China's largest-listed telecommunications equipment and network solutions provider, ZTE, agreed Wednesday during a signing ceremony in Ankara to invest more in Turkish telecoms company Netaş.
According to the new deal, the Chinese company will open three new centers in Turkey including a center of excellence for its GSM-R development, center of maintenance, repair, and support for the Europe, the Middle East and Africa (EMEA) region and a training center called ZTE Netaş Academy for the EMEA region.
By investing in Turkey, the products of the investors can join a $30 trillion market and reach 1.5 people in 56 countries with a maximum four-hour flight, Prime Minister Binali Yıldırım said during a signing ceremony in the capital Ankara.
To reach its 2023 targets, Turkey must carry out its economic development program, Yıldırım said. "We have to focus on information and communication technologies," he added.
Yıldırım said Turkey must have some domestic software development platforms. "If Turkey cannot have these platforms, in real terms, we cannot have technology, knowledge. [...]Our next priority will be the development of these platforms."
"Turkey wants to realize a more comprehensive railway infrastructure project with China, and there are joint efforts being conducted in this regard by the two countries," Prime Minister Yıldırım said.
"I hope that in a short period of time, we will come to a point where both countries will be satisfied and thus, the 'Belt and Road' project will enter a more meaningful period," said Yıldırım.
Yıldırım emphasized that China is an important trade and technology partner of Turkey, indicating that they are carrying out important work to improve commercial-cultural relations, while developing physical infrastructure.
Meanwhile, ZTE Corporation Chairman Yin Timin said: "The investment in Turkey's Netaş is ZTE's largest investment abroad at a single time."
"Our goal is to make Netaş and Turkey our technology hub in the Europe, the Middle East and Africa (EMEA) region," Yin added.
The chairman said he believed the value of Netaş would be over $1 billion with the support of the Turkish and Chinese governments, customers and investors in the next five years. Yin has not provided any financial details about the new investment.
Netaş CEO Müjdat Altay previously said the new stakeholder structure would facilitate the company accomplishing its global goals.
The investment by the Chinese company is one of the biggest investments made for technology development purposes in Turkey, the Netaş CEO emphasized. As one of the pioneering patent holders in informatics, ZTE has invested in Turkish engineers, the country's potential to develop technology and the outstanding growth performance of Netaş since 2009.
Last December, ZTE announced that it had agreed to buy 48.04 percent of Turkish systems integration provider Netaş Telekomunikasyon A.Ş. for TL 358 million ($101.3 million) as part of its goal of expanding its operations across key markets covered by Beijing's "One Belt, One Road" initiative. The stake acquired by ZTE was formerly owned by OEP Turkey Tech BC, managed by One Equity Partners.
Netaş, which is celebrating its 50th anniversary this year, is a major manufacturer and supplier of telecommunications equipment and systems integration services to enterprises and telecommunications network operators in Turkey and the Middle East.
The Turkish Armed Forces Foundation holds a 15 percent stake in the publicly listed company.
