DEG finances expansion of Turkish manufacturer of household products

• Hayat Kimya Sanayi A.S. invests in local added value
• Long-term DEG loan of EUR 25m
• German technology for production of films and nonwovens

The German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, finances the expansion of the Turkish manufacturer of household goods and hygienic products Hayat Kimya Sanayi A.S. ("Hayat"): The company has launched a new production line for nonwoven fabrics at its location in Egypt. Earlier, Hayat had already invested in new production lines at its Turkish manufacturing complex to produce nonwoven fabrics and films that are used as input materials. DEG has arranged debt finance totaling EUR 66m, providing a long-term loan of EUR 25m itself for the expansion. Co-financiers are the Black Sea Trade and Development Bank (for the Turkish production facility only), the Oesterreichische Entwicklungsbank AG (OeEB, Development Bank of Austria) as well as a fund managed by Cordiant Capital Inc.

With a staff of nearly 8,000 people, Hayat is one of the leading manufacturers of high-quality baby diaper, feminine care, tissue and home care/detergent products in Turkey and the region. The company exports its products to around 100 countries to meet the increasing demand, especially in CIS countries. By expanding the vertical range of manufacture, Hayat at the same time addresses any supply bottlenecks. The new production lines in Turkey have created some 350 new jobs. Another 90 new jobs have been added in the new nonwovens facility in Egypt, with the level of employment planned to further increase to up to 240 in the next years.

A major part of the equipment for the new production lines comes from German suppliers. They train the local staff in the use of the new machines and enable know-how transfer to Turkey and Egypt.

"We are happy to support Hayat in its regional expansion and the extension of local value creation. Through its commitment, DEG has also successfully mobilized additional international development finance institutions", explains Dr Tilman Kruse, head of DEG’s Corporates & Funds Europe/Middle East/Central Asia department.

DEG is active in Turkey since 1967 and opened a representative office in Istanbul in 2011. DEG focuses on promotion of local small and medium-sized enterprises, long-term financing in the private health, manufacturing and services sectors and accompanying German companies.