IFC Invests in Kuchukchalık Group to Advance Sustainable, Inclusive Growth in Turkey’s Textile Industry

-IFC’s $50 million financing will support Kuchukchalik Group in advancing circular economy practices and increasing renewable energy usage.

-Funds will be used to build polyester chip plant, expand yarn spinning capacity, establish recycling unit in Sakarya, and install rooftop solar systems in Bursa.

-IFC’s investment will create jobs, boost employment in Turkey, and enhance gender inclusion.

Istanbul, Turkey, December 16, 2024 — IFC has announced a $50 million investment in Kuchukchalik Textile Industry and Trade Inc. (Kuchukchalik), a home textiles manufacturer operating in Turkey and Egypt, to support its capacity expansion efforts and help enhance its sustainability practices.

IFC’s loan consists of $30 million from IFC’s own account and $20 million from IFC’s Managed Co-Lending Portfolio Program (MCPP). This investment enables Kuchukchalik Group 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, Turkey.

Additionally, the installation of rooftop solar photovoltaic systems in Kuchukchalik’s manufacturing unit in Bursa, Turkey, 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.

IFC’s investment is projected to create approximately 700 direct and indirect jobs, boosting employment in Turkey. 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 Yashar Kuchukchalik Group, Chairman of Kuchukchalik Group. “We look forward to leveraging this investment to strengthen our competitive edge and contribute to Turkey's position in global trade.”

“This investment will drive competition in the synthetic fabric manufacturing industry, which is crucial for the Turkish economy,” said Wiebke Schloemer, IFC Director for Turkey and Central Asia. “Supporting companies like Kuchukchalik Group 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 Turkey for more than 50 years, with investments of over $20 billion in the last decade alone. Turkey represents IFC's third-largest country exposure globally, with a committed portfolio of close to $5.4 billion as of December 2024.