Bank Asya acquires shares in long-idle sugar factory

SAKARYA - Anatolia News Agency

This file shows the Adapazarı Sugar Factory in northwestern Turkey. Almost half of the factory was damaged in the August 1999 earthquake and later restored by the Adapazarı Pancar Ekiciler Kooperatifi (APEK). DHA photo

Adapazarı Pancar Ekicileri Kooperatifi (APEK) has transferred 98.8 percent of their shares in the Adapazarı Sugar Factory to Bank Asya, Turkey’s participation bank, APEK Chairman Ahmet Aya has announced.

After suffering heavy damage in the Aug. 17, 1999 earthquake, the Adapazarı Sugar Factory was subsequently idle for six years. On May 15, 2005 it was purchased by APEK from the Turkish Privatization Administration (ÖİB).

According to Aya, after undergoing a rigorous process of revamping, the sugar factory is now in fifth place in terms of sugar production in Turkey.

Decision to sell based on factory’s survival

In a written statement Aya said the decision to sell the company’s shares was based on the need to ensure the sugar factory remained functional, that APEK’s assets were not confiscated in order to re-pay bank debt and that the cooperative members are not under a constant debt burden.

He stressed that the share transfer decision was not an easy one to make, but that it was necessary to ensure the survival of the factory.

A number of sugar plants across the country are included in the government’s upcoming privatization plans with no certain date revealed as of yet.