Investment

Kaga Electronics Carries A Significant Part of Its Production to Turkey

Japan’s Kaga Electronics company will establish a new factory in Turkey, which stands out with its strategic location, and will move some of its printed circuit board production from China and Southeast Asia to Turkey.
According to the news in Nikkei Asia, Kaga Electronics , which currently produces air conditioner parts in Turkey, will produce printed circuit boards in its new factory and will assemble parts according to customer requests.

WANTS TO INCREASE ORDERS

The new facility is expected to be commissioned and merged with the existing facility in 2022. Kaga Electronics aims to increase orders from the Middle East and Europe by taking advantage of Turkey’s strategic location. Thus, the company aims to move its production away from Asia, where supply chain disruptions are starting to pose a risk.

PRODUCTION CAPACITY WILL INCREASE GRADUALLY

According to company resources, millions of dollars will be invested and production capacity will be increased gradually. Kaga Electronics previously manufactured and assembled circuit boards close to customers in Asia. Due to difficulties in shipping and supply chain in Asia, customers asked the company to consolidate its manufacturing and assembly operations under one roof and increase the predictability of delivery time.

TARGET DOUBLE SALES

As Turkey is home to many manufacturers serving the Middle Eastern and European markets, the company hopes to take advantage of the new production base to take orders for auto parts as well. While the sales figure of Kaga Electronics from its Turkey operations is around $8.7 million, the company aims to triple this in three or four years.

Ece Nagihan

Hello, I'm Ece, I write content for Expat Guide Turkey every day. Don't forget to check!

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