Şişecam and EBRD announced the details of their cooperation in cullet recycling project during the press conference and signing ceremony in İstanbul on 28 June, 2016. Erdem&Erdem team who acted as legal advisors attended the press conference hosted by Prof. Dr. Ahmet Kırman , Vice Chairman of the Board of Directors and General Manager of Şişecam Group (Şişecam) and Mr. Frederic Lucent, Production and Service Sectors Director of European Bank of Reconstruction and Development’s (EBRD).
The project is the first of its kind in the world. Within the frame of this groundbreaking project, Şişecam and EBRD became shareholders of a new company “Şişecam Çevre Sistemleri A.Ş.” incorporated in which EBRD participates as the shareholder of 10% the shares. With Şişecam Çevre Sistemleri A.Ş., the parties aim to modernize Turkey’s leading cullet recycling companies (small and medium side enterprises as of date) by increasing both the quality of the cullet supply and the capacity cullet recycling.
The project is expected to accelerate the investments by these companies in cullet recycling which may be normally realized in a much longer period due to financial and technical limitations encountered by recycling companies in general in Turkey. Şişecam Çevre Sistemleri A.Ş. targets to provide support in terms of know-how and technical advancements in cullet recycling.
The percentage of cullet used in the glass production is anticipated to increase from current 19% to 45% over a 5 year period with this support of Şişecam Çevre Sistemleri A.Ş. in cullet recycling. Şişecam Group’s contribution to Turkish economy with this project will be two-fold: input of cullet recycling as raw material in glass sector which is expected to increase 435 thousand tons within a 5 year period e through which energy conservation is believed to be significant.
Erdem&Erdem is proud to act as legal advisors in structuring this cooperation which is a first of its kind. Erdem&Erdem team, who has a track record in acting as legal advisors in Turkey’s leading milestone infrastructure projects funded by foreign creditors, provided legal advisory for the incorporation of the partnership in Şişecam Çervre Sistemleri A.Ş. and on legal aspects of the loan facility by EBRD as well as took part in the negotiations of the project agreements and legal documents.