TürkTraktör obtains financing for green investments

LONDON

The European Bank for Reconstruction and Development (EBRD) has provided a 70 million-euro loan to TürkTraktör in Türkiye to support the company in modernizing its manufacturing facilities and expand its green investments.

The loan will finance the modernization of TürkTraktör’s manufacturing plants in Sakarya and Ankara to ensure their engine-production processes comply with the European Stage V emission standards and to support associated research and development, the development bank said in a statement.

The Stage V standards will limit carbon monoxide, nitrogen oxides and hydrocarbons, as well as the mass of particulate matter and number of particles emitted to the atmosphere. The standards are expected to be in force in Türkiye by the end of 2023.

“Producing Stage V-compliant engines will help TürkTraktör respond to domestic and foreign demand for new-generation tractors, and continue to build on its export record,” the statement added.

The loan will also support TürkTraktör in installing a rooftop solar plant at its Sakarya factory, helping to increase the company’s renewable energy consumption.

TürkTraktör has adopted a sustainability strategy and aims to become the leader in its industry. Koc Holding, one of its key shareholders, aims to be carbon neutral by 2050.

To date, the EBRD has invested more than 18 billion euros in various sectors of the Turkish economy, largely in the private sector.