Istanbul, Türkiye, April 26, 2023—A green investment by IFC in Assan Alüminyum (Assan), a leading Turkish manufacturer of aluminum flat-rolled products, will support increasing exports and the country's global competitiveness while helping to mitigate climate change.
IFC is providing Assan, a subsidiary of Kibar Holding and a long-standing client since 1994, with a $90 million green loan to support its multi-year investment program, delayed by the COVID-19 pandemic. The funds will help Assan enhance production efficiency through modernization, reduce its carbon footprint by increasing its share of renewable sources in energy consumption and scrap usage in production, and expand its processing capacity by 60,000 tons annually.
Assan has the largest continuous casting capacity globally and aims to achieve carbon neutrality by 2050. Through the investment program, Assan will be able to swiftly adapt its production process to changing market demand in Europe, its primary export market, and strengthen competitiveness through improved energy efficiency.
"We're thrilled to announce that we've been granted our first green financing from IFC. Sustainability is at the heart of everything we do, and this demonstrates our dedication to building a better tomorrow for all." said Kibar Holding's CEO Haluk Kayabaşı.
Before the financing, IFC helped Assan develop a green finance framework that aligns with the Green Loan Principles and Green Bond Principles. The framework establishes clear and quantifiable sustainability targets and facilitates Assan's access to green financing instruments to support its growth. IFC's financing aligns with Assan's green finance framework as a 100 percent climate investment.
"IFC's green investment will allow Türkiye's largest manufacturer of aluminum flat-rolled products to significantly strengthen its position in global markets while reducing its carbon footprint," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "That will help the country meet its ambitious climate goals and, we hope, incentivize other key players to improve their efficiency and capacity."
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $10 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.6 billion as of March 2023.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About Assan
Assan Alüminyum, one of the world's leading flat rolled aluminium manufacturers, produces coil & sheet, foil and pre-painted aluminium products, offering its products to a variety of sectors such as packaging, distribution, construction, consumer durables, automotive and HVAC. Assan Alüminyum, a subsidiary of Kibar Holding, will have an installed annual capacity of 360,000 tons after the completion of the current investment program. The company is currently one of the two largest aluminium foil manufacturers in Europe and has a production capacity of 130,000 tons. With its global culture and more than 1,700 dedicated employees, Assan Alüminyum exports to more than 70 countries around the world, particularly to West Europe and North America. Assan Alüminyum's vision is based on creating long-term value by being more sustainable, in environmental, corporate governance and social terms. Assan Alüminyum received the ASI Performance Standard Certificate for all of its facilities. The ASI framework is essential for the company to manage all its business processes according to global sustainability standards. 'Assan Alüminyum produces clean energy at its renewable energy production facility in Manavgat. The International Renewable Energy Certificates (I-REC) it generates, and purchases allow Assan Alüminyum to fully offset its Scope 2 emissions. Processing aluminum at its integrated recyling facility, allows Assan Alüminyum reduce the overall carbon footprint of the company.
