Volkswagen Group will build a new multi-brand manufacturing plant in Turkey, near the western coast of Izmir.  The company was previously looking at locations in Bulgaria, but opted for the location in Turkey instead. The plant will build cars for Skoda, Seat, and Volkswagen. The decision was made to alleviate capacity constraints at the Skoda factory in Czech Republic.

The state of Qatar has a 17% stake in Volkswagen, prompting the state to push for the factory to be built in Turkey at a board meeting. A spokesperson for Volkswagen’s supervisory board told Reuters that the plans for a new site were not yet finalized.

Previous reports have said the factory will open in 2022 or 2023, with an annual capacity of 350,000 units. The production will include the Skoda Karoq and the Seat Ateca SUV.  Skoda CEO Bernhard Maier said that the brand could have sold more than 100,000 cars last year if the capacity allowed for it. In April, it was reported that Skoda was had been between Bulgaria or Turkey as the new site for the planned plant.