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Turunc Advises Egesil Kimya on EUR 15 Million Loan from EBRD

Turunc Advises Egesil Kimya on EUR 15 Million Loan from EBRD

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The Turunc Law Firm has advised Turkish chemicals maker Egesil Kimya Sanayi ve Ticaret A.S. on a EUR 15 million loan from the EBRD to to increase production of precipitated silica, a key component of energy-efficient tires that reduce carbon emissions.

Egesil, which was founded in 2002, is majority-owned by Germany’s Evonik Industries, a global specialty chemicals producer that is the world’s largest silica producer. 

The EBRD's loan will help build a new production facility in Sakarya, Turkey, next to Egesil Kimya's existing facility. The EBRD reports that it will increase the speciality chemicals manufacturer’s annual production capacity of precipitated silica by 40,000 tonnes.

According to the EBRD, "demand for highly dispersible silica is strong and growing in the global tire industry to replace carbon black, the traditional filler material in tire manufacturing. Silica increases the grip and adhesion of tires and has better anti-skid properties. It also reduces fuel consumption by lowering rolling resistance. The new facility is expected to become operational by 2020. It will help make carbon emissions savings of around 67,000 tonnes of CO2 equivalent per year during the life cycle of tires. The EBRD Strategy for Turkey emphasizes contributing to the improvement of energy and resource efficiency and to the further integration of medium-sized private Turkish companies into global value chains. The project is also part of the EBRD's Green Economy Transition approach, as 100 percent of the bank’s loan will be used for green investments."

Also according to the EBRD, "Egesil Kimya has been chosen among various Evonik subsidiaries to house the capacity increase targeted to supply the European automotive tire industry. The company’s existing facility has a very good track record and a cost-competitive manufacturing base, and it was awarded the Evonik Platinum Safety Award in 2018 for not having had a single work accident over the past 15 years. Strong demand for its product and full order books triggered the need to expand capacity. As the leading silica producer in Turkey, Egesil Kimya aims to reinforce its leading position in the country and meet increased demand both locally and in export markets. With the additional facility, Egesil Kimya will become one of the largest silica plants in the world. The company’s main customers are the world’s leading tyre manufacturers."

The Turunc team consisted of Partner Kerem Turunc, Counsels Ilgin Alyanak and Esin Camlibel, and Associates Naz Esen and Beste Yildizili.

Turkey Knowledge Partner

Founded in 1990, TURUNÇ is a leading, full-service Turkish law firm providing cutting-edge legal advice and representation to a global clientele. We provide the highest quality of legal service in each of our practice areas and we take pride in the work we do. Since our founding, we have always maintained a friendly, open and inclusive firm culture in which individuality and independent thinking are highly prized. Our lawyers work in collaborative, collegial teams across our practice areas.

All News about, and Legal Analysis by, TURUNÇ can be found here.

Firm's website: www.turunc.av.tr

 

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