€10 million loan to improve Kay’s efficiency and boost operations
Turkey’s dairy industry is receiving a new funding boost with a €10 million loan from the European Bank for Reconstruction and Development (EBRD) to Mar Tuketim Maddeleri Ihracat Ithalat San. Ve Tic. A.S.,a Turkish dairy producer known under the brand name Kay.
The EBRD’s investment will enable the company to move its production to a state-of-art factory next to Kay’s existing feed mill along the highway connecting Istanbul and Izmir. The move will improve the management of logistics and the use of energy and water. Kay will also be able to buy new equipment to support the expansion of its yoghurt and white cheese products.
The EBRD’s investment will also be used to refinance existing loans to stretch out the debt maturity as the company expands its operations.
Kay was founded in 1950s in Balıkesir, western Turkey, by the Ayhan family and is currently among the top ten Turkish dairy producers in terms of sales. The company is also a leading UHT goat milk producer in the country and has recently started their own goat farm to improve product quality and efficiency.
Ergün Ayhan, General Manager for Kay, said: “With the support of the EBRD, we will be able to start commercial production in our new facility. We will also be able to pack fresh goat milk which will be coming from our own goat farm nearby. This project will allow us to grow together with all our farmers and distributors.”
Jean-Patrick Marquet, EBRD Director for Turkey, said: “Our finance will help Kay become a stronger and a more efficient market player. It will also boost competition in the Turkish dairy sector and improve the company’s ties with suppliers and distributors while bringing higher quality products to consumers.”
Helping agribusiness companies such as Kay improve their efficiency and boost operations is part of the EBRD’s efforts to advance the competitiveness of both Turkish enterprises and the country’s economy overall.
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. In 2014 Turkey became the leading recipient country of the EBRD, with new investments worth €1.4 billion.
To date the EBRD has invested over €6 billion in Turkey through close to 160 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised over €12 billion for these ventures from other sources of financing.