General Electric to invest $900 mln in Turkey by 2015
Speaking at a meeting in Istanbul, Turkish Economy Minister Zafer Caglayan said that General Electric Co. (GE) will invest $900 million in Turkey aviation, energy, health, transportation and infrastructure sectors, over the next three years, Zaman reported.
The minister said the new investments reflected investors' appetite for Turkey's recently introduced incentive package. Accompanied by GE Vice Chairman John Rice, Caglayan met with reporters to introduce the US giant's upcoming investments. Part of the investments will include the production of parts to generate wind energy, the minister added. Recalling that Turkey's electricity demand has increased exceeding expectations, he said it would be “logical” for GE to invest in the country's energy sector.
The US company will also boost its strategic cooperation with state-run locomotive manufacturer Turkiye Lokomotif & Motor Sanayi AS, known as Tulomsas, Caglayan said, adding that GE will benefit from a wide-ranging package of incentives offered to investors to boost local production. The incentives are targeted at narrowing the country's widening current account deficit (CAD).GE's Turkey affiliate, General Elektrik A.S., could start manufacturing turbines and parts in Turkey as well. Turkey's Locomotive and Engine Industry Corporation (TULOMSAS) and GE currently jointly manufacture high-tech locomotives in Eskisehir.
“We are focusing on infrastructure and innovation in Turkey. The company is negotiating with universities on plans for research and development and will provide specifics in the next few months. It was reported that GE, which sold an 18.6% stake in Turkiye Garanti Bankasi AS (GARAN) to Spain's Banco Bilbao Vizcaya Argentaria (BBVA) SA for $3.78 billion in 2010, has a 46% stake in Turkish Aerospace Industries, the Ankara-based maker of aircraft parts known as Tusas, and owns half of Gama Enerji AS, a Turkish power producer, among its six units with 600 employees in Turkey. The US company also makes health-care measurement and imaging devices, lighting equipment and power turbines.