Trakya Regional (f. SISECAM REGIONAL)



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

18 Sep 2012



PSD disclosed:

13 Aug 2012

Project Description

The Bank is considering:

i) €90 million long-term loan to Trakya Cam A.Ş. (“Trakya”), the leading flat glass producer in Turkey, to finance the construction of a greenfield production plant in Tatarstan, Russian Federation, for flat glass products (as part of a JV with St. Gobain) and energy efficiency investments in its Turkish operations;

ii) €40 million long-term loan to finance the technology upgrade and capacity expansion in Trakya’s Bulgarian float glass/glassware subsidiary, Trakya Glass Bulgaria EAD (“Trakya Bulgaria”). The Project will enable Trakya to strengthen its presence in the Balkans, central and eastern Europe, and establish local presence in the growing Russian float glass market.

Transition Impact

The Project represents a good opportunity for the Bank to achieve a strong transition impact in the region, particularly through demonstration of successful re-structuring, demonstration of new products, setting standards for energy efficiency and better environmental performance and expansion of markets.

The Client

Trakya is the leading manufacturer of flat glass products in Turkey and south-eastern Europe. It ranks among the top six flat glass companies in the world and operates in three main segments: architectural, automotive and processed glass manufacturing. It was the first to deploy ‘float technology’ in eastern Europe and the MENA region. Trakya operates three production plants in Turkey and one in Bulgaria and has a minority stake (15.41 per cent) in a float glass plant in Egypt as part of a JV with Saint Gobain.

Turkiye Sise ve Cam Fabrikalari A.S. (“Sisecam”) owns a 70 per cent controlling stake in Trakya, while the remaining 30 per cent is free floating on the Istanbul Stock Exchange.

EBRD Finance

The facility will comprise of long-term loans to following entities:

  • Trakya: €90 million long-term loan of which a portion of up to €40 million known as a B-loan will be syndicated to other lenders
  • Trakya Bulgaria: €40 million long-term loan.

Project Cost

€340 million (€170 million in Bulgaria, €150 million in the Russian Federation and €20 million in Turkey).

Environmental Impact

Category B. The Project, a corporate loan to a multi-site operation requires a corporate environmental and social due diligence (ESDD). Overall, environmental and social issues associated with the construction of a Greenfield float glass plant and the modernization and expansion of existing plants can be readily assessed and mitigated. The Bank has existing experience with the same client in the container glass sector, and to date the Company has fully implemented best practice. The ESDD has confirmed that the Company has the institutional capacity to fully implement the Bank’s Performance Requirements (PRs).

The project consists of the expansion of an existing plant in Bulgaria; construction of a Greenfield plant in Russia; and the modernization of existing float plants of Trakya Cam Sanayii A.Ş. in Mersin and Lüleburgaz inTurkey. The main findings of the due diligence are summarized below by country operations.

Bulgaria. The float glass plant in Bulgaria is an existing facility fully permitted under the EU IPPC regime and in the past financed by the IFC. The project will consist of adding a new float line to the existing operation. Both the existing and new plant is designed to comply with Best Available Techniques (BAT). This includes an Electrostatic Precipitator (ESP) and a Selective Catalytic Reactor (SCR) to limit dust and NOx emissions respectively. The Bulgarian plant will fully comply with BAT requirements under the EU’s Industrial Emission Directive (IED) to be enforced post 2016 for existing plants. The ESDD has identified a slightly elated waste water discharge resulting from operational issues. The Environmental and Social Action Plan (ESAP) has been designed to address this. The Company has developed a Non-Technical Summary (NTS) for the project and this will be disclosed locally, in line with a corporate SEP. The new expansion project was associated with a local EIA and is fully permitted.

In Russia, the Company is constructing a new Greenfield float glass plant in a joint venture with Saint Gobain. The site is located within an industrial park and environmental and social impacts are low with no residential areas nearby. The Company has started the procedure to obtain the relevant local permits, and undertaken a local EIA (Russian OVOS). The ESDD has identified that the Company has not fully considered BAT in the initial designs, and no ESP and SCR are included as required under the EU’s IED requirements. This abatement technology is not required under Russian legislation. As part of the ESAP, the Bank has required that an ESP and SCR will be installed within 2 years of commissioning the plant to ensure compliance with the IED. The Bank has incorporated this into the ESAP. The Company will disclose a Non-technical summary (NTS) of the Project locally in Russian.

In terms of Turkish operations, the Company operates three float glass plants. The plants are well managed with a good Environmental, Health and Safety (EHS) management system certified to ISO 14001 and OHSAS 18001 standards. The sites are complaint with National legislation. However, the ESDD has identified a number of energy efficiency and environmental measures that should be considered to attain BAT as defined by the Industrial Emission Directive. The Company has agreed to develop a program to implement EU IED BAT at the existing facilities as part of an on-going modernization program. This has been included in the ESAP.

As part of the ESAP, the Company has agreed that all facilities are subject to ISO 14001, OHSAS 18001 and ISO 50001 certification. Furthermore, an independent audit it to be undertaken of the Group in 2015 and a corporate CSR report published by 2014.

Non-Technical Summaries (NTS) for the Bulgarian and Russian plants can be obtained from the Company on request, or downloaded:

Bulgarian Plant (557KB - PDF) Russian Plant (61KB - PDF)

Bulgarian (366KB - PDF) Russian (211KB - PDF)

The Bank will monitor the implementation of the Project.

Technical Cooperation

Within the TCSEP (Turkey and the Caucasus Sustainable Energy Programme) €540,000 TC funds from the ICEX, the Spanish Institute for Foreign Trade, has been provided for Energy Audit of Trakya Cam’s plants in Turkey.

Company Contact

Mrs. Basak Oge (Corporate Finance and Investor Relations Manager)
Tel: +90 (212) 350 50 50


Business opportunities

For business opportunities or procurement, contact the client company.

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General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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