€5.5 million loan for construction of new greenfield site
LONDON, 07-Sep-2016 — /EuropaWire/ — Deepening its support for Turkey’s private sector, the European Bank for Reconstruction and Development (EBRD) is providing a loan of €5.5 million to Systemair-HSK, the Turkish subsidiary of the Sweden-based Group Systemair AB, engaged in the development, production and marketing of ventilation products and solutions.
The Bank’s financing will be used to build a greenfield site for air ventilation products in the Izmit region. The new facility will help Systemair-HSK increase its operational efficiency and enhance capacity to manufacture products compliant with European and international standards. It will also serve as the company’s regional hub, including for exports to the Middle East and the Balkans.
The company will seek Leadership in Energy and Environmental Design (LEED) certification for this new plant which will apply resource-efficient practices such as rainwater harvesting, grey water re-use, water- and energy-efficient equipment, efficient heating and cooling systems, thermal insulation and waste-to-heat recovery systems among others.
Frederic Lucenet, Director for Manufacturing and Services at the EBRD, said: “We are very pleased to partner with Systemair-HSK and the leading European ventilations Group, Systemair AB, for the first time. Our loan will contribute to the growth of an environmentally friendly company, helping to reduce energy consumption in Turkey and setting higher standards in the Turkish industry.”
Ayça Eroglu, Managing Director of Systemair HSK, said: “We are very proud to be building this state-of-the-art plant in the current environment. We are certain it will become a ventilation manufacturing hub between East and West. It is an honour to finance this factory with an EBRD loan as well as with our own equity. Our goal is to increase our local market share, enter new export markets and complete manufacturing of a whole package and product range within the heating, ventilation and air conditioning (HVAC) systems.”
Systemair-HSK is one of the largest air ventilation companies and a leader in the air handler market in Turkey. It employs over 200 people. Founded by the Eroglu family, 90 per cent of the company shares were acquired in 2012 by Systemair AB, a leading international ventilation group. The founding family retains 10 per cent of shares and is actively involved in the operations of the company.
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. Some 98 per cent of the Bank’s investments in the country are in the private sector and about half of them are in projects that promote the sustainable use of energy.
To date, the EBRD has invested over €8 billion in Turkey through some 200 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised about €17 billion for these ventures from other sources of financing.
The EBRD’s strategic priorities for the period 2016-18 for its countries of operations are: re-energising growth, strengthening regional integration and addressing global challenges,
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SOURCE: European Bank for Reconstruction and Development