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IFC Helps Turkish Glass Manufacturer Sisecam Enhance Competitiveness of Bosnian Subsidiary


In Istanbul:
Basak Pamir Ulgen
Phone: + 90 212 385 3075
E-mail:
bulgen@ifc.org

In London:
Carmen Powell
Phone: +44 207 286 5439
E-mail:
cpowell@ifc.org


Istanbul, Turkey, August 31, 2010—IFC, a member of the World Bank Group, is providing a €15 million loan to Turkey’s Sisecam Group to enhance competitiveness of its subsidiary in Bosnia and Herzegovina, Sisecam Soda Lukavac d.o.o, a producer of soda ash used to manufacture glass and detergents.

The financing will help increase the availability of quality soda ash in Bosnia and Herzegovina and the wider market in southeast Europe. It will also help create new jobs near the town of Tuzla, where Sisecam is one of the main employers. In addition, an increase in the production capacity of Sisecam Soda Lukavac d.o.o. will increase the demand for brine and limestone from local mines and provide more opportunities for local subcontractors enabling the creation of new jobs in the country.


“IFC, an important financial partner of Sisecam, has once again demonstrated its support and commitment to our Group,” said Prof. Dr. Ahmet Kirman, Chairman of the Sisecam Group. “The confidence IFC has in us is expressed through its cooperation with us on expansion projects in the region, an integral part of the Group’s growth strategy.”

In 2007, IFC provided a €24 million loan to Sisecam to help finance the acquisition of Soda Lukavac, then a loss-making state-owned enterprise. The new loan will help Sisecam complete the turnaround of Soda Lukavac d.o.o. after its privatization and develop it into a regional production center.  


“IFC is pleased to support another South-South investment involving a Turkish company,” said Dimitris Tsitsiragos, IFC Director for Middle East, North Africa, and Southern Europe. “By working with Sisecam in Bosnia and Herzegovina, we hope to encourage other investors to look into opportunities offered by the country’s economy.”


About IFC

IFC, a member of the World Bank Group, is the largest development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives—by providing financing to help businesses employ more people and provide essential services, mobilizing capital from others, and delivering advisory and risk-management services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org.

About Sisecam and Sisecam Soda Lukavac d.o.o

Created in 1935 by İşbank, one of Turkey’s leading commercial banks, Sisecam controls 48 affiliate or subsidiary companies organized in four main business divisions- flat glass, glass tableware, glass packaging, and chemicals- and employs 17757 people. The privatization of Soda Factory in Lukavac was realized in August 2006 by establishment of a new joint venture company, Sisecam Soda Lukavac d.o.o., which is 80% owned by Soda Sanayii A.Ş., a well-known company in the field of manufacturing soda ash and derivative products based on soda ash and is a wholly owned subsidiary of Sisecam. For more information, visit
www.sisecam.com.