Turkish Automaker Wins $164 Million Loan to Expand, Add Training
"The €150 million financing to be provided will not only enable Ford Otosan to meet demand from domestic and international markets, it will also increase capacity utilization at our production facilities. We continue to invest in many areas, including human resources and working conditions, occupational health and safety, as well as the efficient use of resources and the prevention and control of pollution," said Haydar Yenigün, general manager of Ford Otosan.
Ford Otomotiv Sanayi A.Ş., (Ford Otosan), which is the largest employer in Turkey's automotive industry and the country's biggest exporter, is getting a €150 million loan from the European Bank for Reconstruction and Development to finance improvements to commercial vans. The loan is worth about $164 million in U.S. dollars. The company is a joint venture between Ford Motor Company and Turkey's Koç Holding and is based in Istanbul.
EBRD announced the loan April 25, saying it will allow the company to introduce styling changes and add current technology features to its commercial vehicles while improving it production processes. Ford Otosan also will increase its focus on employment and training of young people, partnering with educational institutions to develop a model for vocational education.
EBRD began working with Ford Otosan in 2010 when it financed the development of new commercial vehicle models, and it also financed the development of a high-tech truck engine named Ecotorq.
"We are very pleased to continue and deepen our cooperation with Ford Otosan. It will build on the fantastic results we have achieved so far, and we aim to take this renewed partnership further, combining our finance with a special emphasis on economic inclusion in order to address labor market challenges. In addition, we applaud Ford's commitment to sharing its vocational training practices across the industry," said Jean-Patrick Marquet, EBRD's managing director for Turkey.
"With the support of our partners the EBRD, Ford Otosan will be able to undertake ongoing investments as well as planned capital expenditure for commercial vehicles," added Haydar Yenigün, general manager of Ford Otosan. "The €150 million financing to be provided will not only enable Ford Otosan to meet demand from domestic and international markets, it will also increase capacity utilization at our production facilities. We continue to invest in many areas, including human resources and working conditions, occupational health and safety, as well as the efficient use of resources and the prevention and control of pollution."
The company is the largest production hub for Ford commercial vehicles in Europe, operating three main plants and R&D centers across the country and employing more than 10,000 people.