French Total re-enter Turkey via automotive sector
by Kerim Ülker
ISTANBULMay 11, 2016 - 12:00 am GMT+3
by Kerim Ülker
May 11, 2016 12:00 am
French energy giant Total, which withdrew from the Turkish energy sector by selling its filling stations to Demirören Holding last month, has returned to Turkey after a short recess. Total re-entered Turkey's automotive supply industry where its subsidiary, Paris-based Hutchinson SA, will produce car parts. Hutchinson SA, which is known for its production of hoses for steering systems in the automotive industry, has come to an agreement with Turkish firm Bantboru. Accordingly, Hutchinson SA and Bantboru will collaborate on the production of pipes and hoses used for hydraulic steering, air conditioning systems and fluid systems used in cargo trucks, pickup trucks and commercial vehicles.
Originally established to produce bicycle tires in 1853, Hutchinson SA was purchased by Total in the 1970s. It employs more than 35,000 employees in 96 facilities in 23 countries, and its turnover was nearly 5 billion euros last year.
Bantboru, which is the first Turkish company in the sector, began production in 1972. It exports goods to many countries from China to the United States. It was engaged in cooperation with Ford in the Transit Connect model and with Renault in the Clio model. It manufactures parts in a 15,000-square-meter area in Gebze, Istanbul, and works with automotive companies like Hyundai, Land Rover, Mercedes-Benz, BMW, Fiat and Isuzu in addition to home appliances producers such as Arçelik.
With the fall in its profitability in gasoline due to the decline in oil prices, Total decided to withdraw from the Turkish energy sector last year. Total, which entered Turkey in 1992, is the world's fifth-largest energy company and employs a total of 10,000 staff. The number of Total's filling stations in Turkey was more than 440. Total sold its filling stations, commercial, procurement and logistics assets for 325 million euros to Demirören Holding in April 2016.