German trailer manufacturers invest in new route: Turkey
German companies have added to a growing list of recent investments in Turkey’s transport sector with German Krone, which first established its own company in Turkey, opening its second plant in recent months after its first in Tire, Izmir. In the past few months Saf Holland also started production in the country after investing in a factory in Duzce and now a new German player has begun production in Turkey: Schmitz Cargobull, well known to the European market, has opened a factory in Adapazari.
Mile Mishevski, Turkey general manager at German trailer brand Schmitz Cargobull, emphasized that the company made the investment because it values the Turkish market. “We conducted market research and it was at the request of our customers that we should take our place in this market with our own facility,” he says.
F rst del very already made
Schmitz Cargobull, which ended a long-lasting collaboration with Enka Pazarlama last year, will officially open the plant in October. But production has started at the factory and even the first delivery in Turkey has been made: 10 units of Schmitz S. CS Mega Varios were added to transport company Me-Tol Nakliyat’s fleet.
Mishevski says the company will be closer to its customers, not only with the products it sells but also through the other services it is planning to provide, “We will take full coverage in the Turkish market. One of the full range activities is the most common and best after-sales service,” he says. “At the moment, [we have] signed after-sales service agreements in six places and will increase this to over 20 across Turkey. At the same time, interchange is the reality of today’s world and we will have secondhand ones available in our organizations just as we do in Europe. Apart from production and installation, we will provide service and spare parts in our Sakarya plant. The service made here will be an example to the other services.”
Four d fferent products to be made at the fac l ty
Schmitz Cargobull Turkey Sales Manager Nihat Ozmen Ayhan announced that the company operates in three main groups as Schmitz and, having started production of the tilt trailer, it is going to start assembling frigorific and dumper trailers. “Germany and Turkey production will be of the same quality. Our current capacity is designed to serve our customers in Turkey only. However, exports can also be on the agenda,” says Ayhan. The company has also started to supply from Turkey.
‘Investments transfom Turkey nto a reg onal product on base’
Turkish Trailer Industry Association (TREDER) Chairman Kaan Saltik emphasized that the roster of German investments will help to transform Turkey into a production base in the region.
“Global trailer producers and suppliers’ investments in Turkey are increasingly coming. I think this trend will continue,” says Saltik. “We are pleased with the investments and supporting them. As a result of these investments, Turkey is going to become the hub of the region. The trailer sector will take its place in the rise of the Turkish automotive industry,” he adds. “Investments have a positive effect on the sector because we are an industry that needs intermediate goods and we supply them from abroad. When the intermediate goods are produced in Turkey, the competitive environment will develop in favor of Turkey. As of today, Turkey has a trailer capacity of 60,000 units. We are expecting this capacity to reach 100,000. This amount of units makes Turkey the biggest producer after Germany. We also export 8,000 trailers.”
Krone’s only product on outs de Germany s n Turkey
German Krone, which established its own company in Turkey last year after separating from the domestic company with whom it had been operating, has opened its second facility after investing 35 million euros in its first factory in Tire, Izmir, which has a capacity of 10,000 trailers. The company has built a new chassis factory in an industrial area known as Tire Organize Sanayi where it will produce 10,000 chassis per year. Krone’s only production outside Germany is in Turkey. “Our group’s most modern factory is in Turkey. We are going to expand this investment even further,” says Krone Turkey CEO Riza Akgun. “We consider Turkey as a center from which we are reaching the Middle East, Iraq, Iran and Africa.”
Krone, which exports from Turkey, was ranked 64th in the automotive sector in the list of the first 1000 exporters in 2016. The company also opened a secondhand and spare parts center in Gebze, Istanbul.
Saf Holland to make Turkey hub
Saf Holland, which produces axles to the trailer sector, opened its factory in Duzce in March, and has since begun production. The company entered the Turkish market in 2011 after opening an office in Istanbul. In 2017, Saf Holland moved that office to Duzce, where it established the factory.
Bilal Azizoglu, general manager at Saf Holland, points out that the company has agreements with many different trailer producers in Turkey such as Tirsan, Serin, Koluman, Otokar and Krone and announced that it is planning to make a regional hub for production in Turkey. “Turkey’s production will be exported, first to the Middle East, Africa, Russia, South Africa and, if needed Central Europe,” says Azizoglu. “We want to expand our production range in the long term to increase the variety of trailer axle production. Besides, we are also aiming to produce products such as the fifth wheel for towing vehicles in Turkey.”