Turkey to produce advanced car engines

Dünya Executive - - BUSINESS - MEHMET KAYA

Last week, after hosting General Manager of Oyak-Renault, Antoine Aoun, Industry and Technology Minister, Mustafa Varank, announced an investment of more than 100 million euros to launch the production of aluminum engines for the first time in Turkey. The groundbrea­king of the factory will be held in Bursa on October 19.

Varank underlined that the engine blocks will be produced with the latest technology. “The investment, which is a big step for our automotive industry, will offer significan­t contributi­ons to value-added production, employment and exports. In addition, it is expected to contribute $2.3 billion to the reduction of the current deficit,” he added.

Mostly for export

Oyak-Renault’s investment was also included in the list of super incentives announced on April 9 by President Tayyip Erdogan and will begin with the aluminum injection factory, the most important part of the investment project. Under the project-based incentive system, an investment consisting of engines and components for new generation hybrid vehicles is being implemente­d. Most of the products made in the factory will be exported.

“Negotiatio­ns with Turkish companies are continuing for the domestic supply of aluminum to be used in production,” Varank said. “Therefore, we will make the best possible use of our domestic resources. We offer extremely attractive incentives for our investors. There is no discrimina­tion between domestic and foreign investors. Turkey has serious potential and we will evaluate the potential in the best way and will serve the structural transforma­tion of the economy. In the cur- rent global environmen­t, with its trade wars, we continue our way with stronger steps. This new cooperatio­n will bring significan­t benefits for both sides. We hope that the company will also produce the first hybrid car models in Turkey.”

Aoun underlined that Oyak Renault is the leading automobile manufactur­er in Turkey and exports to 70 countries around the world. “Turkey is a very important country for the Renault Group, which trusts in Turkey and makes investment plans in Turkey based on this trust,” he said.

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