KfW Ipex, a profit-making arm of the German development bank, has provided finance to clean up two existing manufacturing centres.

The bank loaned €21.2mn to an integrated steel works in Karabük, Turkey, operated by the country’s seventh largest steel producer, Kardemir.

The loan has a tenor of 10 years on completion and will be used to purchase a basic oxygen furnace (BOF) from German company SMS Siemag and allow for the plant to be fitted with an efficient flue gas cleaning system and a converter gas recovery unit which will reduce fresh water requirements in closed cooling circuits. The plant is part of Kardemir’s plan boost its steel production from 1.8 million tonnes a year this year.

In Israel KfW Ipex and Landesbank Baden-Württemberg (LBBW) have combined to lend €150mn for the modernisation of six coal-fired power plants. The upgrade will reduce nitrogen oxides emitted by up to 92%.

The tenor of this loan is 12 years and the German SME Babcock Noell will provide the equipment needed to reduce the plants’ emissions. The borrower is IEC, the Israeli state-owned energy provider which accounts for most of Israel’s power supply.