Turkish-French auto manufacturer Oyak-Renault laid the foundation of its high-pressure aluminum injection molding plant in northwest Turkey's Bursa Friday.
The $115-million plant will produce aluminum engine blocks for the company's new generation of hybrid vehicles, Turkey's Industry and Technology Minister Mustafa Varank said in the groundbreaking ceremony.
"The plant investment was made under the project-based incentive system," he added. Varnak said that the products made at the plant would be exported. "It [the plant] will contribute to employment and exports while reducing Turkey's current deficit of by $2.3 billion annually."
Necessary parts in the engine block production will be provided by domestic manufacturers and suppliers, the minister said.
Renault Senior Vice President Nicolas Maure said that the plant was the first step in the company's future investment plans in Turkey.
Maure added that the company has renewed its partnership with Oyak for another 27 years.
Oyak-Renault, founded in 1969, produces some 360,000 cars and 750,000 engines annually.