The expansion is to support the growing automotive supply industry that manufactures parts for OEM and tier suppliers throughout Europe. CHEP’s current customers include Ford, Suzuki, Nissan, GM and Jaguar, a number of whom are keen for CHEP to expand its network in Turkey, due to the cost saving and efficiency improvements which will benefit the whole supply chain as a result.

“Turkey is becoming an increasingly important player in the automotive industry,” comments Rainer Sandow, Vice President, Automotive, CHEP Europe. “We have made the decision to expand our  operation in  Turkey at this time because we are confident that Turkish companies in the automotive industry are looking to streamline their supply chain activities and drive out cost. We believe that CHEP is uniquely positioned to assist them, both now in these challenging economic times, and also in the medium and longer term,” Sandow continues.

CHEP will provide reusable containers and pallets for the shipment of automotive components across the supply chain, thereby alleviating the need for these companies to purchase and maintain their own stock of equipment. For those companies currently using disposable packaging, the CHEP solution provides cost saving advantages not only with respect to the packaging itself, but also through a reduction in product damage during transit and a reduced impact on the environment with the CHEP equipment being continually recycled.

Many major vehicle manufacturers and tier suppliers who currently use the CHEP services are expanding their operations into the region. “Being close to the vehicle production and supplier base is imperative” says Peter Mackie, President, CHEP Europe. “Turkey is seen as the link between Europe and Asia, and business between the two regions is expanding every day. Turkey is, and will continue to be, a major player in the automotive industry, we therefore considered it essential that CHEP should expand our operations in Turkey to reflect this.”