China's FAW Haima to invest in Turkey's İzmir city

FAW Haima Automobile, a Chinese automaker producing passenger cars and commercial vehicles, is planning to invest in Turkey's western city of İzmir.

"Investing in new locations paves the way for development," said Qin Quanquan, general director of FAW Haima, speaking during a ceremony held by the İzmir Chamber of Commerce, or İZTO, on Wednesday. FAW Haima may provide employment for up to 5,000 people, in case of a large-scale investment, Quanquan said.

Earlier in the week, Quanquan and other company officials flew over İzmir with a helicopter to observe the city and figure out areas with investment potential. The group from FAW Haima examined also organized industrial zones of the city including the Aegean Organized Industrial Zone and held talks with producers operating in the automotive supply industry.

The investment planned for İzmir will be the company's first investment abroad, according to company officials. The company will decide the size of the investment after the feasibility report is prepared.

The investment budget and the possible employment figure will be determined after some much needed technical studies, according to Ömer Çardak, general director of MGY Otomotiv, the Turkey distributor of Haima and DFM, a Chinese automobile manufacturer. The investment will be in İzmir, Çardak said, adding that this is the one and only information about the investment.

MGY Otomotiv is bringing Haima to Turkey, said Gökhan Yeşilkaya, board chairman of MGY Otomotiv. Chinese companies choose to invest in Turkey among some countries such as Russia, Egypt and Iran, Yeşilkaya said.

FAW Haima preferred İzmir as the investment location among other cities such as Konya and Gaziantep, said Yelişkaya, adding that Haima's İzmir decision will also positively affect DFM. "We had another investment project with DFM. Now, Haima is also coming to Turkey. Two companies' investment plans are on the agenda. We also want DFM to produce in Turkey," Yeşilkaya said.

"İzmir will benefit much from the FAW Haima's decision to invest in İzmir," said Ekrem Demirtaş, chairman of İZTO. Chinese companies consider İzmir as a base to enter the Middle East, the Caucasus and Europe markets, Demirtaş said. İzmir is preferable due to its supply industry capacity, logistic support opportunities and its infrastructure, he added.

Haima is a subsidiary of the FAW Group, Chine's first and largest automobile manufacturer producing light-, medium-, and heavy-duty trucks, automobiles, buses and all other auto parts. The company, which has annual production capacity of 150,000 units, plans to increase this figure to 300,000 in a short period of time. The company currently employs 3,000 people. FAW Haima, which is one of the 500 industry entrepreneurs in China, ranks among the top 100 in machine industry investments.