ModernKarton WCI

completed

Modern Karton Sanayi ve Ticaret A.S. (“Modern Karton”), the main operating company of the Eren Group’s paper and packaging business, was established in 1974. It manufactures testliner and fluting paper using wastepaper at its factory located in Corlu, 100 km west of Istanbul. With 600,000 tons per annum capacity, Modern Karton is Turkey’s largest plant in the corrugated board sector. Modern Karton has approached IFC for up to $40 million in debt to assist in financing working capital related to the recent expansion project and additional financing needs of the company and its packaging subsidiary. The recent expansion project consists of capital expenditures of $400 million for: - a capacity increase of 400,000 metric tonnes per annum to the paper mill (i.e. installation of a new paper making machine); - an investment in their packaging and paper recycling businesses; and - an expansion of the associated cogeneration plant (for steam and power) and wastewater treatment plant.