US-based compound supplier A. Schulman is setting up a new masterbatch production plant in Turkey. This new facility will produce, when fully operational, approximately 40 million pounds of the company's additive, white, and breathable masterbatches for food and industrial packaging customers in Turkey and other fast-growing countries in the Middle East and North Africa.

The company plans to lease existing industrial facilities in the greater Istanbul area, which it will convert into a plant at a cost projected to be in the EUR5-EURR7 million range. This new facility is expected to be in production by the end of fiscal 2016.

"By establishing this production plant in Turkey, we simultaneously achieve several strategic priorities," said Heinrich Lingnau, vice president and general manager - Europe/Middle East/Africa (EMEA). "First, through this timely investment, we will be ideally positioned to participate more fully in the accelerating growth occurring throughout Turkey and other countries in the Middle East and North Africa. Likewise, it creates a strategic platform from which we can increase our share in this fast growing market. Furthermore, since we are currently serving our customers in Turkey from plants in Northern Europe, this new facility will allow us to improve service times and utilize capacity in Northern Europe in a more efficient manner."

"We are very excited to establish a strong, local presence in Turkey, which is fast-becoming the premier gateway for commerce between East and West," said Frank Roederer, business director masterbatch solutions, EMEA at A. Schulman. "We believe the highly skilled labor force in the Istanbul area, as well as the underlying cultural fit we find in Turkey, will provide us with a strong competitive advantage over the long term."

Schulman mploys approximately 3,900 people and has 42 manufacturing facilities globally. It reported net sales of approximately US$2.5 billion for the fiscal year ended August 31, 2014. It also announced strong operational performance In fiscal 2015 second quarter, with 22% sales increases in US and Canada compared with the prior-year period.