Assan Aluminum

completed

Assan Aluminyum A.S. (“Assan Aluminyum”), the former state-owned aluminum sheet, coil and foil manufacturer, was acquired in 2005 by the family-owned Kibar Holding through a tendering process from the State Deposit and Insurance Fund of Turkey, and is now part of the Company. The plant is located in the industrial area of Dilovasi-Gebze, in Marmara region of Turkey, approximately 40 kilometers from Istanbul. The proposed project consists of the modernization, upgrade and expansion of existing 30,000 tpa capacity and introduction of state of the art technology and operating processes in the plant. The proposed project, which was launched in 2006 and is planned for completion in 2010, will increase Assan Aluminyum’s total production capacity to 109,000 tpa, bringing Kibar’s total aluminum production capacity to about 240,000 tpa, including the existing capacity at the Tuzla aluminum plant.The project will include the introduction of continuous thin strip casting technology. Five casters have been already modernized and are in operation. Two cold rolling mills have also been modernized. The upgrade of existing foil mills has been completed. Remaining phases will allow de-bottlenecking, capacity expansion and quality improvements through the installation of a new cast house, coil processing lines, foil finishing equipment, and modernization of a cold mill, a foil mill and a tension leveling line. The total capital investment cost is estimated at $132 million, of which IFC has been requested to arrange up to $60 million, including a syndicated loan of up to $30 million.