Chinese carmaker Chery Automobile Co., Ltd., will start construction of an auto factory in Turkey later this year, the company’s Turkey distribution partner said recently, local media reported.
Mermerler Automotive General Manager Murat Mermer has said Chery International’s plans to open a Turkey factory are in their final phase, “because everything has been calculated, and we are currently exchanging views on the details,” according to Today’s Zaman.
Mermerler Automotive’s several top executives attended the recent 2010 Beijing Auto Show. Chery International General Manager Zhou Biren accompanied Mermerler officials at the exhibition as they examined Chery models of display.
The estimated cost of the Chery factory is $500 million. It will be established on 2 million square meters of land. The Mermerler Group will hold a 50% share in the plant if it is successfully established in Turkey.
A possible location is Sakarya’s Karasu district, but a swamp in the middle would increase construction costs by roughly $150 million. The other option is Eskişehir. Construction will start later this year.
Mermerler has been importing the Chinese cars to Turkey since 2006. By building a plant in Turkey, Chery would be able to use the Turkish market as a gateway to other European markets.