WASHINGTON, D.C., August 13, 1999
— The International Finance Corporation will lend US$35 million to the Turkish tractor maker Uzel Makina Sanayi A.S. to help it modernize and move its manufacturing plant from a crowded district of Istanbul to Düzce, about 95 miles (210 km) away.
Uzel Makina Sanayi produces agricultural tractors, diesel engines and automotive parts. The company was established in 1930 as a carriage manufacturer, and later started manufacturing automotive components. It began producing tractors in 1962. Uzel Makina Sanayi is 85 percent owned by members of the Uzel family through a holding company, and the remaining 15 percent of the shares are traded on the Istanbul Stock Exchange.
The $98 million project includes relocation of the plant as well as upgrading to increase productivity and capacity, especially to tap the export market. IFC's investment includes a loan of $20 million for its own account and a syndicated loan of $15 million.
Since its first investment in Turkey in 1963, IFC has approved equity and loan investments of $1.7 billion equivalent in equity and loans in 174 projects in Turkey's manufacturing, services and banking sectors.
The mission of IFC, part of the World Bank Group, is to promote private sector investment in developing countries, which will reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
