Chery to Begin Turkish Plant Construction This Year

Chinese carmaker Chery Automobile has already announced plans to set up a production plant in Turkey and, according to company officials, construction will start by the end of the year. Sedat Pirolu, an official at the Mermerler Group, Chery's Turkey distribution partner, said the Turkish market is continuously growing when it comes to models manufactured by Chery, with annual sales reaching 5,000 units so far.

The company is already searching for a site to host the future Chery plant and Pirolu says the land is projected to be acquired by the end of the year. The factory is scheduled to begin operations in two or two and a half years.

According to the Mermerler official, Chery will use the Turkish plant to target several European markets, not only the local one. All models will comply with European Union regulations, he said.

"The Chinese 'Chery" automotive firm has applied to Turkish authorities to make US$500 million of investments in Turkey, and open to world markets via our country," Turkey's Industry & Trade Minister Nihat Ergun said at the Frankfurt Motor Show in Germany last month.

Chery Automobile Co. is ready to invest up to $500 million for the new facility in Turkey but further details are yet to be announced. It appears that two Chinese executives have visited the northwestern province of Sakarya in January 2009 to find a site for the construction of the new factory, the aforementioned source informed citing Anatolia news agency.

The factory will have a production capacity of 100,000 vehicles and will employ between 5,000 and 6,000 people.