Kucukcalik LTF

pending

Kucukcalik Tekstil Sanayi ve Ticaret A.S. (the “Company” or “Kucukcalik”) https://kucukcalik.com.tr/), a former IFC client and export oriented synthetic textile manufacturer based in Turkiye. The company operates a spinning plant in Hendek/Sakarya/Turkiye and two weaving plants in Inegol/Bursa/Turkiye and Cairo/Egypt, all located in special industrial zones in respective cities. The production processes are fully integrated including melt spinning of polyethylene terephthalate (PET) polyester chips, texturizing, winding, twisting, weaving, dyeing, finishing, printing, and cut & sew of household textiles. Bursa and Cairo plants have also cut & sew sections for home textile made ups.Kucukcalik has launched a multi-year investment program aimed at reducing supply chain risk and enhancing competitiveness by expanding gradually the yarn production capacity. The proposed IFC investment is to finance Kucukcalik’s ongoing investment program with an up to US$ 50 million senior secured corporate loan. The proceeds of the IFC loan will be used to fund (i) the construction of a  polymerization plant with 35 tones/day and 15 tones/day capacity production lines for production of PET polyester chips within the premises of Sakarya plant in Turkiye; (ii) increasing its yarn production from 60 tons/day to 85 tons/day and establishing a 15 ton/month capacity textile recycling line in the Sakarya plant for yarns and fabrics salvaged by both plants in Turkiye; and iii) installation 2.2 MW roof-top solar panels at the Bursa plant (the “Project”). The multistore greenfield polymerization plant will be constructed on 5 ha land plot within the existing premises of the Sakarya plant and is expected to be operational at mid of 2025. Kucukcalik was an IFC client until 2016. Previous investments with Kucukcalik were K.C. Textiles #25946 (https://disclosures.ifc.org/project-detail/ESRS/25946/k-c-textiles), #26260 and #26961. The environmental and social (E&S) performance at closure of these projects was satisfactory.