ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) has issued a loan of €3 million ($3.2 million) to a Turkish automotive components producer TKG Automotive, the bank announced in a statement on Wednesday.
TKG Automotive, located in Bursa is one of the country’s industry hubs, designs and produces automotive components for such companies as Toyota, Renault, Fiat and Honda, the EBRD said.
"TKG will invest a total of €5.5 million, of which €2.5 million will come from the company’s own resources, to build a new factory and launch two new production lines, nearly doubling the company’s production capacity," the statement said.
The loan aims to support TKG Automotive's expansion and improve its energy efficiency, the statement added.
"The EBRD, through its Advice for Small Businesses programme, is also helping the company develop a strategy for boosting sales in the European market and improving internal processes," the statement read.
The bank said that the new production facility was expected to achieve energy and material efficiency improvements by investing in new technologies.
"Expected savings of around 590 MWh of electricity each year will be complemented by CO2 emission reductions of 333 tonnes per year," the EBRD added.
"With the support of the EBRD, we will be able to increase our capacity by using more efficient and green production lines. We aim to develop our partnership with the EBRD in our next projects and hope to have a long-term cooperation in all areas.” Ertan Demirduzen, the CEO of TKG, said