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IFC Supports Expansion of Turkey’s Tire Industry


In Washington, D.C.:
Carmen Powell

Phone: +1 (202) 473-4982

E-mail:
CPowell@ifc.org

In Belgrade:

Slobodan Brkic

Phone: +381 11 3023 750

E-mail:
SBrkic@ifc.org


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 Central Asia.


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.


About IFC

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.