SAKARYA, Turkey—The European Bank for Reconstruction and Development is lending $16.9 million to a Turkish chemicals company to increase its production of precipitated silica for green tires.
The European bank said it is lending the money to Egesil Kimya Sanayi ve Ticaret A.S., a chemicals supplier founded in 2002 and majority-owned by German specialty chemicals company Evonik Industries A.G.
As part of the project, Egesil Kimya is building a new production unit in Sakarya, Turkey, next to its existing manufacturing facility. The new plant will increase the company's annual production capacity of precipitated silica by 40,000 metric tons.
Production at the plant is scheduled for 2020.
According to the EBRD, the silica produced at the plant can help save up to 67,000 tons of CO2 emissions per year.
Demand for highly dispersible silica is strong and growing in the global tire industry as it looks to replace carbon black, the traditional filler material in tire manufacturing, the EBRD said. When used in tire development, silica is said to increase grip and reduce skidding. It also can reduce fuel consumption by lowering rolling resistance.
The EBRD strategy for Turkey focuses on improvement of energy and resource efficiency and aims to further integrate medium-sized private Turkish companies into global value chains.
The project is part of the EBRD's Green Economy Transition approach, as 100 percent of the bank's loan will be used for green investments.