IFC, a member of the World Bank Group, has announced a 50 million dollar investment in Küçükçalık Tekstil Sanayi ve Ticaret A.Ş. (Küçükçalık), a home textiles manufacturer operating in Türkiye and Egypt, to support its capacity expansion efforts and help enhance its sustainability practices. IFC’s loan consists of 30 million dollars from IFC’s own account and 20 million dollars from IFC’s Managed Co-Lending Portfolio Program (MCPP). This investment will enable Küçükçalık to boost its production capacity sustainably by building a new polyester chip manufacturing plant, expanding its yarn spinning facility, and establishing a textile recycling facility in its manufacturing unit in Sakarya, Türkiye.
Additionally, the installation of rooftop solar photovoltaic systems in Küçükçalık’s manufacturing unit in Bursa, Türkiye, will significantly boost 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 renewable energy usage. It is also expected to yield economy-wide effects through value-addition, job creation, and foreign exchange revenue generation.
The new investment will create jobs and boost employment in Türkiye
IFC’s investment is projected to create approximately 700 direct and indirect jobs, boosting employment in Türkiye. IFC will also collaborate with the company to improve policies and practices on workplace gender inclusion and raise corporate gender awareness, aligning with the World Bank Group’s goal of closing gender gaps and enhancing opportunities for women in the workforce.
“We are thrilled to announce this significant partnership with IFC, which marks a pivotal moment in our journey towards sustainable growth and innovation. This project will not only enable us to expand our production capabilities but also enhance our commitment to sustainability,” said Yaşar Küçükçalık, Chairman of Küçükçalık Group. He added that they look forward to leveraging this investment to strengthen their competitive edge and contribute to Türkiye’s position in global trade.
Wiebke Schloemer, IFC Director for Türkiye and Central Asia stated that this investment will drive competition in the synthetic fabric manufacturing industry, which is crucial for the Turkish economy and disclosed: “Supporting companies like Küçükçalık in their strategic efforts to vertically integrate and optimize input management is vital to strengthen the country’s position in global trade.”
IFC has supported private sector development in Türkiye for more than 50 years, with investments of over $20 billion in the last decade alone. Türkiye represents IFC’s third-largest country exposure globally, with a committed portfolio of close to $5.4 billion as of December 2024.