EBRD financing will allow Kivanc Tekstil to purchase more than 50 weaving machines to expand its operations

EBRD financing will allow Kivanc Tekstil to purchase more than 50 weaving machines to expand its operations

A Turkish textile company that supplies fabrics used by brands such as Banana Republic, Zara and Ann Taylor is to invest EUR3.7m (US$4.9m) in expanding its operations, increasing weaving capacity and improving energy efficiency.

Kivanc Tekstil has secured the loan from the European Bank for Reconstruction and Development (EBRD), which it will use to purchase more than 50 weaving machines.

The company, which is based in Adana, produces clothing fabrics and yarn, and has successfully operated in the textile sector for more than 60 years.

The loan will also be used to install an additional generator that will increase the factory's co-generation capacity and recycle its own steam, thereby saving water, energy and money.

"As our business grows and our focus shifts more to the export market, it is important for us to work with an international lender," said Ziya Kivanc, CEO and shareholder in the company.

"Working with the EBRD has been a learning experience for all of us at Kivanc and has enabled us to see our business from a different perspective."

The loan was made from the Local Enterprise Facility, a EUR400m fund for business investment in Turkey, the Balkans (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania and Serbia), and the southern and eastern Mediterranean (SEMED) region (Egypt, Jordan, Morocco and Tunisia).