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Magna to invest $500 million in Turkey

The chairman of Turkey’s Investment Support and Promotion Agency, Alparslan Korkmaz, and his team have persuaded Magna International, the most diversified automotive supplier in the world, to invest in Turkey after nine months of negotiations reports Todays Zaman.

According to sources in the automotive business, the Canada-based Magna will spend $500 million to initiate operations in Turkey in the near future. The same sources say it has already started to look for a site in İzmit, an industrial zone in the Marmara region of Anatolia. Magna develops and manufactures automotive systems, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. Korkmaz and his team made great efforts to persuade the global company to invest in Turkey because, in the meantime, Slovakia, Romania and Poland were also vying to attract Magna.

Magna had turned down Romania and Poland as alternatives and was trying to decide between Turkey and Slovakia. A statement from the Investment Support and Promotion Agency said that Turkey’s wide supplier network, efficient logistics infrastructure and the high potential of the region’s automotive business were the main factors affecting Magna’s decision. Once constructed, the manufacturing plant is expected to employ at least 3,000 people initially, in addition to mobilizing the industries related to auto manufacturing. Ultimately, the factory will trigger billions of dollars of business and contribute much more to the economy than just its normal establishment expenditures.

Magna’s capabilities include design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and chassis systems; mirror systems; exterior systems; roof systems; electronic systems; and power train systems as well as complete vehicle engineering and assembly. They have 240 production centers and 62 engineering and research and development centers in 23 countries. (todayszaman)