- IFC’s $50 million financing will support Küçükçalık Group in advancing circular economy practices and increasing renewable energy usage.
- Funds will be used to build polyester chip plant, expand yarn spinning capacity, establish recycling unit in Sakarya, and install rooftop solar systems in Bursa.
- IFC’s investment will create jobs, boost employment in Türkiye, and enhance gender inclusion.
Istanbul, Türkiye, December 16, 2024 — IFC has announced a $50 million investment in Küçükçalık Tekstil Sanayi ve Ticaret A.Ş. (Küçükçalık), a home textiles manufacturer operating in Türkiye and Egypt, to support its capacity expansion efforts and help enhance its sustainability practices.
IFC’s loan consists of $30 million from IFC’s own account and $20 million from IFC’s Managed Co-Lending Portfolio Program (MCPP). This investment enables Küçükçalık to boost its production capacity sustainably by building a new polyester chip manufacturing plant, expanding its yarn spinning facility, and establishing a textile recycling facility in its manufacturing unit in Sakarya, Türkiye.
Additionally, the installation of rooftop solar photovoltaic systems in Küçükçalık’s manufacturing unit in Bursa, Türkiye, will significantly boost sustainability efforts. The project aims to create a positive environmental impact by promoting circular economy practices, including a more energy and resource-efficient yarn production process, and increased renewable energy usage. It is also expected to yield economy-wide effects through value-addition, job creation, and foreign exchange revenue generation.
IFC’s investment is projected to create approximately 700 direct and indirect jobs, boosting employment in Türkiye. IFC will also collaborate with the company to improve policies and practices on workplace gender inclusion and raise corporate gender awareness, aligning with the World Bank Group’s goal of closing gender gaps and enhancing opportunities for women in the workforce.
“We are thrilled to announce this significant partnership with IFC, which marks a pivotal moment in our journey towards sustainable growth and innovation. This project will not only enable us to expand our production capabilities but also enhance our commitment to sustainability,” said Yaşar Küçükçalık, Chairman of Küçükçalık Group. “We look forward to leveraging this investment to strengthen our competitive edge and contribute to Türkiye's position in global trade.”
“This investment will drive competition in the synthetic fabric manufacturing industry, which is crucial for the Turkish economy,” said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “Supporting companies like Küçükçalık in their strategic efforts to vertically integrate and optimize input management is vital to strengthen the country’s position in global trade.”
IFC has supported private sector development in Türkiye for more than 50 years, with investments of over $20 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $5.4 billion as of December 2024.
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 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Küçükçalık
Küçükçalık was established in 1966 in Istanbul as a trading company supplying goods to wholesalers in Türkiye. The company began export operations in 1987. In 1990, it opened its first weaving factory and started dyeing and printing operations soon after, followed by an embroidery plant in 1995 and a ready-made confection unit in 1997. Finally, in 2015, polyester yarn spinning mill was established in Sakarya. Today Küçükçalık has two manufacturing units in Türkiye and one in Egypt. Küçükçalık’s product range includes specialized synthetic yarns, upholstery and clothing fabrics, curtains, and other ready-made home textiles. The Company’s clientele includes international brands, retailers, and domestic garment and home textile manufacturers. As of end 2023, the company employed around 3,000 staff and has a 200,000 m2 closed production area.
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