Eti Alüminyum Designated 'Special Industrial Zone' in Konya

A recent presidential decree has established a special industrial zone in Seydişehir, Konya, specifically for Eti Alüminyum A.Ş., a key player in Turkey's primary aluminum production and a subsidiary of Cengiz Holding. This move, rooted in Article 4/Ç of the Industrial Zones Law, allows the President to designate areas as special industrial zones based on applications meeting stringent criteria. These criteria include minimum land area requirements, existing industrial facilities, and a commitment to new investment, alongside environmental impact assessments.

The designation of this zone offers significant advantages to Eti Alüminyum. Areas declared as special industrial zones are restricted to industrial use only. Furthermore, any private land within the zone not owned by the applicant company can be expropriated by the ministry and registered under the Treasury. However, expropriation can be avoided if the applicant company commits to investing in the land and the private landowners also agree to invest within the zone. The Ministry of Environment and Urbanization can grant usage rights for up to 49 years in favor of the investor.

Crucially, investments within these special industrial zones are exempt from various fees related to permits and licenses approved by the ministry. Additionally, tax exemptions, exceptions, and further incentives can be provided under specific conditions. Eti Alüminyum, privatized in 2005 and now part of Cengiz Holding, will operate within a 264.98-hectare area designated by this decree. This strategic move underscores the government's support for key industrial players, aiming to foster investment and production within designated zones that offer substantial financial and regulatory benefits.