Anadolu Agency – “Super Incentive” Granted to NERO Industries' Investment in Ankara
Project-based state aid will be granted by the Ministry of Industry and Technology for NERO Industries Defense Industry Inc.’s investment in Ankara to establish a manufacturing facility for sensor systems, laser/radar threat detection and warning systems against guided missile/rocket threats, Chemical, Biological, Radiological and Nuclear (CBRN) filtration systems, and explosion suppression systems.
Project-Based State Aid Granted for NERO Industries’ Defense Manufacturing Investment in Ankara
The Presidential Decision regarding the investment has been published in the Official Gazette and has entered into force.
Accordingly, the investment to be carried out in the Sincan district of Ankara has an official start date of November 4, 2016, with an investment period defined as six years from the start date. In the event that the investment cannot be completed within the projected timeframe, the Ministry of Industry and Technology may grant an additional extension of up to half of the original investment period.
Within the scope of the project, the fixed investment amount is projected to be TRY 1.604 billion, with 620 additional employees and 30 qualified personnel expected to be employed.
Upon completion of the investment period, the facility is planned to produce annually 102,030,000 sensors, 5,500 laser/radar threat detection and warning systems, 3,000 CBRN filtration systems, and 32,000 explosion suppression systems.
Under the decision, the investment project will benefit from a comprehensive incentive package, including customs duty exemption, VAT exemption, VAT refund, tax reduction, employer’s share of social security premium support for 10 years without an upper limit, income tax withholding support for 10 years, qualified personnel support up to TRY 50 million, interest or profit share support not exceeding TRY 250,000, energy support up to TRY 38 million for up to 10 years from the start of operations, and investment land allocation.
Following the completion of the investment, the company will apply to the Ministry for a completion certificate (completion visa). After an on-site inspection and expert evaluation, the completion certificate will be issued by the Ministry.
Except for reasons arising from public authorities, sanctions will be applied if the investment is not completed within the specified timeframe or if the obligations stipulated in the decision are not fulfilled.