With Presidential approval, OYAK received a project-based governmental incentive for its carbon black production facility investment to be carried out in Hatay. OYAK will break new ground in Turkey with its carbon black production, one of its strategic investments, and meet Turkey's entire 220,000 tons of domestic carbon black needs with this investment. With this move, OYAK will prevent carbon black imports worth US$ 300 million annually.
OYAK received an incentive from the Republic of Turkey Ministry of Industry and Technology for Turkey's only carbon black production facility, which will be established with a US$ 206 million investment in Hatay. Details of the project-based governmental incentive, which became effective after the publication of the relevant presidential decrees in the Official Gazette, were also announced.
According to the decision, the investment period for the carbon black production facility to be carried out by OYAK, which began its investment in Hatay on September 1, has been set as three years. The Ministry will be able to set an additional time, which will be half of the projected period if the investment is not completed within this period.
Turkey's only carbon black investment will put an end to imports
OYAK’s investment in building a carbon-black production facility in cooperation with the Taiwanese International CSRC Investment Holdings Co. Ltd., the controlling company of Continental Carbon - the world’s sixth-largest carbon-black producer, is the only one in Turkey. Setting out to produce carbon black, which has a market size of US$ 14 billion globally, in Iskenderun, OYAK will be preventing imports of US$ 300 million annually and closing another area in which the Turkish economy is completely dependent on foreign resources.
As the largest carbon black market in the Middle East and Africa region, Turkey will eliminate the foreign-dependency thanks to this investment. Capable of putting an end to the importing of this product upon the commencement of production, the project will reduce the current account deficit, as well as provide an added value to the national economy and foreign trade with its export potential. The facility will provide significant opportunities and advantages for Turkish industrialists in raw material supplies and will bring Turkey to a strategic point with its export potential.
The facility will meet the annual demand of 220,000 tons of domestic carbon black, and OYAK will be the leader of the US$ 260 million domestic carbon black market, which is used in many areas, particularly vehicle tires.
The most innovative production and environmental protection systems will be used
The carbon black production facility, which will be established in cooperation with the International CSRC Investment Holdings Co. Ltd, the controlling company of Continental Carbon, will provide a great added value for our country both in terms of new technology use and employment. The facility will be equipped with OYAK’s vision and CSRC Investment Holdings Co. Ltd.’s international know-how and the most advanced environmental protection systems in terms of energy recovery and emissions.
The facility will act particularly in parallel with the iron and steel and automotive industries and will make a name for itself all over the world with its innovative technologies that will protect the environment and contribute to social impact.
Fixed investment amount: TRY 1.87 billion
The type of OYAK’s carbon black investment was determined as a "complete new investment" by the Republic of Turkey Ministry of Industry and Technology. With the project, it is predicted that the fixed investment amount would be TRY 1,874,138,065, the number of additional jobs would be 303, and the number of qualified personnel would be 40.
Within the scope of the decision announced, OYAK will take advantage of the state supports for the investment project including tax duty exemption, VAT exemption, VAT refund, tax cut, insurance premium employer share support for 10 years without a maximum amount limit, income tax withholding for 10 years, qualified personnel support of maximum TRY 40 million, and energy support covering 50 percent of the energy consumption expenses for 10 years starting from the date of starting of operations with a maximum limit of TRY 75 million.
Following the completion of the investment, OYAK Sentetik Karbon Ürünleri Sanayi ve Ticaret A.Ş. Will apply to the Ministry for a completion visa, and will receive the completion visa from the Ministry as a result of the appraisal on the investment site.