Turkey’s Sabancı Holding to invest 4.5B lira in 2017

Turkish conglomerate Sabanci Holding has plans to make 4.5 billion Turkish liras' worth ($1.25 billion) of investments in 2017, the group's CEO said on Friday.

Speaking at the Sabanci Group annual briefing meeting where last year's financials were announced, Zafer Kurtul said they had plans to invest 4.5 billion liras in Turkey throughout 2017, up 0.4 billion liras ($110 million) or 10 percent from last year.

Kurtul said nearly 80 percent of this amount would go to expanding production capacity while the remainder would be set aside for technology investments.

He also said they expect calmer market conditions in Turkey and a recovery in other macro-economic figures.

“Thanks to measures introduced in the last quarter of 2016 our GDP growth forecast is 2.6 percent for the last year," Kurtul said.

“We expect 2017 to be a better year than 2016 with regards to exchange rate volatility, economic growth and recovery in unemployment," he added.

Kurtul said the better part of the announced investment amount would be used to expand capacity in cement, tire and textile factories. One-and-a-half billion liras ($410 million) would be allocated to energy sector investments.

Apart from expanding production capacity in existing factories, one billion liras ($280 million) is to be used for technological enhancements.

Sabanci Group is Turkey's leading industrial and financial conglomerate, which has market-leading companies in their respective sectors that include financial services, energy, cement, retail and industrials, according to the group.

Listed on the Borsa Istanbul (BIST), Sabanci Holding has controlling interests in 11 companies which are also listed on the BIST.