SOFIA (Bulgaria), June 6 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said on Tuesday it is providing a 20 million euro ($22.5 million) loan to the Bulgarian unit of Turkish automotive parts manufacturer Teklas.
Teklas' Bulgarian subsidiary will use the funds to set up a research and development (R&D) centre and build a new unit to manufacture high-precision metal tubes, the EBRD said in a statement.
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A part of the loan will also help refurbish Teklas’ plant in Serbia, the lender added.
In 2012, the EBRD provided a 6 million euro loan for the previous modernisation and expansion of Teklas Bulgaria’s production facilities in the city of Kardzhali.
Teklas Bulgaria, which employs 1,850 people, is the largest subsidiary of the Turkish company.
Larisa Manastirli, EBRD Director for Bulgaria, said: “Teklas Bulgaria is an anchor for the town of Kardzhali and the country’s southern region. Its further expansion – and the EBRD’s continuous support – means economic growth and employment."
Teklas manufactures fluid circulation systems and anti-vibration parts for automotive giants such as General Motors, Volkswagen, Volvo, BMW, Mercedes-Benz and Renault. Founded in 1971 in Turkey, Teklas today operates nine plants in five countries: Turkey, Bulgaria, China, Mexico and Serbia.
($ = 0.8885 euro)