Turkish conglomerate Kibar Holding plans to invest 40 million euros ($47 million) in automotive seat technology and also set up an auto parts production facility in Europe, Chief Executive Officer (CEO) Haluk Kayabaşı said Tuesday.

Speaking at a conference, Kayabaşı said the company will make capacity-boosting investments in raw materials and key intermediate products next year following the disruption of supply chains because of the coronavirus.

"We are planning to invest 40 million euros in air suspension seats and also set up a manufacturing facility in Europe in the medium term," Kayabaşı said.

Assan Hanil, the main auto parts supplier unit of Kibar Holding and its South Korean partner Seoyon E-Hwa, is known for its seating systems, bumper, door and instrument modules, according to its website.

Initially just providing parts for Hyundai, the company is now producing parts at its three facilities in Turkey and supplies to Mercedes-Benz Türk, Ford Otosan and Karsan Otomotiv.

Kibar Holding operates in seven sectors including automotive, food and metal. It has international business partners including South Korean Hyundai, Posco and Daewoo.

South Korean automotive giant Hyundai and Kibar Holding's Assan operate a joint automotive factory in Turkey’s northwestern city of Izmit.

The factory has been producing A and B segments of i10 and i20 models, and it has recently launched mass production of Hyundai’s revamped third-generation i20.

The facility has an export volume of $1.7 billion (TL 13.32 billion), which places Hyundai Assan among Turkey’s top five exporters.

Hyundai Assan, which celebrated its 20th anniversary in Turkey in 2017, is jointly managed by the Hyundai and Kibar, which hold 70% and 30% of shares, respectively.