PRESS: Cevher Group's Investment of 40 Million Euros

08.06.2020

 

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Cevher Group, having been intensifying its efforts in order to take part among the leading electric automobile suppliers, will double the capacity of its paint shop and then focus on the production of aluminum casting parts, customized for the hybrid and electric vehicles. The Group will invest a total of 40 million Euros.

Maintaining a direct business co-operation with the Original Equipment Manufacturers (OEMs) as the sole supplier in more than 20 projects for new generation electric vehicles, Cevher Group aims to rank among the main local electric automobile manufacturers by its 40 million Euros investment to manufacture auto axles and chassis in addition to aluminum alloy wheels.

Executive Chairman and CEO Haluk Özyavuz stated that the Cevher Group, which was founded in 1955, produced the first ever aluminum cylinder head and cylinder block, manifold and aluminum alloy wheel for the automotive industry in Turkey, and today it has become an integrated know-how and solution partner for the Original Equipment Manufacturers (OEMs). He also pointed out that the hybrid vehicles will be replaced by electric vehicles in the future, and those fuel cell vehicles, especially hydrogen fuel cell cars, will gain power in the long term. Explaining that they have formed their investment projections within the perception of performing among the steady and strong participants of this market, Özyavuz said, “We see hybrid vehicles as an important part of the transition period towards fully electric vehicles. In the short and medium-term, hybrid vehicles will increase their market share which in time will be replaced by electric vehicles. At this point, we consider the fact that fuel cell vehicles, especially the ones working with hydrogen cells, which Toyota and BMW have been working on for years, will gain power in the long term, in addition to the battery electric vehicles that are constantly developing. Of course, these developments and changes will not be realized at a constant pace everywhere in the world. However, in the 2030s or 2040s, we will be gradually observing the new car parks which will be quite different from today.’’

Customer demands were the determinative factor

Özyavuz, who stated that electric vehicles have brought up some additional technically challenging expectations due to concerns on the vehicle weight and range parameters, added that; ‘’We take our customers’ opinions into account as the effective solutions we will offer are the key to stand out in the competition. Hence, our priority is to provide fast and effective solutions with the best engineering tools towards these expectations. In this context, in addition to the aluminum alloy wheel, Cevher Group is giving a start for auto axles and chassis manufacturing. In this way, we will be able to meet all kinds of customer demands, in terms of aluminum casting for the new generation vehicles, which will be manufactured in both our factories.’’

The first phase of the investment project has been initiated

Sharing the information that the investment program will take a couple of years and that they will double the capacity of the paint shop at the first stage, followed by the realization of the investments for the production of other spare parts and equipment, as planned; Özyavuz said that the total investment will reach 40 million of Euros. Özyavuz continued as follows; “We have all the faith in the future of our country and the Cevher Group. For this reason, we will proceed with our new factory investment project and continue creating value for the country's economy whatever the circumstances may be. In this context, we will have taken the initial step for our company expansion, by doubling our paint shop capacity in the first quarter of 2021.’’

Özyavuz stated that the Cevher Group has been one of the major supporters of the domestic car manufacturing project and will continue to provide its utmost effort to act as one of the main suppliers for this project, being the first aluminum castings manufacturer for the automotive industry in Turkey.

The pandemic will have temporary effects

Haluk Özyavuz said, “Although the coronavirus outbreak created a serious contraction for the economy in 2020, we believe that the crisis will be overcome by 2021 and the automotive sector will rise again. We think that the ‘social distance' concept, which we expect to remain on the agenda after the coronavirus, can contribute positively to individual vehicle sales in the medium term. The incentive and support packages of the states are undoubted of great importance to compensate for the sharp decline in the short term, if only partially. The automotive industry has been one of the leading sectors of development since the beginning. As one of the sectors where technology is used extensively, we foresee that it will further strengthen its software capabilities and maintain its leading position in the transforming and digitalizing world. The transformation had already started before the coronavirus, and will carry on within a higher momentum after the pandemic.”

Nihat DELİBAŞI - DÜNYA NEWS
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