Turkey: AKSA Energy Efficiency

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Translated version of this PSD: Turkish EBRD has provided US$ 50 million loan to Aksa Akrilik Kimya Sanayi A.S (“Aksa”), Turkish manufacturer of acrylic and carbon fiber, to finance the implementation of a series of operational and energy efficiency investments at the Company’s production facility in Yalova. The Project will improve the Company’s operational efficiency by optimizing production processes, thereby reducing operational costs through newly adopted in house production technologies. The Project will represent a showcase with best energy efficiency and environmental standards nationally and internationally to other players in the domestic and world market. The Project’s main transition impacts are expected to derive from the following two sources: Aksa Akrilik Kimya Sanayi A.S (“Aksa”), incorporated in Turkey for the manufacturing of acrylic and carbon fiber, is 39.5 per cent owned by Akkok Sanayi Yatırım ve Gelistirme A.S. (“Akkok”). 41.7 per cent of shares are traded on the Istanbul Stock Exchange. Aksa is a leading acrylic fiber supplier in the domestic market and also a major player in the important markets of Middle East, China, EU and North America. US$ 50 million long-term loan. US$ 60 million. The Project has been Categorised B in accordance with the EBRD E&S Policy, 2008. Independent Due Diligence has confirmed that potential adverse environmental and social impacts of the Project are site specific, readily identified and addressed through mitigation measures. Overall, the proposed Project will result in a net environmental benefit through improved energy and raw material efficiency and resultant savings. Aksa has an E&S policy, a number of environmental and social management systems and CSR programmes and adequately resourced environmental, H&S, management systems and other departments. As a result, the facility is operated in an efficient manner and regularly engages with the environmental authorities and other Aksa stakeholder groups. The primary areas for improvement relate to the management of occupational health and process safety, for which actions have been agreed in the Environment and Social Action Plan (“ESAP”) to achieve industry best practice. Aksa has committed to a number of voluntary E&S management and performance enhancement incentives to achieve best in class with regard to plant and worker safety and adaptation to climate change. Improvements at Company operations identified during due diligence have been addressed and agreed in an ESAP to ensure that the current and future operation of the facility meets, and in some instances exceeds, relevant Turkish regulations and EBRD requirements. The Bank will monitor the Project and implementation of the ESAP. Energy Audit, funded by Netherlands Technical Cooperation Fund, was undertaken by Royal Haskoning. Aksa Akrilik Kimya Sanayi A.S Betul Sadıkoğlu Finance Director Miralay Sefik Bey Sk. Ak-Han No:15 34437 , Gumussuyu/Istanbul Tel: +90 212 251 4500 E-mail: bbingöl@aksa.com