Cimsa Decarbonization

active

IFC is considering A loan of US$70 million (m) to support Çimsa Çimento San. ve Tic. A.S. (Cimsa or the company) in financing the decarbonizing program of the cement production plants in Türkiye (the project). Cimsa is a publicly listed cement manufacturer and a subsidiary of Sabanci Holding of Türkiye (SAHOL). As of March 2023, the main shareholders of the Company are SAHOL (with ~55% shareholding) followed by Akcansa, another cement company of SAHOL, and Sabanci Foundation (with an ~9% aggregate shareholding). Small individual investors hold the remaining 36% of the Company. IFC has engagements with several SAHOL subsidiaries, and based on IFC’s supervision all have satisfactory Environmental and Social (E&S) performance.Cimsa, established in 1972, has emerged as one of the largest cement producers in Türkiye and operates three integrated cement plants in Anatolia (Mersin, Eskisehir, and Afyon) with an extensive portfolio of products (grey, white, calcium aluminate cement and special products). The plants have a total annual production capacity of grey clinker, white clinker, and CAC (Calcium Aluminate Cement) 3.6 million (M) tons (Mt), 1.7 Mt and 0.112 Mt, respectively.  The decarbonizing program funded under the Project comprises for the Mersin Plant:  (i) the installation of a refuse-derived fuels (RDFs) feeding system through the main burner (alternative fuel substitution) and cooler upgrade ( to reduce fuel consumption) at rotary kiln I; (ii) a feeding mechanism for solid refused fuels, including biomass in rotary kilns II and III (alternative fuel substitution); (iii) alternative raw material (fly ash instead of cement clay) storage and feeding system; (iv) transition to additive cement products - installation of a silo for transition to additive cement products for the reduction of clinker use; (v) cement mill-III separator and fan upgrade to reduce electricity consumption; and (vi) installation of 4.16 MW ground-mounted solar photovoltaic (PV) plant within the footprint of the plant.For the Eskisehir Plant, the program comprises  (i) the modernization of rotary kiln I, including a waste feeding system; (ii) the main burner replacement for alternative fuel feeding and cooler upgrades to reduce fuel consumption of kiln II; (iii) the alternative raw material storage and feeding system; (iv) the improvement of kilns’ sealings, (v) grinding process improvements (cement mill’s chamber and fan upgrade); (vi) installation of 5.1 MW Waste Heat Recovery (WHR) unit and (vii)  installation of ground-mounted  10.8 MW solar PV plant. Alternative fuel usage unit (hot disc) and main burner installation for refuse- derived fuel (RDF) feeding system to increase fuel substitution ratio are in the decarbonization program of Afyon Plant.