The Izmir Free Zone (IZBAS), one of Izmir’s key production and export hubs, is set to host the first Chinese investment of Kaishan Group, the world’s largest compressor manufacturer.
Established in 1956, Kaishan operates in 18 countries and plans to invest $1 billion in a state-of-the-art factory spanning 20,000 square meters within IZBAS. The facility will produce compressors for industrial applications, including geothermal power plants, with exports targeting diverse global markets.
Ranked among world’s top energy companies
Kaishan Group ranks among the “Top 500 Energy Companies” globally and is listed as one of China’s “Top 100 Machinery Manufacturers.” The company also owns seven high-tech subsidiaries in China.
In an interview with the economy-focused news channel ekonomim.com, IZBAS Chairman Eyup Sevimli stated it is a pivotal development not only for the region but also for the Turkish economy. He noted IZBAS’ 90% occupancy rate and emphasized their selective approach to new investments, highlighting the significance of this investment.
Sevimli attributed Kaishan’s decision to choose IZBAS to the zone’s robust infrastructure, extensive support for investors, and access to a skilled workforce.
“At IZBAS, we allocate our limited investment areas to projects with high value-added production processes. Our vision to position IZBAS as a hub for renewable energy equipment manufacturing also played a decisive role in Kaishan’s investment decision,” he said.
Construction to begin in early 2025
According to Sevimli, the groundbreaking ceremony for Kaishan’s IZBAS investment is scheduled for the first quarter of 2025, with completion expected within a year.
“This monumental investment will be the largest in Izmir since the establishment of STAR Refinery by SOCAR in 2018. The large-scale compressors produced here will serve various heavy industries, particularly geothermal power plants,” he explained.
Sevimli also underscored Türkiye’s advantages in geothermal energy: “As the fourth largest geothermal energy producer globally and Europe’s leader in geothermal resources, Türkiye is uniquely positioned to host the production of critical equipment for this sector. Geothermal energy stands out as one of the country’s most competitive renewable and clean energy resources.”
