RENEWAL - IFC Invests $50 Million in Küçükçalık Textile

Foreks - IFC has made a $50 million investment in Küçükçalık Tekstil Sanayi ve Ticaret AŞ (Küçükçalık), a home textiles manufacturer operating in Turkey and Egypt. According to a statement from IFC, this investment aims to support Küçükçalık's capacity expansion efforts and help improve sustainability practices.

The statement provided the following details: "IFC's loan consists of two parts: $30 million from IFC's own account and $20 million from IFC's Managed Co-Lending Portfolio Program (MCPP). This investment will enable Küçükçalık to build a new polyester chip production facility, expand its spinning unit, and establish a textile recycling facility at its production site in Sakarya, thus sustainably increasing its production capacity.

Additionally, the installation of rooftop photovoltaic systems at Küçükçalık's production unit in Bursa is expected to significantly enhance the company's sustainability efforts. The project aims to create a positive environmental impact by promoting circular economy practices, including a more energy- and resource-efficient yarn production process and increased use of renewable energy. It is also anticipated that the investment will contribute to the Turkish economy by providing added value, employment, and foreign exchange revenue.

The investment by IFC is expected to create 700 jobs, both directly and indirectly, in Turkey. IFC aims to collaborate with the company to improve gender equality policies and practices in the workplace and increase corporate gender awareness. These objectives align with the World Bank Group's goals to address gender inequality and enhance workforce opportunities for women."

Yaşar Küçükçalık, Chairman of Küçükçalık Group, stated, "We are very pleased to announce this important partnership with IFC. This project will allow us to expand our production capacity while also enhancing our commitment to sustainability. Through the IFC investment, we aim to increase our competitiveness and contribute to Turkey's position in global trade."

Wiebke Schloemer, IFC's Director for Turkey and Central Asia, added, "This investment will enhance competition in the production of synthetic fabrics, which is critical for the Turkish economy. By supporting companies like Küçükçalık in their efforts for vertical integration and process management optimization, we aim to contribute to strengthening Turkey’s position in global trade."

For over 50 years, IFC has supported the development of the private sector in Turkey and has invested more than $20 billion just in the last decade. As of December 2024, Turkey is positioned as the third largest country in the world for IFC investments, with a committed portfolio of approximately $5.4 billion.