An agreement has been made between Tosyali Holding, a Turkish steel producer, and Japan's Toyo Kohan according to a Tuesday report from the Turkish-American Chamber of Commerce and Industry.

The deal includes the investment of $500 million into the country in the form of steel production and an additional $300 million in exports, closing Turkey's deficit by $800 million. The facility is set to be operational after a 20-month construction period.

“Being the latest example of Turkish-Japanese friendship, this investment symbolizes the increasing cooperation between our countries, especially in strategic fields,” Turkey’s Prime Minister Ahmet Davutoglu said.

Davutoglu also stated that the facility will play an important role in the eventual qualitative changes that Turkey envisions for its steel industry. Tosyali will own 51 percent of the joint venture with the remaining 49 percent belonging to Toyo Kohan. According to the report Turkey was ranked as the eighth largest steel-producing country by the World Steel Association.