Chennai-based Tractors and Farm Equipment Ltd (TAFE) is setting up a greenfield plant in Turkey, at an estimated investment of about $20 million.
The plant, which is the company's first ever overseas unit, would have an annual production capacity of 15,000 units and will go on-stream by the first quarter of next year.
"Turkey is a strategically important market for us... We believe that this is the opportune moment to enter with a greenfield investment into Turkey," TAFE Chairman and Managing Director A Sivasailam said.
While the company has not disclosed investments for the Turkey plant, highly informed sources said TAFE would invest around $20 million in the unit.
TAFE Director Mallika Srinivasan said the company has already sold over 2,000 tractors in Turkey.
"The tractor market in Turkey is of significance to us in that its composition is well within our experience and manufacturing range... We expect the first tractors to roll out of the new plant in the first quarter of 2009," she added.
TAFE is among the leading tractor manufacturers in the world, in the sub-100 horse power range, with an annual production and sale of about 80,000 units.
The company had four tractor manufacturing facilities in India and is a part of the Amalgamations Group, which has extensive business interests in the automotive components sector.
