Sanko Cement

completed

The proposed project will support the expansion of the cement activities of the Sanko Group, a prominent private conglomerate in Turkey, through a financing package to Çimko, its wholly owned cement subsidiary. Çimko, which was acquired by the Group in 1995, has an operation in Adiyaman with a clinker capacity of 620,000 tons per annum (tpa) and a cement grinding capacity of 910,000 tpa. The project will assist Çimko fund: - the acquisition (through privatization) of an existing cement plant located in Bartin, Turkey;- the construction of a greenfield 3.1 million tpa cement plant in Kahraman Maras; and - an investment program to be implemented at the Bartin and Adiyaman plants.The project will serve predominantly the local demand in proximity to the three plants as well as exports to Iraq and Syria. The Turkish cement sector is currently on an upswing as demand is being driven mainly by increased investments in housing and infrastructure. The project fits well with the Sponsor’s overall diversification strategy from its traditional textile business.