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.
Summary of Project Information (SPI)
Project number 20368
Project nameArcelik-Arctic
CountryRomania
SectorIndustrial & Consumer Products
DepartmentGlobal Manufacturing & Services
Company nameAr?elik, A.S.
Environmental categoryB
Date SPI disclosedMarch 11, 2003
Projected board dateApril 14, 2003
StatusCompleted
Previous EventsInvested: May 28, 2003
Signed: May 9, 2003
Approved: May 6, 2003

Project sponsor and major shareholders of project company
Founded in 1955, Arcelik, the project's sponsor, is now an established leader in Turkey's home appliance sector and is one of the Koc Group’s flagship companies. In 2002, Arcelik’s consolidated sales amounted to about $1.5 billion. International revenues account for approximately 50% of this amount. The sponsor’s asset base at the end of 2002 was $1.2 billion.

Arcelik’s is 57% owned by the Koc Group companies, and 20% of the project sponsor belongs to the Burla Group. The remaining 23% of Arcelik’s stock are public. Public shares are traded at the Istanbul Stock Exchange.

Arcelik currently owns approximately 91% of Arctic’s stock. The remaining project company’s shares are widely dispersed among a large number of minority shareholders.

Total project cost and proposed IFC investment
The total project cost is estimated approximately at $50 million. The proposed IFC investment consists of an A loan for IFC's own account of up to $25 million equivalent.

Location of project and description of site
Established in 1970, Arctic’s only 50,000 square meter site is located on the outskirts of Gaesti, a town with a population of approximately 17,000 people. Located approximately 70km from Bucharest, Romania, it serves as the headquarters for the project company. The project investments involving the purchase and installation of tangible assets will be made at this site.

Description of company and purpose of project
Arctic S.A. (“Arctic” the "company") is Romania’s only producer of refrigerators, with revenues of approximately $53 million in 2002. The $50 million project consists of :
acquisition of Arctic by Arcelik, a Turkey-based home appliance leader, with a turnover of approximately $1.5 billion in 2002;
Arctic’s conversion into an efficient production base for Arcelik’s refrigerator sales in Europe.
Arcelik will improve Arctic’s performance through:
implementing a modernization, quality improvement and capacity expansion program and
restructuring Arctic’s existing financial liabilities.

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 and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.


To view the environmental documents for this project, click here


Location of environmental documents in locally affected community
A translation of the ERS will be available at the local Municipal Office (down the street from the plant) and the plant gate where the workers access the facility.
Address: 210, 13 Decembrie st. 0150 Gaesti- Romania


To contact the project company, please write to:
Mr. Tamer Soyupak, Finance Director
Address: Arcelik, Tuzla 34950 Istanbul, Turkey
Phone: (216) 423 30 35

Mr. Erhan Saylan, Finance Director
Address: SC. Arctic S.A., 210, 13 Decembrie st. 0150 Gaesti, Romania
Phone: (40245) 71 0565