€32 million for new plant in Eskişehir
Leading Turkish producer of dried fruit, nuts, seeds and popcorn, Peyman, is set to expand its business with a €32 million loan from the EBRD.
The company, owned by Bridgepoint, a major international private equity fund, is building a new production facility in the industrial zone of Eskişehir, a city in north-western Turkey. The EBRD loan, with €10 million syndicated to FMO, the Dutch Development Bank, will finance the investment programme.
The new 59,000 m2 plant will become operational in the first half of 2018 and by 2023 it will have doubled the company’s production capacity to 45,000 tonnes. The plant’s modern layout and state-of-the-art equipment will help increase efficiency and save costs, freeing up resources for new products such as snack bars and popcorn.
The new facility will apply high standards and the best available techniques, enabling Peyman to increase exports to the European Union. Building on Bridgepoint’s network and experience in the global food industry, the company aims to increase its presence in international markets.
The EBRD loan will also finance Peyman’s day-to-day operations such as buying fruit, nuts and seeds from local farmers, storing, processing, drying and packaging the produce.
As part of a new supplier-development programme, Peyman will start buying part of its raw materials directly from farmers. This will enable the company to secure sustainable, higher-quality products from local markets.
Working closely with farmers, Peyman is committed to supporting their livelihoods. With help from the EBRD and in cooperation with Turkish universities and vocational schools, the company is planning to train 300 farmers, including women. The training programme will include growing techniques, sustainable agriculture principles and systems to determine the origin of produce. The programme will be certified by the Turkish ministries of Agriculture and National Education.
Arvid Tuerkner, EBRD Managing Director for Turkey, said: “Peyman has successfully transformed itself from a small regional player into an internationally recognised brand. The EBRD is pleased to be part of this story of transformation and growth. We applaud the company’s commitment to working more closely with Turkish farmers and helping them increase their productivity and incomes. We believe this will help strengthen rural communities and boost the economies of the country’s remote regions.”
Tuncer Akgün, Chairman of the Board of Directors at Peyman, commented: “The EBRD’s financing is an indicator of faith in Turkey, our industry and in Peyman. The loan will help us sustain our continuous growth and strengthen our position as we work to become a global Turkish brand.”
Oğuz Yükselir, Peyman CEO, added: “We trust that this financing will open new doors for Peyman while contributing substantially to our company, the Turkish agribusiness and the national economy.”
Peyman serves its Turkish consumers through an extensive sales network ranging from national supermarket chains to small convenience shops known as bakkals. The company also exports to more than 40 countries, including the USA, Russia, the Middle East, China and Australia.
The company was established in 1995 by three Turkish families. In 2016, Bridgepoint acquired Peyman from its founders and Esas Holding.
Helping successful Turkish companies such as Peyman to increase their competitiveness at home and abroad is part of the EBRD’s strategy in Turkey.
The Bank is a major investor in the country. Since 2009, it has invested €10 billion in various sectors of the Turkish economy, with almost all investments in the private sector.
In 2017 alone, the EBRD invested €1.6 billion in 51 projects in Turkey. Almost a third of this financing was provided in Turkish lira.