Abengoa (MCE: ABG), the international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, by its Industrial Residue Recycling Division, Befesa, jointly with the Prime Ministry Investment Support and Promotion Agency of Turkey (ISPAT), today announced two significant investment projects in Turkey.

The projects announced by Mr. Zafer Caglayan, Turkish Economy Minister, Mr. Ilker Ayci and Mr.Javier Molina, CEO of Befesa, consist of the construction of two plants for steel dust recycling based in Izmir and Adana.

Befesa operates in Turkey trough a JV with the Canadian listed company Silvermet Inc. This JV plans to invest around 120 million dolars in total in the construction of the two plants with a capacity for the treatment of 110,000 tons of steel dust of each of them, creating around 130 direct and over 200 indirect jobs. The facilities will produce over 80,000 tons of Washed Waelz Oxide, a zinc rich final product that will be fully exported.

The investment of Spanish Befesa will also bring significant environmental benefits. The facilities will be designed and operated using the safest and most environmentally-friendly technologies in order to recycle steel dust, a hazardous waste generated in production of steel from electric arc furnaces, and therefore minimizing landfilling. Today the production of this waste in Turkey is approximately 500,000 tons per year.

This significant investment will be financed using a combination of equity from the JV and bank debt from local Turkish banks.

The facilities will be located in Tire OIZ with a surface of 68.000 m2 and in Adana OIZ with 50.000 m2, two areas that presently enjoy a high concentration of steel producers. These facilities will add to the existing Befesa’s one in Iskenderun with a treatment capacity of 60,000 tons per year.

Mr. M. Ilker Ayci, President of ISPAT, who pointed out that Befesa and the Agency have been working together for the last 20 months, said; “This investment is very important not only for bringing technology, creating employment and contribution to Turkey’s export, but also contribution to the environment. Befesa has added Turkey to its existing operations in Germany, France, UK, Spain and Sweden. We are proud to win this investment for our country.”

Befesa CEO Mr. Javier Molina commented that “We are very glad to contribute to Turkey’s sustainable development in the field of recycling and recovery of industrial waste with this investment. I would like to thank to Mr. Ilker Ayci and his team for their efforts and contributions to this project since the very beginning, in 2011. Regarding our plans, we are now at the stage of obtaining all the necessary environmental and construction permits which would hopefully be obtained by early 2013. We have also started to contact local Turkish banks to discuss financing options. At the same time we are developing the detailed engineering and procurement of works and equipment, so we should be able to start operations on site on schedule. The execution time of the works is planned to be around 18 months and we estimate the second half of 2014 for the plants to be in operation.”

About Abengoa

Abengoa (MCE: ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste. (www.abengoa.com)

About ISPAT

The Investment Support and Promotion Agency of Turkey (ISPAT) is the government organization that mainly provides all relevant services to overseas businesses that want to locate in Turkey. Its range of expert services is tailored to the needs of individual businesses to maximize their international success. ISPAT provides the international investors with all the updated information needed for setting up or expanding a business in Turkey. By optimizing conditions for the business projects of international investors, ISPAT offers services which add value in a number of key areas. (www.invest.gov.tr)

Polyplex Corp. of India, a leading manufacturer of polyester film and the Investment Support and Promotion Agency of Turkey (ISPAT) have jointly announced an investment of USD 150 million to produce polyethylene terephthalate (PET) in Turkey. The production plant to be built in the northwestern province of Tekirdag will employ 250 people and is part of Polyplex’s strategy to cooperate with its large-scale industrial customers in Turkey and beyond.

“The plant will have capacity to produce 600,000 tons of polyethylene terephthalate per annum,” Kapil Gupta, Senior Vice President of Polyplex said at the press event in Istanbul. “Some 70 to 80 percent of this capacity, reaching about USD 1 billion, will be destined to export markets like the US, Russia and Europe,” said Gupta about the plant, which is scheduled to be operational by 2015. The fourth largest producer of polyester film in the world, Polyplex, will invest USD 150 million in the facility.

“Thanks to Turkey’s key location, this facility will serve both the Asian and European markets. We can easily meet the demands of Western European markets,” Polyplex official remarked. Polyplex plans another investment of USD 500 million in Turkey in the near future, according to Gupta, this time to produce resin raw material.

ISPAT President Ilker Ayci, for his part, said that the investment by Polyplex will make Turkey an exporter of a previously imported material. “Having actively taken part in Polyplex’s investment project, ISPAT is committed to expand the geographic span of countries that Turkey draws foreign direct investments (FDI) from, said Ayci. Turkey traditionally receives the majority of foreign investments from Europe and is intensifying efforts to lure investors from the Middle and Far Eastern countries. “ISPAT is represented in India by not only one, but two representatives,” ISPAT President noted. Aycı said Turkey expects to exceed USD 16 billion in FDI performance, and that Polyplex investment would help Turkey increase its FDI. “We could even break the 2007 record of USD 22 billion this year or next,” he added. The Agency has assisted in two large-scale investments in Turkey’s chemicals sector in the last six months; Dow Chemical’s USD 1 billion joint investment with Turkish company Aksa Akrilik to produce carbon fiber, and another Indian company, Aditya Birla’s USD 500 million viscose staple fiber plant in Adana.

Attending the press event, Turkey’s Minister of Economy Zafer Caglayan said that the Indian company’s decision to invest in Turkey will help bring down the country’s current account deficit. “Polyplex’s investment is a brick in the wall against the current account deficit,” said the Minister.

Source : Zaman

Turkey’s Prime Minister Recep Tayyip Erdogan has called on South Korean companies to invest in Turkey. Visiting South Korea’s capital Seoul for an international nuclear security conference, Prime Minister Erdogan met with the executives of South Korea’s topcompanies in a meeting organized by Turkey’s Ministry of Economy and the Investment Support and Promotion Agency of Turkey (ISPAT). The two countries also signed the framework for a free trade agreement.

Investment opportunities in Turkey and soon-to-be-announced incentives were topics of the talks held between Prime Minister Erdogan, the Minister of Foreign Affairs Ahmet Davutoglu, the Minister of Energy and Natural Resources Taner Yildiz, the Minister of Economy Zafer Caglayan, ISPAT President Ilker Ayci and the CEOs of South Korea’s leading companies with an annual cumulative turnover of USD 400 billion.

Prime Minister Erdogan, briefing company officials on Turkey’s economic achievements, invited South Koreans to invest in Turkey. “Turkey offers significant investment opportunities. The Turkish government is ready to take any measure to support foreign investors, including easing red tape,” Turkey’s Prime Minister remarked.

Erdogan paid special attention to the Hyundai CEO who mentioned a production increase in the company’s Turkish plant and inquired about engine production. “Turkey is a location for an automobile engine production plant,” said Erdogan. The car maker will raise its production to 200,000 vehicles per year, according to the Hyundai CEO. Turkey will soon announce a new investment incentive scheme that is expected to significantly increase foreign investments to the country.

Turkey and South Korea also signed a framework agreement, laying the groundwork for a free trade agreement (FTA) to be signed in the coming months. Signed by Turkey’s Minister of Economy Zafer Caglayan and South Korean Minister of Trade Park Tae-ho, the agreement will be finalized by June and is expected to boost trade between Turkey and South Korea. The trade volume between the two countries stands at about USD 7 billion.

Source : Sabah / Dunya

Record economic growth rate, declining unemployment and increasing foreign investments, point to Turkey’s becoming a “safe haven” for foreign investors. Foreign investment wise, the first months of 2012 saw the origins of investments that Turkey received shift to Asian and Middle Eastern countries. Up until 2011, Europeans were the leading foreign investors in the country.

More than 30 foreign companies invested in Turkey in the past three months, the latest entries being Indian tractor producer Sonalika, planning an assembly plant in Turkey, and British fair and exhibition organizer firm REED, acquiring stakes from Turkish Tuyap Fuarcilik.

Similary, French airport operator Aeroports de Paris Group acquired a 38 percent share in Turkish airport operator TAV last week for a deal of USD 874 million. The acquisition of 20 percent of the shares of the Iskenderun Port on Turkey’s Mediterranean shore is under negotiation between the port’s current operator Limak Holding and Luxembourg-based Inframinervois. Germany’s Phoenix Solar, Gehrlicher Solar and Soventix, all solar companies, entered the Turkish market via partnership with local firms.

The Middle East-based investors like Saudi Arabia’s National Commercial Bank partnered with ready-wear company Silk & Cashmere, while the UAE’s Agthia acquired Turkish spring water brand Pelit Su. Investors from the Far East such as Japanese steelmaker Toyo Kohan signed a partnership deal with Tosyali Holding to establish a JV to produce flat steel. Another Far Easterner, Malaysian Khazanah, bought 75 percent stakes of the Acibadem Hospitals Group via its subsidiary, Integrated Healthcare Holdings. The ruler of Brunei Sultanate invested USD 100 million in Turkish food giant Ulker’s vegetable oil company Marsa

Commenting on the increased investments to the country during the first months of the year, the Investment Support and Promotion Agency of Turkey (ISPAT) President Ilker Ayci said foreign investments in January alone reached USD 930 million, up from the level of USD 460 million in January 2010. “There is regional and sectoral diversification in investments we have received this year. We are aiming to surpass last year’s total of USD 15.7 billion, and to hit USD 20 billion,” he added.

Source : Sabah

Italian chocolate producer Ferrero launched a EUR 95 million investment to build a plant in Turkey’s Aegean province of Manisa. The groundbreaking ceremony of the plant, which is set to cover over 146,000 square meters of land, was attended by Turkey’s Deputy Prime Minister Bulent Arinc, the President of the Investment Support and Promotion Agency of Turkey (ISPAT), Ilker Ayci, Manisa Organized Industrial Zone Chairman, Sait Turek and the spokesman for Ferrero and former Italian Ambassador to Turkey, Carlo Marsili.

Set to be Ferrero’s 19th production plant worldwide once it becomes operational in 2013, the facility will provide direct employment for 200 people. The plant will initially supply the company’s well-known Nutella and Kinder line of products to Turkey’s domestic market. Ferrero plans to upgrade the plant to serve the Middle Eastern markets at a later stage.

Speaking at the ceremony, ISPAT President Ilker Ayci said that the investment will help Turkey become an exporter of a product group that it currently imports. Ferrero spokesman Carlisi, for his part, said that Manisa was the location of choice for Ferrero because of its close proximity to Izmir Port, as well as its developed transportation and infrastructure networks.

Source : Zaman