Istanbul, Turkey, 1 April 2022—To boost Turkey's global competitiveness, strengthen its manufacturing industry, and help create thousands of jobs, IFC announced today a significant investment in Kordsa, a leading manufacturer in the country's technical textiles sector.
IFC is providing $110 million in long-term financing to Kordsa, an export-based firm headquartered in Turkey, which manufactures tire reinforcement materials and composites for the automotive, aviation, aerospace, and construction industries globally. Long-term financing is critical for companies like Kordsa, which are vital in providing Turkey with much-needed foreign exchange inflows.
The company will use the IFC funds to boost research and development, including in new technologies, expand production in high value-add manufacturing, and increase its energy efficiency. That is expected to help Kordsa better integrate into the global automotive and aviation value chains, broaden its product offerings, and advance its productivity and competitiveness.
"IFC has been a long-term partner supporting Kordsa for growth. We are happy to be cooperating with IFC on our journey into high-tech products and solutions that we offer in the composite and tire reinforcement sectors. Despite the challenging times that the world is going through, we are taking bold steps for growth and encouraged with IFC's trust." said Ali Çalışkan, CEO of Kordsa.
"Turkish firms need to have continued access to long-term credit in our current volatile global economy," said Arnaud Dupoizat, IFC Country Manager for Turkey. "IFC's financing aims to address that by supporting an innovative global firm in moving up the value chain and increasing its productivity. Strengthening Turkey's manufacturing industry is also key to creating skilled jobs and driving sustainable economic growth."
Kordsa is a subsidiary of Sabanci Holding, both long-standing IFC partners. IFC previously financed Kordsa to support its expansion in Latin America and EMEA and has supported Sabanci Holding's subsidiaries across industries, including banking and energy.
Turkey represents IFC's second-largest country exposure in terms of commitment. IFC has supported private sector development in Turkey for over 50 years, with a committed exposure of over $4.3 billion in the country as of June 2021.
About Kordsa
Kordsa is the global player of tire, construction reinforcement, and composites technologies market. As the worldwide leader of the tire reinforcement technologies market, it carries out production through a vast area from the USA to the Asia Pacific and supplies its reinforcement technologies to the whole world. With its business processes all based on R&D and innovation, Kordsa has 890 patent applications worldwide. For more information, visit www.kordsa.com
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
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