Summary of Proposed Investment
Project Number
8012
Company Name
BORCELIK CELIK SANAYII TICARET ANONIM SIRKETI
Date SPI Disclosed
Dec 20, 1996
Country
Turkiye
Industry
Manufacturing
Status
Completed
Sector
Re-Rolling and Drawing of Purchased Steel
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
C - No Impact
Previous Events
Approved : Mar 17, 1997
Signed : Jun 24, 1997
Invested : Jul 24, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Turkey: Borcelik IV |
| Region | Europe |
| Sector |
Projected Board DateJanuary 20, 1997
Company NameBorcelik Celik Sanayii Ticaret A.S.
Technical Partner and/or Major Shareholders
Borusan Holding A.S. (61.18%) and IFC (16.275%)
Project Cost Including proposed IFC investment
US$58 million, including an IFC A loan of $10 million, approximately $4.5 million of IFC equity, and a $1 million IFC risk management facility.
Location of project and Description of site
The project’s site, adjacent to Borusan’s (parent company) existing pipe factory in Gemlik on the Marmara Sea coast, is close to Bursa and about 100 km south of Istanbul.
Description of Company and Purpose of Project
Borcelik is a stand-alone, cold-rolling steel mill, whose sponsor, Borusan, is a successful former client of IFC. Plant construction started in June 1993 and was completed in April 1994; after trials, commercial production commenced in September 1994. The plant is operating satisfactorily. The project supplies Turkey’s growing domestic market for cold rolled flat products. IFC participated in the initial financing of the project, and following project completion, is now participating in a capital re-ordering of the project.
Environmental Category and Issues
This is a category C project according to IFC’s environmental review procedure because the project is a purely financial restructuring of an existing IFC investment without any physical changes to the project. Key environmental and occupational health and safety issues include air emissions, liquid effluents, and employee exposure to noise and toxic substances. Environmental, and Health and Safety permits for the project have been obtained from the governmental authorities. The company provides IFC with annual Environmental Monitoring Reports. The company has installed its treatment plants and they are in operating condition. The company has been granted a Discharge Permission Certificate by the Local Environmental Board and an Environmental License by the Turkish Government.
| Date SPI sent to PIC | December 20, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
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