Turkish home appliance maker inks TL 1B deal with European bank

Published 16.03.2019 00:53

Arçelİk, one of Turkey's leading consumer appliance brands, has signed a TL 1 billion loan deal with the European Bank for Reconstruction and Development (EBRD) to finance development and manufacturing of more energy-saving home appliances, the bank said Friday.

"Consumers in Turkey and foreign markets will benefit from more energy efficient appliances developed by Turkey's leading white goods manufacturer Arçelik A.Ş. with the help of almost TL 1 billion loans from the EBRD," the statement read.

Arçelik, majority owned by one of Turkey's largest conglomerates, Koç Holding, manufactures and sells home appliances such as refrigerators, washing machines, cooking appliances and vacuum cleaners as well as refrigeration compressors, electric motors and consumer electronics products under 12 brands, including Arçelik and Beko. It sells its products in Turkey and exports to 145 countries on five continents. The statement noted that with the help of the EBRD financing, the company will invest in new manufacturing lines at its Eskişehir and Çayırova plants to produce more energy efficient and low-noise refrigerators and washing machines that are in high demand especially in foreign markets. The investments will ensure that the appliances, as well as the manufacturing processes, will consume less energy and resources, raising the bar for environmental sustainability.

In addition, Arçelik is planning to bring all research and development activities under one roof in new state-of-the-art research and development (R&D) Center. It will strengthen Arçelik's capacity to develop new products and facilitate partnerships with local universities and engineers. Progress in this field will also strengthen the company's export potential. "At Arçelik, our priority is to invest in advanced production technologies and to develop innovative and more energy efficient products. We are pleased to start a collaboration with the EBRD for the financing of these investments. The support of an international financial institution such as the EBRD is a sign of recognition of our strong and sustainable business in Turkey as well as of our global ambitions," said Polat Şen, Arçelik's chief financial officer.

Arvid Tuerkner, EBRD managing director for Turkey, said: "Consumers in Turkey and globally want to see home appliances that are smart, efficient and quiet. They also want to support brands with high environmental sustainability standards. As Arçelik continues to innovate to make that possible, the EBRD is delighted to provide financing and become part of the company's success."

"Supporting Turkish firms such as Arçelik to become more environmentally friendly and competitive at home and abroad is a priority for the EBRD in Turkey," the bank's statement read.

It added that the bank is also committed to further expanding access to long-term Turkish lira funding for Turkish companies, making them more resilient to macroeconomic vulnerabilities.

The bank last year increased its support for local currency financing in Turkey to a third of its total investment in the country. The EBRD invested 1 billion euros ($1.13 billion) in a total of 34 projects in Turkey last year and it plans to invest the same amount this year.

Since 2009, the EBRD has invested over 11 billion euros in 283 projects in various sectors of the Turkish economy, with almost all investments in the private sector. The bank's 7-billion-euro Turkey portfolio is the largest among the 38 economies where the bank invests.

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