Turkiye Sise ve Cam Fabrikalari A.S.

completed

Project Name Turkey-Sisecam Glass Works and Cogeneration Project Region EuropeSector ManufacturingProject No 007103Projected Board Date March 21, 1996Company Name Sisecam GroupTechnical Partner and/or Major Shareholders The project sponsor is the Sisecam Group, Turkey''s largest glass producer. The Sisecam Group controls all five operating companies. Sisecam''s major shareholder is Turkiye Is Bankasi A.S., one of Turkey''s largest commercial banks, with about 70% ownership of the Group. Project Cost Including proposed IFC investment The total project cost including all five sub-projects is $334 million. The projected IFC funding will be a $70 million loan of which about $35 million on IFC''s account and $35 million on the account of participants.Location of project and Description of site The float glass line is located at a new site within an existing industrial park, about 20 km from the port of Mersin in South East Anatolia. The glassware factory and glass container factory will be located adjacent to one of Sisecam''s existing glass container factories near Mersin, about 7 km from the float glass project. The glass fiber project is located at its existing site near the town of Gebze, 40 km south east of Istanbul. The cogeneration project will be located adjacent to Sisecam''s existing float glass lines near Kirklareli in the Thrace region of Turkey.Description of Company and Purpose of Project The Sisecam Group is implementing a major modernization and expansion program from 1994 through 1997, to alleviate production capacity constraints caused by growing demand for glass products. The five sub-projects are as follows: (i) a float glass line of 215,000 tonnes capacity to be operated by Trakya, Sisecam''s float glass producer; (ii) a glassware factory with a capacity of 35,000 tonnes of soda lime mechanical glassware, to be operated by Kirklareli; (iii) a glass container factory with a capacity of 95,000 tonnes, to be operated by ACS; (iv) a glass fiber factory with a capacity of 30,000 tonnes, to be operated by Cam Elyaf; and (v) a 27 MW cogeneration plant supplying electricity and steam to Trakya and Kirklareli, to be operated by Camis Elektrik, a new Sisecam company. The cogeneration project is motivated principally by forecasts of power shortages in Turkey beginning in 1997.Environmental Category and Issues This is an environmental review category B project; principal issues include air emissions, liquid effluent, waste management and occupational health and safety. Sisecam is investing in environmental protection measures to mitigate the environmental impacts of the projects and meet local requirements and World Bank guidelines. For its Trakya float glass line, the company will install a flue gas desulfurization unit and an electrostatic precipitator to treat waste gases from the float furnace. Because centralized wastewater treatment facilities will not be installed by the industrial park until a future date, biological wastewater treatment facilities for the Trakya plant will be constructed as part of the project. At the ACS and Kirklareli plants, Sisecam will use the locally available No. 6 fuel oil in the expansions, but by December 31, 1999, will either switch to natural gas which is expected to arrive in the area by that time, or bring the plants into compliance with European Union requirements by that time. The new glass fiber production line at Cam Elyaf will include bag filters to control particulates. Sisecam''s cogeneration plant will be fueled by natural gas and employ low NOx burners to reduce emissions. Solid wastes from Sisecam''s plants are used internally in other operations, disposed of in accordance with local practice, or recycled. Noise abatement procedures are included in designs, while filters and ventilation measures will be used to reduce particulate matter and vapors. The Environmental Review Summary is available from the Public Information Center.Date SPI sent to PIC February 21, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).