Case story

  • Turkey

CAO Case - Turkey / Assan Aluminyum-01 / Dilovasi

The Confederation of Turkish Trade Unions Complaint Regarding Assan Aluminyum Sanayi ve Ticaret Anonim Sirketi, Turkey 2008

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Story

Assan Aluminyum is a former state-owned aluminum sheet, coil and foil manufacturer. The project was intended to be a large investment program to modernize, upgrade and expand Assan Aluminyum’s existing capacity in order to augment productivity and efficiency of the plant. Amelioration of the corporate governance of the company was also intended to be a significant goal of the project. In October 2008, the Confederation of Turkish Trade Unions (Turk-is) lodged a complaint with CAO on behalf of the Metal Workers’ Union of Turkey with concerns about the particular issue of rights of association. The complainants sought assurance of the company’s support for and conformity with the labor and working conditions enshrined within the IFC Social and Environmental Performance Standards.

CAO Action

Assan Aluminyum is located in Diolvasi-Gebze, in the Marmara region of Turkey, approximately 40 km from Istanbul. Assan Aluminyum was acquired by the family-owned Kibar group in 2005 whose flagship company, Assan Demir, is the largest aluminum manufacturer in Turkey. The complaint was accepted by CAO, however while the project was in an early stage of IFC involvement and therefore IFC had not yet completed its own due diligence procedure and processes.

Outcome

Case Status: Open

IFC has now completed its due diligence and finalized their agreements with Assan Aluminyum (Environmental and Social Action Plan). CAO received the findings of IFC's due diligence, and the action items set out in IFC's agreement with the company. We shared this information with the complainants in May 2009, and closed the case on a no objection basis in November 2009. CAO continues to monitor IFC's implementation of these action items.

References

Contributor(s): This article was modified by Nicolaclayre (3), Pic1 (2), and Kyle (2).