The European Bank for Reconstruction and Development (EBRD) announced recently that it is providing a $190 million long-term loan to Turkish vehicle maker Ford Otomotiv Sanayi (Ford Otosan) to invest in high-tech truck engine parts and expand production capacity.
The financing includes a $95 million five-year loan from the bank's own account, with the other half being syndicated to HSBC, Societe Generale, Bank of Tokyo-Mitsubishi and Credit Agricole on the same terms, according to an EBRD press release.
Ford Motor Co. and Turkish conglomerate Koc Holding each have a 41 percent equity stake in Ford Otosan, while the remaining shares are listed on the Istanbul Stock Exchange.
The company will use the loan to work with Turkish universities and suppliers to develop a new Ecotorq engine for use in heavy Ford cargo trucks. The engine is expected to pave the way for greater energy performance and lifetime service, as well as lower maintenance costs.
The loan will also allow Ford Otosan to develop new truck models and increase production capacity at its plan in northwestern Turkey in order to better meet demand both domestically and in neighboring markets. The company has sales in 79 countries, accounting for more than half of Turkey's vehicle exports.
In addition, the EBRD is helping Ford Otosan to improve corporate practices and provide greater employment opportunities for women in a traditionally male industry.
"We are delighted that with the EBRD's support Ford Otosan will be leading by example in order to transform Turkey's automotive industry, the country's most important exporter and a major employer," EBRD Director for Turkey Mike Davey said. "It will not only tap into research and development potential of the local academic institutions and numerous companies in the supply chain, but will also increasingly involve women in its operations. This will make Ford Otosan more competitive, while driving innovation and positive change in the sector and in the country."
General Manager of Ford Otosan Haydar Yenigun said that for the past two years the company has received the Gender Equality in Working Life Award from the Ministry of Labor and Social Security.
"I would like to thank the EBRD for supporting Ford Otosan's successful performance and encouraging our lasting cooperation with suppliers as well as local academic institutions," Yenigun said.
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