Ege Endustri

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 Ege Endüstri ve Ticaret A.S. (“Ege Endustri” or the “company”) was founded in 1964 and is an export focused designer and manufacturer of axles and suspension system components for heavy commercial vehicles and located in Izmir, Turkey (https://egeendustri.com.tr/). Ege Endustri is majority (65%) owned by a leading Turkish blue-chip company, Ege Endustri Holding A.S., while the remaining shares are publicly traded on Istanbul Stock Exchange (“BIST”).  The company manufactures axles and suspension system components including axle housings, drive axles, tag axles, trailer axles, self-steering tag axle, front axles, air bellow beams andfront axles components. The company operates two plants in Izmir being 23 km distant from each other: the older plant is located in Pinarbasi (established 1974) and the other in the Aegean Free Trade Zone (`ESBAS` or `FTZ`) (established 1999). Partially finished products such as axle halves are transferred daily from one plant to another for further processing, as do key staff.  The company is seeking a EUR 40 million A-loan (corporate investment) from IFC to finance construction of a new production facility in Izmir (“the project”). The project will enable the Company to; i) consolidate two existing plants into one new plant thereby; i) negating the need to transfer components between the two plants, (ii) increasing production capacity of conventional and electrical axles with additional product lines (e.g., press, product line and paintshop); and (iii) upgrading the Company’s production technology. The new facility will include the same process steps as the existing plants include such as hot forming (through high tonnage hydraulic press), metal welding, machining (CNC), dyehouse and air bellow beam production. The new plant will be established in the extension area of ESBAS where one of company’s existing plants operate.