Insights
- IFC has announced a $50 million investment in a home textiles manufacturer to enhance sustainable production in Turkiye, including new polyester chip and textile recycling facilities, and solar energy systems.
- The project aims to create 700 jobs, boost exports, and advance gender inclusion policies.
- Turkiye, IFC’s third-largest exposure, has seen over $20 billion in IFC investments in the past decade.
International Finance Corporation (IFC) has announced a $50 million investment in Kuçukçalik Tekstil Sanayi ve Ticaret AS (Kuçukçalik), a home textiles manufacturer operating in Turkiye and Egypt. The loan comprises of $30 million from IFC’s own account and $20 million from IFC’s Managed Co-Lending Portfolio Program (MCPP).
This investment enables Kuçukçalik to boost its production capacity sustainably by building a new polyester chip manufacturing plant, expanding its yarn spinning facility, and establishing a textile recycling facility in its manufacturing unit in Sakarya, Turkiye.
The installation of rooftop solar photovoltaic systems in Kuçukçalik’s manufacturing unit in Bursa, Turkiye, will boost sustainability efforts, enabling energy and resource-efficient yarn production process, and increase renewable energy usage. The funding is anticipated to yield economy-wide effects through value addition, job creation, and foreign exchange revenue generation, IFC said in a press release.
IFC’s investment is projected to create approximately 700 direct and indirect jobs, boosting employment in Turkiye. The corporation will also collaborate with the company to improve policies on workplace gender inclusion, aligning with the World Bank Group’s goal of closing gender gaps.
With investments of over $20 billion in the last decade alone, IFC has supported private sector development in Turkiye for more than 50 years. Turkiye represents IFC’s third-largest country exposure globally, with a committed portfolio of close to $5.4 billion as of December 2024.
“We are thrilled to announce this significant partnership with IFC, which marks a pivotal moment in our journey towards sustainable growth and innovation. This project will not only enable us to expand our production capabilities but also enhance our commitment to sustainability. We look forward to leveraging this investment to strengthen our competitive edge and contribute to Turkiye’s position in global trade,” said Yasar Kuçukçalik, chairman of Kuçukçalik Group.
“This investment will drive competition in the synthetic fabric manufacturing industry, which is crucial for the Turkish economy. Supporting companies like Kuçukçalik in their strategic efforts to vertically integrate and optimize input management is vital to strengthen the country’s position in global trade,” said Wiebke Schloemer, IFC director for Turkiye and Central Asia.
Source: https://www.fibre2fashion.com/