1/18/2008

Finnish Componenta expands in Turkey

Turkish Daily News - Finnish metal sector company Componenta is expected to invest some 9 million euros to expand its casting facilities in Orhangazi near Bursa. Componenta had bought Turkish listed company Doktas in October 2006 for 89 million euros, making it the largest Finnish investment in Turkey to date. The investment in Turkey is a part of Componenta's plan to invest 12 million euros in expanding its casting capacity in Karkkila, Finland and Turkey, Heikki Lehtonen, the company's chief executive officer, told the Turkish Daily News. "The expansion of our casting capacity in Turkey will make nearly 75 percent of the total investment," Lehtonen said. Due to the expansion of facilities the total casting capacity of Componenta, Doktas in Turkey will increase from approximately 140-180,000 tonnes a year. The new facilities are expected to be up and running by September 2008. The new facilities are also expected to boost employment in the Bursa region by creating 100-200 new jobs in Orhangazi. The reason behind Componenta's decision to expand its capacity is the strong growth of its order volume. Order stock in 2007 increased by approximately 35 percent. There are two main reasons for the increased need for iron and aluminium components, said Lehtonen. "The boom in infrastructure in China, India, Latin America and Easter Europe is boosting iron component business on macro level," said Lehtonen. "In addition the growth of the automotive sector in Turkey is increasing our sales domestically," he added.

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