Translated version of this PSD: Turkish
Provision of a senior secured loan of EUR 15 million to Egesil Kimya Sanayi ve Ticaret A.S., a manufacturer of specialty chemicals, to finance the company's new production facility in Sakarya, a Turkish province on the coast of Black Sea.
The project involves financing the company's new production facility in Sakarya, Turkey which will increase precipitated silica capacity by 40,000 tons.
The project is in line with the Bank's Green Economy Transition approach as 100 per cent of the EBRD's proceeds will be used for GET eligible investments.
The transition impact of the project will be derived from:
(i) the "Green" quality by increasing the production volume of precipitated silica dedicated to green tyres and contributing significantly to energy efficiency on road transport.
(ii) the "Integrated" quality by helping to implement the company's strategy to expand into first-time markets in Europe, Middle East and Africa.
EGESIL KIMYA SANAYI VE TICARET AS
Egesil Kimya Sanayi ve Ticaret A.S., a joint stock company established under the laws of Turkey, is a manufacturer of precipitated silica. The company is majority-owned (51 per cent) by Germany's Evonik Industries, one of the world's leading specialty chemicals producers and the largest silica producer.
EBRD Finance Summary
Environmental and Social Summary
Category B. Due diligence confirmed that the environmental and social impacts relating to the project are site specific and can be readily mitigated through the implementation of a targeted action plan. This Environmental and Social Action Plan (ESAP) has been agreed with the client and includes actions to ensure that the effective environmental and Occupational Health and Safety (OHS) management systems that are currently in place are expanded to apply to the project related works; a review of construction contractor labour conditions are undertaken and a community grievance mechanism is formalised based on existing practices.
Due diligence was carried out internally by ESD and included review of a detailed questionnaire completed by the client and publicly available information on sustainability performance; followup Q&A with site management on issues arising from the data review; and a site visit to review operational performance and hold further meetings with site management and operational staff.
The staff and management systems in regard to EHSS risks were found to be robust and in line with international best practice for such entities. The company has policies and procedures which are well
understood at all levels, through an effective training programme and effective management of risk issues. There is a detailed monitoring programme in place for environmental and OHS issues in both
construction of the expansion and operation of the existing facility. The company was further able to confirm that their corporate standards apply to contractors and third parties present on-site.
Review of the monitoring data highlighted that current and future operations are compliant with Turkish and EU standards for air emissions, in line with Bank requirements.
The appraisal included a review of labour standards and the current state of labour relations and these were found to be in compliance with Performance Requirement 2 but a review is required of contractor performance in this area.
The company has a mature approach to stakeholder engagement and transparency. The leading joint venture partner publishes an annual sustainability report including this facility. The local joint venture partner publishes the company code of conduct online in Turkish and English and maintains a visible presence with local stakeholders including through social investment projects. Formalising the community grievance process is required to be fully compliant with the Bank's requirements.
All actions identified above have been included in the Environmental and Social Action Plan (ESAP) which has been agreed with the client.
Company Contact Information
+90 212 294 65 67
+90 212 294 50 73
Papirus Plaza Ayazma Caddesi No: 37 34410 Kagithane # Istanbul, Turkey
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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