Investment in Turkey - Foreign Investment

LG to open 20 new stores in Turkey this year

LG Electronics Turkey President Christopher Kim has said the company expects to open 20 new stores in Turkey this year and to have 60 stores in the country by 2010.

Turkey now a major gold exporter on crisis

The country imported an average of 232 metric tons of gold a year from 2003 to 2007, GFMS said in a report on its Web site late Wednesday. Net exports in the first two months of this year may have exceeded total imports in the first half of last year, GFMS said.

Turkey imported about 76 tons of gold in the first six months of 2008, according to the Istanbul Gold Exchange.

Norwegian energy company plans to invest up to $1.2 bln in Turkey

Norwegian energy company, Statkraft, which acquired a 95 percent stake in a subsidiary of Turkey's Global Investment Holdings (GYH) on Wednesday, is expected to invest up to $1.2 billion in seven hydropower projects.

Turkey's Yesil Enerji holds controlling interests in seven hydropower projects with a combined installed capacity of 633 MW and an annual generation capacity of 2.1 TWh, the statement said, adding that development and construction of the seven hydropower plants is expected to require a total investment of up to 700 million euros ($1.2 billion)

Statkraft is Europe's largest renewable energy company, which develops and generates hydropower, wind power, gas power and district heating.

Turkey attractive, Mobius says

Mark Mobius, the investor who oversees more than $3.5 billion invested in Turkey, said Turkey, Egypt, China and Brazil are countries to invest in.

Emerging markets are more attractive compared to developed ones, as they will recover faster, Mobius, chief of Templeton Asset Management, said in an interview with Newsweek magazine.

"Investors are generally pessimistic and this is the time to start investing," he said. "The biggest danger ahead is pessimism, which is at its peak. This is the time to buy. I foresee a 20 percent increase in the emerging stock markets."

Templeton has $20 billion in emerging market assets.

Istanbul to have its first seven-star hotel

The first of the "Edition" series of hotels is going to be opened in Istanbul by the contract signed between Palmali Holding and Marriott Hotels. ’The Edition Hotel Istanbul' will offer seven-star comfort to its guests and will cost 100 million euros.

Palmali Holding, among the top five ship owner companies in the world, is going to build the 80 room hotel at the site of the former HSBC building on Büyükdere Street which they have bought from the Savings Deposit Insurance Fund, or TMSF. Palmali have acquired the building at the bidding opened at the end of 2007 for 93 million Turkish Liras and planning to open the hotel on Dec 15, 2009 after the renovation of both the interior and the exterior.

GSM firms plan to invest further in Turkey

The mobile communications industry in Turkey, which has reached a volume of $35 billion, is getting ready to play a leading role in the country's economy.

Global System for Mobile communications, or GSM operators are planning to invest $2.8 billion this year. The investments will also open employment for hundreds of people. The number of cell phone users in Turkey reached 65.82 million by the end of 2008. Satisfied with demand, all three GSM operators in Turkey are one after another announcing annual investment budgets and strategies.

Turkcell, the country's largest mobile-phone operator, announced it was planning to invest $1.6 billion in growth. The firm is also considering creating 1,000 new jobs. Meanwhile, Vodafone, which entered Turkey’s GSM market in 2007 after purchasing GSM operator Telsim for $6 billion, is planning to invest 1.3 billion Turkish Liras, or approximately $800 million, this year. Türk Telekom’s Avea mobile-phone unit plans to invest as much as 465 million liras, or $268 million, while increasing revenue this year, Avea Chief Executive Officer Cüneyt Türktan said yesterday.

Germany's EnBW to invest $1.25 bln in renewable energy in Turkey

The German power group EnBW wants to invest 1 billion euros ($1.25 billion) in renewable energies with a partner in Turkey, a press report said on Tuesday.

EnBW is the fourth biggest German power company, with 2008 sales worth more than 16 billion euros ($20.2 billion).

Giant investment from German investors in Erzincan

The rail fastener factory built in the eastern Turkish province of Erzincan by the German Vossloh Group, one of the world’s largest in rail infrastructure and rail technology markets, has been officially inaugurated with a ceremony. Peter Mertens, General Manager of Vossloh Fastening Systems GmbH, stated that the Erzincan facility will produce eight million rail fasteners and downstream products per annum.

Turkey, center of pharmaceutical researches

Pfizer, one of the world’s largest R&D investment making pharmaceutical companies, has signed a Key Strategic Center agreement with Hacettepe University. Having become one of the strategic centers of Pfizer’s global R&D studies, Hacettepe University will now have the opportunity to benefit from Pfizer's 150 year-experience. Melih Memecan, General Manager of Pfizer Turkey, regarded the agreement as a ‘birth’ and stressed that a crucial step has been taken towards attaching greater importance to pharmaceutical researches in Turkey.

Peugeot signals interest in investing in Turkey

Jean Philippe Collin, the CEO of French automotive giant Peugeot, has announced that the company is preparing to invest in Turkey as part of a new project.

Speaking at the International Geneva Motor Show last week, Collin said they are planning to manufacture a new car model and have already started conducting research and development. "We plan to invest in Turkey for a new compact sedan model. There are some problems in financing the project, and we will accelerate our studies as soon as we find enough money" he said.

Also, Jean Pierre Vieux, Peugeot Turkey Head, said they are determined to carry out the project that Collin described and that Turkey is close to being chosen as the destination for the manufacture of the new Peugeot model.

Meanwhile, Alfredo Altavilla, the Head of Auto Business Development at Italian vehicle manufacturer Fiat, said they achieved great success in Turkey with their partner Tofas. It was a joint venture between Fiat and Turkey's Koc Holding, taking the right steps at the right time. "If we can feel at ease today amidst the crisis, this is entirely because of decisions we made at the right time" Altavilla said, adding that Turkey has become a prominent production base for Fiat and that they have a good relationship with Tofas.

Cisco: Turkey signals “all green” in long term

Paul Mountford, President of the Emerging Markets Theatre for US networking giant Cisco Systems has said “We are proceeding with our USD 275 million investment in Turkey. Turkey ranks 6th in our investment plans. While we see the amber light in resilience to endure the financial crisis, it is all green in the long term.”

Iglo comes to Turkey for investment

Caner Tunaman, Turkey President of Iglo, who is currently visiting Turkey from the UK for the purposes of investing in the frozen-food market, said, “We initially plan to make a EUR 7 million investment”. Tunaman added, “We will create employment for 2,000 people in Turkey shortly”. He also stated that the company will make a EUR 30 million investment by switching to domestic production, as soon as the agricultural and technological conditions mature, noting that they will build factories in a number of locations, in order to switch to domestic production and that they may create employment opportunities for some 20,000 people by increasing the amount of these investments to EUR 100 million.

Toyota preferred Turkey

Toyota, the Japanese automotive giant, has chosen Turkey as its base for the production of light commercial vehicles. Turkey had the edge over countries like China, Japan and Russia, which were all candidates for the project. The new commercial vehicle will be produced in Adapazari. On the other hand, South Korean Hyundai has designated its new model to be produced in Turkey, as well. The new model will start to be produced in 2011.

Turkey seeks to boost investor confidence

The Financial Times - Turkey’s finance minister last week presented budget plans designed to reassure investors that the government would not deviate from its financial discipline. Kemal Unakitan, finance minister, also said Turkey would introduce fiscal rules to cement its commitment to budget discipline. He said the budget deficit would narrow from 1.5% to 1.2% of gross domestic product in 2009, with a primary surplus of 4% of GDP and spending growth in line with previously announced targets.

The budget – the first this decade prepared without the involvement of the International Monetary Fund – assumes growth will reach 4% this year and next. The IMF on the other hand predicts growth of 3% in 2009.

Budget plans will be finalised at the end of the year after discussion in parliament. Mr Unakitan also announced measures to stem the sell-off in Turkish assets and soften the impact of the global crisis. He said there would be extra help for small and medium businesses, a tax break for local investors in equities, and inducements for Turks to repatriate savings held offshore. Separately, the central bank stepped up measures to boost foreign exchange liquidity, saying it would double banks’ foreign exchange trading limits to a total $10.8bn from Friday.

Auto parts manufacturer Gates to invest in Turkey

The Gates Corp., one of the world's largest manufacturers of automotive and industrial products, will build facilities in Istanbul and Izmir, with a construction to start before the end of the year and production by 2010. The Prime Ministry Investment Support and Promotion Agency along with officials from Gates, a subsidiary of Tomkins PLC, announced the investment at a news conference Saturday in Ankara. The facilities in the districts of Gebze and Tuzla in Istanbul will serve as centers for gas liquids engineering and distribution, while the plant in the Izmir Free Trade Zone will focus on production of lubrication oil, pumps and belts for vehicles.

The facilities in Turkey will work primarily to satisfy demand from European markets, Gates President John Bohenick said at the news conference, noting Turkey's significance as a logistics center. "In terms of both its quality labor force and strong supply industry, Turkey is a very dynamic location for us," he said. "Besides, this country is a gradually developing production base for our customers."

Alpaslan Korkmaz, President of the Investment Support and Promotion Agency, was also happy to announce Gates' entrance into Turkey. Stating that the Gates' project is a greenfield investment, he said: "As Investment Support and Promotion Agency, we have offered them services from A to Z."

Gates operates 60 plants in 25 countries. Its income in 2007 was $5.8 billion.

Coca-Cola CEO states full confidence in Turkey

Coca-Cola Icecek CEO Michael A. O'Neill has said he believes Turkey will escape the current global financial crisis with very few losses. Speaking at the annual general meeting of the European Council of American Chambers of Commerce (ECACC), hosted by the Turkish-American Business Association (TABA/AmCham), O'Neill asserted that Turkey, a safe haven for investors, would overcome the crisis in a short period of time.

O'Neill said Coca-Cola Icecek had already invested more than $500 million in Turkey and that their investments will have amounted to $600 million with a new plant to be built in Elazig by the end of this year. He also noted that Coca-Cola increased its market share in Turkey by 11% in the first half of this year. O'Neill added that they trusted Turkey's potential, stressing that the markets around Turkey were home to 500 million consumers. He said they have recently decided to control their operations in five countries in this region from Turkey.

Turkey received an amount of $11.2 billion foreign capital in 8 months

The international foreign direct investment flow into Turkey in August 2008 amounted to $1.169 billion. During January-August period in 2008, international net direct investment inflow was around $11.235 billion. $843 million portion of the cash capital inflow which totally amounted to $886 million came from the EU countries.

Turkish government plans to remove withholding tax on local investors