Maysan Mando, owned 50 percent by South Korean automotive giant Mando, is launching a $120-million investment plan to produce Turkey's first domestic power steering, reports Turkish language daily, Dünya.
Detailing the investment, Maysan Mando General Manager Anıl Yücetürk said they received support from the government. He said that according to an analysis by Association of Automobile Parts and Components Manufacturers (TAYSAD), Turkey has the infrastructure to manufacture around 80 percent of the domestic automobile project at the moment. "With that with this project, that rate will go up to 85 percent," he said.
Maysan, founded in 1969,was one of the first Turkish companies to produce shock absorbers in the country. It was later named Maysan Mando in 1997, when South Korea's Mando Corporation acquired 50 percent stake agreement in the company.
Exporting to more than 70 countries, Maysan Mando produces shock absorbers for the Turkish Armed Forces as well as for global automotive giants like Tofaş, Ford Otosan and Renault.
The company has almost doubled its turn over with investments made over the past few years and plans to become one of Turkey's top 500 companies by posting a turnover of over TL 400 million ($97.30 million) this year. "The current indicators show that we will achieve this goal," Yücetürk said.
Maysan Mando also contributed parts to the Tesla electric car.
Reports claimed that the Tesla roadster American businessman Elon Musk sent to outer space also had shock absorbers made by Mando
"The Mando Group, which has a $7 billion turnover, is one of the most important suppliers in Tesla's autonomous vehicles project. Mando also produced four of Tesla's shock absorbers sent to space," Anıl Yücetürk said.
"Sub-components of the parts required for the shock absorbers and other brake tools for the Tesla vehicle sent to Mars were produced in 24 different Mando Tesla factories, including the factory in Turkey. As Maysan Mando, we produced the shaft, one of the important components of a shock absorber."
The company has also determined the location of the factory in Turkey, where it plans produce power steering.
Power steering produced by Maysan Mando will then be exported all around the world.
The details of the project will be announced in the coming days and the investment will likely be made in TAYSAD Organized Industrial Zone (TOIZ) or Bursa. Stressing that they will realize the first domestic power steering production in Turkey with this project, Yücetürk recalled that currently, all the current power steering systems used in Turkey come from the Czech Republic or Poland.
"This factory will close the current deficit of $350 million by using the locally produced system in all the vehicles exported to the European Union," Yücetürk said.
Pointing out that agreements have been signed with some companies for the local power steering and discussion were underway with several others, Yücetürk said the investment will be completed by 2019 and that it will contribute $150 million to total turnover, informing that the first shipment will be made to Hyundai Assan at the end of 2019.
Recalling that in electric vehicles, the steering wheel should also be electric, Yücetürk said they intend to take part in the domestic automobile project, which plans to be electric.
"We started working on localizing our suppliers for this project. We came together with the officials from the Ministry of Economy and the Ministry of Science, Industry and Technology. We received great support from our ministries and we are realizing this investment with their support."
Noting that this project will further develop Turkey's supplier portfolio, Yücetürk said there are two most important parts of the power steering, namely the electronic unit and the engine, adding that they are in talks to localize the engine as well. Yücetürk also said that the employment of 500 people will exceed 1000 with the new investment.
Announcing that Maysan Mando decided to transfer production of shock absorbers from Poland to Turkey, Yücetürk said they will make products for Audi, Mercedes and BMW and GM in Turkey.
Yücetürk also underlined that they have switched to industry 4.0 by realizing some important digital investments this year.