SUMERBANK TEXTILES

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Rationalization and modernization of Sumerbank's cotton textile operations to increase annual production of yarn from 41,000 tons per year to 52,000 tons, of woven fabrics from 207 to 250 million m2, finished fabrics from 152 to 207 million m2, and of garments by 1.7 million pieces. Except for garments, the increases will come from better use of existing capacity. The project includes: the provision or modernization of spinning, weaving, finishing and printing equipment, the equipping of a new garment plant, the general rehabilitation of existing factory facilities including ventilation, effluent disposal and lighting; about 45 man-years of technical assistance for improved management, operations, training, financial and budgeting systems. The project will help meet the large domestic demand for textile products in Turkey and will yield net foreign earnings of about $5 million per year at full production. The principal risks include the possibilities of delayed price adjustments resulting in inadequate cash generation for the project, delays arising from the need to carefully coordinate relocation and rehabilitation in 19 widely dispersed plants and delayed improvement in Sumerbank's financial position resulting from better organization and management.