China's Dong Feng Motor is to invest US$250m in a Turkish plant with an annual capacity of 52,000 units a year according to Turkey's government investment agency.

Feasibility studies for the location are being carried out and construction should begin in the first quarter of 2010, the agency said in a statement. Dong Feng is China's third largest carmaker and no details were available regarding what vehicle the company intends to built in Turkey.

The investment agency also said Korean steel manufacturer Posco would make an initial greenfield investment in Turkey of $24m to produce annually 170,000m tonnes of flat steel, to be used primarily for the automotive sector.

Hyundai Assan, a joint enterprise between carmaker Hyundai and Turkey's Kibar Holding, announced on Wednesday it had chosen Turkey as the site for production of its new i20 series.

Toyota, Renault, Fiat and Ford also have vehicle production plants in Turkey.