The European Bank for Reconstruction and Development (EBRD) has granted TürkTraktör in Turkey a €70 million loan. This funding aims to assist the company in modernising its manufacturing facilities and expanding its green investments.
The loan will primarily finance the modernisation of TürkTraktör’s manufacturing plants located in Sakarya and Ankara. This initiative is geared towards aligning the engine-production processes with European Stage V emission standards and supporting related research and development efforts.
The Stage V standards, which have been adopted by the European Parliament, impose limitations on emissions such as carbon monoxide, nitrogen oxides, hydrocarbons, particulate matter mass, and particle count released into the atmosphere. These standards are expected to be enforced in Turkey by the end of 2023.
By producing engines compliant with Stage V regulations, TürkTraktör aims to meet the growing demand, both domestic and international, for new-generation tractors and further enhance its export capabilities.
Moreover, the loan will facilitate the installation of a rooftop solar plant at TürkTraktör’s Sakarya facility, contributing to the company’s increased utilisation of renewable energy sources.
TürkTraktör has embraced a sustainability strategy and aspires to lead its industry in sustainability. One of its major shareholders, Koc Holding, is committed to achieving carbon neutrality by 2050.
Hande Islak, EBRD Deputy Head for Türkiye, said: “We fully support TürkTraktör’s goal of becoming a leader in its industry by committing to sustainable and environmentally conscious practises. Their efforts so far have been significant and I am confident that our partnership will bolster the company’s green transformation and allow TürkTraktör to become a leading player in its field.”
Aykut Özüner, TürkTraktör’s CEO, said: “As a key player in Türkiye’s agriculture industry, sustainability is our number one priority. We will continue investing in sustainable production processes and setting low carbon emission targets with environmentally friendly tractors, equipment and machinery. This financing will help to modernise our facilities and help us to produce Stage V-compliant engines. We will also continue investing in solar panels to make all our production processes carbon neutral.”