Business

Japanese firm Kaga to produce circuit boards in Turkey

Kaga Electronics runs air conditioner parts factory in NW Turkey, now plans to transfer printed circuit board production

Kaga Electronics, a Japanese company that already has a factory in northwestern Turkey for the manufacture of air conditioner parts, is also shifting some of its printed circuit board production to the country.

According to a report published by Nikkei Asia, the firm plans to set up a new factory in Turkey, which will start production in 2022 in addition to its existing one in Duzce province.

While the new plant will make circuit boards, it will also assemble parts of them as customers request.

The firm aims to benefit from Turkey’s strategic location and increase orders from the Middle East and Europe.

Due to supply chain disruptions, the firm intends to diversify its production away from Asia.

Kaga had previously tried to produce circuit boards in Asia, but after experiencing challenges with shipping and supply chains, clients requested that the firm consolidate​​​​​​​ its production and increase lead time predictability.

With the new investment, which will be worth millions of dollars,its production capacity and sales in Turkey will increase.

The company’s yearly sales in Turkey are currently $8.7 million. They are expected to triple in size, thanks to the new plant.

Turkey is a major production hub that connects Asia, Europe, and the Middle East.

Source
AA

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