Tuesday, March 1, 2011
ISTANBUL - Hürriyet Daily News
 An employee monitors cotton being processed on a machine in a cotton factory in Mahalla, Egypt, in this file photo. An Italian textile company is planning to shift investments from Egypt to Turkey, according to an informed source speaking to the Hürriyet Daily News. Bloomberg photo |
Turkish companies are licking their wounds after the turmoil in Egypt and Libya hurt business, but on the other side of the coin some see new opportunities.
Looking at their options in the light of the ongoing turmoil, especially in Egypt and Tunisia, many foreign companies have been pondering shifting investments to Turkey, according to the executive shareholder of IEG, a German investment-banking giant.
“Regarding Tunisia, a German car industry supplier that manufactures mostly for Eastern Europe is planning to move its investments to Turkey,” said Stefan Heilman, speaking to the Hürriyet Daily News & Economic Review on the sidelines of a press conference Tuesday. “The total amount of the investment will be near 70 million euros,” he said, but declined to give further details on the company.
In addition to this possible foreign direct investment into Turkey, Heilman said that an Italian textile company is planning to shift investments from Egypt to Turkey. The total amount of this investment is expected to be nearly 30 million euros, according to Heilman, who also did not name the company. He said both investments would be “completed in the next few months,” but that there are others interested in shifting their North Africa investments to Turkey.
“A migration of business is taking place at the moment in North African countries” due to the political unrest, according to Heilman. “These companies want to be close to the Mediterranean. They do not prefer to invest in China due to the high logistical costs.”
The turmoil “will have a positive impact on Turkey’s economy in the long run,” Heilman said, adding that there are also Turkish firms eyeing opportunities in North Africa, as the high level of risk corresponds to low asset prices.
Advising Turkish companies
IEG has an office in Tunisia, its only one on the African continent. The company also provides consultancy services to Turkish firms looking into possible acquisitions in the region.
“I have not been informed of such an investment plan by European firms yet,” said İsmail Bitirim, a senior project director at the Investment Support and Promotion Agency of Turkey, or ISPAT. Speaking to the Daily News, Bitirim said there could indeed be companies considering Turkey for “the opportunities it presents and not just because of the unrest in North Africa.” Bitirim noted that Turkey has great experience in the automotive and textile sectors.
Talking on the Turkish economy, Heilman said Istanbul has the potential to become a new finance center of the world. “In the last 15 years, many though Dubai would take that role,” he said. “But the financial landscape of the world has been reshaped after the global crisis. Dubai first has to digest the real estate bubble, which created a huge burden on its financial system.”
In contrast, Turkey has learned much thanks to its 2001 crisis, according to Heilman. “However, Turkey and most of Europe are facing a new danger recently: rising oil prices,” he said. “This development will push inflation in all economies that depend on oil imports.”
Looking at their options in the light of the ongoing turmoil, especially in Egypt and Tunisia, many foreign companies have been pondering shifting investments to Turkey, according to the executive shareholder of IEG, a German investment-banking giant.
“Regarding Tunisia, a German car industry supplier that manufactures mostly for Eastern Europe is planning to move its investments to Turkey,” said Stefan Heilman, speaking to the Hürriyet Daily News & Economic Review on the sidelines of a press conference Tuesday. “The total amount of the investment will be near 70 million euros,” he said, but declined to give further details on the company.
In addition to this possible foreign direct investment into Turkey, Heilman said that an Italian textile company is planning to shift investments from Egypt to Turkey. The total amount of this investment is expected to be nearly 30 million euros, according to Heilman, who also did not name the company. He said both investments would be “completed in the next few months,” but that there are others interested in shifting their North Africa investments to Turkey.
“A migration of business is taking place at the moment in North African countries” due to the political unrest, according to Heilman. “These companies want to be close to the Mediterranean. They do not prefer to invest in China due to the high logistical costs.”
The turmoil “will have a positive impact on Turkey’s economy in the long run,” Heilman said, adding that there are also Turkish firms eyeing opportunities in North Africa, as the high level of risk corresponds to low asset prices.
Advising Turkish companies
IEG has an office in Tunisia, its only one on the African continent. The company also provides consultancy services to Turkish firms looking into possible acquisitions in the region.
“I have not been informed of such an investment plan by European firms yet,” said İsmail Bitirim, a senior project director at the Investment Support and Promotion Agency of Turkey, or ISPAT. Speaking to the Daily News, Bitirim said there could indeed be companies considering Turkey for “the opportunities it presents and not just because of the unrest in North Africa.” Bitirim noted that Turkey has great experience in the automotive and textile sectors.
Talking on the Turkish economy, Heilman said Istanbul has the potential to become a new finance center of the world. “In the last 15 years, many though Dubai would take that role,” he said. “But the financial landscape of the world has been reshaped after the global crisis. Dubai first has to digest the real estate bubble, which created a huge burden on its financial system.”
In contrast, Turkey has learned much thanks to its 2001 crisis, according to Heilman. “However, Turkey and most of Europe are facing a new danger recently: rising oil prices,” he said. “This development will push inflation in all economies that depend on oil imports.”
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