Siemens is to invest €30 million in a new tram production facility near Istanbul.
The German manufacturer said that it hoped a base in the Turkish city of Gebze would help it to win tenders in the country.
Although Siemens is already producing light rail vehicles in Turkey with local partners, it faces increasing competition from suppliers in Eastern Europe and China, where the manufacturing costs are much lower.
The first vehicles will leave the Gebze factory in 2018.
Jochen Eickholt, head of Siemens’ rail business, said: “Our Avenio series trams have already proven themselves in some countries.
“We are now aiming at building on this success in the global market. We have the best chances of succeeding here with a factory in Turkey.”
