İZBAŞ to Create a Difference in Exports with New Investments and Expansion Plans

İZBAŞ to Create a Difference in Exports with New Investments and Expansion Plans

İzmir Free Zone, one of the leading industrial regions for high value-added production and export, aims to boost its 2024 figures—930 million dollars in transaction volume and 363 million dollars in exports—through new investments. With the occupancy rate exceeding 90%, İzmir Free Zone continues to focus on growth-oriented investments, and four key projects are expected to begin operation within this year.

Eyüp Sevimli, Chairman of the Board of İZBAŞ (İzmir Free Zone Founders and Operators Inc.), provided insights on the ongoing investments and export potential of the region, emphasizing that the four major investments planned for the second half of the year will positively impact the export and value-added structure of the zone.

FOUR INVESTMENTS COUNTING DOWN

Sevimli shared that the German capital-based manufacturer Böllhoff, Roll Nova Izmir Steel, Alpar Metal, a company producing for global automotive brands, and Gico Product Service Solutions are all set to start production this year. Furthermore, the construction of a factory investment by the China-based compressor giant Kaishan Group has already begun.

Highlighting the importance of free zones in Turkey's export momentum, Sevimli noted that the total export of the 19 operational free zones in the past year reached 12 billion dollars, with imports at 7.9 billion dollars. He stressed that free zones have contributed positively to Turkey's structural issues, particularly the trade and current account deficits, with exports surpassing imports by 152%.

Sevimli stated, "There is no doubt among local and foreign investors about Turkey's potential and future. However, high inflation and extremely high interest rates are the main barriers to the direct investments Turkey needs. We believe the sacrifices made by industrialists and the public over the past two years will bear fruit starting from 2026. With the new investments set to start production in the second half of this year, both our exports and the added value we generate will increase."

INFRASTRUCTURE WORK BEGINS IN EXPANSION AREA

Eyüp Sevimli, with 41 years of production experience and 28 years in the free zone sector, mentioned that they aim to start infrastructure works on the new expansion area, which will increase İZBAŞ's production area by 10%. He continued:

"Since we have very limited space left for investment, we attach great importance to ensuring that new investments are entirely export-oriented, produce high-value-added products and services, and employ qualified labor. To this end, we took a significant step forward by acquiring an adjacent 153,000-square-meter plot last December. We will integrate our flawless existing infrastructure with this expansion area, focusing on efficiency. With this integration, we will establish a new, well-planned industrial zone in İzmir. With the added value we create, our strategic location, sustainable investment climate, and investor-friendly business environment, we are steadily progressing toward becoming one of the country’s key export hubs."

"DON’T LET MOTIVATION OF FREE ZONES DECREASE"

Eyüp Sevimli also emphasized the significant role free zones play as production and trade hubs in Turkey, where investor companies benefit from customs and tax advantages, foreign currency-earning activity incentives, and simplified foreign trade processes. These factors allow companies to be more competitive in global markets.

However, he pointed out that recent surprise changes to free zone regulations and tax mechanisms have caused morale and motivation issues among both founding operators and investor companies. Sevimli stated:

"Our production companies contribute significantly to the country through employment and exports, and they operate fully within the system. As Free Zones, our wish is to avoid changes that alter the rules of the game, which make it difficult to explain to investors and ultimately undermine their confidence."