- EBRD provides €70 million loan to TürkTraktör
- Loan intended to modernise facilities for production of Stage V-compliant engines
- TürkTraktör plans to install rooftop solar panels
The European Bank for Reconstruction and Development (EBRD) has provided a €70 million loan to TürkTraktör in Türkiye to support the company in modernising its manufacturing facilities and expand its green investments.
The loan will finance the modernisation of TürkTraktör’s manufacturing plants in Sakarya and Ankara to ensure their engine-production processes comply with the European Stage V emission standards and to support associated research and development.
The Stage V standards, adopted by the European Parliament in July 2016 and published in the Official Journal of the European Union as Regulation (EU) 2016/1628 in September 2016, will limit carbon monoxide, nitrogen oxides and hydrocarbons, as well as the mass of particulate matter and number of particles emitted to the atmosphere. The standards are expected to be in force in Türkiye by the end of 2023.
Producing Stage V-compliant engines will help TürkTraktör respond to domestic and foreign demand for new-generation tractors, and continue to build on its export record.
The loan will also support TürkTraktör in installing a rooftop solar plant at its Sakarya factory, helping to increase the company’s renewable energy consumption.
TürkTraktör has adopted a sustainability strategy and aims to become the leader in its industry. Koc Holding, one of its key shareholders, aims to be carbon neutral by 2050.
Hande Islak, EBRD Deputy Head for Türkiye, said: “We fully support TürkTraktör’s goal of becoming a leader in its industry by committing to sustainable and environmentally conscious practices. Their efforts so far have been significant and I am confident that our partnership will bolster the company’s green transformation and allow TürkTraktör to become a leading player in its field.”
Aykut Özüner, TürkTraktör’s CEO, said: “As a key player in Türkiye’s agriculture industry, sustainability is our number one priority. We will continue investing in sustainable production processes and setting low carbon emission targets with environmentally friendly tractors, equipment and machinery. This financing will help to modernise our facilities and help us to produce Stage V-compliant engines. We will also continue investing in solar panels to make all our production processes carbon neutral.”
To date, the EBRD has invested more than €18 billion in various sectors of the Turkish economy, largely in the private sector.