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A possible Caterpillar investment in Turkey may be around$1 billion, Ergün says. AP photo

A possible Caterpillar investment in Turkey may be around$1 billion, Ergün says. AP photo

U.S.-based construction and mining equipment firm Caterpillar is preparing to invest in Turkey, Industry Minister Nihat Ergün said yesterday during his trip to Boston.

“After I come back to Turkey, Caterpillar’s president is going to come ... We believe they are very serious about investing in Turkey. Caterpillar’s president will conduct a study about the production of construction equipment. Maybe they will search for a local partner,” said Ergün.

“Caterpillar’s coming to Turkey means that they will be able to export to many other countries in the region. Caterpillar’s investment in Turkey will probably not be around $50-100 million. It could even be an even larger investment like $1 billion,” he said, adding that Turkey had suggested that they not only invest in production, but also in Research and Development (R&D).

Ergün said Turkey was not only attractive to investors like Caterpillar because of its new incentive scheme, but also due to its stable economy.

“Incentives are important, but they alone aren’t enough. If Greece were to offer ten times more incentives than us, investors still wouldn’t come. Incentives are only important when they are coupled with sustainability,” he told the Anatolia.

Ergün also met with several pharmaceutical giants during his visit to Boston for the International Biotechnology Fair including Merck, UCB, and Amgen. Ergün said that Merck, which is already active in Turkey, is considering expanding its investments. Amgen recently purchased Turkish pharmaceutical company Mustafa Nevzat for $700 million. This purchase has inspired other large pharmaceutical firms to invest in Turkey, according to Ergün.

June/22/2012

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Chris Green

6/26/2012 1:44:10 PM

Mr Who: I do not think that you can trace too many links from the Ottomans to America! World War 1 apart, the real long term friend of Turkey and this is entirely mutual, is Great Britain! The biggest single order ever placed with an earthmoving equipment company was received by Caterpillar from the bin Laden Construction group some years ago and that record still stands. Should Caterpillar be boycotted because of a tacit link to a terror group? No, of course not! Bravo Turkey: Good news!

Eric Martin

6/23/2012 12:41:03 AM

@!Dweller. Us making our own diesel engines and mining trucks is better than making deals. Our government should be more active in investing in holes in exports and industry. Caterpillar will take all the market share. Just like Ford - Otosan. Goodbye domestic car industry!

mr who

6/22/2012 4:55:38 PM

As long as there is a local partner so that they manufacture the whole electronics and full manufacturing and to benefit the caterpillar corporation where Turks can think after the long drought and have combined R&D to propel both nations forward as America has been a true friend since the Ottoman times .

Dweller -

6/22/2012 1:52:49 PM

@Victor Trinidad. Your reasoning appears somewhat harsh. If you had relatives knocked down and killed by a Ford, would you recommend that nobody buys a Ford? Don't get me wrong, I don't agree with the way Palestinians are treated by the Israelis but because they use a particular product? @Eric. There are frequently hidden benefits in governments operating in such a way. I'm sure you get the drift.

VMT Ankara

6/22/2012 5:09:36 AM

How could Industry Minister Nihat Ergün or the Turkish Government have any dealings with Catepillar, a company whose bulldozers have actively been involved in the bulldozing of Palestinian homes and uprooting their orchards, fruit trees and crops and destroying their infrastructure? It was a Catepillar bulldozer, driven by an Israeli Defense Force soldier, that brutally murdered Rachel Corrie, a 23 year old American activist when he deliberately ran over her. Please tell me it isn't so.

Eric Martin

6/22/2012 3:47:43 AM

They're keen to invest in Turkey because the government is more interested in recruiting foreign companies to do all the work. Building our own construction equipment is too difficult for Turkish people. Does anyone believe Caterpillar is building this factory for exports to the Usa? How is selling market share to foreigners a legitimate economic strategy? Where is the emphasis and drive in this administration to build our own mining trucks? Just giving everything away.
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