Source: AP; IFC invests $27m in
Turkish appliance manufacturer; May 12, 2003
The International Finance Corporation
(IFC), the private sector financing arm of the World Bank Group, has signed
an agreement to invest up to $27 million equivalent in Arcelik, a
Türkiye-based home appliance manufacturer. Arcelik, a household brand name
in Türkiye, is entering the international arena, through its first
production plant in Eastern Europe. The investment will enable Arcelik to
acquire and modernize Arctic, a Romanian producer of refrigerators.
"IFC has a long-standing relationship with Arcelik dating back to
early 1990s and IFC is particularly pleased to support Arcelik's
international expansion plans," said IFC's executive vice president
Peter Woicke.
"Part of IFC's strategy in
Türkiye is to support viable investments of internationally competitive
Turkish enterprises," said director of IFC's Southern Europe and
Central Asia Department Khosrow Zamani. He added, "This investment
fits well with IFC's strategy. Furthermore, Arcelik's role as a stable
employer and a provider of labor opportunities at the small and medium
enterprises will be extended to neighboring countries." Arcelik is
home appliance leader with consolidated sales of about $1.6 billion in
2002, of which nearly 50 percent comprised of exports. In recent years, as
part of its strategy to decrease its dependency on the domestic market,
Arcelik has increased its exports significantly. Arcelik was established in
1955 and is one of the largest private sector enterprises in Türkiye, with
a workforce of about 6,000.
