Why is this important
Production in the United States ensures lower costs by bypassing customs duties and staying close to consumers. The partnership with a Turkish company provides access to advanced technology and expertise. Kentucky, a major automotive hub in the U.S., offers strong demand for spare parts.
What happened
- Akfa will build a factory in Kentucky with a Turkish company for $600 million;
- In the first year, they will invest $105 million;
- Production: aluminum, auto parts, solar panels, windows;
- February 2024: First delivery of aluminum profiles to the US.
Factory in Kentucky
Production:
- Aluminum products (profiles, sheets, pipes);
- Automotive parts (aluminum body parts, engine parts);
- Parts for solar panels (aluminum frames);
- Windows (aluminum frames, profiles).
Why manufacture in the USA
- Aluminum imports to the United States are subject to a 25% tariff introduced under Trump. Local production will help the company save on these duties.
- Consumer proximity: automotive industry (Ford, Toyota, GM in Kentucky), solar energy (growth of installations), construction (demand for windows).
- Kentucky — automotive hub: Ford, Toyota, GM factories — demand for spare parts, aluminum parts.
- Solar energy: The US is investing over $400 billion in green energy (Inflation Reduction Act) — the demand for solar panels and aluminum frames.
Cleveland Clinic
- September: Akfa Group exchanged agreements with Cleveland Clinic on establishing a multidisciplinary clinic, an educational institution in Uzbekistan.
- Contact: Akfa is diversifying — from construction, aluminum to medicine, education.
US market
- GDP: $25+ trillion — the largest in the world.
- Auto industry: production of 10+ million cars per year — demand for spare parts.
- Solar energy: $400+ billion in investments (Inflation Reduction Act) — growth in solar panel installations, demand for aluminum frames.
- Construction: the growth of housing construction — the demand for windows, doors.
Context
- $600 million is the largest project: Akfa is entering the international arena, competing with Turkish and Chinese aluminum manufacturers.
- 25% duty avoidance: Production in the USA saves on duties, increases competitiveness.
- Partnership with Turkey: access to technologies, experience, and markets.
- Solar energy — boom: $400+ billion US investment — Akfa will capture the market share of aluminum frames.
- Diversification: Akfa is expanding from construction, aluminum to medicine (Cleveland Clinic), production in the USA.
