IFC Helps Turkeys Küçükçalik Group Expand to Egypt
IFC, the private sector arm of the World Bank Group, will provide long-term loans to Küçükçalık Tekstil Sanayi ve Ticaret A.Ş. and its subsidiary in Egypt, K.C.G. Textile Egypt S.A.E. The $24 million equivalent investment will support the Küçükçalık Groups expansion to Egypt, helping build a new factory to produce twisted polyester yarn and woven and embroidered fabrics. It will also help modernize and expand the capacity of Küçükçalıks existing twisting, texturizing, and weaving facilities in İnegöl, Turkey.
Yaşar Küçükçalık, Chairman of the Küçükçalık Group, said, This project is a milestone in implementing our strategy to become an important player in the industry and to expand into Egypt. We are pleased with our partnership with IFC and look forward to working together in future projects.
Yılmaz Küçükçalık, CEO of the Küçükçalık Group, said, We are happy to see IFC as our partner in a project that will make our company more competitive. It will also enhance our groups quality of service for clients.
Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said, IFC is committed to providing long-term funding to support the expansion of internationally competitive companies in Turkey. This loan will help Küçükçalık expand its operations in the country, while it establishes a factory in Egypt. The investment fits well with our strategic priority to support Turkeys investment in other emerging markets. It also supports our sector strategy to expand manufacturing capacity into cost-competitive environments, while contributing to sustainable private sector growth.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. IFCs vision is that poor people have the opportunity to escape poverty and improve their lives. In FY06, IFC committed $8.3 billion, including syndications, to 284 investments in 66 developing countries. For more information, please visit www.ifc.org.
Küçükçalık was established in 1966 in Istanbul as a trading company supplying goods to wholesalers in Turkey. The company began export operations in 1987. In 1990, it opened its first weaving factory and started dyeing and printing operations soon after, followed by an embroidery plant in 1995 and a ready-made confection unit in 1997. As of end 2006, the company employed 2,082 staff and produced 75 million meters of assorted fabric for the year. Export sales represent 75 percent of Küçükçalıks revenues of $165 million. For more information, visit www.kcalik.com.
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