A new-generation, high-pressure petrol injector production facility to be built by German giant Bosch in northwestern Bursa province will achieve $185 million in annual exports and cut down the current account deficit by $230 million, Industry and Technology Minister Mustafa Varank said late Tuesday.
Varank's remarks came after he received Bosch Turkey and Middle East President Steven Young in his office.
Varank said Bosch Turkey's production facility, to be completed in five years, would play an important role in reducing the current account deficit, adding this new high-pressure gasoline injector production facility in Bursa, which would be worth $1.2 billion, would achieve $185 million in annual exports, thus getting ahead of the $45 million in imports.
"We aim for this investment to contribute $230 million to the reduction of the current account deficit," Varank continued. "We are pleased that Bosch has chosen Turkey for new investments. All companies that contribute to our economy by investing in Turkey, developing technology and creating employment are our companies. We do not distinguish between foreign and domestic investors. We hold all of them in high esteem."
Yasin Akdere, the director of government and foreign relations at Bosch Turkey and Middle East, was also present at the meeting, which mainly focused on the new-generation, high-pressure gasoline injector production facility included in the project-based incentive system with the approval of President Recep Tayyip Erdoğan.
Young also expressed satisfaction with the support provided for the facility, noting that the products will be important for Turkey and other countries.
Young recalled that Bosch Group had been working in Turkey for more than 100 years, saying: "Turkey is also an important production, export and R&D hub for Bosch. This investment will further strengthen our presence in Turkey."
Varank on Friday said the project-based incentive system will reduce the current account deficit by $1.2 billion.
In a Twitter post, Varank noted that the incentive system - approved on Friday by Erdoğan - will provide four new investments worth TL 8 billion ($1.51 billion).
"Nearly 4,500 people will be employed [within the new incentive system]," Varank noted.
In April, Erdoğan announced a set of incentives worth TL 135 billion ($25.46 billion) to support 23 projects by 19 selected Turkish firms.
The incentives aimed at encouraging more investment in the country, as well as supporting firms in several areas including health, defense, automotive, mining and metal sectors.
Incentives were estimated to add 169,000 jobs to the economy.