Kaga Electronics, a Japanese company that already has a factory in northwestern Turkey for the manufacture of air conditioner parts, is also shifting some of its printed circuit board production to the country.
The firm plans to set up a new factory in the country, which will start production in 2022 in addition to its existing one in Duzce province, according Japanese daily economy Nikkei Asia. The company will produce circuit boards in the new facility. Assembly of parts will also be available upon customer request.
The firm aims to benefit from Turkey’s strategic location and increase orders from the Middle East and Europe. Due to supply chain disruptions, the firm intends to diversify its production away from Asia.
Kaga had previously tried to produce circuit boards in Asia, but after experiencing challenges with shipping and supply chains, clients requested that the firm consolidate its production and increase lead time predictability.
With the new investment, which will be worth millions of dollars, its production capacity and sales in Turkey will increase.
The company’s yearly sales in Turkey are currently USD 8.7m. They are expected to triple in size, thanks to the new plant.
Turkey is a major production hub that connects Asia, Europe, and the Middle East.