ISTANBUL – Ford Motor Co’s Turkish three way partnership will purchase the U.S. firm’s Craiova plant in Romania for 575 million euros ($630 million) and plans to maneuver Courier van manufacturing there, the corporate mentioned on Monday.
Ford Otosan, the three way partnership with Turkey’s Koc Holding, can pay an extra 140 million euros to Ford over the following decade in response to sure capability utilization standards, the corporate mentioned. Ford Otosan shares jumped 8.5% to 264.7 liras in response.
The Romanian plant produces Puma and EcoSport passenger fashions. It’s going to start manufacturing of the Courier together with Puma subsequent yr, with battery electrical variations of each rolling off in 2024.
Ford Otosan, which is present process a 2 billion-euro enlargement of its Turkish plant, will doubtless finance the acquisition with financial institution loans, CEO Haydar Yenigun informed a press convention. It plans to maintain paying dividends.
The transaction is anticipated to be accomplished within the third quarter pending a regulatory overview. Ford Otosan plans to start manufacturing Europe’s prime promoting van Transit’s electrical and hybrid variations in Turkey subsequent yr.
Ford additionally introduced plans, along with Korean battery maker SK On and Koc Holding, to type a three way partnership to supply electrical car batteries in Turkey.
($1 = 0.9125 euros)
(Reporting by Can Sezer; Enhancing by Jonathan Spicer and Barbara Lewis)
