General Electric Company is due to invest $900 million in Turkey over the next three years. The money will go to sectors such as energy, health, aviation, and transportation and infrastructure,, according to an announcement by Economy Minister Zafer . According to him the new investment is a mark of success for the recently introduced incentive package.
Caglayan was accompanied by GE Vice Chairman John Rice to introduce GE's investments. Part of the money will be spent on the production of parts for wind energy generation. This is especially important as Turkey's demand for electricity has increased substantially and much more quickly than anticipated over the past few years.
This makes it a logical sector for investment and GE will benefit from a number of incentives in return for boosting local production. The aim of these incentives is to reduce the country's current account deficit.
In addition, GE's affiliate in Turkey, General Electrik A.S., might begin manufacturing turbines and parts in the country. According to John Rice, GE is in talks with universities over plans for research and development as the company intends to focus part of its investment on infrastructure and innovation in the country.
Although the current account deficit has been of considerable concern recently, Caglayan feels the worry is over as it has been steadily dropping. Although Turkey has been affected by the crisis in the European Union which is its main trading partner, it has made substantial efforts to increase its ties to other countries, in particular Africa and the Middle East, and this is paying off, in spite of higher energy costs.