The European Investment Bank is lending EUR 55 million to Sisecam, a leading Turkish glass manufacturer, for funding part of a modernisation and capacity expansion programme.

The implementation of Sisecam's investment programme includes the construction of a new float glass line and the construction and operation of a coating line at a production site in the province of Bursa, the country's second industrial hub after Istanbul. Both investments form part of Sisecam's effort to reinforce its operational efficiency and cater for increasing demand on the local market. Another portion of the loan will be used to fund the company's research and development expenses, assuring that it will continue to use advanced technologies equalling high quality products and enhanced competitiveness.

EIB financing for this project comes under the Bank's pre-accession facility and supports Turkey's industrial policy, notably to develop the country's private sector economy on its way to EU Membership.

Matthias Kollatz-Ahnen, EIB Vice-President overseeing the Bank's operations in Turkey, underlined that the loan will help to boost private sector development in the country. Providing suitable long-term funding to Sisecam will help the company to continue its development and proceed with investments in state of the art technologies.

Doğan Arıkan, President of the Sisecam group expressed his satisfaction with the EIB for helping them to expand and to enjoy a leading position in the market.

The Promoter, Sisecam Group, is a well established name in the glass sector, providing for 13 000 jobs, mainly in Turkey, but also in other neighbouring as well as new EU member countries, such as Bulgaria, where it is among the largest foreign direct investors.

The EIB is an important investor in Turkey's industrial sector and has at the same time a strong record in infrastructure and utility financing. Combined with funds from foreign and domestic investors, the EIB has in the industry sector alone committed to date EUR 804 million and has mobilised significant investments beyond its own financing. The Bank's cumulative financing in Turkey stands at EUR 6.9 billion and relates to investments in a wide range of projects in both the private and public sector.