Feb 26 2018

Zorlu in $4.5 billion investment with China’s GSR

Zorlu Holding agreed a $4.5 billion investment deal with China’s GSR Capital for the production of batteries in Turkey, Dünya newspaper reported.

The preliminary accord, signed at the weekend, will add $6 billion to Turkey’s exports in the long term and provide jobs for 4,000 people, according to Zorlu’s chief executive Omer Yüngül.

The investments will start this year with the building of a 25,000 mega-watt battery production facility that will supply 500,000 electric vehicles with power, Dünya said. The project will be completed by 2023, Turkey’s centenary year, it said.

Praising the deal, Turkish Deputy Prime Minister Mehmet Şimşek said on Twitter on Monday:

“Investments, which have been sluggish in recent years, look set to accelerate. Turkey is likely to sustain strong growth thanks to strong external demand (recovery in EU and tourism), rising investments and moderately strong consumption (1.5 million new jobs, real wage growth).”

The investment will make GSR Capital a leader in the global innovation economy, GSR co-chair Jianghua Su said.

GSR will take a 50 percent stake in Zorlu Holding’s Meta Nikel Madencilik, a concentrated nicel producer, according to Yüngül. The company’s production capacity of nickel cobalt will be increased four-fold to 40,000 tonnes, he said. Investements in sulphuric acid, nickel sulphate and cobalt sulphate will also be made, he said.

GSR Capital, established in 2016, specialises in investments in innovation and building future industries, according to its website. Zorlu also operates in the production of white goods, via its unit Vestel, energy, real estate and textiles.