Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

16 Dec 2003



PSD disclosed:

17 Oct 2003

Project Description

The proposed project envisages provision of a long term debt facility to Vestel-Record Joint Venture, a newly created limited liability company located in the Vladimir region of Russia.
The Project involves the construction and operation of a television set production facility with a maximum output of 2 million TV sets per annum. The project will be implemented in 3 phases during 5 years. The Bank's funds will be disbursed in 3 tranches, in accordance with the Project implementation plan.

Transition Impact

The proposed project will be the first foreign investment and one of the largest high quality TV set production facilities in the country to date. It is expected that the project will promote competition both among local and foreign producers. This will raise quality standards and lead to a more efficient market environment. Also, it will facilitate technology and skill transfer in the sector.
Having Vestel, a publicly traded company with high operational and production standards, as the Project Sponsor and the sole shareholder of the Company, will raise corporate governance and operational standards. Implementation of the project would encourage potential suppliers of TV components to set up local production.

The Client

Vestel-Record Joint Venture is a Russian limited liability company created to implement the project. It is 100% owned by Vestel Electronil Sanayi Ve Ticaret A.S ("Vestel"), the largest Turkish electronics manufacturer and the 2nd largest TV set producer in Europe.

EBRD Finance

Up to $15 million 5-year corporate loan with a 2-year grace period. The Loan will be part of the total $47.5 million investment plan. The other project financiers will include Vestel, International Moscow Bank and a group of Turkish banks.

Project Cost

$47.5 million

Environmental Impact

The project was screened B/1 requiring an environmental audit and analysis. Environmental investigations confirmed that there are unlikely to be any significant environmental issues associated with the project and that the sponsor has a positive and proactive approach to both environmental issues and worker health and safety. The Company has developed a comprehensive environmental management system and capacity (ISO 14001) and work is currently underway in developing a similar management system for occupational health and safety (BS 8800). Independent due diligence at the Alexandrov facility in Russian confirmed that all necessary permits are in place; fire protection and fire control are of a high standard; there are no dangerous machinery or hazardous materials present, and all soldering machines have local exhaust ventilation (LEV) in place. Due diligence also confirmed that the future development will be in accordance with local/ national legal requirements and good international /EU standards.

Technical Cooperation


Company Contact

Vestel-Record Joint Venture.
2 Gagarina St., Alexandrov, 601655, 
Russian Federation
General Manger: Bülent Mazacioglu

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: