Turkey's Vestel aims to lift mobility unit value above $1 billion in 3 years (updated)
04/04/2024 15:21
(Updates with growth projections, battery deal and details
throughout)
By Can Sezer and Ceyda Caglayan
ISTANBUL, April 4 (Reuters) - Turkish electronics maker
Vestel VESTL.IS aims to turn its newly founded mobility and
energy storage unit into an at least $1 billion business
in three years, CEO Ergun Guler said on Thursday.
Traditionally a consumer electronics and durable goods
manufacturer, Vestel branched into auto electronics and display
systems through its partnership in Turkish government-backed
electric vehicle producer TOGG, the best seller in local market.
As part of its new growth strategy, Vestel aims to grow
"exponentially" in its newly founded mobility unit, hitting
either $1 billion in revenue or market capitalisation in three
years, Guler said.
"We are open to all collaboration or partnerships," he said.
Vestel Mobility will operate in Europe, the Middle East and
North Africa - markets worth a collective $580 billion -
focusing on EV components, charging stations and large-scale
electricity storage systems.
Vestel also signed a non-binding agreement with China's
Shenzhen Desay 000049.SZ to design and assemble
commercial-scale battery modules in Turkey, Vestel Mobility's
head Hakan Kutlu said.
The company will consider an IPO once operations are mature,
Kutlu said, without elaborating.
Battery production capacity is expected to begin at 2 GW per
annum, with sales initially geared to local hybrid power plants,
where electricity storage is integrated into renewable energy
plants.
Parent company Vestel aims to double its core electronics
and durable goods revenue over the next three years from around
$4 billion currently, Guler said. The company has not yet
released its end-2023 financials.
(Reporting by Can Sezer and Ceyda Caglayan; editing by Jonathan
Spicer, Jason Neely and Jan Harvey)
((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters
Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))