A contract valued at about $50 million has finally been awarded to Japan's Hazama Corporation for the construction of a plant to manufacture cars made by Japan's Honda Motor Company (MEED 16:12:94). This follows a decision by the client, Anadolu Honda Otomobilcilik, to go ahead with the scheme with an initial investment of around Y5,000 million ($45.6 million).

The client was established four years ago as a 50:50 joint venture company between Honda and the local Anadolu Endustri Holding. It now plans to start production of the Honda Civic four-door passenger car with a first stage annual output of 30,000 units starting in autumn 1997.

Construction will start on the site at Gebze in July. Cars produced at the plant with an initially locally manufactured content of 31 per cent will be sold inside Turkey and also exported within the region..

Honda will be the second Japanese carmaker to establish a large manufacturing plant in Turkey. A joint venture called Toyotasa between Japan's Toyota Motor Company and the local Haci Omer Sabanci Holding started commercial production in October 1994.