Translated version of this PSD: Turkish
Project Description
The EBRD is considering €140 million long-term loan to Ford Otomotiv Sanayi A.S. to finance the development of new Ford Ecotorq engines, modernization of manufacturing processes, modernization of the existing Cargo model, development of a new Cargo model truck and the increase of truck production capacity at its Inonu plant, in Eskişehir.
Transition Impact
The Project represents a good opportunity for the Bank to achieve a strong transition impact in Turkey, particularly through supporting innovation and research and development (R&D) stemming from collaboration between industry, local academia and local suppliers. The Project will also set new corporate human resources standards in the industry in relation to inclusion and gender equality.
1. Transfer and dispersion of skills
The collaboration between Ford Otosan, local academic institutions and local suppliers will create a multi-layered skills transfer and demonstrate the essential steps for the creation of an innovation ecosystem necessary to move the industry into higher value added activities.
2. Setting standards for corporate governance and business conduct in relation to inclusion/gender
Systemic inclusion impact on gender will be achieved through the introduction of improved corporate standards and practices to increase the number of women accessing training and employment opportunities in the company. These will seek to create demonstration effect across the automotive sector in Turkey, where gender gaps are large in relation to labour practices and employment.
The Client
Ford Otomotiv Sanayi A.S. is incorporated in Turkey for the manufacturing and selling of motor vehicles and parts. The Company operates as a joint venture between Ford Motor Company and Koç Holding, holding 41% equity stake each, and the rest of the shares are listed on the Istanbul Stock Exchange.
Koç Holding is the leading industrial conglomerate in Turkey, with strong competitive edge in four core industries of energy, automotive, durable goods and banking.
Ford Motor Company is among the top manufacturer of vehicles in the world that distributes its vehicles across six continents.
EBRD Finance
€140 million senior unsecured A/B loan; of which €70 million will be for the account of EBRD and €70 million will be for the account of B-lenders.
Project Cost
€140 million.
Environmental Impact
Categorised B in accordance with 2008 Environmental and Social Policy. An integrated audit of the Company's corporate policies and procedures and Company's past and current performance against Turkish and EU legislation and Bank's Performance Requirements that was originally carried out in 2010 was updated during the environmental and social due diligence for this project, along with the completion of an environmental analysis of the current investment plan for the Eskişehir Plant. Due diligence confirmed that the Company operates according to international best practice from an environmental and social perspective, and that the previous Environmental and Social Action Plan (ESAP) has been implemented in a timely manner. The ESAP has been updated to reflect the influence the Company will have on their R&D partner in the implementation of best environmental and social practice. A gender component to increase women's access to employment opportunities is to be implemented and has been committed to within the ESAP.
Technical Cooperation
None.
Company Contact
Burak Cekmece
Treasury and Risk Manager
Ford Otomotiv Sanayi A.S.
Denizevler Mahallesi
Ali Uçar Caddesi No:53
Gölcük / Kocaeli TURKEY
Phone: +90 262 315 6960
Email: bcekmece@ford.com.tr
Business opportunities
For business opportunities or procurement, contact the client company.
For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.
