World-renowned electronics company Kaga Electronics rolled up its sleeves and decided to move its production to Turkey. The company will establish a new factory in 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 on them according to customer requests.
The new facility is expected to be commissioned and merged with the existing facility in 2022.
Kaga 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 becoming a risk.
“WE WILL FIND MILLIONS OF DOLLARS”
According to company sources, the investment will amount to millions of dollars and the production capacity will be increased gradually.
Kaga previously manufactured and assembled circuit boards in Asia, close to customers. Due to the difficulties in shipping and supply chain in Asia, customers asked the company to combine production and assembly operations under one roof and increase the predictability of delivery time.
THE GOAL IS TO DOUBLE SALES
As Turkey is home to many manufacturers catering to the Middle Eastern and European markets, the company hopes to take advantage of its new production base to win orders for auto parts as well.
While the sales figure of Kaga from its Turkey operations is around $8.7 million, the company aims to triple this in three or four years.
(AA)