Saturday, May 24 2008 @ 09:56 AM Central Daylight Time
Suleyman Karaman Turkish State Railways General Manager, met with Hyundai Rotem CEO Yeo Sung Lee during his visit to Seoul to see the first diesel locomotives that TCDD had ordered from Hyundai Rotem. The latter produces railway vehicles, defense products and plant equipment. Representatives of South Korean multinationals Hyundai Rotem and the SK Group have said they have confidence in the Turkish economy and will proceed with their planned investments in the country despite fluctuations in the market.
Karaman said they were going to increase the production capacity of EUROTEM, the joint venture of TCDD and Hyundai Rotem for high-speed train production in Turkey. He noted that Hyundai Rotem had to make overseas investments to access the Middle Eastern, European and West Asian markets and that the company had chosen Turkey as one of these investments, which had presented a great opportunity for both the TCDD and Hyundai Rotem.
Lee stated that Turkey is important for his company and that Hyundai Rotem had chosen Turkey as the second overseas investment base after the US. "In the end we invested in America and Europe; EUROTEM will not just serve the Turkish market," he said, adding that trains will be exported to Turkey's neighboring countries.
Lee said currently the main difficulty is the uncertainty over raw material prices; however, he noted, Hyundai Rotem has been in the business for 50 years and has the necessary experience to endure fluctuations in the market. "Railway investments are long-term investments and that's why the fluctuations will not affect our investment plans in Turkey," he emphasized.
Karaman also visited the telecommunications, energy and construction conglomerate SK Group. Group Vice President Seok Jae Seo said the group is interested in transportation projects in Turkey and is planning to make investments in this area. Seo noted that the SK Group is planning to participate with a Turkish partner in a tender for a second underwater tunnel spanning the Bosporus. The Transportation Ministry will accept bids for new motor vehicle crossing on June 30. He said the group is also interested in a Gulf of İzmit bridge project and a Gebze-İzmir toll road project.
In response to a question over whether he had concerns over the condition of the Turkish economy, Seo told reporters the group does not see a risk in Turkey, adding that their studies in Turkey had determined that the investment environment would meet their expectations.
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