German carmaker Volkswagen has recently announced that it will delay the final decision to construct the manufacturing facility in Turkey. The key reason is the international concerns over the country’s military operations in Syria and the US reaction to it. “We are observing the situation with great concern,” a company spokesman said, cited by the German media outlet.
Earlier this month Volkswagen was rather determined to proceed with the project to build a 300,000 cars per year facility in Turkish city of Manisa. The investment value is estimated at $1.09 billion and the construction was to begin in early 2020. The development is considered as a negative one as the facility, once operational, was expected to create additional domestic demand for flat steel to the benefit of the Turkish producers, SteelOrbis understands.