Yonca Edible Oils

Location:

Turkey

Project number:

46830

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

25 Mar 2015

Status:

Repaying

PSD disclosed:

06 Jan 2015

Translated version of this PSD: Turkish

Project description:

The EBRD is considering a long-term loan of up to USD 30 million to Yonca Gida Sanayi A.Ş. (the “Company” or “Yonca”), one of the leading branded edible oil and canned food producers in Turkey. The loan will finance the Company’s capital investments aimed at expansion of its products range, working capital needs and extension of maturity of existing loans (the “Project”).

Transition impact:

The Project’s transition impact is expected to derive from setting standards for corporate governance, business conduct and market expansion. Specifically, with the EBRD’s support, Yonca will improve its corporate governance standards, environmental efficiency and resource efficiency. Yonca will also further develop its supply chain relationship with local farmers leading to backward linkages in Western Turkey, Central Anatolia and increasingly in Eastern Turkey.

The client:

Yonca Gida San. A.Ş.

EBRD finance:

Up to USD 30 million loan for the account of EBRD.

Total project cost:

Approximately USD 30 million.

Environmental impact:

Categorised B. The independent environmental and social due diligence (ESDD), consisted of the environmental and social analysis of the proposed capital expenditures programme; a review of corporate environmental and social management systems and an environmental, health, safety and labour audit of existing operations and facilities. The E&S analysis identified that planned production lines  will be located within existing industrial zones; and do not require a national EIA as the future facilities will not result in any major environmental  or social impacts.
The ESDD to date identified that the Company’s environmental and occupational health and safety (OHS) issues are managed in compliance with the national legislation and quality management provisions. Yonca’s quality management systems cover the oil production operations and the canned food production operations. The Company also has in place a Product Recall Procedure. The oil plant has also been recently certified against ISO 22000:2005 standard. The quality management system at the recently acquired Saruhanlı CFPP is under development. The majority of the EHS documents are plant-specific and there is no corporate EHS system; the Company lacks special procedures for managing of EHS performance of contractors. The Company is pursuing a number of environmental performance improvement initiatives: reducing a packaging waste by producing bottles with thin walls and recycling 43% of plastic bottles as part of the regulatory requirement.  However, management of waste requires further improvements especially during the peak season. The ESDD has also identified that water intake and consumption needs to be optimised. Plant-specific Emergency Response Plans are in place for all three facilities. The labour management function at the Company’s level is assigned to HR Advisor and the recruitment function is concentrated at the Company’s level. Labour management provisions are in line with the national legislation that is based on ILO requirements. Yonca is aiming at achieving a full compliance with legal requirements including mandatory social security benefits, such as paid annual leave, paid sick leave, maternity leave, free meals at work, etc. Also, the Company’s employees are provided with a number of additional allowances. However, a formal Company’s HR Policy has not been developed; and management of seasonal and temporary contracts will need to be reviewed. There is no formalised Stakeholder Engagement Policy in place; however the Company’s management regularly communicates with government authorities, municipalities, regulatory authorities, suppliers and consumers, food sector enterprises and local community groups and NGOs covered by sponsorship activities. The stakeholder engagement activities will need to be expanded to include local communities in the plants’ vicinity (e.g. village across the road from Manisa Edible Oil Plant site border) and to include provision of information to stakeholders about the Project and  expected environmental and social impacts and mitigation measures in place. The environmental and social action plan (ESAP) contains actions aimed  at expanding and streamlining existing environmental, health and safety procedures into an integrated management system; enhancing procedures for management of contractors and supply chain; improving OHS performance and reporting;  optimising the use of resources and management of wastewater; enhancing waste management planning and process, expanding stakeholder engagement, etc. The ESAP will need to be agreed prior to the Final Review of the Project.
Categorised B. The independent environmental and social due diligence (ESDD), consisted of the environmental and social analysis of the proposed capital expenditures programme; a review of corporate environmental and social management systems and an environmental, health, safety and labour audit of existing operations and facilities. The E&S analysis identified that planned production lines  will be located within existing industrial zones; and do not require a national EIA as the future facilities will not result in any major environmental  or social impacts.
The ESDD to date identified that the Company’s environmental and occupational health and safety (OHS) issues are managed in compliance with the national legislation and quality management provisions. Yonca’s quality management systems cover the oil production operations and the canned food production operations. The Company also has in place a Product Recall Procedure. The oil plant has also been recently certified against ISO 22000:2005 standard. The quality management system at the recently acquired Saruhanlı CFPP is under development. The majority of the EHS documents are plant-specific and there is no corporate EHS system; the Company lacks special procedures for managing of EHS performance of contractors. The Company is pursuing a number of environmental performance improvement initiatives: reducing a packaging waste by producing bottles with thin walls and recycling 43% of plastic bottles as part of the regulatory requirement.  However, management of waste requires further improvements especially during the peak season. The ESDD has also identified that water intake and consumption needs to be optimised. Plant-specific Emergency Response Plans are in place for all three facilities. The labour management function at the Company’s level is assigned to HR Advisor and the recruitment function is concentrated at the Company’s level. Labour management provisions are in line with the national legislation that is based on ILO requirements. Yonca is aiming at achieving a full compliance with legal requirements including mandatory social security benefits, such as paid annual leave, paid sick leave, maternity leave, free meals at work, etc. Also, the Company’s employees are provided with a number of additional allowances. However, a formal Company’s HR Policy has not been developed; and management of seasonal and temporary contracts will need to be reviewed. There is no formalised Stakeholder Engagement Policy in place; however the Company’s management regularly communicates with government authorities, municipalities, regulatory authorities, suppliers and consumers, food sector enterprises and local community groups and NGOs covered by sponsorship activities. The stakeholder engagement activities will need to be expanded to include local communities in the plants’ vicinity (e.g. village across the road from Manisa Edible Oil Plant site border) and to include provision of information to stakeholders about the Project and  expected environmental and social impacts and mitigation measures in place. The environmental and social action plan (ESAP) contains actions aimed  at expanding and streamlining existing environmental, health and safety procedures into an integrated management system; enhancing procedures for management of contractors and supply chain; improving OHS performance and reporting;  optimising the use of resources and management of wastewater; enhancing waste management planning and process, expanding stakeholder engagement, etc. The ESAP will need to be agreed prior to the Final Review of the Project.

Technical cooperation:

The Bank intends to support Yonca in its effort to optimise the use of resources across the production processes and resource intensive systems. As part of the Project, EBRD will arrange a resource efficiency audit within a dedicated framework funded by Spain. This activity is expected to identify and assess cost effective investments and practices to reduce the use of energy and water and minimize the generation of wastes. 
For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Mrs. Sevil Esen
Finance Manager
Email: SEsen@yoncagida.com.tr
 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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