In late 2020 the FTA aka the free trade agreement was reached between Turkey and the UK which has meant that major companies have been able to project their supply chains as well as secure employees jobs. This was reported by British Trade Minister Liz Truss.
In late December 2020 Turkey and the UK signed the FTA which supported a trade partnership worth 187 billion TL. As of Jan 1st 2021 the deal came into effect once the UK had left the EU.
Ford has announced that its diesel engines for its new line of Transit vans are going to be built in a factory in Dagenham before being exported over to Turkey. With the company being moved to the Dagenham site this will mean that the 1,900 employees have secured their jobs.
When over in Turkey the vans will then be assembled by Ford Otosan. It was announced by Ford Otosan that it will be making a 2 billion euro investment in which it will be making new generation commercial vehicles and batteries in Turkey, making it the countries largest investment in the automotive industry.
Reports have also stated that by the year 2025 demand from Ford Otosan is expecting to account for around 60% of Dageham’s diesel engine production.
The new line of Transit vans for the European market are being built in Kocaeli which is Turkey’s industrial province. The production will begin in 2023 and will include both electric and hybrid versions.
Transit vans used to be manufactured at a factory near Southampton. Back in 2013 the factory was shut down and all production was then moved over to Turkey where the costs were alot lower.
Company Ford has stated that the trade deal made between Turkey and the United Kingdom was “extremely significant” for its business.
Ford Otosan currently has a total of 12,500 employees and this latest investment will provide a further 3,000 jobs bringing the total to 15,000.
Minister Truss said on Twitter “Great news that our trade deal with Turkey has helped to secure jobs by protecting supply chains for our great automotive manufacturers like @forduk, giving them the confidence to continue investing in Britain.”
Source: Daily Sabah
