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| Sarten |
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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 | 25740 |
| Company name | Sarten Ambalaj Sanayi ve Ticaret A.S. |
| Country | Turkey |
| Sector | Industrial & Consumer Products |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | April 27, 2007 |
| Projected board date | May 30, 2007 |
| Previous Events | Invested: June 28, 2007
Signed: June 15, 2007
Approved: June 14, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Sarten Ambalaj Sanayi ve Ticaret A.S. (Sarten or the company) is specialized in manufacturing small and medium-sized tin cans. In addition, it makes a range of plastic containers of similar sizes, as well as tin and plastic covers for cans and jars.
Sarten’s corporate investment program to be supported by IFC includes:
- capital expenditures to modernize Sarten’s factories in Turkey;
- support to the company’s expansion to Russia and
- refinancing of part of Sarten’s existing debt. |
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| Project sponsor and major shareholders of project company |
| Sarten is directly (68%) or through Kinali Ambalaj (32%) owned by the members of Saribekir family, namely Mr. Zeki Saribekir, 41.6%, Mr. Yusuf Saribekir, 19.7%, Ms. Zeren Saribekir, 19.4%, and Ms. Zeynep Oguz, 19.4%. Sarten is the main business of the Saribekir family. The family’s other businesses include green-house farming and running a BP petroleum station in Silivri. |
| Total project cost and amount and nature of IFC's investment |
| The estimated project cost is estimated at $50 million. The proposed IFC investment is an A loan up to $25 million equivalent. |
| Location of project and description of site |
| Sarten is headquartered in Istanbul. It has 9 factories in Turkey, mostly located in industrial parks. The largest and the most established of Sarten’s Turkish factories is located in Silivri, a city on the Thracian peninsula, along the Sea of Marmara approximately, 70 kilometers west of Istanbul. The other Turkish factories are located in Corlu, Gebze, Gemlik, Karacabey, Izmir, Manisa and Adana provinces. In addition, the company has operations in Pleven, Bulgaria. Its facility in Romania, Tecuci will be operational in May 2007 and its Russian plant will be located in the Krasnodar region on coast of the Black Sea. |
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| Anticipated development impact of the project |
| The project will help increase Sarten’s competitiveness and export capacity. The project will also enable the company to supply the customers with high quality products at affordable prices in a timely manner as a result of modernization of its plants and other efficiency improvements. Once the project is implemented, it will also support the company in its efforts to become a regional player through an investment in an affiliate in Russia, as well as expanding its Bulgarian and Romanian affiliates. This is in line with IFC’s strategy to promote South-to-South investments. The investment in Russia will increase competition in the Russian packaging sector for higher quality products. In addition, the project will employ 50 new staff for its green-field expansion in Russia, and an additional 20 employees for the brown-field expansions in Turkey. |
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| IFC's expected development contribution |
| IFC will be able to provide stable long-term financing for the company as it improves efficiencies in its operations in Turkey and expands into ventures abroad. Unlike Turkey’s largest conglomerates, access to long-term financing for second-tier companies is still limited in Turkey. IFC will further improve the company’s environmental and social policies by implementing best practices. As a mid-sized company that is scaling up operations and targeting new markets, Sarten feels that work with IFC would help it gain experience in attracting financing from international institutions and facilitate the company’s access to financial markets. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC's Environmental and Social Review procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Applicable Performance Standards are:
Standards applicable to all plants:
- PS1: Social and Environmental Assessment and Management;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement; and
- PS4: Community Health, Safety and Security.
Environmental and social review of the project included evaluation of environmental and social information presented by Sarten , site visits in Turkey and discussion with HR and Technical managers. Key issues identified are addressed in details in the Environmental Action Plan (EAP). Please refer to the IFC Environmental and Social Review Summary available at the World Bank Infoshop for additional information. Project information will also be obtainable at Sarten‘s website (http://www.sarten.com.tr/turkce/) and posted in each of the facilities.
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| For inquiries about the project, contact: |
Mr. Adnan Aykol, Accounting Group Manager
Barbaros Bulvari, No:38/7 80700
Balmumcu Istanbul / TURKEY
Telephone: +90 212 275 7660
Fax: +90 212 272 34 17
Environmental documentation will be available at the following location:
Sarten Silivri plant
Semizkumlar Kinali Mevkii 34947
Silivri Istanbul
Telephone: +90 212 711 71 50
Fax: +90 212 711 60 68
Website:www.sarten.com.tr |
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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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