- EBRD lends Turkish-lira equivalent of €150 million to global consumer durables firm owned by Koc Holding
- Loan to finance development and manufacturing of more energy-saving home appliances
- Financing to further strengthen company’s exports
Consumers in Turkey and foreign markets will benefit from more energy efficient appliances developed by Turkey’s leading white goods manufacturer Arcelik A.S. with the help of almost 1 billion Turkish lira (€150 million) loan from the EBRD.
Arcelik, majority owned by Koc Holding, manufactures and sells home appliances such as refrigerators, washing machines, cooking appliances, vacuum cleaners as well as refrigeration compressors, electric motors and consumer electronics products under 12 brands, including Arcelik and Beko. It sells its products in Turkey and exports to 145 countries on five continents.
With the help of the EBRD’s financing, the company will invest in new manufacturing lines at its Eskisehir and Cayirova plants to produce more energy efficient and low-noise refrigerators and washing machines that are in high demand especially in foreign markets. The investments will ensure that the appliances as well as the manufacturing processes will consume less energy and resources, raising the bar for environmental sustainability.
In addition, Arcelik is planning to bring all research and development activities under one roof in a new state-of-the-art R&D centre. It will strengthen Arcelik’s capacity to develop new products and facilitate partnerships with local universities and engineers. Progress in this field will strengthen the company’s export potential.
Polat Şen, Arcelik’s Chief Financial Officer, said: “At Arçelik, our priority is to invest in advanced production technologies and to develop innovative and more energy efficient products. We are pleased to start collaboration with EBRD for the financing of these investments. The support of an international financial institution such as the EBRD is a sign of recognition of our strong and sustainable business in Turkey as well as of our global ambitions.”
Arvid Tuerkner, EBRD Managing Director for Turkey, added: “Consumers in Turkey and globally want to see home appliances that are smart, efficient and quiet. They also want to support brands with high environmental sustainability standards. As Arcelik continues to innovate to make that possible, the EBRD is delighted to provide financing and become part of the company’s success.”
Supporting Turkish firms such as Arcelik to become more environmentally friendly and competitive at home and abroad is a priority for the EBRD in Turkey.
The Bank is also committed to further expanding access to long-term lira funding for Turkish companies, making them more resilient to macro-economic vulnerabilities.
Last year the EBRD increased its support for local currency financing in Turkey to a third of its total investment in the country as an economic slowdown and a dramatic currency depreciation affected many private sector companies.
The Bank is a leading institutional investor in Turkey and has invested over €11 billion in 283 projects in Turkey since 2009. The overwhelming majority of EBRD investments in Turkey are in the private sector.