Turkey’s Sabancı Holding to invest $1.3 bln in 2017

ANKARA - Anadolu Agency

REUTERS photo

Turkish conglomerate Sabancı Holding has plans to make 4.5 billion Turkish Liras worth ($1.25 billion) of investments in 2017, the group’s CEO said Feb. 24.        

The holding has plans to invest 4.5 billion liras in Turkey throughout 2017, up 0.4 billion liras ($110 million) or 10 percent from last year, Zafer Kurtul said at a Sabancı Group annual briefing meeting where last year’s financials were announced. 

Kurtul said nearly 80 percent of this amount would be channeled into expanding production capacity while the remainder would be set aside for technology investments.        

He said they expect calmer market conditions in Turkey and a recovery in other macro-economic figures.       

“Thanks to measures introduced in the last quarter of 2016, our GDP growth forecast was 2.6 percent for the last year,” Kurtul said.        

“We expect 2017 to be a better year than 2016 in exchange rate volatility, economic growth and recovery in unemployment,” he said.        

Kurtul said the better part of the announced investment amount would be used to expand capacity in cement, tire and textile factories. One-and-a-half billion liras ($410 million) would be allocated to energy sector investments.        

Apart from expanding production capacity in existing factories, 1 billion liras ($280 million) is to be used for technological enhancements.