Report: Attractive investment environment pushes international companies to expand in Turkey

Report: Attractive investment environment pushes international companies to expand in Turkey
Report: Attractive investment environment pushes international companies to expand in Turkey

leave press

A report by the Turkish Anadolu Agency indicated that international companies operating in the furniture, textile, pharmaceutical and packaging sectors have recently started directing their production and investments to Turkey.

After the turmoil in the global trade movement due to the Corona outbreak, the economic recovery phase that followed the pandemic witnessed the emergence of new problems that impeded the smooth rotation of the wheel of the economy. According to Anatolia.

The report continued: With the start of the economic recovery phase, the disruptions that affected the production chains, especially in Asian countries, led to the emergence of a deficit in the face of the increasing demand.

The huge increase in long-distance transportation costs has also made Turkey an attractive investment and production center for many foreign global companies, especially European suppliers from Asian countries such as China.

In this context, many European companies, led by the famous Swedish furniture company IKEA, and Poland-based LBB ready-made clothes, directed their supply centers to closer and more stable regions such as Turkey.

The same applies to the German pharmaceutical company “Boehringer Ingelheim” and the packaging company “DW Rosabels” international, based in Belgium.

** investment plans

Over the past weeks, several European-based international companies operating in fields such as furniture, pharmaceuticals, textiles and packaging have announced their new investment plans in Turkey, which has strong infrastructure and logistical opportunities.

Karim Neshel, Deputy General Manager and Chief Financial Officer of IKEA in Turkey, announced that the company plans to buy more products from Turkey and increase its current production.

Neshel added, according to Anatolia, that “Ikea” will manufacture and export chairs, bookcases, clothes, kitchens and their accessories in Turkey.

In turn, LBB announced that it is working to transfer part of its production capabilities from Asia to Turkey, due to the latter’s proximity to Europe.

LBB officials stated that they held meetings with representatives of the Turkish textile industry, and that despite the high production costs, in Turkey it remains more beneficial in terms of investment, as well as in terms of transportation and ensuring the continuity of the supply chain.

In turn, the German pharmaceutical company, “Boehringer Ingelheim”, revealed its intention to make major investments in Turkey.

According to media reports, “Boehringer Ingelheim” has started a project to localize its production in Turkey, in cooperation with the local “Abdi Ibrahim” company for pharmaceutical products.

She indicated that the company intends to manufacture pharmaceutical products for diabetes, central nervous system and cardiovascular diseases in Turkey, in addition to conducting a range of clinical research and drug studies.

It was reported that the German company will initially invest 150 million liras ($17 million) in Turkey, and this amount is scheduled to rise to one billion liras ($113.63 million) in the future.

For its part, the Belgium-based international packaging company, DW Rosabels, announced the directing of a group of its commercial activities to Turkey.

While “DW Rosabels” bought the Turkish companies “Etape Engeksion” and “Etape Dogan” for the production of boxes, pallets and containers used for storage and transportation purposes, it plans to export a large part of its products to Turkey.

These companies are trying to overcome the rise in freight rates globally, and to take advantage of the attractive investment environment in Turkey, to restore stability to their industries and supply chains to Europe, Asia and Africa.

 
For Latest Updates Follow us on Google News
 

PREV Wall Street rises with support from US retail data and results
NEXT Aluminum jumps to its highest level since 2008