Investment Incentive Rate Raised from 45% to 90%

PAGDER ASLAN Plastikçiler İhtisas Özel Organize Sanayi Bölgesi will consolidate plastic manufacturers operating in scattered fashion within city limits into a modern production facility. The investment incentive rate applied to investments in PAGDER ASLAN Plastikçiler İhtisas Özel Organize Sanayi Bölgesi has increased from 45 percent to 90 percent. The project is expected to serve as an example for industrial development of the plastics sector in Vize, Kırklareli. Participating companies will be able to benefit at maximum levels from general incentive applications and regional support mechanisms. PAGDER ASLAN OSB is structured as a Plastics Specialization Organized Industrial Zone. Therefore, it will benefit from general incentive applications under the Incentive Law including value-added tax exemption, corporate income tax exemption and customs duty exemption, and from tax reductions under regional support schemes. Depending on the number of newly employed personnel, the amount of credit to be used as investment financing and the investment subject, the 90 percent investment incentive support amount given as a reference value may vary.

PAGDER ASLAN Plastikçiler İhtisas Özel Organize Sanayi Bölgesi Board Chairman Fidan Aslan Eroğlu made statements

Eroğlu noted that when a facility is established with an investment of TRY 5 million in plastic manufacturing at PAGDER ASLAN OSB, the corporate income tax reduction available would be 40 percent. Eroğlu stated that the state would forgo TRY 2 million in tax revenue from the said sample investment. Eroğlu pointed out that if the investment is among priority investment subjects, the amount would rise to TRY 2.75 million, and reminded that companies do not need to complete their investment to benefit from this support. Eroğlu said that the support can be utilized for profits earned from ongoing operations during the period when the investment expenditure is made. Eroğlu noted that the support rates available to PAGDER ASLAN OSB participants will vary depending on the investment subject. "Participants can benefit from employer social security premium support for 5 years for investments falling under OECD middle-high technology definition for 6 years, and for investments in priority investment subjects for 7 years. In this case, state support can reach up to TRY 1.75 million. Depending on the Investment Incentive Certificate held by participants, for a TRY 5 million investment to be made at PAGDER ASLAN OSB, apart from VAT exemption, customs duty exemption and interest and profit sharing support, if the investment is among priority investment subjects, participants can benefit from state support at rates reaching up to 90 percent or at least 65 percent." PAGDER ASLAN OSB, which will become operational as Turkey's first Specialized Plastics Organized Industrial Zone in Vize district of Kırklareli, is expected to make a significant contribution to industrial development.

Ideal Location Provides Logistics Advantage

With proximity to major airports, highways, ports and stations in the region such as Çorlu and Istanbul Airport; Tekirdağ and Ambarlı ports; Alpullu, Durak railway stations and E5, TEM Highways and Kapıkule customs gate, PAGDER ASLAN OSB has extremely ideal logistics capabilities.

30 percent cheaper energy

PAGDER ASLAN OSB will have 30 percent cheaper energy compared to surrounding organized industrial zones due to its connection to direct transmission lines. It will also provide solutions on increased use of renewable energy sources, innovative-green production areas and issues such as solar energy.

Campaign until end of September

Infrastructure work on the 650,000 square-meter first phase has been completed and this entire area has been awarded to 77 plastic manufacturers. PAGDER ASLAN OSB has launched a special campaign for plastic manufacturers wishing to locate in the zone. Under this campaign, manufacturers will be able to acquire plots at a land sale price of TRY 251 per square meter, valid until 30 September 2020. With opportunities such as 90 percent investment incentive and 30 percent cheaper energy, PAGDER ASLAN OSB is expected to contribute to increasing manufacturers' global competitive power.