ModernKarton WCI

completed

Modern Karton Sanayi ve Ticaret A.S. (Modern Karton or the Company), the main operating company of Eren Group’s (the Sponsor) paper and packaging business, was established in 1974. It manufactures testliner and fluting paper using waste paper at its factory located in Corlu, 100 km west of Istanbul. With a 700,000 tonnes per annum capacity, Modern Karton is Turkey’s largest plant in the corrugated board sector. Modern Karton has approached IFC for up to US$40 million in debt to assist in financing working capital related to the recent expansion project and additional financing needs of the Company as well as its packaging subsidiary Modern Ambalaj which is the co-borrower.The recent expansion project consists of capital expenditures of $400 million for:- a capacity increase of 400,000 metric tons per annum to the paper mill through installation of a new paper making machine at Modern Karton;-an investment in the packaging and paper recycling business of Modern Ambalaj;-an expansion of the associated cogeneration plant (Modern Enerji) and the wastewater treatment plant at Modern Karton.