JV funding gives Turkish flour producer Ulusoy Un a boost
The €6m ($6.31m) transaction marks the launch of a program by the two leading financial institutions, set up in 2016, to improve and simplify access to finance for small and medium-sized enterprises (SMEs) across Turkey.
Founded in 1989, today Ulusoy Un is one of the leading producers and exporters of wheat flour in Turkey.
The family-owned flour miller and grain trader sources its raw ingredients from Australia, the US, Canada, India, Pakistan and countries around the Black Sea.
Currently, it produces around 900 metric tons of flour daily through its two mills, two thirds of which are exported to 72 countries on five continents, including the Americas, Asia and Africa.
Improving development
Its key market is the Far East, where its flour is specifically used for making noodles. The wheat flour is also used for a wide range of baked products such as bread, chapatis and biscuits.
According to chairman Günhan Ulusoy, the company is the third largest in its sector in Turkey and the funding from the two banks will help make it more competitive on both the domestic and international markets.
"This agreement with TSKB and the EBRD is an indication of [their] confidence in our company. I am confident that our cooperation will go from strength to strength,” he said. Since 2009, the EBRD has invested over €9bn ($9.46bn) in Turkey through more than 220 projects across various sectors and has mobilised nearly €20b ($21.02bn) for these ventures from other sources of financing.
“We are pleased to partner with TSKB [to] work towards our joint goal of boosting the development of companies such as Ulusoy Un. TSKB’s local knowledge and network will help us reach businesses that [will] benefit from our financing,” Jean-Patrick Marquet, EBRD’s MD for Turkey, said in a statement.
