Sanko Cement

completed

Sanko Holding, a previous IFC client, is a 105-year old Turkish conglomerate operating mainly in the textile, construction, finance, packaging, energy, food, cement and automotive sectors. The Group is owned by the reputable Konokoglu family with a tradition in the textile business. As a part of its diversification strategy, the Group has decided to increase its production of cement and related products through their Cimko subsidiary. Cimko is planning to construct and operate a 3.1 million tonne per year greenfield cement plant and related infrastructure at Kahraman Maras, about 45 kms from Gaziantep. The cost of this greenfield project is about $240 million. In addition Cimko recently won a bid to acquire the Bartin cement plant for a total amount of $48 million. This cement plant was recently sold by the Government of Turkey in an open bidding process. This project also involves a $21 million modernization program at the recently acquired Bartin cement plant as well as Cimko’s Adiyaman cement plant, which the Group acquired about 10 years ago. Sanko has an established expertise in the cement sector and the new plant and acquisition as well as the proposed modernization program fits well with the Group’s overall diversification strategy. This project provides IFC with the opportunity to support this diversification process, as well as to support the development of one of Turkey’s poorer regions, the Gaziantep region.