Swiss companies decrease investments in Turkey by half
Swiss companies, in a reaction to the severe policies of Turkish President Recep Tayyip Erdoğan, have dropped heir investments in Turkey by 50 percent, as compared to the average over the past decade, Swiss Info website reported.
Foreign investors have begun to throw in the towel on Turkey since Erdogan’s policies have led to high inflation and currency collapse. Foreign direct investment inflows to Turkey dropped by an annual 22 percent in the first four months of this year.
For Swiss companies, legal and personal security concerns for staff on the ground are another cause for concern, the site said.
Pointing out that Swiss companies have on average invested some CHF200 million ($202 million) in Turkish markets over the past decade, the article highlighted that today the figures amount to roughly 50 percent of that amount.
"The investment propensity of our customers in Turkey is low overall because of the existing uncertainties,” an official with the Winterthur-based textile machinery manufacturer Rieter is quoted as saying.
‘’Swiss multi-nationals like Nestlé, Roche, Novartis or Schindler are interested in investing large sums in Turkey but are waiting for the political and economic situation to become more stable,’’ the article said.
However, some Swiss companies like the radiator and ventilation manufacturer Zehnder are expanding their investment in Turkey, Swiss Info noted, as they continue to see economic opportunity and opportunity bring a positive impact through jobs and decent salaries.
Zehnder is investing €200 million (CHF228 million) in a new production facility in the Turkish’s Western province Manisa, with hopes that ‘’the country can develop’’ and ‘’welfare increases.”