ThyssenKrupp Automotive AG, which produces Mercedes-Benz's hydraulic steering systems, has sold its manufacturing rights to the system along with equipment and technology to Turkey's Hema Endustri. The factory that will produce the systems in Turkey will be become operational in 2013.
ThyssenKrupp Automotive AG had previously acquired the manufacturing rights for Mercedes Benz's steering systems in 2003.
However, due to management problems, the company put the operation up for sale. The operation, which is currently located in Düsseldorf, will be moved within six months to the Çerkezköy district of Tekirdağ province and is expected to generate 1,000 new jobs. Hema Endustri is investing EUR 70 million in the new operation apart from the purchase price.
Mercedes-Benz is a multinational division of German manufacturer Daimler AG.
Mr İbrahim Hattat chairman of Hema Endustri said that Mr Dieter Zetsche CEO of Daimler had visited Turkey a month ago to meet with members of the Association of Automotive Parts and Components Manufacturers and that two of the company's managers visited Hema's production facilities. He said that the company observed Hema's production process and pressured ThyssenKrupp to sell the factory to Hema instead of a Chinese group, which actually offered more money.
Mr Hattat said that “Mercedes plans on moving most of its manufacturing operations to Turkey; that's why they pressured ThyssenKrupp.”
He said that with the establishment of the new factory, the annual capacity for the production of hydraulic steering systems production will increase from 30,000 to 150,000 by 2018.
He added that “With the significant increase in production, we will become the second biggest player in the European market as our current production already meets the existing domestic demand.”
Source:
http://www.steelguru.com/middle_east_news/Mercedes_to_move_hydraulic_steering_system_production_to_Turkey/297133.html
