Summary of Proposed Investment
Project Number
9182
Company Name
Gümüssuyu Hali ve Yer Kaplamalari Sanayi ve Ticaret A.S.
Date SPI Disclosed
Feb 18, 1999
Country
Turkiye
Industry
Manufacturing
Status
Completed
Sector
Household Textile Products (Including Drapes, Mattress Covers, Carpets, Towels, etc.)
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Apr 21, 1999
Signed : May 11, 1999
Invested : Jun 4, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name: | Turkey: Gumussuyu Carpets |
Region:Central and Southern Europe
Sector:
Project No:009182
Projected Board Date:March 17, 1999
Company Name:Gumussuyu Hali ve Yer Kaplamalari Sanayi Ticaret A.S.
Technical Partner and/or Major Shareholders
The major shareholder with a 82% interest is Gumussuyu Hali Group with a share capital of about US$15 million. The remaining 18% is publicly held and listed on the Istanbul Stock Exchange. The Hali Group was founded in 1952 as a small semi-worsted yarn-spinning mill, which expanded into woven area carpet production in the sixties, and into tufted broadloom carpets in 1991. The Group is majority-owned by the Oztemir family, which has a long tradition in carpet manufacturing.
Project Cost Including proposed IFC investment
The total project cost is estimated at US$31 million, of which IFC''s proposed investment is US$12 million including an A Loan of US$9 million and a senior convertible loan of US$3 million.
Location of project and Description of site
The project Company is located on a 10.5 hectare site near the Cerkezkoy township, about 100 km northwest of Istanbul, Turkey.
Description of Company and Purpose of Project
The Company was established in July 1996 as a spin-off from the Hali Group through the transfer of all carpet production facilities and related real estate. Following the spin-off, the Company became the only producer of both woven area carpets and broadloom carpets in Turkey.
The Project will introduce higher value-added products, improve yarn quality, and achieve economies of scale thus enabling the Company to become more competitive following Turkey''s entry into a customs union with the European Union in 1996. The proposed project involves investment in technology improvement and production monitoring, which are expected to reduce the Company''s average unit costs thus enabling it to effectively compete in the domestic market against imports as well as maintain product quality.
The Project has a strong developmental impact as it aims to improve the Company''s competitiveness on the domestic market. Considered in the context of the Turkish broadloom carpet sector, which is expected to grow steadily and significantly over the next five years, the proposed Project is likely to set the tone of the industry’s response to increased competition. IFC will provide the Company with long-term financing, which is scarce in Turkey and which will improve the Company''s debt profile.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review. The following potential environmental, health and safety impacts of the project were analyzed: air emissions from manufacturing processes and power generation; dyeing and sewage effluent treatment and disposal; solid and liquid waste disposal; fire prevention and emergency response; and occupational health & safety. There is no evidence of sensitive areas near the Company site. The Company has reported to have no problem with contaminated land from present or past operations. The emissions are stated to be within national and local emission limits and the levels quoted are within World Bank guideline levels.
The industrial wastewater and sewage (approx. 275 m3/day) from the Gumussuyu factory is piped 4 kilometers in an underground pipeline to a municipal treatment facility. Gumussuyu has provided data on the water discharge quality from the treatment plant which confirms that it meets appropriate World Bank effluent standards. Gumussuyu have plans to construct an effluent pre-treatment plant in each of the existing and new factories to reduce the pollution load on the central treatment plant. The costs of these plants are included in the project investment plan.
Health and Safety issues identified by the company are noise, chemical handling and storage and general fire safety. Personal protective equipment is issued (safety shoes, gloves, overalls, safety glasses etc) and safety training is given to approximately 700 persons annually. The sponsor has presented information that demonstrates that they are aware of these issues and have stated that the proposed project will comply with applicable local, national and World Bank requirements.
The is from the InfoShop.
| Host country location of environmental documents: | Turkey |
Date SPI sent to InfoShop February 18, 1999
“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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