|
Turkish firm to start making TV sets in Russia
$15 million EBRD loan helps lure first major foreign investment to the sector
The European Bank for Reconstruction and Development is lending up to $15 million to the largest Turkish producer of consumer electronics and home appliances to finance the manufacturing of TV sets in Russia in a transaction marking the first major foreign investment in the sector.
The five-year loan is being extended to the Vestel-CIS LTD, formerly known as Vestel-Record Ltd., a wholly owned subsidiary of Turkey’s Vestel Electronic Sanayi Ve Ticaret A.S.
The loan will be used both to provide working capital and finance the construction of a $47.5 million plant at Alexandrov in the Vladimir region of Russia, 120 km northeast of Moscow, which, when completed, will be capable of producing up to 2 million TV sets a year.
The Vestel group, International Moscow Bank (IMB) and a group of Turkish banks are providing the remaining funds.
The EBRD believes the construction of one of Russia’s largest plants producing high-quality TV sets will promote competition in the sector, raise quality standards and encourage potential suppliers of TV components to set up their own local production facilities.
The Vestel group is Turkey’s largest manufacturer of electronic goods and one of the leading producers of TV sets in Europe.
|
