Chinese Auto Giant to Invest $500 Million in Turkey
Author: haberturk Posted May 10, 2012
China's Chery Automotive Group will invest $500 million in Turkey in three phases over the next five years, said Murat Mermer, deputy chairman of the board of Mermerler Automotive Company, the distributor of Chery in Turkey. Mermer was hosting Chery company Director Wang Ke and the regional manager, Yankun He.
Mermer said that Chery is in the last phase of its feasibility study in Turkey, and the new investment incentive plan has made Turkey their favorite. “The new incentive system has attracted much attention from our Chinese partner. Our Chinese colleagues who are visiting Turkey will submit a report to their upper management. We are 90 percent done.”
Chery has been planning to enter European and Middle Eastern markets, starting with Iran. Chery is impressed by the logistical facilities available in Turkey and is planning to erect an engine factory and an assembly plant.
“A $500 million investment will be made over five years and in three phases. Plans for the engine factory are ready. There will be no diesel engine production, since gasoline is cheap in China. Engines and transmissions will be built by the German FEV company in partnership with Chery and the Mermerler Automotive Company at a factory in Corlu, west of Istanbul,” Mermer said.
Harking back to Prime Minister Erdogan’s call for a Turkish car, Mermer said their partnership will pave the way for such a car. “Through the benefits we will earn from positive aspects of the incentives plan, our partnership seeks to produce a Turkish car,” he added.
Chery investments in Turkey will provide employment for 2,700 people over five years. Including side industries, the number of jobs could reach 10,000. Mermer concluded by saying this is a very serious investment in Turkey, but that qualified Turkish manpower will be able to meet all of the demanding needs of the automotive industry.
Read More: http://www.al-monitor.com/pulse/business/2012/05/chinese-chery-picks-turkey.html