Caterpillar wants hub in Turkey

ISTANBUL - Hürriyet Daily News

Industry Minister Ergün (R) examines a model presented to him by Levin, Caterpillar emerging markets president. AA photo

Richard Levin, the emerging markets group president at Caterpillar, recently held a meeting with Industry Minister Nihat Ergün to discuss the company’s investment plans, a step bringing Turkey closer to being the regional production base of the giant construction and mining equipment manufacturer.

Ergün first announced that Caterpillar was preparing to invest in Turkey during his trip to Boston late June. The news comes as the government accelerates its efforts to promote its sweeping incentives scheme around the world to attract foreign direct investment.

“Caterpillar’s investment in Turkey will probably not be around $50-100 million. It could be an even larger investment like $1 billion,” Ergün had said at the time.

“Turkey has strategic importance in the region. We target reaching not only the Turkish market, but also the regional markets,” said Levin, who was also briefed about the incentive system in Turkey by Ergün, according to the Anatolia news agency.

Levin said that there were very important opportunities in Turkey, adding that Caterpillar was planning to invest in Turkey alone or with a Turkish partner.

“Our company is not only making production but also making designs, developing products and pursuing research and development activities,” said Levin.

Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. With 2011 sales and revenues of $60.1 billion, the company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.