Summary of Proposed Investment
Project Number
8912
Company Name
UZEL MAKINA SANAYI AS
Date SPI Disclosed
Jun 22, 1998
Country
Turkiye
Industry
Manufacturing
Status
Completed
Sector
Agriculture, Construction, and Mining Machinery
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Nov 2, 1998
Signed : Jun 23, 1999
Invested : Nov 12, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Turkey-Uzel Makina Sanayii A.S. ("Uzel") |
| Region | Central and Southern Europe |
| Sector |
Projected Board DateAugust 3, 1998
Company NameUzel Makina Sanayii A.S.
Technical Partner and/or Major Shareholders
Uzel manufactures tractors under license from U.S.-based AGCO Corporation which are marketed in Turkey under the Massey-Ferguson name. In addition, the Company produces diesel engines under a Perkins license, and wheels under licenses from Italian manufacturers Fergat and Gianetti. Uzel is 85%-owned by Uzel Holding, a company controlled by members of the Uzel family. The remaining 15% of the Company''s shares are traded on the Istanbul Stock Exchange.
Project Cost Including proposed IFC investment
The project is expected to cost US$98 million, of which IFC would provide US$25 million as an "A" loan from its own account, and US$10 million as a "B" loan, for the account of participants.
Location of project and Description of site
The project will be located in Düzce, about 160 km east of Istanbul. The site borders a regional highway, and is presently used as farmland.
Description of Company and Purpose of Project
Uzel is Turkey''s largest manufacturer of agricultural tractors, diesel engines, and automotive parts. The principal objectives of the project are (a) to improve productivity; (b) to satisfy growing demand for a greater range and quality of products; (c) to strengthen its competitiveness through increased economies of scale; and (d) to increase capacity, especially for the export market. IFC''s involvement will provide long-term financing which is not available locally at suitable terms. The proposed financing fits well with IFC''s country strategy for Turkey which calls for greater focus on second-tier companies such as Uzel, with strong growth prospects and good export potential.
Environmental Category and Issues
This is a category B project. The key environmental, social and health and safety issues that are being considered during appraisal include an evaluation of the proposed site, ground contamination associated with the existing site, air emissions, liquid effluent treatment and discharge, solid waste handling, oil and chemical storage, health and safety, and fire safety. The company is in the process of presenting plans that address these issues and demonstrate that the project will be in compliance with World bank guidelines and policies. The proposed site is agricultural and is located adjacent to the Istanbul Ankara expressway. There are no environmentally sensitive areas in close proximity to the site. Liquid effluent will be treated in a treatment plant and recycled. Health and safety standards which are currently not in compliance with WB guidelines, will be significantly improved at the new factory. Appropriate fire fighting equipment will also be installed. A full description of the various mitigation measures will be included in the Environmental Review Summary.
The is June 25, 1998 from the InfoShop.
| Host country location of environmental documents | Topcular, Kisla Caddesi No. 5 34147 Rami - Istanbul, Turkey |
Date SPI sent to InfoShop June 22, 1998
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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