Turkey is set to announce a significant agreement with Chinese carmaker BYD Co. to construct a $1 billion plant in the western part of the country, according to Turkish officials.

President Recep Tayyip Erdogan is scheduled to reveal the accord on Monday during a ceremony in Manisa province, where the new plant will be located.

The establishment of the new factory is anticipated to enhance BYD’s access to the European Union market, given Turkey’s customs-union agreement with the EU.