Home appliance giant BSH has kicked off the first phase of its 300 million euro investment in Tekirdağ’s Çerkezköy and the company expects to hire 1,000 employees within the next three to five years.
Today’s Zaman reports that BSH has opened its new refrigerator and dishwasher production facility, the first part of a 300 million euro investment for the following five years. Today’s Zaman spoke with BSH Turkey’s executive board director, Johannes Narger, and BSH Turkey CEO Norbert Klein to learn about the details of the new investment and the company’s future prospects. The two top managers in the company say they have faith in the Turkish market’s potential and are keen to expand business in the market in the years to follow. “We are focused on regional development and investment in Turkey, particularly R&D has an important place in such achievement. We have a long-term perspective for Turkey. There is remarkable potential here and it is a major export hub for surrounding markets. Turkey is one of the two most important investment hubs for our company along with China,” Narger said.
Sixty percent of the products from Çerkezköy are shipped abroad, mostly to European markets. Klein said they are going to finalize the construction of a new R&D center and a logistics center in the first quarter of 2012. “With the business expanding we will hire 1000 new employees in following three to five years for our Çerkezköy facility,” Klein said, adding that the annual production capacity of large domestic appliances will be 6 million units when the facility operates at full capacity. He said they will begin production of small household appliances in September.
As regards to R&D studies, Klein said the company has shown a good example of healthy cooperation between the private sector and universities. “We are cooperating with İstanbul Technical University and train students from there. We are proud of the job done by local engineers.” Klein said they make 70 percent of their shipments by sea transport (containers), which is relatively cheaper. “This increases our competitive power,” he noted.
The Turkish home appliance market grew by 20 percent in the first five months of this year. BSH expects an 8 percent growth over 2010 by the end of this year. Klein said they expected to grow by 5 percent on average in the next five years. “We are the number one home appliance producer in Europe and number two in Turkey. We have increased our market share from 22 percent to 31 percent in the past seven years,” he added. BSH is the seventh largest foreign investor in Turkey and produces 3.6 million units per year. The company exports 60 percent of their products.
Speaking at the inauguration ceremony, Industry and Trade Minister Nihat Ergün said the government is happy to see the company investing in Turkey. “We will bear the fruits in the middle and long run. This investment is a clear indication of foreign entrepreneurs’ faith in the fast-growing Turkish market,” Ergün said. “We call on you to promote Turkey’s potential abroad and invite other investors to our markets.” The minister underlined the importance of maintaining political stability to continue a stable economic growth in Turkey, a message ahead of the approaching general elections.
