Business / Corporate

After lira plunges, Toyo Ink puts construction of Turkish plant on hold

Kyodo

Toyo Ink SC Holdings Co. will postpone starting constructing a plant in Turkey, originally scheduled to begin later this year, as the fall of the Turkish lira raises the cost of procuring materials from abroad, sources close to the matter said Monday.

The building of the plant, which will make resin products used for printing inks for food packaging and other items, was slated to begin in the second half of 2018 but will be pushed back by six months to a year, the sources said.

The lira fell sharply earlier this month after the United States doubled steel and aluminum tariffs against Ankara as bilateral relations worsened over a detained U.S. pastor in Turkey.

The Japanese company, which has purchased around 62,000 square meters at an industrial complex in Turkey, put the factory construction plan on hold to observe the impact of the lira’s plunge on the Turkish economy, according to the sources.

Toyo Ink set up a sales company in Turkey in 2015 to expand business in the Middle East and Eastern Europe, and acquired a local ink-maker the following year.