Start-up of a chemical plant

A leading global manufacturer of chemicals, with operations in eight countries on three continents, was in a phase of rapid expansion. There was growth on all fronts: new products, higher production volumes, new markets. The company had a good position in the key markets in Europe and North America. Due to the recession in Europe, Turkey came into view as an opportunity for growth outside the Euro zone.

Given the developments in the Turkish chemical industry, the company saw Turkey as a promising settlement area. After a careful consideration of various factors, including the costs and risks involved, the conclusion was drawn that, from a strategic point of view, setting up a plant in Turkey would be a good choice, as it would facilitate further expansion. Moreover, a new establishment in Turkey would open the gate to a number of new markets.

Via a mutual business connection, the company came into contact with BST, which was hired for local support. Because the company had ample experience in establishing new branches abroad, its management was quite aware of it that each country has its own cultural, political, economic, labour, technological, legal and fiscal peculiarities and implications, and that support from a locally well-informed party was indispensable.

BST supported the enterprise in many areas, such as making analyses of markets and competition, arranging permits, making optimal use of industry-specific investment measures, providing advice on corporation tax and import – export duties, local human resource management, and more.

BST had selected a number of options for the location of the new plant. Izmir and Istanbul seemed to be the best options, because of their favourable position with a view to customer accessibility and transport facilities. Although both cities were in zone 1 of the regional incentives policy, the zone with the lowest subsidy, this was outweighed by the greater disadvantage of higher transport and logistics costs if the plant was to be established in one of the more remote areas of the country.

The BST team, which also dealt with issues such as taxes, financial and legal matters, various formalities involved in the establishment of the branch, corporate procedures and the transfer process, worked in close collaboration with the project manager.
Then BST started the procedures for recruiting local staff. Thanks to our own extensive network and through specially selected HR agencies BST was able to recruit a first-class local workforce, within a short time.

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