Ankara, Turkey, July 23, 2008—IFC,
a member of the World Bank Group, has signed an agreement with Petlas Lastik
Sanayi ve Ticaret A.S., a leading tire manufacturer in Kisehir, Turkey,
to support the company’s expansion program. This will create new jobs
and have a positive impact on the local economy.
Petlas is a subsidiary of Abdulkadir Ozcan Otomotiv A.S., a leading distributor
and seller of automotive tires in the after-sale market. IFC’s $30 million
long-term loan will help the family-owned business become more competitive
in the global and domestic markets.
”IFC’s financing will enable us to upgrade production technology, expand
our product range, and produce ecofriendly tires,” said Mustafa
Ozcan, Chairman of Abdulkadir Ozcan Automotive and Tire Inc. “We are the
largest employer in Kisehir, and with IFC’s support, we hope to create
more jobs in the area.”
“This agreement represents an important partnership for IFC. We are supporting
a local company in its efforts to expand into one of Turkey’s least-developed
areas. IFC’s investment will ensure the sustainability of income for Petlas’
employees, bringing significant benefits to the community where the company
operates,” said Shahbaz Mavaddat, IFC Director for Southern Europe and
Petlas produces tires for the local after-sale market as well as for exports.
It is the fourth-largest domestic tire manufacturer in Turkey and the leader
in large tires for tractors, heavy duty vehicles, and aircraft. Petlas
was established by the Turkish government in 1976 and privatized in 1997.
The company employs about 1,100 people.
IFC’s strategy for Turkey is to provide long-term support to growing and
competitive second-tier clients and to export-oriented sectors like the
automotives, while meeting European Union requirements on environmental
and quality standards.
IFC, a member of the World Bank Group fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people should have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.