EBRD loans $150 million to Turkish tire producer Brisa

ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) has issued a loan of $150 million to Turkish tire producer Brisa, the bank announced in a statement on Tuesday.

The loan is to support Brisa's new greenfield plant in the Aksaray province to produce tires for passenger cars and light commercial vehicles under the Bridgestone and Lassa brands, the statement said.

Brisa constitutes a joint venture between one of Turkey’s leading industrial and financial conglomerates Sabancı Holding and Japan’s Bridgestone Corporation, the world’s leading manufacturer of tire and rubber products.

"Part of the loan proceeds will also help Brisa expand their production of truck and bus tyres at its Izmit plant in north-western Anatolia," the statement added.

"The new production facility in Aksaray, a central Anatolian province, is set to become the company’s strategic hub, serving the growing market for tyres in Turkey and neighbouring countries. It will also provide a significant boost to the local economy, it expects to create 550 jobs," said the statement.

The EBRD also said Brisa and the bank will join forces to develop technical and vocational training programs for young people.

“This EBRD loan is not only helping a tyre manufacturer expand its business and capture market growth. It is also enabling a leading global player and a local business giant to create jobs and opportunities in one of the developing regions of the country,"Jean-Patrick Marquet, EBRD Director for Turkey, said.

- "Investments as planned is a significant message of trust"

Yigit Gurcay, CEO of Brisa, said that Brisa's total investment in Turkey had exceeded $1 billion since 1988.

"While our country faces important developments and fluctuations, to continue the company’s investments as planned is a significant message of trust," Gurcay said.

"Being one of the leading international financial institutions, the EBRD’s decision to trust in Turkey and Brisa despite the current conditions and provide a $150 million loan with convenient terms is truly encouraging and promising,” he added.