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According to foreign reports, Cummins, the US power equipment manufacturer, will start construction of a new plant in the Aegean Free Trade Zone in Izmir province in Turkey from early 2011, and Cummins’ initial investment in the area will be US$70 million.
Cummins plans to first establish a filtration system factory in Turkey and then build an alternator factory. Cummins expects to start production in early 2012 and employ 800 workers within five years.
After conducting inspections at 20 locations in Asia, Africa and Europe, Cummins decided to open a new factory in Turkey. The new plant in Turkey will complement the production and logistics of France, Belgium and Europe. Cummins Turkey will export 85% of its products to the Middle East, Asia and Africa.
Cummins Filtration, President of Cummins Filtration, stated that Turkey is located at a non-junction of Europe and Asia and has a superior geographical location. Turkey has many qualified suppliers and a broad customer base, and will still have a price competitive advantage for a certain period of time.