The provision of a USD equivalent of EUR 25 million long-term loan to Aksa Akrilik Kimya Sanayi A.S. ("Aksa"), the leading acrylic and technical fibre manufacturer in the world, to finance the establishment of a new continuous filament facility and the construction of a sludge recovery unit within the Aksa's manufacturing base in Yalova, Turkey.
Contribution to process and resource efficiency through financing of an innovative, high-value added and more efficient product line in terms of resources and energy that will yield significant savings and will support Aksa's environmental investments in line with BAT (Best Available Techniques) standards.
ETI score: 55
The project represents an opportunity for the Bank to achieve a strong transition impact in Turkey, particularly through (i) setting standards for energy efficiency and better environmental performance in the manufacturing sector as the project, which is in line with the Green Economy Transition Approach of the Bank, will result in significant energy and resource savings as well as lower CO2 emissions, and (ii) creating a strong demonstration effect in the chemical industry within Turkey and beyond by means of product diversification, innovation and expansion of higher value added products in domestic and international markets.
AKSA AKRILIK KIMYA SANAYII AS
Aksa Akrilik Kimya Sanayi A.S. is a joint stock company incorporated in Turkey for production and sales of acrylic and technical fibre. Akkok Holding A.S. holds 39.6% stake in Aksa, while the other major shareholder in Aksa is Emniyet Ticaret ve Sanayi A.S. with 18.7% share. The remaining shares are publicly traded in Borsa Istanbul.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
The Project has been Categorised B in accordance with the Bank's 2014 Environmental and Social Policy and E&S Due Diligence has been undertaken in parallel with monitoring of the existing investments with the Company. Detailed due diligence was undertaken by an independent consulting firm in 2011 and an E&S Action Plan was developed at that time. E&S DD for the second investment in 2015 was undertaken by the Bank internally and an undated ESAP was generated accordingly. For the new investment currently under consideration external consultants were again appointed to update the E&S DD combined with detailed monitoring of the E&S performance of the wider facility.
Since the Bank's initial investment in 2011, the Company has shown good commitment to E&S stewardship and implementation of the Performance Requirements. During that period the Company has implemented relevant ESAP requirements and reported satisfactorily. As such, Aksa can generally demonstrate best practise at the facility in Yalova or has a programme in place for the timely implementation of additional requirements. Key issues that have been addressed since the first project in the company include increase in E&S capacity, upgrade of E&S management systems in line with international standards and ahead-of-time implementation of industrial safety requirements. In addition, the Company has benchmarked it's facility against EU requirements since 2011 and developed action plans to go beyond Turkish requirements with regard to wastewater management, emissions and discharges.
Due to a number of material changes on the site, the adoption of the 2014 E&S Policy by the Bank, and that some time had passed since the initial E&S DD it was deemed appropriate that the E&S DD be updated. The new investment will deliver net environmental improvements through energy efficiency and wastewater quality improvement and the GET component has been confirmed.
The update ESDD concluded that:
- the new filament line will be permitted according to Turkish requirements and that no EIA was required,
- the sludge recovery component of the new project will meet EU requirements,
- the company has broadly completed all previous ESAP commitment with some minor requirements rolled into the new ESAP,
- previous energy efficiency and industrial safety upgrades have been implemented or are ongoing in line with appropriate action plans,
- new facilities located on the site since 2011, including the Company dual fuel power plant, require further monitoring as to whether they are meeting EU standards and the Industrial Emissions Directive,
- stakeholder engagement and labour & working practices require minor additional measures to ensure compliance with the Bank's requirements.
A new ESAP has been developed for this Project and will be agreed with the Company prior to signing. The new ESAP will supersede the 2011 and 2015 ESAPs. The new ESAP includes items such as the following:
- further strengthen the OHS management systems,
- obtaining timely regulatory approval for the operation of new facilities on site such as the new filament line and the wastewater treatment plant,
- review emissions data for the dual fuel power plant and implement additional Best Available Techniques measures if necessary,
- update and implement worker and public grievance mechanisms.
The new investment will be monitored by the Bank alongside the existing projects.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Erdinc Kazak (Finance Director)
+90 (226) 353 25 45
With the support of EBRD's financing, Aksa successfully completed the investments of (i) a new continuous filament facility, and (ii) the sludge recovery unit, which was a follow on investment of the waste water treatment plant established by the Company and financed by the Bank in its previous engagement, within the Company's existing manufacturing base in Yalova, Turkey.
The transition impact of the Project is on track to be achieved through (i) setting standards for energy efficiency and better environmental performance in the manufacturing sector as the project, which is in line with the Green Economy Transition Approach of the Bank, has resulted in significant energy and resource savings as well as lower CO2 emissions, and (ii) creating a strong demonstration effect in the chemical industry within Turkey.
PSD last updated
18 Dec 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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