Erzincan Secures $100M Industrial Investment: Six New Factories to Boost Jobs and Exports

Erzincan is entering a new industrial era with a $100 million investment that could reshape Turkey’s manufacturing landscape.

Strategic Location and Investment Drivers

■The investment, led by Kaya Holding, capitalizes on Erzincan’s organised industrial zone status and local government incentives.

■The region offers logistical proximity to Eastern Anatolia’s transport corridors and lower energy costs, making it an attractive site for new production facilities.

■The project aims to create a rapid export bridge to European markets, especially Germany and Italy.

Production Portfolio and Export Objectives

■New plants will manufacture copper pipes, copper wire, aluminum wire, and HVAC (heating, ventilation, and cooling) machines.

■In the first year, sales are projected at 30% of the Turkish domestic market and 45% of the European market.

■Long‑term goal is to increase export volume by 70% by 2029.

Employment and Ancillary Industry Impact

■The project will directly create 1,000 jobs.

■Approximately 300 additional positions are expected in downstream suppliers and logistics providers.

■New training programs and service firms in maintenance and technical support will emerge in the region.

Financial and Regional Impact Assessment

■The investment forecasts a 2.3% increase in regional GDP and a 1.8% rise in employment.

■Local banks are providing 20% of the financing as credit facilities, spreading financial risk.

■Improved long‑term efficiency will also boost Erzincan’s growth potential in non‑manufacturing sectors.

This sizable investment in Erzincan forms a cornerstone of regional development strategy, enhancing Turkey’s competitiveness in the metal and HVAC sectors while reinforcing an export‑driven growth model. Kaya Holding’s expertise in infrastructure and supply‑chain management mitigates short‑term operational risks and maximizes long‑term profitability. The focus on European markets is a critical step for diversifying foreign‑exchange earnings and narrowing the trade deficit.