Materials firm A. Schulman Inc. said April 7 that it plans to spend 5 million to 7 million euros ($5.5 million to $7.7 million) on a new masterbatch facility in Turkey, to tap into market growth in the region.
The facility, in the greater Istanbul area, will have annual production capacity of about 40 million pounds of the company's additive, white and breathable masterbatches for the food and industrial packaging markets, the company said.
It's expected to be in production at the end of the Fairlawn, Ohio-based company's 2016 fiscal year, which closes Aug. 31, 2016.
“We will be ideally positioned to participate more fully in the accelerating growth occurring throughout Turkey and other countries in the Middle East and North Africa,” said Heinrich Lingnau, Schulman's vice president and general manager — Europe/Middle East/Africa.
He said the company currently serves Turkey from factories in northern Europe, and the new investment will let the company use that capacity more efficiently.
“We are very excited to establish a strong, local presence in Turkey, which is fast-becoming the premier gateway for commerce between East and West,” said Frank Roederer, business director masterbatch solutions, EMEA.
“We believe the highly skilled labor force in the Istanbul area, as well as the underlying cultural fit we find in Turkey, will provide us with a strong competitive advantage over the long term,” he said.
Schulman said it plans to convert a leased facility into the factory space. According to the company's website, it has an office in Turkey but no manufacturing.