SPI Web Site v1.1
IFC - International Finance CorporationIFC - International Finance Corporation -- » Reducing Poverty, Improving Lives...

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.
Project number24940
Project nameStandard Profil
CountryTurkey
SectorIndustrial & Consumer Products
DepartmentGlobal Manufacturing & Services
Company nameStandard Profil Otomotiv Ticaret ve Sanayi A.S.
Environmental categoryB
Date SPI disclosedMarch 3, 2006
Projected board dateApril 3, 2006
StatusActive
Previous EventsInvested: August 25, 2006
Signed: May 18, 2006
Approved: April 20, 2006

Description of company and purpose of project
Established in 1977 and headquartered in Istanbul, Standard Profil (SP or the company) is the largest manufacturer of automotive sealing systems in Turkey. Its product line includes a wide range of rubber seals such as door seals, trunk seals, engine cover seals and rear window gaskets. These products are sold to various Original Equipment Manufacturers (OEMs) in the automobile industry who use them in the vehicle production process.

IFC is considering an investment in the company.

Project sponsor and major shareholders of project company
SP is an established private Turkish company owned by jointly and equally by two individuals, Rifat Kamhi, Mordo Danon as well as other small shareholders (0.3%). The company also owns 98% of its Bulgarian subsidiary, which was established in 2004.

Total project cost and proposed IFC investment
IFC’s proposed investment is still to be determined but it will be below 25% of the company’s total assets.

Location of project and description of site
The company’s Turkish production facilities are located in Duzce, 200 kms east of Istanbul and consist of two campuses and five plants. Its Bulgarian operations are located in the Stara Zagora region. The company has about 1,335 employees.

Project Development Impact and IFC's Role
Development Impact:

The funding will facilitate the improvement of operational efficiencies at one of Turkey’s largest auto parts company, allowing it to compete effectively in world markets. The investment is expected to create value in Turkey by supporting a local company growing into a leading player in the European market. It will also enhance the competitiveness of locally-based OEMs in growing their businesses, both nationally and in the region.

IFC’s role in this transaction includes:

- supporting the Turkish automotive parts sector by funding a local company that is competitively and geographically well-positioned to serve European markets; and
- financing a new mid-sized Turkish client: IFC’s country strategy for Turkey highlights the need for IFC to move away from repeat clients and to fund second tier companies. SP is both a new client and mid-sized local company.

Environmental and social issues - Category B
This is a category B project according to IFC's Environmental and Social Review Procedure. Key issues reviewed during the appraisal of SP’s operations include: air emissions treatment and quality; wastewater treatment and disposal; materials storage and handling (including fuel and other oils); solid and hazardous waste management and disposal; site contamination and possible cleanup; employee health and safety (including training); and environment, health and safety (EHS) organization and management. An environmental due diligence was also conducted by an outside consultant.

To view the environmental documents for this project, click here


Location of environmental documents in locally affected community
Environmental documentation will be made available on notification and news boards in the following locations:

Duzce Plant: Konuralp Hamamalti, Mevkii, 14450 Duzce

SPBulgaris Plant: Standard Profil Bulgaria AD, 12 Nikola Petrov Str 6000, Stara/Zagora, Bulgaria

Istanbul office: Cumhuriyet Caddesi No. 16/7, Kahan 34367, Elmadag, Turkey

To contact the project company, please write to:
Faheen Allibhoy, Investment Officer
International Finance Corporation
E-mail:
fallibhoy@ifc.org