Küçükçalık To Expand With US$ 50M IFC Investment
The International Finance Corporation (IFC) has committed a US$ 50 million investment in Küçükçalık Tekstil Sanayi ve Ticaret A.Ş. (Küçükçalık), a leading home textiles manufacturer with operations in Türkiye and Egypt. The funding will support capacity expansion and sustainability initiatives.
The investment includes US$ 30 million from IFC’s own account and US$ 20 million via the Managed Co-Lending Portfolio Program (MCPP). It will enable Küçükçalık to sustainably increase production by establishing a polyester chip manufacturing plant, expanding its yarn spinning facility, and setting up a textile recycling facility at its Sakarya manufacturing unit in Türkiye.
Additionally, rooftop solar photovoltaic systems will be installed at Küçükçalık’s Bursa manufacturing unit, enhancing the company’s renewable energy usage. The project aligns with circular economy principles, promoting resource-efficient yarn production and reducing environmental impact.
The initiative is expected to create approximately 700 direct and indirect jobs in Türkiye while contributing to foreign exchange earnings and economic value addition. IFC will also collaborate with Küçükçalık to advance gender inclusion policies and foster workplace opportunities for women, aligning with the World Bank Group’s goals of closing gender gaps.
“This partnership with IFC is a pivotal step in our journey toward sustainable growth,” said Yaşar Küçükçalık, Chairman of Küçükçalık Group. “This project enhances our production capabilities and strengthens our commitment to sustainability, positioning us competitively in global trade.”
Wiebke Schloemer, IFC Director for Türkiye and Central Asia, added, “This investment bolsters competition in the synthetic fabric manufacturing industry, a vital sector for Türkiye’s economy. Supporting companies like Küçükçalık strengthens Türkiye’s role in global trade.”
Türkiye has been a focus of IFC’s private sector development efforts for over 50 years, with investments exceeding US$ 20 billion in the past decade. Currently, Türkiye is IFC’s third-largest country exposure, with a committed portfolio nearing US$ 5.4 billion as of December 2024.
