Summary of Proposed Investment
Project Number
9367
Company Name
PINAR SUT MAMULLERI SANAYII ANONIM SIRKETI
Date SPI Disclosed
Nov 10, 1999
Country
Turkiye
Industry
Agribusiness and Forestry
Status
Completed
Sector
Dairy Products
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Jan 7, 2000
Signed : Jan 27, 2000
Invested : Mar 8, 2002
Project Description
Summary Of Project Information (SPI)
| Project Name | Turkey - Pinar Süt II |
RegionCentral and Southern Europe
Sector
Project No009367
Projected Board DateDecember 15, 1999
Company NamePinar Süt Mamülleri Sanyii A.S. (Pinar Süt)
Technical Partner and/or Major Shareholders
Pinar Süt''s major shareholder is Yaºar Holding A.S., which directly owns 24.42% of the company''s shares. Pinar Tüketim Mallari Pazarlama A.S., the Yaºar group’s food distribution and sales company, owns 35.72%. Bati Sigorta A.S., the Yaºar group’s insurance company, owns 4.08%. Pinar Süt is listed on the Istanbul Stock Exchange where the balance of 35.78% is traded.
Yaºar Holding A.S. owns 47 companies which are grouped into five separate divisions: (i) paint and chemicals; (ii) food and beverages; (iii) trade and services; (iv) finance; and (v) contracting. The food group comprises companies in the meat, dairy, water, beer and fish sectors. Yaºar Holding is majority-owned by member of the Yaºar family. IFC has made repeated investments in the Yaºar group companies: Pinar Süt, Pinar Et, the meat company, and Viking, the pulp and paper company. Yaºar Holding would be a co-borrower in this project.
Project Cost Including proposed IFC investment
The total project cost is estimated at US$39.2 million. IFC''s planned investment is an A loan of US$15.0 million, representing 38.07% of total investment. The balance will come from cash generation.
Location of project and Description of site
There are two project locations: Izmir and Eskiºehir. The Izmir plant was established in 1973 in the outskirts of Izmir. The Eskiºehir plant is a newer plant, established in 1996.
Description of Company and Purpose of Project
Pinar Süt Mamülleri Sanyii A.S., established in 1973, is the leading dairy company in Turkey and an existing IFC client. The company is undertaking a modernization and expansion project in order to remain competitive in a changing market. During the last three years, multinationals such as Nestle and Danone have entered the Turkish dairy market, introducing new products and technologies. SEK, the state-owned dairy company, was privatized in 1997 and other medium-sized dairies like Sutaº and Kay Süt have enlarged their product range.
The main purpose of the project is: (i) to increase capacity in products where the demand has been increasing steadily; (ii) to improve efficiencies and quality, and lower costs; and (iii) to introduce new products.
The proposed project includes investments in yogurt, butter, cheese, fresh fruit juice, UHT products, mayonnaise, and whey filtration product lines. In addition, the company intends to increase the capacity of its milk cooling tanks and the number of distribution vehicles
Environmental Category and Issues
This is a category B project according to IFC''s environmental review procedure. The following potential environmental, health and safety problems of this project were analyzed: air emissions and wastewater treatment; solid waste handling; hazardous materials handling; plant hygiene; and general worker health and safety. Upgrading is being done within the existing dairies located at Izmir and Eskisehir. No new land is being acquired, and no environmentally-sensitive areas are affected by this project. The Izmir plant purchases steam and electricity from an outside utility, and has no air emissions. The Eskisehir plant uses a natural gas-fired boiler to produce steam, and stack emissions from the boiler will be within World Bank Group guidelines. Both dairies have wastewater treatment plants for process effluents, and both discharge to downstream treatment plants which provide further treatment, meeting World Bank Group guidelines.
The dairies meet international standards for hygiene and occupational health and safety. Training is provided to staff in first aid, hygiene and sanitation and good manufacturing practices. Both plants are fitted with adequate fire safety and response equipment, including alarm systems, extinguishers and hydrants.
The is from the InfoShop.
| Host country location of environmental documents | Ticaret newspaper dated November 8, 1999 |
Date SPI sent to InfoShop November 10, 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).
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