€20M ERBD loan to help Turkish firm expand in Bulgaria

By Can Erozden

ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) is providing a €20 million ($22.5 million) loan to support the expansion of the Bulgarian subsidiary of Turkish automotive supplier Teklas, the bank announced Monday.

Part of the loan will be for refurbishing the firm's plant in Serbia, the bank said on its website.

The company is producing fluid circulation systems and anti-vibration parts for auto giants such as General Motors, Volkswagen, Volvo, BMW, Mercedes-Benz and Renault.

Founded in 1971 in Turkey, Teklas operates nine plants in Turkey, Bulgaria, China, Mexico, and Serbia.

Teklas’ Bulgarian unit is the company’s largest subsidiary and employs 1,850 people from its base in Kardzhali, a southern town near the Turkish border, the announcement added.

In 2012, the EBRD provided a €6 million ($6.7 million) loan for the modernization and expansion of production facilities in Kardzhali.

The €20 million loan will help the company to establish an R&D center.

"Teklas Bulgaria is an anchor for the town of Kardzhali and the country’s southern region," said Larisa Manastirli, the EBRD director for Bulgaria.

“Its further expansion and the EBRD’s continued support means economic growth and employment. We welcome in particular Teklas’s commitment to training local engineers and technicians for the new R&D center through education programs and know-how training.”

For his part, Teklas CEO Nebi Anil stated, "Teklas is pleased to strengthen our relations with the EBRD, which has played an important role in our success in Bulgaria since the start of our relationship in 2012. We have had a chance to swiftly realize most of the investments required by customers in Teklas Bulgaria. Our aim is to manage increasing customer expectations with our cutting-edge technologies and provide innovative ideas from our R&D center in light of the latest trends."

The EBRD has invested over €3.6 billion ($4.05 billion) in Bulgaria to date. Its investment there in 2016 totaled €620 million ($698 million).