YALOVA ELYAF VE IPLIK A.S.

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Turkey-Yalova Acrylic FiberRegion EuropeSector IndustryProject No. 004859Projected Board Date June 15, 1995Company Name Yalova Elyaf ve Iplik A.S. (Yalova)Shareholders: Yalova is owned by Pensoy Holding A.S. Project Cost including proposed IFC investment: US$49 million. - Proposed IFC investment: US$15 millionLocation of Project and Description of site: Yalova is located on a 152,000 m2 site just outside the town Yalova, on the Eastern Marmara Sea about 1.5 hours drive from Istanbul.Description of Company and Purpose of ProjectYalova, a producer of yarn and acrylic fiber, has asked IFC to assist them in organizing the funding for a US$49 million expansion program. The proposed IFC investment is a senior loan of US$15 million.Yalova’s existing operation consists of two acrylic fiber lines with a total capacity of about 10,000 t/y and a spinning mill with a capacity of up to 10,500 t/y of yarn. Currently, about 50% of Yalova’s production of acrylic fiber is used by the company in its production of yarn. Another 20% of the acrylic production is exported. The balance, as well as some 3,000 t/y of imported acrylic, is sold in the local market. Historically, between 40% and 50% of Yalova’s production of spun yarn has been exported, primarily to Germany.The project consists of the following components: (I) adding a third acrylic fiber line with capacity of 20,000 t/y (bringing total capacity to 30,000 t/y), (ii) installing a co-generation plant, and (iii) installing a waste treatment plant.Environmental Categories and Issues1. This is a category B project according to IFC’s environmental review procedure; principal issues include air emissions, liquid effluents, solid and liquid wastes, spill prevention for hazardous materials; employee exposure to hazardous substances, and fire prevention and emergency response. 2. Yalova will employ a solvent recovery system to control volatile organic compounds (VOCs) emissions from the use of acrylonitrile and dimethylformamide (DMF). Recovered chemicals will be internally recycled. A natural gas-fired cogeneration plant will meet power needs for the expanded facility, and stack emissions from the new unit will be below World Bank guidelines. A new waste water treatment facility will treat all industrial and domestic waste water from the plant to meet World Bank guidelines. Solid wastes from acrylic production will be internally recycled, and solid and liquid hazardous wastes are disposed of in accordance with governmental requirements. All hazardous and toxic chemicals are stored in closed tanks with a Nitrogen inert atmosphere. Employees working in the production area are provided with relevant training and personal protective equipment. Training for fire prevention and emergency response is conducted regularly. 3. The Environment Review Summary is expected to be available on or about June 1st. 1995 from the Public Information Center. Date SPI sent to PIC: May 8, 1995 For additional information contact: Corporate Relations Unit - telephone 202) 473-7711 - facsimile: (202) 676-0365.Environmental 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).