Borcelik Celik Sanayii Ticaret A.S.

completed

Summary Of Project Information (SPI)Project NameTurkey: Borcelik IVRegionEuropeSectorProject No008012Projected Board DateJanuary 20, 1997Company NameBorcelik Celik Sanayii Ticaret A.S.Technical Partner and/or Major Shareholders Borusan Holding A.S. (61.18%) and IFC (16.275%)Project Cost Including proposed IFC investment US$58 million, including an IFC A loan of $10 million, approximately $4.5 million of IFC equity, and a $1 million IFC risk management facility. Location of project and Description of site The project’s site, adjacent to Borusan’s (parent company) existing pipe factory in Gemlik on the Marmara Sea coast, is close to Bursa and about 100 km south of Istanbul.Description of Company and Purpose of Project Borcelik is a stand-alone, cold-rolling steel mill, whose sponsor, Borusan, is a successful former client of IFC. Plant construction started in June 1993 and was completed in April 1994; after trials, commercial production commenced in September 1994. The plant is operating satisfactorily. The project supplies Turkey’s growing domestic market for cold rolled flat products. IFC participated in the initial financing of the project, and following project completion, is now participating in a capital re-ordering of the project. Environmental Category and Issues This is a category C project according to IFC’s environmental review procedure because the project is a purely financial restructuring of an existing IFC investment without any physical changes to the project. Key environmental and occupational health and safety issues include air emissions, liquid effluents, and employee exposure to noise and toxic substances. Environmental, and Health and Safety permits for the project have been obtained from the governmental authorities. The company provides IFC with annual Environmental Monitoring Reports. The company has installed its treatment plants and they are in operating condition. The company has been granted a Discharge Permission Certificate by the Local Environmental Board and an Environmental License by the Turkish Government.Date SPI sent to PIC December 20, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365