Martur II

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 Martur (Martur or the company- http://www.martur.com.tr), together with its subsidiaries, engage in design and manufacturing of seats as well as other interior parts for passenger cars and light commercial vehicles. The company produces for renowned local and international automotive manufacturers through its facilities located in Turkey, Romania, Poland, Russia and Algeria.  The project sponsor is Ustunberk Holding A.S. (Ustunberk Holding or the Sponsor - http://www.ustunberkholding.com.tr), which is a leading group of companies supplying high quality components for car interiors to automotive industry for over 20 years and is majority shareholder in Martur. IFC currently has an equity investment in the company since 2016 encompassing its entire business footprint (Martur #38025, ESRS&ESAP available at: https://disclosures.ifc.org/#/projectDetail/ESRS/38025). The company has satisfactorily implemented Environmental and Social Action Plan (ESAP) from this previous investment.  The proposed IFC investment involves partial financing of Martur’s expansion program for its existing operations in Romania, Algeria and Morocco through a EUR30 million A loan and a convertible EUR15 million C loan (the “project”).  Martur’s Romania plant has frame and seat assembly, cataphoretic coating, headrest, armrest, foam, cutting and sewing processes. The planned investment includes building an additional plant within company’s existing complex that is expected to increase the capacity of the plant in these operations.  Algeria plant includes seat assembly, polyurethane foam, headrest, armrest, cutting and sewing processes and planned to increase its capacity within the existing complex or possible new expansions in the automotive industrial zone.  The new Morocco plant will include seat frame, foam, headrest, armrest, cut and sew, and sunvisor operations. With the expansion program, Romania will become the largest operation of Martur outside Turkey, followed by Morocco. The facility in Morocco is currently being constructed by the Tangiers Automotive Industrial Zone which will be handed over to Martur in 2020 and will be operational in 2021.