Caterpillar keen to produce in Turkey

BOSTON - Anatolia News Agency

A possible Caterpillar investment in Turkey may be around$1 billion, Ergün says. AP photo

U.S.-based construction and mining equipment firm Caterpillar is preparing to invest in Turkey, Industry Minister Nihat Ergün said yesterday during his trip to Boston.

“After I come back to Turkey, Caterpillar’s president is going to come ... We believe they are very serious about investing in Turkey. Caterpillar’s president will conduct a study about the production of construction equipment. Maybe they will search for a local partner,” said Ergün.

“Caterpillar’s coming to Turkey means that they will be able to export to many other countries in the region. Caterpillar’s investment in Turkey will probably not be around $50-100 million. It could even be an even larger investment like $1 billion,” he said, adding that Turkey had suggested that they not only invest in production, but also in Research and Development (R&D).

Ergün said Turkey was not only attractive to investors like Caterpillar because of its new incentive scheme, but also due to its stable economy.

“Incentives are important, but they alone aren’t enough. If Greece were to offer ten times more incentives than us, investors still wouldn’t come. Incentives are only important when they are coupled with sustainability,” he told the Anatolia.

Ergün also met with several pharmaceutical giants during his visit to Boston for the International Biotechnology Fair including Merck, UCB, and Amgen. Ergün said that Merck, which is already active in Turkey, is considering expanding its investments. Amgen recently purchased Turkish pharmaceutical company Mustafa Nevzat for $700 million. This purchase has inspired other large pharmaceutical firms to invest in Turkey, according to Ergün.