The next-generation VW Passat and Skoda Superb will be produced at the Group’s new factory in Turkey, which will be located on the country’s western coast just outside of Izmir.

The new $1.09 billion factory will feature a maximum annual capacity of 300,000 vehicles and is expected to create around 4,000 jobs, including the surrounding suppliers, according to AutoNews.

The same report says that VW picked Turkey for its new factory over its “positive macroeconomic conditions” and its location amid emerging markets, citing an internal company document.

Also Read: VW Awards Turkey New Multi-Brand Factory After Strong Lobbying From Shareholder Qatar

Around two thirds of the annual production capacity will be for the next VW Passat. The company will move Passat production from its Emden factory in Germany, freeing up the facility for its conversion to battery electric vehicle production. Skoda will also get some much-needed extra capacity at its Kvasiny plant, where it currently builds the Superb.

Production at the new facility is expected to start in 2022, with a VW spokesman declining to comment on the details, saying that the company is in the “final stages of negotiations” and that they have not made a final decision on the factory yet.

Choosing Turkey for their new factory could prove to be politically controversial for the VW Group, according to Reuters, as the EU is accusing the local government for constraints on freedom of expression and demonstration rights. However VW argues that Turkey is still a candidate for EU membership.

The new factory is planned to aid future growth in surrounding markets, especially eastern Europe, Asia and the Middle East. VW Group was between Bulgaria and Turkey for its new manufacturing facility before reportedly opting for the latter.