balance sheet, enable it to focus on its operations, and consolidate and further grow on its market position. |
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| Project sponsor and major shareholders of project company |
The Sponsors are (i) Kibar Holding A.S.; (ii) Mr. Asim Kibar; (iii) Mr. Ali Kibar; and (iv) Mr. Ahmet Kibar.
Kibar Holding A.S., founded in 1984, is the holding company of the family-owned Kibar Group. Assan, the principal company of the Kibar Group, is fully owned by the Kibar family. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $125 million, of which IFC has been requested to arrange up to $60 million, including a syndicated participant bank loan of $30 million. |
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| Location of project and description of site |
| Assan owns an aluminum processing plant, located in Tuzla, Istanbul, and a steel galvanizing factory, located in Kartal, Istanbul. The modernization and de-bottlenecking investments envisaged in the project will be done predominantly at the aluminum plant in Tuzla, approximately 30 kilometers southeast of Istanbul. |
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| Project Development Impact and IFC's Role |
Assan is internationally competitive, and presently exports more than 50% of its production, resulting in over $135 million in foreign exchange earnings per year. The project gives IFC an opportunity to support an existing client. By helping to restructure its balance sheet and reduce short term debt, IFC would enable the company to better match debt repayments with its operating income. This will also permit the company to reinvest operating cash flows in a broad set of investments designed to offer higher value-added products and services. Through the proposed investment and restructuring, IFC will support a Turkish company to emerge as a stronger and more competitive player in the global setting.
IFC would provide access to much needed long-term capital to assist Assan in implementing its ongoing financial restructuring and debottlenecking efforts, as other sources of long-term financing are generally not available to Assan in the current market scenario. IFC's support is particularly important to help the company tap into international sources of funding through the syndicated participant bank loan. |
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| Environmental and social issues - Category B |
This is a category B project according to IFC’s Procedure for Environmental and Social review of projects because a limited number of specific environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria, The review of this Project consisted of appraising technical and environmental information submitted by the project sponsor as well as visits to the aluminum and galvanizing plants. The potential environment, health and safety (EHS) impacts of the project, which were analyzed related to the compliance of the aluminum plant with Turkish and IFC EHS requirements.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
Environmental documentation will be made available at the following location:
Factory Gate: Assan Aluminyum
D-100 Karayolu Uzeri 32. km
34940 Tuzla/Istanbul-Turkey
Website: www.kibarholding.com |
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| To contact the project company, please write to: |
Mr. Adnan Sen, Advisor to the Chairman of the Board
Kibar Holding A.S.; D-100 Karayolu Uzeri 32. km. Assan Tesisleri, 34944 Tuzla/Istanbul
e-mail: adnan.sen@kibarholding.com
Fax: +90-216-395 2969 |
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