The new joint initiative will contribute to industrialization process of the glass recycling sector and boosting its capacity. Şişecam Group, a global actor in glass industry as well as soda and chromium chemicals, is embarking on an ambitious €20 million glass recycling operation, demonstrating its commitment to using more recycled glass than mined raw material.
The EBRD is acquiring a minority stake in Şişecam Çevre Sistemleri A.Ş., a newly established recycling arm of Şişecam, and is extending a €20 million loan to finance glass recycling equipment. The Bank has also mobilized an additional €2 million loan from the Clean Technology Fund, a funding window of the Climate Investment Funds, as well as EU grants.
Ensuring the sustainability of glass production in Turkey is a major focus for both partners. This new joint initiative represents an innovative response to the challenges in the Turkish glass recycling market. Şişecam Cevre Sistemleri will provide its cullet suppliers with state-of-the-art equipment which they wouldn’t be able to invest in otherwise. This equipment will increase suppliers’ collection and treatment capacities as well as the quality of the cullet, strengthening the entire glass recycling supply chain.
With over 21,000 employees, production in 13 countries, and sales in as many as 150 countries, Şişecam Group is a global actor in business fields including all main areas of glass such as flat glass, glassware, glass packaging and glass fiber, as well as soda and chrome compounds. Şişecam has been operating for more than 80 years and is the third largest glassware, fourth largest glass packaging and fifth largest flat glass manufacturer in the world in terms of production capacity.”
Professor Ahmet Kırman, Vice Chairman and CEO of Şişecam said: “Şişecam is a group fully aware of its global responsibility as part of the international ecosystem and sees the issue of sustainability not only in terms of financial continuity, but as a concept that integrates environment, natural resources, raw materials, consumption, customers, employees and values. We have been working on one of the most comprehensive sustainability and social responsibility projects in Turkey since 2011 to support the transition into a ’recycling society’.”
“With EBRD-supported projects, activities like raising public awareness of separating glass waste at source, improving waste collection infrastructure, modernizing and increasing the capacity of recycling facilities have been undertaken and the recycling rate has been increased from 8 per cent to 19 per cent. The new joint initiative will contribute to the industrialization process of the glass recycling sector in Turkey and triple its production capacity, as well as providing know-how. I believe this unique partnership between Şişecam and the EBRD, our long-standing partner, will play a crucial role in the establishment of a sustainable glass recycling system in Turkey.”
Frederic Lucenet, EBRD Director for Manufacturing and Services, added: “Glass is infinitely recyclable and, unlike other materials, recycling doesn’t affect the quality of the final product. At the same time, the recycling rate in Turkey remains very low compared to more advanced western European economies. Utilizing cullet glass waste is an economically driven decision. It considerably brings down glass production costs and has huge benefits for the environment in terms of energy and greenhouse gas savings.”
About Şişecam Group
One of the most established enterprises in Turkey, Şişecam Group is a global actor in business fields including all main areas of glass industry, i.e. flat glass, glassware, glass packaging and glass fiber, as well as soda and chromium chemicals. Today Şişecam, the world’s leading supplier of chromium compounds and the 10th largest soda ash producer in the world, is the 3rd largest glassware, the 4th largest glass packaging and the 5th largest flat glass manufacturer globally.
The Group, which has 44 production facilities in total, has manufacturing activities in Turkey, Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia-Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt and India. With its 80 years of experience, over 21,000 employees, production in 13 countries, and sales in as many as 150 countries, Şişecam is a group at international scale and continues on its journey to become one of top three global producers in its all main business fields.
The European Bank for Reconstruction and Development (EBRD) is a multilateral bank committed to the development of market-oriented economies and the promotion of private and entrepreneurial initiative in more than 30 countries from Morocco to Mongolia and from Estonia to Egypt. The Bank is owned by 65 countries, the EU and the EIB.
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date, it has invested over €7 billion in the country through more than 180 projects in infrastructure, energy, agribusiness, industry and finance. In 2015, Turkey was the top destination for EBRD financing, with €1.9 billion invested that year alone.