The EBRD originally provided a long-term loan of USD 150m to Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret A.S. (the "Company") in 2016 to finance the construction of a new tyre plant in Aksaray, a city in Central Anatolia in Turkey. The loan also contributed to the acquisition of additional equipment for the Company's existing plant located in Izmit, a city in North-Western Anatolia, Turkey.
The EBRD is providing an additional long-term loan to the Company of USD 17 million to finance the last phase acquisition of certain machinery and equipment at its new Aksaray tyre plant.
The Project envisages that the new Aksaray plant will have an annual production capacity of almost 2.5 million tyres for passenger cars and light commercial vehicles. The Izmit plant will increase its capacity for the truck and bus segment.
ETI score: null
The Project is already on track to achieve a strong transition impact in Turkey, particularly through transfer and dispersion of skills and setting standards for corporate governance and business conduct in relation to regional, youth and gender inclusion. The Project will also contribute towards the Bank's ongoing inclusion policy dialogue initiative in Turkey that creates direct links between the private sector and Turkish education authorities to improve skills standards in line with employers' needs. The EBRD has agreed with the Company to set more ambitious benchmarks in relation to the skills transfer dimension of the transition impact with the provision of the extension loan. EBRD has also agreed with the company to incorporate a new target on the number of women to be trained under the learning progamme in line with the Bank's Strategy for the Promotion of Gender Equality (BDS15-264/F).
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET AS
Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret A.S. is incorporated in Turkey for the manufacturing, marketing and selling of tyres and rubber products. The Company operates as a joint venture between Bridgestone Corporation and Haci Omer Sabanci Holding A.S. each holding 43.63% equity stake. The Company is listed on Borsa Istanbul with a circa 10% free float.
EBRD Finance Summary
USD 150 million long-term A loan for the EBRD's account.
USD 17 million long-term A loan for the EBRD's account.
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The environmental and social impacts associated with the construction and operation of a tyre plant can be readily identified and addressed with standard mitigation measures. Due diligence has been undertaken with the assistance of independent consultants who have carried out an audit of the Brisa's Izmit plant, including a review of corporate policies and procedures, and an appraisal of the new facility in Aksaray. The consultants have prepared a Non-Technical Summary for the project, an Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan (SEP).
Brisa has ISO 14001 and OHSAS 18001 certified environmental and safety management systems for the Izmit plant, and is implementing environmental requirements substantially in line with EBRD performance requirements (PR) and the Turkish law. There are no problems identified with labour issues at this Company. 77% of employees belong to the trade union and a collective bargaining agreement and functioning grievance mechanism are in place.
The construction of the Aksaray plant is completed and commercial operations commenced in 2018. The site is located in an industrial zone and is 700m from the nearest residential area. An Environmental Impact Assessment was prepared and environmental and safety requirements were specified in the construction contract. Minor issues identified at the site during due diligence related to 'house-keeping' issues and waste management will be addressed in the ESAP. EBRD will monitor the implementation and operation of the project through review of the client's annual environmental and social report.
The Company has fulfilled its environmental and social reporting obligations to date and is on track with implementing the Project ESAP.
Technical Cooperation and Grant Financing
Technical Cooperation funds from the Inclusion TC Framework provided by the Bank's Shareholder Special Fund was used to support economic inclusion via improved transition from training into employment for young people (including blue-collar workers) in the tyre sector and in the region surrounding Aksaray. Up to EUR 70,000 was used for the development and implementation of an action plan to support the Company in addressing key challenges in relation to the recruitment of entry level staff, career guidance, and the training and career progression of its workforce as part of the original transaction. No additional Technical Cooperation Funds will be provided for the implementation of the revised transition impact benchmarks as part of the extension financing.
Company Contact Information
Resat Oruc / Gurur Altun
Kisikli Caddesi, Sehit Tegmen Ismail Moray Sokak No:2/1 Altunizade, Istanbul, 34462 Turkey
PSD last updated
09 Feb 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.