Oyak-Renault $115M plant's foundation laid in Turkey

By Cem San

BURSA, Turkey (AA) - The foundation of Turkish-French joint automotive manufacturer Oyak-Renault's high-pressure aluminum injection molding plant was laid in Turkey's industrial province of Bursa on Friday.

In the plant -- worth €100 million ($115 million) -- aluminum engine block will be produced for the company's high-tech new generation engines for hybrid vehicles, Turkey's Industry and Technology Minister Mustafa Varank said in the groundbreaking ceremony, in Bursa.

"The plant investment was made under the project-based Incentive System," Varank noted.

He said the products made in the plant would be exported. "It [the plant] will contribute to employment and exports, it will also reduce the current deficit of Turkey by $2.3 billion annually," he added.

Within the scope of engine blocks' production, necessary parts will be provided by domestic manufacturers and suppliers, Varank stressed.

Nicolas Maure, senior vice president of Renault, said the plant was the first step of the company's future investment plans in Turkey.

The company renewed its partnership with Oyak for the next 27 years, Maure noted.

Oyak-Renault, founded in 1969, produces 360,000 cars and 750,000 engines, and some automotive parts, annually.