Karsan eyes deal with China firm by October

ISTANBUL - Reuters

Karsan has sold its production line to a Chinese firm as part of the deal. DHA photo

Turkish automaker Karsan has said it will seal an agreement with Chinese firm Wuhan Zhong to set up a production facility in China before Oct. 15.

The joint venture, in which Karsan will hold a 35 percent stake, will start test production for its J10 model on Jan. 1, 2016, and serial production on March 1, 2016, Karsan said in a filing with the Istanbul Stock Exchange on July 7.

According to the supplementary protocol inked by the parties, Karsan will pay 28.8 percent of the 62 million euros in founding capital from 18 million euros to be yielded from the sale of J10’s production line. The remaining 3.8 million euros in capital will be paid separately.

“This additional protocol has pioneered the transfer of intellectual property rights and the technology of a product owned and developed by the Turkish automotive industry and its production in the world’s largest market and production hub, China,” Karsan Chairman İnan Kıraç said.

Karsan, which has been manufacturing commercial vehicles for large brands like Renault, Peugeot, Citroen and Hyundai for many years, has been seeking to extend its presence in global markets.