Chinese Carmaker BYD to Build Large Factory in Turkey

Chinese Carmaker BYD to Build Large Factory in Turkey

Chinese electric carmaker BYD on Monday struck a deal with Turkey to open a major factory in the country.

The construction of the production facility is worth 1 billion dollars. The signing ceremony in Istanbul between BYD CEO Wang Chuanfu and the Turkish Minister of Industry and Technology, Fatih Kacir, was attended by President Recep Tayyip Erdogan.

The new factory should be able to produce 150,000 cars per year. It will also have a research and development centre and employ 5,000 people.

Last week, the EU raised import duties on Chinese electric cars. For BYD, the world’s largest manufacturer of electric vehicles, this punitive duty has been set at 17.4 percent. The duties are intended to end the unfair competition that would arise because China subsidizes its manufacturers.

The new plant will give BYD easier access to the European Union, with which Turkey has an economic partnership. Major car manufacturers like Fiat and Renault opened factories in Turkey in the early 1970s. Later, Ford, Toyota, and Hyundai followed suit, taking advantage of Turkey’s position as a crossroads between Europe, Asia, and the Middle East.

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