Turkey's recently announced TL 135 billion ($32.96 billion) project-based incentive system, or the "super incentive package," will support production in energy, healthcare, manufacturing, petrochemicals and metallurgy. The initiative is expected to decrease Turkey's current account deficit by $19 billion and boost output in high technology and medium-high technology products that are usually imported. According to Economy Minister Nihat Zeybekci, around 75 percent of incentives, worth around TL 95.6 billion, will go to high and medium-high technology products.
These investments will focus on the production of electric battery, drug-eluting stent, energy systems and hybrid engine production, the minister said.
Zeybekci recalled that project-based investment incentive system will support a total of 23 projects from 19 companies and that four of these projects involved high technology, 13 were in medium-high while the rest were in medium-low technology level.
He said that high and medium-high technology investments will reduce Turkey's external dependence in this areas.
Explaining that Turkey has current account deficit because of high-tech products imports, Zeybekci said that while the importance of high value-added products based on technology and innovation increases in global trade, Turkey's competitive power in the international markets will improve with the project-based incentive system.
Zeybekci said that high and medium-high technology investments will increase Turkey's power in the global economy.
"While the incentive system is expected to create a positive impact of $19 billion on the current account deficit, we estimate that the contribution of high and medium-high technology investments alone to the current account deficit will be $16 billion annually," he said.
The minister added that Assan, BMC, CFS, Dow Aksa, SASA, Most Makine, Metcap Energy, Oyak Renault and Vestel will realize medium-high technology investments, while Alvimedica, Atayurt, Ekore and Turkish Aerospace Industries (TAI) will undertake high-tech investments.Zeybekci said that Vestel will make the largest investment in high and medium-high technology to be supported under the investment incentives with a project worth TL 28.4 billion for electric vehicle energy storage systems, adding that the project was expected to make the largest annual contribution to the current account deficit with $4.6 billion.
Zeybekci added that Oyak Renault's hybrid engine production project is another high-tech investment that will make the largest annual contribution to the current account deficit with $2.3 billion.He said that high and medium-high technology investments will make a great contribution to employment and that direct employment of 29,671 people is expected along with the indirect employment of 113,664 people with the high-tech investments.