Turkish dairy firm Kay has said it will use an EUR10m (US$11.2m) loan from the European Bank for Reconstruction and Development to "improve efficiency and boost operations".
The EBRD’s investment will enable the company to move its production to a factory next to Kay’s existing feed mill along the highway connecting Istanbul and Izmir. The move will improve the management of logistics and the use of energy and water. Kay will also be able to buy new equipment to support the expansion of its yoghurt and white cheese products.
Kay was founded in 1950s in Balikesir, western Turkey, by the Ayhan family and is among the top ten Turkish dairy producers in terms of sales.
Ergün Ayhan, general manager for Kay, said: "With the support of the EBRD, we will be able to start commercial production in our new facility. We will also be able to pack fresh goat milk which will be coming from our own goat farm nearby. This project will allow us to grow together with all our farmers and distributors."
Jean-Patrick Marquet, director for the EBRD in Turkey, added the finance package would "boost competition in the Turkish dairy sector and improve the company’s ties with suppliers and distributors while bringing higher quality products to consumers".