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PAGEV PLASTIC MAGAZINE

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TURKISH PLASTICS INDUSTRY BECAME A PERMANENT MEMBER OF EU 08

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R&D and InnovatIon to lead growth of the plastIcs Industry

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ALLIANCE FOR “ZERO PLASTICS TO THE OCEANS”

news WASTE RECYCLING IS SUBSTANTIAL FOR TURKEY’S FUTURE

news PAGEV ORGANIZED ‘THE PLASTICS WORKSHOP OF KONYA

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news MInIster TUfenkCI promIsed full support for domestIc toys

42 PresIdent ErdoGan Meets wIth U.S. Chamber, TOBB and MultInatIonals

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PLASTIC INDUSTRY DIDN’T STAND IDLY BY THE STORY OF MURTAZA, A FAN OF MESSI

PAGÇEV DECLARES WAR AGAINST WASTES WITH ECO-FRIENDLY BICYCLES

TURKEY GUIDE

PAGEV PLASTIC MAGAZINE PAGEV Plastics Research, Development and Studies Magazine is a publication of the Turkish Plastics Industry Foundation. Owned by On behalf of PAGYAY Yayıncılık Turizm ve Ticaret Ltd. Şti.

Yavuz EROGLU General Coordinator

Aziz OZAY

Editorial Director

Advisory Board

Mustafa GÜR

Production

Prof. Mehmet Ali GÜNKAYNAK | İstanbul U.

Ertan GÜNEŞ Editor-in-Chief

Yağmur CENGİZ Advertising and P.R.

Kadir ÇAÇA Film Media Design

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TURKISH PLASTIC SECTOR PLASTIC INDUSTRY HAS A SIGNIFICANT PLACE IN EUROPEAN AND WORLD ECONOMY.

TURKISH PLASTIC SECTOR

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PLASTIC PRODUCTS ARE USED IN SEVERAL FIELDS OF EVERYDAY LIFE, AND THANKS TO THE NUMEROUS BENEFITS AND ADVANTAGES THEY PROVIDE, THEY WILL CONTINUE TO BE IN USE AS INDISPENSABLE PRODUCTS. PLASTIC SECTOR HAS ACHIEVED A GREAT GROWTH IN OUR COUNTRY PARTICULARLY AFTER 90S, AND RANKED AS THE 7TH IN THE WORLD. TURKEY IS LISTED AS THE 2ND FOLLOWING GERMANY, WITH ITS PLASTIC PRODUCT PRODUCTION OF 9.2 MILLION TONS. PLASTIC SECTOR IN TURKEY PROVIDES EMPLOYMENT FOR 250,000 PEOPLE IN ALMOST 14,000 FIRMS, WITH 99% BEING AT THE SME LEVEL.

37 BIL. $ PRODUCTION WORTH 4%

CONTRUBITION to GNP

175 COUNTRIES EXPORT 250.000 JOBS

11.000 COMPANIES

9 ML TONs PRODUCTION

%99 SME KOBÄ°

PER KILOGRAM IN EXPORT 3.12 $

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The logo was based on a grain of polymer folding to form a “P”.Drop form below the “P” stands for petroleum as the raw material of plastics while the above green form that looks like a drop and leaf symbolizes our commitment to environmental care and sustainability. As the “P” folds like a page, it also shows how valuable education and research are for the Foundation. Petrol blue and natural green combined stands for PAGEV’s unifying power. We have the power to change the future of plastics and Turkey, and believe that the associating power of our new logo will potentiate our efforts.

Turkish Plastics Industry Foundation.

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PAGEV was established in 1989 as Turkish Plastics Industry Foundation. Currently functioning in its headquarters in Ä°stanbul SefakĂśy, PAGEV, has around 600 active members who accounts for %80 of the turnover in the sector and has become a successful foundation which represents Turkish Plastic Sector in both domestic and international platforms by constantly growing. MISSION PAGEV, in accordance with the global development, was established in the privileged foundation status for the purpose of fulfilling the need of organization within the rapidly devoloping Turkish Plastics Industry which consists of mainly small businesses, ensuring the development of the sector in terms of vocational training, quality, efficiency and competition so that it has a strong basis to connect with the world, promoting a positive image of plastic and raising awareness about the significance of plastic by developing relations with the public and public institutions and equipping the sector with the advantage in qualified work force and technology bycontributing to the research work and serving the plastic industry as a leader in every aspect. PAGEV is an active member of European Plastic Converters (EuPC), European Association of Plastic Manufacturers (PlasticsEurope) and Council of International Plastics Association Directors (CIPAD)

PAGEV PLASTIC MAGAZINE

özel haber

TURKISH PLASTICS INDUSTRY BECAME A PERMANENT MEMBER OF EU T

urkish Plastics Industry became a permanent member of the European Union before Turkey. Heads and senior managements of the European plastics foundations gathered under the roof of PlasticsEurope came together during the Istanbul Plastics Summit presided by PAGEV. By this historical declaration, challenges the Turkish and European plastics industries have to face were evaluated

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and forward-looking strategies were set. With the appearance of İbrahim Kılıçarslan –the Directorate General of Industry Ministry of Science, Industry and Technology–, the Istanbul Plastics Declaration signed by the Chairman of the Executive Board of PAGEV Yavuz Eroğlu and CEO of PlasticsEurope Karl Foester will steer the course of the plastics industry and be a model for all industries. The

Chief Project Director of the Prime Ministry Investment Support and Promotion Agency Necmettin Kaymaz gave a speech on Turkish economy and co-investment opportunities to the presidents of the foundations representing thousands of companies in Europe. Moreover, the representatives participated in the summit started Eurasia’s largest plastics fair, the 25th edition of PlastEurasia.

HISTORICAL decIsIonS Turkey and the Commission to improve competitiveness of the plastics industry were included among other key strategies. It was agreed by the declaration that more weight must be given to incentives on recycling, waste management controls, social awareness campaigns on value plastic products, and training efforts to engage the young population in the plastics industry. Pioneering in the industry for prevention of plastic marine litters was decreed.

YAVUZ EROĞLU

competitive energy and feed stock costs should be provided and new energy resources should be targeted in order to overcome these concerns. Harmonization of the legislation on chemicals within a “single market, single regulation” approach, better controls on the import goods penetrating the EU and Turkey, the involvement of the plastics industry in the policies on re-industrialization and circular economy initiatives, and establishing incentive policies by

PROF.Dr. İBRAHİM KILIÇARSLAN

Karl Foester

The Istanbul Plastics Declaration set the primary challenges that Turkish and European plastics industries have to face, namely accelerating the speed of growth, unemployment, growth need, high costs of energy and feed stock, inadequate qualified workforce, need for future investments, absence of a harmonized and complementary networked legislation and better enforcement of the industry’s “Zero Plastics to Landfill” policy. It was highlighted that more

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ISTANBUL WILL BE BASEMENT Yavuz Eroğlu, the Chairman of the Executive Board of PAGEV, said presiding the Istanbul Plastics Summit “Turkish Plastics Industry holds Europe’s second (after Germany) and world’s sixth largest production capacity. We may not be an EU member, but all laws and regulations in place in the European Union affect us because of the exports to the EU and the on-going harmonization process with Turkey. As a sector, it has become necessary for us to contribute to the Turkish laws and regulations and involve in this harmonization process. When our foundation became a member of the umbrella organization of European plastics companies, our industry was the sixth largest, while it is the second largest now and pushing for leadership. This is a proof of the successful progress and development of the Turkish Plastics Sector. We wish that Istanbul should be not only Europe’s plastics production base but also Europe’s decision maker, and we steadily maintain our efforts to do so. We are proud to host a meeting of great importance for the Turkish and European Plastics Industries via the Istanbul Plastics Summit. We signed a common declaration at the end of weeks of discussions with representatives of plastics foundations from EU-member states that 12

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are members of PlasticsEurope, the largest umbrella organization of the EU Plastics Industry. We are glad to have introduced the Istanbul Plastics Declaration –a combination of two markets constituting a gigantic global power, which will shape the future of the European and Turkish Plastics Industry.”

EUROPEAN AND TURKISH PLASTICS INDUSTRIES â&#x20AC;&#x201C; FACTS AND FIGURES The plastics industry provides 1.45 million jobs in Europe. Around 62,000 companies operate in Europe. 14,000 plastics companies employ 250,000 people in Turkey. Plastics industry makes an annual turnover of 350 bn Euro in Europe, while turnover of Turkish

Plastics Industry is 34 bn dollars. Most importantly, plastics industry is an irreplaceable supplier and multiplier for other industries. A research conducted in Europe shows that 100 EUR GDP in the plastics industry generates 238 EUR of GDP in the national economy.

So plastics industry has a multiplier effect of 2.4 on the national economy. Same research also shows that for every job created in the plastics industry almost 3 additional jobs are created in the wider economy.

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PAGEV VISITED THE MINISTRY OF DEVELOPMENT

R&D and InnovatIon to lead growth of the plastIcs Industry

AGEV, the connective power of the Turkish Plastics Industry, visited the Minister of Development Cevdet Yılmaz in his office. Expressing the present situation, problems and on-going initiatives of the industry, PAGEV executives shared the latest developments on industry’s first Plastics Center of Excellence which was kicked off by PAGEV to improve the unit export and manufacturing value and value-added product diversity in the Turkish Plastics Industry. The Minister promised to maintain their support behind the Plastics Center of Excellence.

PAGEV PLASTIC MAGAZINE

Turkish Plastics Industry Foundation (PAGEV), the umbrella organization of the industry, continues to contribute to the successful growth performance of the industry with initiatives and projects. Yavuz Eroğlu, the Chairman of the Executive Board of PAGEV, and other members of the Executive Board gave information on their projects and targets for the new period during their meeting with Cevdet Yılmaz, the Minister of Development. PAGEV committee shared industry’s lastyear performance and problems. R&D and Innovation efforts in the plastics industry was at the top of the agenda, and the Minister promised not to refrain their support.

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With its production capacity, the Turkish Plastics Industry is currently the sixth in the world and second in Europe, yet its export performance falls behind the countries that produce even less. Because Turkeyâ&#x20AC;&#x2122;s unit export price for plastics is below $3/kg for plastics which is below the world average $4.4/kg. This indicates that the Turkish Plastics Industry focuses on

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manufacturing and export of the low-valueadded products. Believing that the traditional production model substituted with production of high-tech products, PAGEV expressed and initiated the preliminary works in this regard during the 25th Anniversary Feast that was held last year. PAGEV keeps working on the R&D center to support the industry.

However, during the opening of Plast Eurasia Fair in December, Mr. İbrahim Kılıçaslan –the Directorate General of Industry Ministry of Science, Industry and Technology– gave good news about their collaboration with PAGEV. Convening with the Minister of Development, PAGEV executives shared the latest developments on the industry’s first Plastics Center of Excellence that will supposedly be built at the PAGEV Vocational and Technical High School in Küçükçekmece.

New projects and industry-specific ideas and remarks on the concerns of energy and raw material supply, being the biggest problems of the plastics industry, were mentioned during this meeting. Country-wide spreading of the plastics workshops and the projects to be initiated in the next period were also discussed. Paying close attention to the problems of the industry and PAGEV’s solution offers, the Minister of Development Cevdet Yılmaz promised to continue their support on the plastics industry. PAGEV PLASTIC MAGAZINE

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MInIster TUfenkCI promIsed full support for domestIc toys

“

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aving taken steps to prevent domestic toys industry being overwhelmed by the import and to revitalize the production, PAGEV continues to step forward. PAGEV executives asked for support from the Minister of Customs and Trade Bülent Tüfenkçi to strengthen import controls on toys during their meeting at the Minister’s office. During the meeting, Minister Tüfenkçi declared their support to solve the customs problems. Taking new steps, Turkish Plastics Industry Foundation (PAGEV) continues their endeavors to hedge domestic toys production against import. PAGEV expands their works on domestic toys production that they kicked off at the end of 2013 supported by the Minister of Science, Industry and Technology Fikri Işık. Having been included in the next three-year “Turkish Industrial Strategy and Action Plan”, the toys industry came together at the Toys Workshop organized by PAGEV to express their problems, requests and demands. After getting support for a domestic character design during the workshop, PAGEV had a meeting with designers to hear their demands and passed on the actions to be taken during the 12th Turkish Design Advisory Committee under the presidency of the Minister of Science, Industry and Technology Fikri Işık.

Having solved the problems regarding the domestic toys production one-by-one, PAGEV brought up the import issue to the agenda during their meeting with Bülent Tüfenkçi, the Minister of Customs and Trade. During this meeting, PAGEV gave information about their efforts, carried out with the Ministry of Science, Industry and Technology, to establish a domestic toys industry, and asked for support to especially strengthen import controls. Establishment of a Specialty Toy Customs by the industry representatives was at the top of the meeting agenda. Also the negative effects of false declaration or trafficking of toys through the Doğu Beyazıt border gate and PAGEV Toys Committee’s suggestions to overcome this issue were discussed. Minister Tüfenkçi explained the significance of elimination of the plastics industry’s problems and announced that they will continue to collaborate with PAGEV to solve the problems of the industry in the upcoming period.

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PAGEV-PAGÇEV vIsIted the MInIstry of EnvIronment and UrbanIzatIon

WASTE RECYCLING IS SUBSTANTIAL FOR TURKEY’S FUTURE 20

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s the recycling entity of PAGEV, in parallel with the “Responsible Industry, Problem-Free Environment” mission, authorized for the packaging wastes PAGÇEV is a non-profit organization that collects packaging wastes separately at the source. As the recycling entity of PAGEV authorized for the packaging wastes, PAGÇEV is a non-profit organization that

collects packaging wastes separately at the source. PAGÇEV collaborated with 40 municipalities all over the country in 2015 to reach 8 million individuals. Planning to increase this quantity in 2016 with projects, PAGÇEV shared their newyear strategies with Fatma Güldemet Sarı, the Minister of Environment and Urbanization PAGEV PLASTIC MAGAZINE

The Minister promoted the importance of waste recycling, packaging in particular, important for Turkey and the next generations, and emphasized that they will give their countenance to PAGEV’s and PAGÇEV’s efforts. PAGÇEV, the organization authorized by Ministry of Environment and Urbanization on the packaging wastes, continues their works to reduce, reuse and recycle the packaging wastes as part of the waste management plans. PAGÇEV visited Sarı in his office to share their new-year projects and strategies, and took the Ministry’s incremental support for their activities regarding collection of packaging wastes at source. Activities and future cooperative actions of Yavuz Eroğlu, the President of PAGEV and Chairman of WFO Turkey/ Middle East/Africa, with the Ministry of Environment and Urbanization were also discussed during the meeting. The latest developments about the “Mutlu Balıklar” (Happy Fishes, translation for ‘WFO’) project which is a follow-up for the Waste Free Oceans movement initiated in Europe by the European Plastics Converters (EuPC) –and PAGEV as a member– and undertaken by the plastics industry in Turkey for elimination of the marine litter problem were passed on. Fishermen clean the sea surface from the materials made of metal, glass, plastics, etc using a special net to recycle them and restore their economic value as part of this project, commenced right after the fishing ban. This project is meant to be a side income for the fishermen over the course of the fishing ban. Moreover, non-recyclable waste will be combusted in cement plants for energy efficiency.

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In cooperation with 40 municipalities in İstanbul, Ankara, İzmir, Konya, Muğla, Bursa, Çanakkale, Denizli, Aydın, Mersin, Antalya, Balıkesir, Sakarya and Isparta concerning the collection of packaging waste, PAGÇEV reached 8 million individuals, with a hundred percent increase vs previous

year. Moreover, PAGÇEV gave their supports to raise awareness on recycling and carried out particularly elementary school- and homemaker-oriented training and awareness works all the year round. PAGÇEV aims to heighten citizens’ awareness on recycling with their public service ad.

PAGEV PLASTIC MAGAZINE

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PAGEV VISITED THE MINISTER OF SCIENCE, INDUSTRY AND TECHNOLOGY

PlastIcs Industry Is searchIng solutIons for theIr problems

eing one of the youngest and most rapidly growing industries in Turkey, the plastics industry is looking for solutions for the problems cramping its development. During their visit to the Minister of Science, Industry and Technology Fikri Işık, PAGEV addressed the industry’s problems regarding import in particular, costs spent for accredited foreign laboratories and inadequate quantity of R&D centers, and asked for support. The Minister, who had been supporting all the efforts performed to revive domestic toys production, got briefing on activities of the PAGEV Toys Committee. Turkish Plastics Industry Foundation (PAGEV), the umbrella organization of the industry, continues to work on elimination of the problems that hinder development of the industry. During their recent visit to the Minister of Science, Industry and Technology Fikri Işık, the PAGEV

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committee addressed the industry’s problems regarding import of products and machinery in particular, costs spent for accredited foreign laboratories and inadequate quantity of R&D centers that might contribute to the production of high addedvalue goods. The committee requested the Minister’s support for elimination of these problems, and discussed the ministerial aids and the required responses. Other participants were the Deputy Secretary Ramazan Yıldırım, the Directorate General of Industry Prof. Dr. İbrahim Kılıçaslan, the Advisor to the Minister Dr. Mehmet Duyar. The Chairman of the Executive Board of PAGEV, the 1st Deputy President Ahmet Meriç, the SecretaryMember of Executive Board Cemil Çakar, the members of the Executive Board Murat Özadam, Kazım Öztürk and Abdullah Karatepe, and

General Manager Yağmur Cengiz appeared in the meeting on behalf of PAGEV. The committee shared the recent developments regarding the plastics industry’s first R&D center. The ministerial supports regarding this R&D center, which will be built at the yard of the PAGEV Vocational and Technical High School in Küçükçekmece, were also discussed. This R&D center will enable domestic production of the imported products, relieve the burden of costs spent for accredited foreign laboratories, and take the heat off of the industry representatives. Moreover, PAGEV gave information on the final phase of the works on promoting and reviving domestic toys sector to the Minister who provided full support from the day one. Suggestions on the organized industrial zone which is planned to be established in Düzce were also discussed.

LIONELL MESSI

Murtaza Ahmedi

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PLASTICS INDUSTRY DIDN’T STAND IDLY BY THE STORY OF MURTAZA, A FAN OF MESSI T

Afghanistan’s Little Messi got to go to Spain thanks to the Plastics industry.

he plastics industry was the first to reach Afghan Murtaza Ahmadi who touchingly wore a jersey bearing Messi’s name made out of plastic bag. PAGEV (Turkish Plastic Industry Foundation) endeavored to make the little football enthusiast’s dreams real from the day he hit the news. With the help of the Consulate General of Afghanistan

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Embassy and the Turkish Embassy in Kabul, PAGEV reached young Murtaza in his village in Afghanistan. PAGEV helped this little Messi fan have his identity card and passport to let his dreams come true. Meanwhile the Royal Spanish Football Federation stepped in to open the way for Murtaza to go to Spain and meet Messi.

As a foundation putting the value of plastics and their contribution of recycling to economy into words at every opportunity, Turkish Plastics Industry Foundation (PAGEV) could not stand indifferent to the photo of Afghan Murtaza Ahmadi wearing a Messi jersey made out of plastic bag. Nobody knew where Murtaza was, but PAGEV could reach him by making diplomatic attempts and negotiations to realize this little Messi fan’s dream of meeting his idol. “This little kid who wore jersey made of plastic bag was alleged to be living in Northern Iraq, but we found out that he is Murtaza Ahmadi, a five-year-old child living in the Jaghori district in the Afghan province of Ghazni. Murtaza lags in his ability to talk, but he has beautiful dreams particularly about Messi and football. His biggest dream is to be like famous footballer Messi, wear his jersey and see him face-toface” said Yavuz Eroglu, the Chairman of the Executive Board of PAGEV, speaking of their efforts to find little Murtaza and help him with his dream. Outlining their attempts, Yavuz Eroglu said “Since the last week, we have succeeded in accessing the whereabouts of Murtaza Ahmadi thanks to our cooperation with the Consulate General of Afghanistan and the Turkish Embassy in Kabul. During our diplomatic contacts, we made great use of help of Malik Quraisi, the Consulate General of Afghanistan in Turkey, Hatif Hashemi, the Afghan Consular, and Ali Sait Akın, our Embassador in Kabul. We contacted Murtaza Ahmadi and his father in a short time in their village that is 189 kilometers away from Kabul with the help of

our Consulate. We began with helping the kid have his identity card and passport issued. There was an armed conflict in the region, so we had to wait until the conflict was settled to ensure a safe drive to the capital city Kabul and get the paperwork done. Murtaza and his father was transferred to Kabul under protection of the army.. We received Murtaza Ahmadi’s identity card and passport in a short time after the official procedures, opening the first gate to his dreams”. Explaining that they cooperated with the Consulate General of Afghanistan in Istanbul and the Turkish Embassy in Kabul in this process, Yavuz Eroglu, the Chairman of the Executive Board of PAGEV, continued his words: “Worlds Population exceeded 7 bilion short time ago. We need to provide food, shelter and a prosperous future for these people. The only way to this is to use our limited

sources efficiently. Plastic is The material for efficiency. Those even, Murtaza -a kid poor enough to get an identity card, living in a harsh environment- , used to make jersey from plastic bag to somehow reach his dreams. As the Plastic Industry, we became part of steps taken for Murtaza who wore a jersey made of plastic bag. We are glad to be part of this little football fan’s meeting with Messi and realize his dreams“ PAGEV (Turkish Plastic Industry Foundation) is representing the Plastic Industry Value Chain in Turkey which consists of 14,000 plastics companies that employ 250,000 people in Turkey. Turnover of Turkish Plastics Industry is 34 bn dollars ranking second largest in Europe and 6th largest globally. PAGEV has vocational training schools, recycling companies, organizes 2nd largest plastic exhibition globally, and lobbies for industries interests both domestic and globally.

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PAGÇEV DECLARES WAR AGAINST WASTES WITH ECO-FRIENDLY BICYCLES P

AGÇEV, the recycling entity of the Turkish Plastics Industry Foundation (PAGEV) authorized for the packaging wastes, aims to reduce CO2 emission by popularizing bicycles to preserve our natural resources. Based on its environmental protection mission, PAGÇEV intends to increase the number of bicyclers to create a sustainable environment and promote recycling. PAGÇEV emphasizes that the regulation on design and construction of bike lanes, bike stations and bike stands on the urban roads by the Ministry of Environment and Urbanization will help increase the number of bikers on the roads, thus reducing the carbon emission.

Explaining the difference between looking and seeing, the Chairman of Executive Board of PAGÇEV Yavuz Eroğlu said: “We use vehicles such as cars and buses to arrive our destination as soon as possible. We do not give our environment much thought in our hectic and feverish lives. However, bicycles help people see the beauties and freshness around them while realizing the disharmony and pollution. According to studies, bicyclers are one of the most sensitive communities towards environment. People are encouraged to use bicycles all over the world, e.g. Seville in Spain. Roads and bike lanes were regulated in Seville: use of bicycles increased 10x in 3 years.

6 thousand people used to ride bicycle every day; but thanks to the bike roads amounting to 120 km, over 60 thousand people use bicycles now, which means 10% of the people living in the city travels by bicycles. More importantly, 30% of the people who began travelling by bikes do not use their cars anymore. We may use this example in Turkey. A regulation on design and construction of bike lanes, bike stations and bike stands on the urban roads has recently been issued. This regulation will increase the number of healthy and eco-friendly citizens, and will help us live in a city where environment, health and development harmoniously create welfare.

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PAGEV PlastIcs Center of Excellence wIll make Turkey a productIon hub 30

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he production capacity of Turkish Plastics Industry reached 8.6 million tons in 2015, making Turkey the second largest producer in Europe, and sixth in the world. Amount of export in the industry reached $4.34 billion in the same period. As a country that takes firm steps forward to be a pioneer in production, however, Turkey stands below the average in terms of export of plastic products with added value in the world. While globally leading exporting countries create $5.3 per kilogram, it is $2.8 per kilogram in Turkey. Seeking solutions for this problem that is of particular concern to the Turkish Plastics Industry, PAGEV took action to help industry provide higher added value through state-of-the-art technology with competitive advantage. PAGEV took action to establish the first PAGEV Plastics Center of Excellence in Turkey with support of the Ministry of Science, Industry and Technology. Initial target of this center that will enable high-technology production will be increasing added value to $4 per kg and narrowing the foreign trade deficit.

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YAVUZ EROGLU

FARUK OZLU

The Turkish Plastics Industry Foundation (PAGEV) speeded up its efforts to increase global competitive capacity and sustainability of Turkish Plastics Industry. The Foundation will establish the ‘Plastics Center of Excellence’, where technologies with higher added value will be developed to support small- and large-sized plastics producers. Signatures that started establishment of this center led by PAGEV with support of the Ministry of Science, Industry and Technology were put during a ceremony, attended by the Minister of Science, Industry and Technology Faruk Özlü, General Director of Industry of the Ministry of Science, Industry and Technology Professor İbrahim Kılıçaslan and Chairman of the Board of PAGEV Yavuz Eroğlu. The Center will be built in the Küçükçekmece PAGEV Vocational and Technical High School, and will have an indoor space of 30,000 square

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meters. The first stage of the project, which is a facility of 3500 square meters, is expected to be commissioned within one year. The entire project is an investment of 70 million TL and will take four years to complete. The protocol allows for the establishment of additional PAGEV Plastics Centers of Excellence elsewhere in Turkey depending on requirements, also with the support of PAGEV and the Ministry of Science, Industry and Technology. The PAGEV Plastics Center of Excellence will help to train industrial skills and talent that will provide the foundation of national projects, providing a boost to the plastics industry in particular, and the Turkish economy in general. The PAGEV Plastics Center of Excellence will be a product of strategic partnership which will encourage scientific research with traceable objectives and a high potential for

commercialization in order to accelerate the growth of the plastics industry. The Center will serve the chemical, rubber and composite industries as well with research, certification, testing and laboratory services, and cooperate with industrial companies, universities, research institutions, professional associations and nongovernmental organizations for developing the latest technologies. The Center will also provide professional and technical training and advisory services. The machinery industry will benefit from the Center as well through quality and quantity improvements in plastic machinery, mold and equipment production. All of these will improve the competitive strength of the industry, ultimately making Turkey the global hub of plastics production

The PAGEV Plastics Center of Excellence will act as a controlling body for export products, which will ensure that plastic products made in Turkey will enjoy better trust and reputation in global markets. Another benefit of the Center will be tests performed on imported plastics before they are admitted through customs, which will prevent non-standard products of poor quality from entering the market. During his opening speech to the signing ceremony, “Turkey reached 8.6 million tons of production capacity in 2015, which made us sixth biggest producer in the world, and second in Europe. Amount of export hit $4.34 billion in the same period. Even if have been increasing our contribution to Turkish economy and industry with high-end production and export performance day by day, we have more in our sights. We have to boast added-value production to reach our goals. Today, unit export value per kilogram is $5.3 for top 10 exporting countries and unit

import value is $2 on average, while every kilogram of production and export create an average of $3.3 added value. Plastics producers in Turkey import feedstock for $1.8 per kilogram, and exports for a unit price of $2.8. Added value per kilogram is $1. What we want to succeed is to increase this added value up to $4 per kilogram. We will achieve this goal by our PAGEV Plastics Center of Excellence with the support of Ministry of Science, Industry and Technology. This will be a Center of Excellence that serves R&D and innovation, trainings, certification, testing, laboratory and consultancy services for developing higher added value” said the Chairman of PAGEV Yavuz Eroğlu. Underscoring that PAGEV Plastics Center of Excellence will develop and support innovative projects to make Turkey the largest production base for plastics, Yavuz Eroğlu added: “PAGEV will lead the Plastics Center of Excellence to position Turkish Plastics Industry as a global leader. We will increase

our contribution to the national economy, which is currently $13 billion, and help narrow the foreign trade deficit. By means of added-value production, we also will increase direct and indirect export throughout the industry by 43 percent on dollar basis,” ending his words. Prof. Dr. İbrahim Kılıçaslan, the General Director of Industry of the Ministry of Science, Industry and Technology, commented on the low added-value production in Turkish Plastics Industry despite wellestablished product manufacturing. He said: “We should incorporate R&D, design and brand to our inputs for creating state-of-the-art products with high added-value. There is no R&D center in the plastics industry. With support of the Ministry of Science, Industry and Technology, PAGEV Plastics Center of Excellence will be the first step, increasing the added-value within the industry.”

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Prof.dr IBRAHIM KILICARSLAN

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for top 10 exporting countries and unit import value is $2 on average, while every kilogram of production and export create an average of $3.3 added value. Plastics producers in Turkey import feedstock for $1.8 per kilogram, and exports for a unit price of $2.8. Added value per kilogram is $1. What we want to succeed is to increase this added value up to $4 per kilogram. We will achieve this goal by our PAGEV Plastics Center of Excellence with the support of Ministry of Science, Industry and Technology. This will be a Center of Excellence that serves R&D and innovation, trainings, certification, testing, laboratory and consultancy services for developing higher added value” said the Chair of PAGEV Yavuz Eroğlu. Underscoring that PAGEV Plastics Center of Excellence will develop and support innovative projects to make Turkey the largest production base for plastics, Yavuz Eroğlu added: “PAGEV will lead the Plastics Center of Excellence to

position Turkish Plastics Industry as a global leader. We will increase our contribution to the national economy, which is currently $13 billion, and help narrow the foreign trade deficit. By means of addedvalue production, we also will increase direct and indirect export throughout the industry by 43 percent on dollar basis,” ending his words. Prof. Dr. İbrahim Kılıçaslan, the General Director of Industry of the Ministry of Science, Industry and Technology, commented on the low added-value production in Turkish Plastics Industry despite well-established product manufacturing. He said: “We should incorporate R&D, design and brand to our inputs for creating stateof-the-art products with high added-value. There is no R&D center in the plastics industry. With support of the Ministry of Science, Industry and Technology, PAGEV Plastics Center of Excellence will be the first step, increasing the addedvalue within the industry.”

The Minister of Science, Industry and Technology Faruk Özlü also made statements during the signing ceremony: “We are taking the first step to establish a Plastics Center of Excellence in Turkey. This Center of Excellence will cooperate with universities, industry and community to constitute a base for R&D, product development and design within the industry. Turkey should adopt a tech-intensive approach for increasing global competitive advantage in every single industry. We went through the most severe trauma in our history, just a month ago. Despite the July 15 coup attempt, Turkey continue to look ahead, without compromise from its targets. We are happy that this will dominates the private sector as well. Plastics producers are absorbed in the future of the industry, and focused on empowering competitive capacity. I believe we have a massive potential as a nation. I think we can grab the most out of success in this industry, where global demand increases around 4 percent every year. Minister Faruk Özlü noted two fundamental problems in the plastics industry: “First, petrochemicals are the most used raw materials, 80-90 percent of which depend on foreign sources. Second, added value is low. We signed this memorandum of understanding to change the picture through the Center of Excellence. R&D projects that small-sized companies cannot carry out with their current level of knowledge and technology will be run in cooperation in this center. This center will make highquality and high added-value production in plastics industry possible.” Facts and Figures • Plastics industry embraced growth by increasing production in 2015. Production capacity of the industry reached 8.6 million tons by a 3.2% increase in 2015 vs previous year. Production on value basis declined by 6.6 percent reaching $32.9. Drop in oil prices and EUR-USD parity brought losses on value basis. • Out of 8.6 million tons of plastics production in 2015, plastic packaging took the

lead with 3.4 million tons, followed by plastic construction materials with 1.9 million tons. • With this amount of production, plastics industry used its full capacity by 73 percent. Domestic consumption in the industry increased 4.1 percent reaching 7.6 million tons vs same period of the previous year. • Commodity exports in Turkish Plastics Industry decreased in amount and value in 2015 vs 2014. Amount of exports became 1.58 million tons decreasing by 1.6% with a 12.8% decline on the basis of value reaching $4.34 billion. Top export destinations of the plastics industry were listed respectively as Iraq, Germany and England. • Another problem is insufficient national production of feedstock; import-dependency continued in 2015. Feedstock import in the industry increased

by 3.7 percent reaching 6.3 million tons, while declining by 15.1 percent on value basis reaching $9.4 billion. • Plastics feedstock production in 2015 was around 1 million tons. Plastics feedstock export increased by 2.6 percent reaching 688 tons in the same period. There was a 17 percent decrease on value basis reaching $933 million. Top export destinations of the Turkish Plastics Industry were listed as Germany, Egypt and Russia in 2015. • Investments on production equipment costed $765 million on average in the last five years. 25 percent of these equipment were manufactured in Turkey while 75 percent were imported. Plastics machine, mold and equipment production in Turkey should be increased, in terms of both quality and capacity. PAGEV PLASTIC MAGAZINE

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PAGEV ORGANIZED “THE PLASTICS INDUSTRY WORKSHOP OF KONYA” The plastIcs Industry In Konya achIeved $975 mIllIon productIon per year

hanks to its improving industrial infrastructure, Konya is stably strengthening its presence at the Turkish economy. Plastics is one of the most rapidly growing branches of the industry in Konya. Plastics industry in Konya created $390 million added value, achieving $975 million production in 2014. In the same year, value of exported plastics was $70 million. PAGEV organized ‘The Plastics Industry Workshop of Konya’ to accelerate the industrial growth process of Konya as a major actor in the plastics industry. Representatives of the plastics industry of Konya convened at the workshop to specify the steps required to improve the industry. Turkish Plastics Industry Foundation (PAGEV), the umbrella organization of the Turkish Plastics Industry, expanded their efforts to improve the industry by ‘the Plastics Workshop of Konya’. President of the Konya Chamber of Industry

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Memiş Kütükçü, President of the Konya Chamber of Commerce Selçuk Öztürk, Chairperson of the MÜSİAD Konya Branch Lütfi Şimşek, Member of Executive Board of PAGEV Kazım Öztürk, and movers and shakers of the industry appeared in the workshop, and listened to the first speech by the Chairman of Executive Board of PAGEV Yavuz Eroğlu. Precautions to accelerate the growth process of the plastics industry were emphasized, and the importance of manufacturing high addedvalue products through investment in innovations was highlighted. Having proved itself in the fields of agriculture and livestock breeding, Konya draws attention with its industrial infrastructure improved in the recent period. Being one of the most dynamic cities driving the national economy thanks to over 3 thousand SMEs, Konya distinguishes itself with 9 organized industrial zones, 38 small industrial

areas, 14 private industrial sites and 2 technology development zones as a center of production. Plastics industry is growing in Konya –a prominent city for industries like machinery production, automotive supplies, base metal, agricultural equipment and machinery, food and shoe-making. Konya has the sixth biggest plastics industry in Turkey with 181 companies employing 10 thousand people. Plastics production in Konya for several industries including packaging, automotive, construction and household appliances totaled $975 million in 2014. Exports of plastics produced in Konya brought in $70 million, creating $390 million added value. Industrial improvements, strategic position and the Logistics Park Project for the next year provide a strong infrastructure to the plastics companies who are planning to invest in Konya.

The Chairman of Executive Board of PAGEV Yavuz Eroğlu said that “As the youngest and most rapidly growing industry in Turkey, the Turkish Plastics Industry has world’s sixth and Europe’s second biggest production capacity. In 2014, value of the plastics production in Turkey reached $35 billion, and the exports of plastics totaled over $12 billion, directly or indirectly, providing an added value of $14 billion to the national economy per year. With 6,500 companies employing 250,000 people, the plastics industry is one of the most steadily growing industries of our country.” Plastics industry in Konya became a center of attraction for investors... Eroğlu continued his words, saying: “Konya is a rising city for plastics industry in Turkey. It is a remarkable industrial city as a center of production, exporting, employment opportunities and added value. Konya is expected to be Turkey’s production base

for plastic packaging, automotive and construction material production in the near future. Several industry representatives came together at the Plastics Workshop of Konya organized by PAGEV. Solutions to the problems specific to Konya, skilled workforce, raw material costs, insufficient amount of plastics industry incentives, and the precautions

required accordingly were among the major items on the agenda. Opportunities that might contribute to the development of the plastics industry in Konya were also discussed. We will carry on our works to turn the plastics industry – which is one of the most important industries in Turkey– into a front runner in every city of Turkey.

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‘‘ Turkey’s plastIcs output up 8% In H1 2016

Recycling plastics has the potential to contribute around $3 billion per year in Turkey if all packaging in the country is recycled, said head of Turkish Plastic Industry association on Wednesday. “Nearly 3,780 liters of water is wasted to produce 1,000 paper bags. However, just 30 liters of water is needed to produce polyethylene plastic bags.”Yavuz Eroglu, head of Turkish Plastics Industry Foundation, PAGEV, told Anadolu Agency. “Plastic can be recycled endlessly while paper can only be recycled 4-5 times,” Eroglu said. He explained that recycling plastics has the potential to provide a substantial amount of savings in water and energy. Through recycling plastics, 10.5 billion kilowatt hours (kWh) of energy and 17 billion liters of water can be saved. In addition, carbon dioxide emissions can be reduced by about 1.9 million tons per year in Turkey.

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n the first six months of 2016, Turkey’s plastics output expanded to some 4.6 million tons, an increase of 8 percent compared with the same period a year earlier, according to the latest market report by the PAGEV. The industry’s output during this period was estimated to be worth about $17.8 billion, an increase from the same period last year of $16.4 billion. By the end of 2016, it is expected that the value of the industry’s output will increase to $35.6 billion, the report said. From January to June 2016, the largest share of Turkish plastics exports was destined for Iraq, with Germany and the U.K. ranking in second and third place respectively. About 3 million tons of plastic packaging materials are generated in Turkey per year out of which 44.8 million kWh of electricity is consumed, Eroglu said. “Likewise, four and a half times the

amount of electricity, equal to 202 kWh of electricity, is used to produce the same amount of paper bag materials,” he added. - Plastic frequently used in European construction sector However, the use of plastic is not all bad news. Eroglu hailed the use of plastics in the construction industry in Europe claiming that they contribute to energy efficiency in the industry. The use of plastic insulation blocks ensures that there is no loss of heat and additionally, carbon dioxide emissions are reduced by between 10 to 40 times in buildings which means 40-60 percent savings, he explained. “Nearly 20 percent of plastics are used in the construction sector in Europe,” he added. The European Parliament had discussed the contributions that plastics have made to global warming. “According to a new sustainability

report by Finnish member of the European Parliament, Eija Riitta Korhola, energy consumption will increase by 46 percent and greenhouse gas emissions will rise by 50 percent if alternative materials to plastics are not used,” Eroglu said. Estimates show that 24 percent of Turkey’s total consumption of domestic plastic materials, equivalent to approximately 1 million 800 thousand tons, was recycled in 2015 while the remainder was buried, Eroglu said. “We are against the burying of plastics. It should be banned. It is necessary to recycle all plastics and make them useful again for the economy,” he concluded. Set up in 1989 and headquartered in Turkey’s largest city Istanbul, PAGEV represents the interests of more than more than 700 members active in the country’s plastics industry

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TurkIsh PlastIcs Industry: Center of Investment for the Gulf CountrIes OIL PROFITS DOWN, GULF CAPITAL LOOKS FOR A WAY OUT

ontrolling a large proportion of the world oil reserves and investing heavily on petrochemicals, the Gulf countries are looking for a new investment area in consequence of the softening oil prices. These countries plan to make good of their huge capital, which is based on oil and petrochemicals export, in the plastics industry. Being the second in Europe and the sixth in the world with its production capacity and as the closest neighbor, the Turkish Plastics Industry positions

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itself as the first choice for oil and petrochemicals capital. Speaking at the Middle East’s largest plastics conference, GPCA Plasticon, the Chairman of PAGEV Yavuz Eroğlu introduced the “Special Integrated Plastics Park” that will be built in compliance with the International Clustering model, and offered collaboration to establish world’s most competitive Plastics Industry by unifying the petrochemical power of the Gulf countries with Turkey’s capacity of plastics production.

Composed of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates and defined as the Gulf Cooperation Council, the Gulf countries that recently suffered from the sagging oil prices are in search for a way out. Having a huge capital thanks to their investments on oil and petrochemical industries, these countries are planning to crown their investments with the closest and the most profitable industry. In this respect, the open-toinnovation plastics industry that provides addedvalue products for the sectors including defense, automotive, pharmaceuticals, construction and electricity becomes the center of attraction. And as the closest and the most successful nominee, the Turkish Plastics Industry becomes the first choice to invest in. The Gulf countries are rich in oil and natural gas resources, and they meet 12 percent of the world’s plastics feedstock need with their 27 million tons of annual feedstock production capacity. Amount of plastic products annually manufactured in Turkey is 8,5 million tons, while six of the Gulf countries manufacture 4,8 million tons. The plastics industry in Turkey grows approximately 11 percent every year, while the plastics industry in the Gulf countries grow 9 percent. Exporting around 40 percent of its plastics production, import dependency of the Turkish Plastics Industry is 82 percent. On the contrary, the Gulf countries export 9% of their products and 82% of their feedstock. The Turkish Plastics Industry has world’s sixth, Europe’s second biggest production capacity, consisting 14,000 companies to provide $13 billion added value to the economy and employment to 250,000 people. As the figures reveal, plastics industries in Turkey and the Gulf countries have a great potential to create a powerful synergy in terms of feedstock and products. Speaking at the GPCA Plasticon, the Middle East’s largest plastics conference held in Dubai under the theme of “Plastics For Future”, the Chairman of the Executive Board Yavuz Eroğlu emphasized the close relationship between Turkish and Middle-Eastern plastics industries and suggested new projects to promote more investments and collaboration. During his presentation at the GPCA Plasticon, Eroğlu introduced the “Special Integrated Plastics Park” project that is planned to be built in compliance with the International Clustering model combining the feedstock from the resource-rich Gulf countries and Turkey’s know-how on plastics production. This project is expected to contribute to the growth of Turkish Plastics Industry in manufacturing and export, while helping the Gulf countries with their transition to manufacturing products that provide higher added value.

Explaining how gainful this project will be for Turkey and the Gulf countries, Yavuz Eroğlu said “Gulf countries fall behind in plastics production despite their oil reserves. On the other hand, Turkey has difficulties in accessing feedstock due to the lack of domestic petrochemicals production despite being the second biggest producer of the Europe. In addition to this, descending oil prices entail new fields of investment. For this reason, we believe the Gulf countries and Turkey can complement each other in terms of the plastics industry. However, we need projects to reveal this potential. “Special Integrated Plastics Park” is one of these projects. Under this project, we are planning to bring feedstock of the Gulf countries and Turkey’s know-how together, enabling both countries to take advantage of each other’s experience and skills and win-win.” Eroğlu ended his speech, saying “We should include the issue of free trade at the agenda as soon as possible. A Free Trade Agreement between Turkey and the Gulf countries would be a contribution to the plastics industries. Our industry representatives are waiting for an agreement to enable free trade.” PAGEV PLASTIC MAGAZINE

9-LAYER BARRIER FILM EXTRUDER WILL BE INTRODUCED AT K FAIR

DIkey MachInery, pIoneer at manufacturIng of plastIc packagIng machInes Dikey Machinery CO LTD, continues production in its Plant situated in İzmir/Kemalpaşa Organized Industrial Zone with itsprofessional and technical staff. Company confidently continues its way to become a global brand, directing its Experience and Knowledge to the sustainable “Innovation and Technology” projects, by giving much importance to R&D applications.

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n Dikey Machinery CO LTD; designing, manufacturing of the Mechanical Components, integrating Automation and also Software Development processes are carried out by its own staff and in its own plant. Moreover, Dikey Machinery CO LTD is manufacturing some main units in extruders such as: “Gravimetric Dosing Units” and “Profile Control Systems”. Dikey Machinery CO LTD, which produced the first European Quality 3 Layer Coex Extruder in Turkey and continues its production with 5 Layer Coex Extruder, has added 9 Layer Barrier Film Extruder to its production list now. Company will introduce its new production: the 9 Layer Barrier Film Extruder, firstly in Trade Fair K-2016 which is well known as the World’s No. 1 Fair for Plastics and Rubber.” Mr. Lütfü Büyükkasap - The General Manager of the Dikey Machinery CO LTD, clarified that the 9 Layered Extruder was designed specially with respect to the dimensions of the stand area in the fairground and suitable for the plastic producers that have production areas with low roof, and said that: “The extruder that we will introduce in the Trade Fair can produce films

up to 1400mm width with production rate of 200 kg/hour. Of course, we can manufacture extruders with respect to our customer’s demands about the dimensions, capacity and/ orcharacteristics of the machine.” Mr. Büyükkasap also mentioned that the main target of the company is not competition with the companies take part in this sector nearly a hundred years, but it is certain that, Dikey Machinery CO LTD will enter the list of leading companies and become a powerful actor in this sector by time. Mr.Lütfü Büyükkasap mention that 9 Layered Extruder will be presented to the plastic film producers, with more economical prices with respect to its equivalents during K Fair and said: “This process will be continued withT-Shirt Roll Bag Making Machine - which will be produced for the first time in Turkey -that we will introduce onİstanbul / 2016 Plasteurasia” Mr. Lütfü Büyükkasap - The General Manager of the Dikey Machinery CO LTD ended his speech by inviting the trade fair visitors and especially P.E. film producers for watching this new extruder on our stand.

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news

Turkey wIll dIrect cleanIng marIne lItters from European seas

ALLIANCE FOR “ZERO PLASTICS TO THE OCEANS”

ountries from all over the world came together at PolyTalk 2016 under the theme “Zero Plastics to the Oceans” to discuss the marine pollution increasing day after day. Held on 16-17 March 2016, the conference themed “Zero Plastics to the Oceans” was arranged by the host PlasticsEurope. The Deputy Minister of Environment and Urbanization Mesut Ceylan and the Chairman of the Executive Board of PAGEV Yavuz Eroğlu appeared in the conference to deliver speeches on the efforts for coastal cleanup in Turkey and the other countries. All the seas and oceans of the world have been in danger because of pollution for decades. Today, our seas and oceans are polluted with approximately 142 million tons of litter, which is 20 kg waste per capita. 10 million tons waste is added to this pollution every year; eighty percent of this marine

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pollution is land-based. Seventy percent of the waste sinks to the bottom while fifteen percent comes ashore and the rest floats on the seas. Conducted researches show that marine litter travel from one coast/country to the other with sea waves. Therefore, this is not much of a problem that countries can handle individually. We need international collaboration to solve this. And plastics are one of the most common waste types... The European Union closely follows this global issue, and works with environmental organizations and industrial actors to reach a relief. As part of this collaboration, “Zero Plastics to the Oceans” was included in the PolyTalk 2016 Conference among other topics to discuss. Held at Brussels on 16-17 March, the authorities from the European Union and Turkey came together at this conference to define the steps to be taken for a

global coastal de-pollution. The Deputy Minister of Environment and Urbanization Mesut Ceylan delivered his speech at the “High Level Panel Debate on Regional Issues & Solutions” on the conference day 1. PAGEV’s special guest the Deputy Minister Ceylan said “Marine litter is swiftly spreading around by means of waves and streams. This problem can only be solved with international collaboration. Turkey supports international alliances and national projects such as “Mutlu Balıklar” (Happy Fishes, translation for WFO) carried out by NGOs like PAGEV. We are working on to avoid pollution before happening. We prepared the Marine Litters Action Plan for Istanbul to effectively deal with the marine litter issue. Marine litters action plans for all other coastal cities are expected to be prepared by 2017. We will do whatever it takes” during his speech.

MEHMET CEYLAN

The Chairman of the Executive Board of the Turkish Plastics Industry Foundation –the umbrella organization of the industry and a member to the PlasticsEurope– Yavuz Eroğlu gave a speech on the second day of the conference, explaining what PAGÇEV has done so far for the sake of coastal cleanliness in parallel with the “Responsible Industry, Problem-Free Environment” mission. Stating that marine litter problem has gone rampage, the President of PAGEV Yavuz Eroğlu continued his words: “As a country surrounded on three sides by the sea, we are more vulnerable to other countries’ wastes. Therefore, we believe that we have to be even more sensitive compared to other countries. As a matter of fact, every country has to do more than cleaning is coasts. 53 percent of Turkey’s marine litter comes from other countries. To give an example, wastes released to the seas from landfills on Saida coast of Lebanon pollute our Mediterranean coasts, wastes from Latakia/Syria pollute the Samandağ coastline in Hatay, and wastes that came through the Danube River endanger the Black Sea. People think that the wastes dumped into the seas will just disappear. However, most of the wastes are broken into small pieces by sun and waves, and fish eat those waste particles, and in the end, we eat those fish. We are endangering not only the environment but also ourselves”. Yavuz Eroğlu said “Not sorting our household waste and sending them to dump sites instead of recycling pollute our seas more than the litters directly thrown into the seas. Moreover, these dump sites are mostly by the seas. Wastes are carried to the seas by waves, floods, winds, sewage, rivers and underground waters. Scientific studies show that more than 70 percent of the marine litters, including plastic wastes, are land-based” to mention his concerns on the inefficient waste management systems. Chairman of PAGEV Eroğlu continued his words: “The truest way of clean oceans and a sustainable environment is to practice a good waste management system and recycle high-calorie wastes. We have to rehabilitate or shut down landfill sites, and move them away from the seas, accordingly, as a major step. Even this is not enough; consumers have a lot to do in terms of waste management and recycling. They have to sort wastes at the source. Local administrations have to collect the already sorted wastes with caution to start the recycling process, which is the optimal solution. We have to collaborate with the local administrations as soon as possible to forge ahead to an integrated waste management.” Pointing out their efforts as part of the “Responsible Industry, Problem-Free Environment” mission regarding the marine litter problem as PAGEV, the umbrella organization of the industry, Eroğlu added: “One of the most significant steps we took towards waste-free oceans was the project we began in 2012 during my Presidency of WFO Turkey, Middle East and Africa in addition to my Presidency of PAGEV to keep seas of 69 countries clean. We adopted the Waste Free Oceans project –which was started in Europe and spread to the world in a short time for clean seas– into

Turkey as ‘Mutlu Balıklar’ (Happy Fishes). As the first step, we held an event during the annual fishing ban to collect plastic and other packaging wastes from the sea surface near the Prince’s Island of Büyükada with a special net that does not harm fish. We took the second step at the Bosphorus. As part of the ‘Mutlu Balıklar’ project, we are encouraging an approach that we call ‘waste fishing’ to clean up the sea surface. We are collecting all packaging wastes, not just plastics. Then as the foundation authorized for recycling operations in Turkey, PAGÇEV performs the recycling operations. We are also collaborating with PAGÇEV to give trainings at schools to raise consciousness on sorting wastes at the source. As the plastics industry, we are trying to do the best we can to achieve a clean and sustainable environment. With this project, we are expecting to be a model for other industries on recycling while cleaning our seas.” Secretary of the Federal State of Belgium Bart Tommelein stated during his speech that they have been working on to avoid marine litters and announced that they are going to clean the coasts of the North Sea. “Plastisc industry has taken some specific steps to relieve our concerns” said the Deputy for Environment Marianne Wenning and added: “We need to accelerate and enhance these steps. We may improve our collaboration, especially with the circular economy suite.” Explaining that the collaboration has to match with the problem in size, CEO of Ellen MacArthur Foundation Andrew Morlet stated that this problem might also bring big opportunities for the new plastics economy.

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? s c I t s a l p t u o b a y l l a e r Is It C

ommenting on the restriction on the sale of disposable plastic products in France, PAGEV Chairman Yavuz Eroğlu says, “Turkish plastics manufacturers may suffer losses of 30 million dollars per year.” Proposition 2015-922 restricting the sale of disposable plastic cups, plates and cutlery from January 1, 2020 was adopted by the French parliament. According to the new regulation, the only disposable products permitted in France will be bio-plastic or compostable plastic products. Eroğlu said that France did not have a significant manufacturing presence in the restricted product group, and that Germany, Italy and Spain were the leading

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manufacturers in the EU. Noting that Spain was the leader in the production of disposable products in Europe, Eroğlu argued that by prohibiting an industry where it does not have a significant presence, France seeks to rearrange the market according to its own requirements and restrict competition in an area where it is not strong. Eroğlu also stated that the regulation would prevent other EU members from selling to the French market, creating additional unfair competition. Speaking on the expected impact of the restriction on the economy, including on Turkish companies that export to France, Eroğlu said: “This is an area where France has

a foreign trade deficit and is dependent on imports, while Turkey is a leading manufacturer. By adopting this regulation, France causes unfair competition in the plastic product import market of 500 million dollars, and Turkish plastics manufacturers may suffer losses upto 30 million dollars per year. We have a Customs Union agreement with the EU, but Europe Union has yet to achieve a true union among them. We have been harmonizing our laws with European laws during the acquisition process. However, we are now faced with the strange prospect of being unable to export our EUcompliant products to France after 2020.”

“Europe wIll soon cease to be a common market”

Yavuz Eroğlu said that the new regulation revealed another crack in the Union following Brexit, arguing that France violated the single, common market rule of the EU. Eroğlu explained that no other EU country had imposed such a restriction and that other EU countries were making and selling these products. According to Eroğlu, a plastic product made in Germany will not be marketed in France after 2020, which means that Europe will soon cease to be a common market. Saying that even the EU’s own scientific authorities such as the DG Environment or European Food Safety Agency were unable to sway France’s decision, Eroğlu continued: “Determining whether a product is environmentally friendly requires that its impact on the environment is quantified for its entire life cycle. According to research, there is no reason to ban bioplastics when comparing these to similar paper, ceramic and glass products. We believe that the directive has been prepared haphazardly and with inconsistencies. For example, plates are included in this directive, but are bowls? The directive assumes that plastic plates and cups are single-use only. In truth, no plastic manufacturer makes a product that needs to be thrown away after just one use. Besides, there is no method of manufacturing according to the arbitrary and pseudoscientific directive that is now

in effect in France.” Eroğlu explained that biobased plastics could not be made at the thicknesses envisaged in the directive, noting that bioplastics were currently not heat resistant and that a product intended to degrade at 25 degrees Celcius would just melt when hot tea is poured into it. Eroğlu also argued that the directive did not consider the benefits of disposable products for health and hygiene reasons in hospitals, to ensure safety and security in correctional facilities, and to save fuel and replace glass in aircraft as glass can be turned into a dangerous weapon. Eroğlu also reminded that communicable diseases like the bubonic plague, scarlet fever, smallpox and cholera, as well as the famines and droughts that accompanied them, took hundreds of millions of lives throughout history, and that plastic disposable products were among the key reasons these diseases were halted.

Arguing that the new directive by France would cause more plastic to be disposed into the nature, Eroğlu said “Composting as used in the directive does not mean that a product disappears when disposed into the nature. Bioplastics can only be composted under the correct heat, humidity and environment. People are, of course, unaware of this, and that will cause even more plastic to be dumped into the environment. The most environmentally-friendly and economical solution is to sort plastics at the source and recycle them.” Yavuz Eroğlu said that in addition to PAGEV, the European Plastics Converters Association (EUPC), of which he is an Packaging Executive Board Member, applied to the Commission of Europe to prevent this directive from coming into force in 2020, and that they will continue their negotiations. Eroğlu further noted that they would seek an audience in Brussels to instigate action by the Commission of Europe, and stated his hopes that the EU would make the necessary stand for its own future and to ensure that scientific facts take precendence over the political agendas of individuals. Eroğlu argued that the lack of leadership in the EU severely crippled the decision-making mechanism, compelling some EU nations to take populist and stopgap measures recently.

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PresIdent ErdoGan Meets wIth U.S. Chamber, TOBB and MultInatIonals

n Tuesday, August 2, President of Republic of Turkey Recep Tayyip Erdoğan hosted a meeting at the presidential complex in Ankara with general managers of global companies. Participation was coordinated through the Union of Chambers and Commodity Exchanges (TOBB) and the International Investors Association of Turkey (YASED) represented by their respective Presidents. More than 25 U.S. Chamber of Commerce U.S.-Turkey Business Council members were in attendance. Our Plastic Industry is also organised under the TOBB with in”TOBB Plastic, Rubber and Composites Industry

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Assembly” presidented by Yavuz Eroglu. President Erdoğan was joined by key economic officials Deputy Prime Minister Mehmet Şimşek, Minister of Economy Nihat Zeybekci and Minister of Finance Naci Ağbal. The President delivered three overarching messages to reassure foreign investors. 1. Turkey remains committed to foreign investment and foreign investors. The business community is a priority in Turkey and their needs will be met. 2. Turkey knows how to separate business from politics and will maintain a strong public-private sector dialogue. 3. Turkey will use the current State of Emergency to

implement more economic reforms and reduce red tape. TOBB President Rifat Hisarcıklıoğlu spoke during the meeting on behalf of the private sector, presenting a joint proclamation that had been prepared with companies earlier that morning. The proclamation stands with Turkey’s democracy following the July 15 coup attempt and calls for continued structural reforms to enhance the business environment, intellectual property rights (the current draft patent law), among other reforms. President of Republic of Turkey Recep Tayyip Erdoğan addresses leading foreign investors in Turkey.

Quotes from PresIdent ErdoGan’s Speech “I speak to international investors, don’t be concerned about Turkey, this country is safe and secure.” “We never take any steps to hurt or to harm investors. I personally prevent this. There are no interventions in the economy because of the state emergency.” Praising international investment in Turkey, President Erdoğan said global investors “know Turkey is one of the most trustable countries in the world.” Foreign investors have poured more than $150B into Turkey since 2003, including over $16 billion last year, according to Turkey’s Ministry of Economy. President Erdoğan said Turkey aims to have a gross national product of $2 trillion, per capita income of $25,000 and $500 billion in exports by 2023. “All doors will be open to every investor, Turkey has big aims and potentials to reach [its] aims.” “Turkey has had a lot of problems but [it] has never forgotten its real targets. We did not stop building roads, airports, bridges.” He said Turkey would not suffer economically as a result of the coup attempt and that

his government would “never stop” implementing reforms and working for the economy. “We [will] never take [any] steps back,” President Erdoğan said. He urged investors to inform his government if they

experience any hurdles related to legislations to receive help and eliminate problems. Companies left the meeting satisfied with the President’s message and eager to continue engaging in publicprivate sector dialogue to encourage structural reforms and the modernization of the European Union Customs Union that will lead to more investment from their companies.

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blIShed a t s E y e k ur mbly of T e s s A Sector s e It s po nd Com a r e bb u stIcs R TOBB Pla

d e t c e l e s I V AGE P f o t n e d I s Yavuz EROGLU e r P t s r I f e h t e b o t

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ecently established by the Union of Chambers and Commodity Exchanges of Turkey, the Plastics Rubber and Composites Sector Assembly of Turkey (TOBB) held its first meeting. The Sector Assembly is composed of 40 companies accounting for USD 10 billion of turnover in the three sectors with a combined size of USD 50 bilion, and Yavuz Eroglu, Chairman of the Turkish Plastics Industry Foundation (PAGEV) is

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elected to be the first Chairperson of the Assembly. Flexible Packaging Industrialists Association (FASD) Chairman Enver Bakioglu was elected as Deputy Chairman. Elected Chairman of the Plastics Rubber and Composites Sector Assembly of Turkey, Yavuz Eroglu said, “As the force of unification behind the Plastics, Rubber and Composites sectors of Turkey, we are dedicated in our endeavors. This new entity within TOBB

provides a more cohesive platform founded on a legal framework. The Assembly is comprised by industry companies, nongovernmental organizations and regulatory public authorities. Our objectives are to identify issues in the industry, facilitate dialog between the government and private sector representatives for solution alternatives, and generate more value for Turkish economy overall.”

“We wIll be the strongest voIce In the Industry” Explaining that the TOBB Plastics Rubber and Composites Sector Assembly of Turkey was the supreme entity in the industry based on legal framework, Eroglu continued, “Plastics, rubber and composites are the driving force of the Turkish economy and compete for number one in Europe and the top 5 in the world. We will increase public sector and industry cooperation, work swiftly to solve issues identified in our industry, and maintain our solution focus in order to

accelerate and empower these sectors. We will join our forces to increase our rate of development.” A stronger industry under legal framework The Plastics Rubber and Composites Sector Assembly was established by 40 distinguished members covering a wide range, including representatives from the Ministry of Science, Industry and Technology and Ministry of Economics, nongovernmental organizations like PAGEV, EPS Society, IKMIB, Composites Society, FASD, PLASFED,

SEPA, PAGDER, EVSID and Rubber Society, as well as industry companies such as Abdiogullarıý Plastik, Adopen Plastik, Akplas Plastik, BPO B-Plas Plastik, Cam Elyaf, Dizayn Plastik, Elif Plastik, Esen Plastik, Fırat Plastik, GF Hakan Plastik, Işık Plastik, Korozo Ambalaj, Köksan Plastik, Mete Plastik, Pakpen Plastik, Petkim Petrokimya, Plasmar Plastik, Polibak Ambalaj, Polinas Plastik, Ravago Petrokimya, Sasa Polyester, Sem Plastik, Sepaþ Plastik, Superfilm Ambalaj, Sümer Plastik and Titiz Plastik.

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Hastek continues to support the devolopment of Turkish Plastic industry more than half a century.

astek Plastic Technologies has achieved important work to integrate technological innovation and innovative work for more than fifty years of serving the Turkish Plastics Industry. As with the name of HASMAK in the beginning, company’s founder Mr. Hasan Manav initiated educational supportive activities with his firends years ago, Hastek as second generation continues the tradition. Hastek has supported PAGEV by giving a brand new high technology Plastic injection moulding machine, a mould and some plastic material to the workshop of Pagev School in Halkalı İstanbul for the future of plastic prodocers to be trained well practically .. In this concept, the Chairman of Pagev Mr Yavuz Eroğlu has given a plate of appreciation for their contributions to education to Hastek Chairman Muharrem Manav.. Mr. Manav made a statement on the subject of contribution that it is a gift to all memebers of PAGEV foundation and hope this gives enthusiasm all present members for any kind of supports .. Muharrem Manav; “Turkey will boost the growth of the plastics industry, and we will move forward if only present members of plastic industry would open new Plastic schools for young people. However, the issue is not only to school or to make a donation, you will need to support studies and to contribute to the sustainability of development. Our youth, as well as the educators who prepare them is also important to support the training, “he said. Hastek Plastic Technologies and Automation Systems Industry and Trade Co. Ltd. Ltd. Sti.,was founded in 1998 by Mr Muharrem Manav and Mr Cem Ozkaracalar as a second generation of Mr Hasan Manav’s Hasmak that has served in Turkish Plastic Industry since 1962. The purpose of the installation company serving the Turkish Plastics Industry meet the automation needs of any company that needs a technological sense and become a follower of the worldwide very quickly developing innovation in this sector. Company members who works as a part of a huge and 55 years old family, skills on automation and plastics technology. Hastek gives very precise and on time pre-sales and after sales service and has grown continuously ever since its establishment. Hastek works with well known foreign companies to progress its customers Technologies as a big World company..

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Waste Free Oceans GuardIans of the Sea

n Wednesday 14 October 2015, Waste Free Oceans held the conference ‘Guardians of the Sea’ in the European Parliament. The conference was hosted by MEP Alain Cadec, WFO Champion and Chairman of the Fisheries Committee. The conference gathered over 60 participants coming from the plastics industry, associations, NGOs, the European Commission and the European Parliament. MEP Alain Cadec opened the conference by rightly stating that, in the fight against marine litter, “it is crucial to collaborate with fishermen as they are best equipped to collect floating debris”. Bernard Merkx, Co-Founder of Waste Free Oceans, discussed the need to

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determine marine litter hotspots, that is, where there is a regular accumulation of litter due to natural or human causes. Fishing for litter is not to be carried out in a “random” manner but must be optimized by targeting hotspots. The President of MEA&Turkey for WFO Yavuz Eroğlu explained in his speech: “The marine litter is an international problem; marine litters may be carried from one country to another on the waves. For this reason, what we need is an international collaboration to solve this problem. EU funds flowing to the EU states is not a solution; environment projects from Turkey and other countries in the region should be supported with these funds too.” Ms. Elisa Roller of the European

Commission’s DirectorateGeneral for Maritime Affairs and Fisheries (DG MARE) stressed the fact that there remains a lack of awareness of the funds made available by the European Institutions to support the collection of waste by fishermen. Ms. Roller is the Head of Unit for Structural Policy and Economic Analysis at DG MARE and assured that marine litter will be part of the Circular Economy Package which the Commission is scheduled to release by the end of 2015. Ms. Roller said that “potentially valuable materials should be pumped back into the economy instead of polluting beaches and damaging the environment”

Massimo Bellavista, President of Bellaria Pesca Producers Organization and Italian Member of Europêche, presented the European Project ECOADRIA-FISHERMAN, which, following the European guidelines on Blue Growth and the European Strategy for the Adriatic and Ionian Sea, actively involves fishermen of the region. The pilot project gives local fisherman a leading role in managing sea activities and raising awareness on marine litter problems in the area. A mobile application was specially created to easily notify and alert fishermen and the community of marine litter problems in the area. Nicole Intemann, author of Plastian the Little Fish, told the heart-warming story of how she came about to writing a children’s book on the problem of marine litter. WFO recently partnered with Ms. Intemann in order to raise awareness on the issue of marine litter and to educate children aged five to ten of the problem and its solutions. The conference officially launched the book and is set for worldwide distribution with the hopes of inspiring children to build for a future where the oceans are waste free. MEP Ricardo Serrão Santos, who also spoke at the conference, is a Member of the Fisheries Committee and highly dedicated to our oceans and is working to protect marine life. MEP Mr. Santos brought to light the many other pollutants affecting the state of the oceans. During the debate that followed the presentations, it was further highlighted that fishermen should not have to pay when unloading at ports the waste collected when either actively or passively fishing for litter. Unfortunately, this is not the reality of today and harmonized measures should be put in place. MEP Alain Cadec concluded that WFO offers a

remarkable example of collaborating with fishermen for their knowledge and capabilities, as well as developing a true circular economy that adds value to waste. About WFO Waste Free Oceans (WFO) is a ground breaking public-private Foundation aimed at mobilizing and uniting the fisheries sector, public authorities and the international plastics industry in combating the growing issue of floating litter on the coastlines, at the rivers and in the seas. The Chairman of Executive Board of PAGEV Yavuz EROĞLU has been holding the regional presidency of the project in Turkey since 2012. Various projects have been launched since 2011 and receive the full support of MEP Alain Cadec, Chair of the European Parliament’s Committee on Fisheries and WFO Champion.

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TURKISH PLASTICS INDUSTRY AND

PLAST EURASIA ISTANBUL 2016

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รถzel haber The plastic, which is used in every aspect of life and a miracle of chemistry is; light, durable, flexible, sustainable and a building block in all industries. From architecture to automotive, from automotive to white goods, from white goods to packing... It is indispensable in many industries.

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The Plastic Industry, which has established itself as a particular branch of industry as the industry and technology has developed over the world, occupies also a strong position in Turkey. In the light of sector reports, this position is explained by the Turkish Plastics Industry Foundation (PAGEV) as follows; “Making a contribution of 13 billion dollars to the national economy in 2015, the plastics industry in Turkey comprises of around 6.500 producing companies, most of which are small and mediumsized enterprises and which also provide employment for almost 250.000 staff. With its success in the charts that it achieved last year, the sector maintained its rank of second place in Europe. The sector, which was number seven in the world ranking in 2014, has moved up to rank sixth with a share of % 2,7. Regarding the analyzed numbers presented by the sector, its seen that the Turkish Plastics Industry, which has attained success with its rising trends, has brought great benefits to sustain the country’s economic stability and development. By means of the information provided by the Turkish Plastics Industry Foundation, the strength of Turkish Plastics

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Industry and its contributions to Turkish economy is clearly understood. Considering the positive impression on the Turkish Plastics Industry; in cooperation with TÜYAP and PAGEV (Turkish Plastics Industry Foundation) the second biggest plastics industry fair worldwide and the biggest fair of Turkey and Eurasia, the Plast Eurasia Istanbul; the 26th International Istanbul Plastics Industry Fair has grown in importance. We are expecting to see sector professionals in this commercial platform which offers the opportunity to see all innovations and cutting-edge products together. Please note the date of Plast Eurasia Istanbul on 7 (Wednesday) – 10 (Saturday) December 2016 in Tüyap Fairs and Exhibitions Organization Inc. which is preparing to bring over 1000 qualified visitors and around 50.000 professional visitors together. Don’t miss the chance to see all the current sector developments up close. For details about the fair, please visit the web page: www.plasteuraisa.com

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CHINA ‘‘ IS THE LARGEST COASTAL POLLUTER

Alarm bells ring for the Turkish coastline, requiring an urgent integrated waste management approach Pollution in the oceans and seas of the world increases steadily. Research suggests that the issue will only continue to worsen in the years to come. According to experts, the mismanaged plastic waste mass in China will increase from its 2010 level of 8.82 million tons to 18.81 tons by 2025. This is a threat not only to the Chinese coastline, but to all coasts worldwide due to waves and currents. The solution is the implementation of the right waste management system at once.

‘‘

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Efforts for a sustainable and clean environment fall behind development and population increase rates worldwide. The coasts of the world are polluted in particular by the ingress of land waste into the sea. When there is a lack of the right waste management system, land waste reaches the sea and causes pollution. The major cause of marine pollution is not trash directly disposed of in the sea, but domestic refuse sent to landfill rather than sorting and recycling. In many cases, these landfill areas are by the coastline. Waves, torrents, wind and subterranean waters are other transporters of waste to sea. Among the refuse that reaches the sea are waste plastics. A research by the University of Georgia(*) suggests that the quantity of waste will be much greater by 2025. According to experts, the coastal population of China will increase by 3.7% from 2010 to 2025, while the quantity of plastic waste polluting the coastline will more than double from its 2010 figure of 8.82 million metric tons to 17.81 million metric tons. This means that China will be the greatest threat to the world’s coastal waters. The proper solution for clean seas and a sustainable environment is the execution of the right waste management system and recycling high-quality wastes. Waste does not stay confined to the coastline of one country; waves and currents spread waste across the globe. While Turkey’s coastal waste pollutes the coasts of other countries, pollution elsewhere threatens the Turkish coastline. To prevent contamination, landfill zones must not be close to the coast. Wastes that cross oceans are broken into barely visible pieces by the effect of solar rays and the mechanical force of the waves. But these are only invisible, not nonexistent. This invisible threat is the greatest of them all. These 62

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small pieces are ingested by fish, which in turn are ingested by humans. Therefore, coastal pollution is a threat to public heatlh as well.Commenting on the threatening level of marine pollution around the world and the necessity to act together in order to help alleviate the problem, PAGEV Chairman Yavuz Eroglu said, “It is not enough for a country to clean its own coastline. 53% of the waste in the Turkish seas originated

outside Turkey. Owing to Turkey’s extensive coastline in three directions. wastes generated by other countries have a severe impact on us. Research suggests that the threat will worsen over the years. The threat is not limited to China; the quantity of mismanaged plastic waste in Turkey was 0.49 million tons in 2010, but is projected to increase to 0.79 million tons by 2025. We must take immediate action. The only solution is to switch to a fully integrated waste management system in order to clean the seas and prevent new wastes from entering the sea.” Yavuz Eroğlu continued, “The lack of a functional waste management initiative in Turkey is the greatest obstacle to the development of the recycling industry in terms of sustainability compared to developed countries. Recycling has benefits for our industry as a whole. Recycled materials are reused

for production, providing a valuable contribution to the national economy. Consumers also play a large role in waste management and recycling. Segregating waste at source is a critical part that the consumer plays. It doesn’t end there, however; the segregated waste must be properly collected by utility departments to start the recycling process. Recyclable materials that are not segregated at source are collected in irregular landfill zones. Lack of proper collection and storage causes some materials to lose their recyclability. This is why we must lose no time in cooperating with local administrations to take the right steps towards integrated waste management.” Yavuz Eroglu discussed the efforts of PAGEV on marine waste on behalf of the plastics industry, saying “We as the plastics industry seek to be a responsible industry and act in that direction. We brought the Waste Free Oceans Foundation initiative of “Happy Fish” to Turkey after its successful implementation Europe-wide. ‘Happy Fish’ involves the development of a method we call ‘waste fishing’ in order to clean the wastes on the surface of the sea. This concerns not only plastic wastes, but all packaging wastes in general. The collected wastes are recycled with the help of PAGÇEV. We also cooperate with PAGÇEV to provide segregation-at-source education in school. We as the plastics industry try to fulfill our responsibility for a clean and sustainable environment. This project will both clean the seas and set an example to other industries for recycling.” Table S2. The top 20 countries with the highest quantity of mismanaged plastic waste mass in 2010 and 2020, and rate of coastal population increase from 2010 to 2025. MMT, million metric tons

Always close to the customer Reiloy Metall is the leading global manufacturer of highly wear-resistant screws and barrels for extrusion and injection molding technology applications. More than that, Reiloy Metall primarily provides you with expert wear protection advice. We also configure plasticizing units to meet your specific extrusion and injection molding process requirements. Of course we also support you by designing new bimetallic barrels and amoured screws to improve the profitability and functionality of your production facilities. Reiloy Metall – Engineering know-how – Screw and barrel designs – Solutions to make you globally successful.

Reiloy Metall, Turkey Istanbul Office, Hakan Orun Tel: +90 533 261 9905 Email: hakan.orun@reiloy.com www.reiloy.com

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PLASTIC Improve everyday LIFE.. 64

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PAGEV is at service to help everyone understand what plastics are... PAGEV PLASTIC MAGAZINE

TURKEY cradle of cIvIlIzatIon

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ISTANBUL

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“

CITY of LOVE

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UPDATE ON TURKEY On the night of July 15, our country survived a possible disaster by a military coup, with the solidarity of the state, the nation, politics and media. An embarrassment for democracy was prevented on July 15, making it a day to mark history as a festival of democracy. But the death of many citizens and security personnel during these incidents is a source of great sadness for our country. I extend my condolences to our martyrs and their relative. Country, Democracy and we are all fine and now we have business as usual conditions. We are as always eager to co-operation, contribute and do business. We would like to thank to all of our friends and collegues who have contacted us to express their goodwill and supports. Best Regards Yavuz EROGLU PAGEV Predisent

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nded in 1966 , Oil & Gas, Healthcare & Life science, mo+ve & Manufacturing, Aerospace &

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Logistics and transport management enterprise, serving global supply ment enterprise, serving global supply chains

Privately held corpora+on founded in 1966 Principal industries: Chemical, Oil & Gas, Healthcare & Life science, Consumer goods & Retail, Automo+ve & Manufacturing, Aerospace & Defense Opera+ons spanning 135+ countries in every major market Wholly-owned subsidiaries, equity partners, joint ventures, agent affiliates Regional Centers of Excellence in Antwerp, Frankfurt, Hong Kong, Singapore, Houston and Philadelphia 4,600 employees worldwide Annual Sales 2,7 Billion USD 15% to 20% year-over-year growth to date

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BOLTE LOJÝSTÝK HÝZMETLERÝ LÝMÝTED ÞÝRKETÝ Oruç Reis Mahallesi Vadi Caddesi Ýstanbul Ticaret Sarayý Bina No: 108 Kat:7 Kapý No:440-451 Giyimkent, Esenler – ÝSTANBUL – TURKEY Tel: 0212 346 06 01 (Pbx) Fax: 0212 346 06 02 Ertugrul Kose <ertugrul.kose@bdpint.com> www.bdpinternational.com

BOLTE LOJÝSTÝK HÝZMET

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ASB to Demonstrate Four High Performance Machines & Advanced Technologies at K2016 Nissei ASB Machine Co., Ltd., a world leading manufacture of PET and plastic bottle stretch blow molding machines, will exhibit at K2016 (Hall 14 Booth No. B38), to be held in Duessel‑ dorf, Germany from October 19th to 26th 2016 ASB will be demonstrating four of its top-line molding machines, • PF24-8B/12 1.5-step injection stretch blow molding machine, • ASB-70DPW v4 1-step injection stretch blow molding machine, • ASB-70DPH/DB 1-step double-blow heat-set injection stretch blow molding machine, • ASB-12M/IBM Injection blow molding machine.

PF24-8B/12 – Molding Deep Grip Pinch Type Handle High Performance 1.5-Step Injection Stretch Blow Molding Machine At K2016, the demonstrated PF24-8B/12 machine will be molding an oval PET 3 liter container suitable for applications such as fabric conditioner or edible oil in a mold configuration of 12 preform cavities and 4 blow cavities. For increased versatility, the PF24 models can be converted at the customer’s factory between 12 injection / 4 blow cavity molding for bottles up to 5 liters; and 24 injection / 8 blow cavity molding for bottles up to 1.5 liters. By changing cavity configuration and molds, the same PF24 model seen at the K2016 exhibition is equally at home molding lightweight water bottles at up to 9,000bph

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ASB-70DPH/DB – Double-Blow Heat-Set Molding in One Step Mid-Range One Step Injection Stretch Blow Molding Machine with Heat-Set Capability At K2016 the machine will be demonstrated molding a 500ml PET ketchup bottle in five cavities suitable for hot filling at up to 87°C

ASB-70DPW v4 – Improved Output & Efficiency Very High Output of Small Containers in Various Resins At K2016, the ASB-70DPW v4 will be molding a hotel style 30ml PET shampoo bottle in 24 cavities giving an output of 8,000bph

ASB-12M/IBM – Injection Blow Molding Version for Added Versatility Compact Molding with Advanced Efficiency At K2016 the ASB-12M/IBM will be molding a 46mm diameter polycarbonate lamp cover in 2 cavities for modern energy efficient LED bulbs in two cavities utilizing the IBM process with a side-gated cold runner system that gives the advantage of eliminating gating from the main body of the product, resulting in perfect optical quality where it matters.

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TURKEY PLASTICS INDUSTRY FOLLOW - UP REPORT 2016 / 6 MONTHS EXECUTıVE SUMMARY As OECD upgrading the growth forecast for Turkey from 3,4 % to 3,9 % also downgrade for 2017 from 4,1 % to 3,7 % OECD foresees inflation would be 7,9 % and 7,3 % in 2016 and 2017 respectively, pointing out the minimum wage increase will have a negative impact on Turkey’s competitiveness and exports. The main factors attracting global economic growth down in 2015, is expected to continue in 2016, ensuring the sustainability of global growth in 2016 is taken as the main target. Emerging and developing economies are faced with adverse conditions, geopolitical tensions are increasing the challenges of the global economy. The three main factors that will affect the global economy in 2016; the Fed’s monetary normalization, the course of China’s economy and the unstable commodity prices. Decline in oil prices will stimulate domestic demand in both developed and developing countries and fall in the current account deficit of non-oil producing countries, will have a positive impact on the decline of inflation and interest rates. However, the expected decline in global money supply in 2016, will be forced to more structural reforms for growth in developing countries. In the first quarter of 2016 the positive trend in economic activity continued

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and Turkey’s economy grew slightly above the market consensus of 4,5 % and 4,8 % on an annual basis. On the other hand, national income on the basis of the USD has continued to decline due to the impact of the depreciation of TL. The growth of consumption has been the engine of production increase in the first half of 2016. As a summary in this period, production has been realised as 4, 6 million tons and USD 17, 8 billion. The production is expected to increase to 9, 2 million tons and USD billion of 35, 6 increasing by 8 % on amount and value bases by the end of the year. Turkey, is one of the countries which carrying the risk of fragility in 2016. High current account deficit, inflation growth, the need for increased funding of the risks will be the main risk for Turkey’s economy in 2016. The 2023 export vision of the industry is to accrue at least 17 billion dollars of the 50 billion dollar export target of the chemical industry. For such degree of export to be performed, in parallel with its growth, the industry must concentrate on manufacture and export of products with high added values, to increase its unit export prices to 4,5 $ / kg, average of developed countries and make the best of the investment incentives apart from resolving the increasing number of problems.

1. ECONOMIC SITUATION 1.1. WORLD ECONOMY Markets witnessed severe bouts of volatility due to the widely unexpected “leave” result of the Brexit referendum held on June 23. Sterling depreciated considerably and safe haven assets attracted strong demand. In the aftermath of the referendum, emerging expectations that leading central banks would loosen their monetary policies in order to struggle with rising risks stemming from the outcome of Brexit have given the markets the opportunity to take a sigh of relief. Indeed, the head of BoE, Mark Carney, hinted that policy rate, which currently stands at 0,5 %, could be cut in summer months. The new picture arisen with Brexit and the Brexit related issues caused the Fed’s rate hike expectations of the markets for 2016 weaken to a large extent while only 1 rate hike is anticipated in 2017. Fed officials also revised down their interest rate expectations for the coming years in June meeting. Euro Area consumer prices increased in June for the first time in 5 months. The final reading suggested that economic growth in the region came in at 0,6%. It was a positive development that the highest contributions to growth came from household expenditures and private sector investments. Oil prices fluctuated during the recent weeks in response to the trajectory of the US dollar, the US crude inventories and the changing expectations for global growth. In June 2016, seeking direction in global markets has been effective, and the

developing countries in the financial market has been dominated by a wavy appearance. OECD Economic Outlook report released in early June stated that due to the global economy’s low growth trap, global growth for 2016 and 2017 has been estimated at 3 % and 3,3 % respectively. As summary; the main factors attracting global economic growth down in 2015, is expected to continue in 2016, ensuring the sustainability of global growth in 2016 is taken as the main target. Emerging and developing economies are faced with adverse conditions, geopolitical tensions are increasing the challenges of the global economy. The three main factors that will affect the global economy in 2016; The Fed’s monetary normalization, the course of China’s economy and the unstable commodity prices. Apart from the main factors, the subjects which will affect the global and Turkish economy, are as follows: • Recovery in the US economy, • Developments in the euro area, • Current problems in Greece and Ukraine, • Immigration issues, labor market participation capacity and other political issues, • Developments in emerging markets, • The ability of commodity exporters, to tolerate adverse effects caused by the rapid decline in commodity prices capabilities, • The trend of regional trade agreements between USA and Europe, • The decisions of the countries to reduce carbon emissions.

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1.2. TURKISH ECONOMY 1.2.1. GROWTH In the first quarter of 2016 the positive trend in economic activity continued and Turkey’s economy grew slightly above the market consensus of 4,5 % and 4,8 % on an annual basis during this period. In this period, growth in domestic demand has been the basic dynamics of economic growth. On the other hand, national income on the basis of the USD has continued to decline due to the impact of the depreciation of TL. The consumer spending sharing 80 % in GDP have shown the fastest annual increase for the last 18 quarters. During this period, the strong performance of consumer spending contributed by 5,9% due to the increase in the minimum wages and decisive recovery in private consumption. The highest increase of 10,9 % in public expenditure in this period has also been realized for the last 5 years. This case resulted from recording the fastest rise in goods and services expenditures since the last quarter of 2009. In this context, the contribution of public consumption expenditure growth has occurred at a relatively high level of 1,25. Total investment expenditures don’t have a significant impact on growth in the first quarter. While the growth of private sector investment spending reducing as much as 0,1 percentage points, the level of public investment spending has contributed negligible level on growth. The weak investment expenditures negatively affect medium-term growth

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Continued flow of asylum-seekers in 2015 with the support of the domestic demand -induced growth performance exhibits Turkey’s economy has continued this trend in the first quarter of this year. The basic dynamics of the growth of consumer spending in the 2nd quarter of the year is expected to continue. On the other hand, the ongoing problems in our main export markets, the current trend of commodity prices, it is not possible to

draw a positive picture for the upward trend in net exports due to import demand. In this context, moderate growth in economic activity will continue and the economy is expected to finish with a growth rate in 2016 as 3,5 % is. As OECD upgrading the growth forecast for Turkey, from 3,4 % to 3,9 % also downgrade for 2017 from 4,1 % to 3,7 % OECD foresees inflation would be 7,9 % and 7,3 % in 2016 and 2017 respectively, pointing out the minimum wage increase will have a negative impact on Turkey’s competitiveness and exports

1.2.2. UNEMPLOYMENT The number of unemployed above the age of 15 in Turkey in April 2016 increased by 3 thousand persons compared to the same period last year which was 2 million 824 thousand people. Unemployment rate realized as 9,3 % with a 0,3 percentage points decrease. In the same period; Non-agricultural unemployment rate was estimated to be 11 % with a 0,6 percentage point decline, while the youth unemployment rate that includes the 15-24 age group, realizing as 16 % decrease by 1 percentage point, this ratio decreased 0,3 % points in the 15-64 age group and has been realized as 9,5 %. The ratio of persons who worked without any social security institutions in April 2016, amounted to 33,5 % with an increase of 0,2 points compared to the same period of the previous year.

1.2.3. INDUSTRIAL PRODUCTION Industrial production has made a poor start to the second quarter of the year. Industrial production increased 0,7 % on an annual basis in April showed the weakest performance since July 2015. The slowdown in industrial production in this period has come to the fore. Manufacturing industry capacity utilization rate (CUR) has reached the highest level since October 2013 realized as 76,1 % in June by increasing 1%. Manufacturing PMI is a row of 4 months has pointed to worsening operating conditions in the manufacturing sector realized under the 50 threshold. The index declined to 47,4 in June to the lowest level since April 2009. During this period, it is seen that the production and new orders fell sharply. 1.2.4. FOREIGN TRADE Exports in June 2016, compared to the same month of 2015 rose by 8.1 % to USD 12 billion 916 million dollars, and imports realizes as USD 19 billion 475 million, increased by 7%. The foreign trade deficit in June 2016 increased by 6 % to USD 5 billion 559 million. While the share of exports to European Union (EU-28) in June 2015 was 46.1 %, in June 2016 increased to 48,5 %. Exports to the EU, with an increase of 13,8 % compared to the same month of 2015 increased to USD 6 billion 267 million. Exports to Germany in June 2016 was USD 1 billion 228 million, UK, Italy and USA followed Germany respectively. Imports from China, in June 2016 have been realized as USD 2 billion 602 million. Germany, US and Russia followed this country respectively. The share of manufacturing products based on ISIC Rev. 3 in total exports in June 2016 realized as 94,3 %. The share of exports of high-tech products

manufacturing industry realized by 3,5 %, while the share of medium-high technology products by 33,4 %. The share of manufactured goods in total imports is 86,2 % the share of high-tech products in total imported manufactured goods in June was 20,4 %, while the share of medium-high technology products realized as 42,9 %, respectively. While export-import ratio in June 2015 was 65,7 % in 2015, it rose to 66,3 % in June 2016. Considering that a 2-year transition period for Brexit foreseen in the short term in terms of commercial relations between the parties is considered to have significant risk. However Brexit, United Kingdom and / or in the case of medium and weaken the EU economy over the long term can be especially composed downward pressure on exports. In addition, our largest export market, with the Brexit indirectly, depending on political developments in the EU, our country will be able to induce a negative impact on the economy. In the near term, improvement in Turkey-Russia relations will support our external trade in this context, the positive export trend, the moderate trend in oil money to strengthen domestic demand and commodity prices is expected to continue, albeit losing momentum in line with the trend of imports down. 1.2.5. INFLATION Domestic producer price index in June 2016 showed 3,41 % increase compared to the same month of the previous year. CPI (2003 = 100) increased 7,64 % in June 2016 compared to the same month of the previous year.

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1.2.6.

EXPECTATIONS

Low level of energy prices continue to mitigate risks to the current account deficit. However, the weak performance of global trade and geopolitical risks pose downward pressure on exports. In 2016, the current account deficit may increase the risk on the impact of the expected contraction in tourism revenues, but relative to the deficit is expected to remain at low levels. The most important factors that affect the development of Turkey’s economy in 2016; Growth will be affected by increase in domestic demand more than in external demand. While domestic demand will depend on public spending, the recovery in the growth of the EU economy on exports, is estimated to be due to growth in the Chinese economy and regional risks. On the other hand inflation is expected positive reflections, due to the decline in oil and energy prices. Because of political and economic risks, planned growth in Turkey’s economy in 2016 will take place at lower levels. Turkey, carrying the risk of fragility in 2016 is one of the economies which high current account deficit, a slowdown in the growth rate, increasing financing needs and the hot money out. In 2016 it is expected that in Turkey’s economy, the driving force behind the growth of domestic demand. Domestic demand in terms of sectors, the expected increase in the contribution to economic growth as well as lower trend in commodity prices, the recovery trend in the EU countries and the lifting of sanctions against Iran is drawing attention as a positive development for 2016. On the other hand, problems in export markets, particularly Russia and Middle Eastern countries, geopolitical developments and volatility in financial markets are likely to be observed in the major risk factors.

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Especially fluctuations in exchange rates, stands out as a factor that increases the vulnerability of the sector by increasing

costs. Similar to 2015, avoiding risks rather that growth expectations will be focused. (Sources: Türkiye İş Bankası and Akbank Economic Publications, Ministry of Development, TSI)

2. DEVELOPMENTS IN TURKISH PLASTICS END PRODUCT INDUSTRY 2.1. PLASTICS PRODUCT MANUFACTURING Plastics end products production has been realized as 4,6 million tons and USD billion of 17,8 in the first half period of 2016 and expected to increase to 9,2 million tons and USD billion of 35,6 at the end of the year, increasing by 7,7 % on amount base and 8,3 % on value base with respect to 2015.

2.2. CAPACITY USAGE In the first half period of 2016, the average capacity utilization rate of the industry realized as 71 % which was 2 points less than the average capacity utilization rate of general manufacturing industry.

2.3. BREAKDOWND OF PLASTICS END PRODUCTS PRODUCTION BY SUB SECTORS It is observed that plastic packaging materials led the way with 4,6 million tons and plastic construction materials following packaging with 1,02 million tons within total plastic product manufacture of 4,6 million tons in the first half period of 2016. 2.4. MACHINERY AND EQUIPMENT

components. In the first half period of 2016, the total machinery and equipment investment of the industry realized as USD million of 443 and It is expected that, the sector’s total machinery and equipment investment to

be USD million of 886 by the end of 2016 increasing by 6 % compared to 2015. The plastics industry made a machinery and equipment investment of around 8 billion dollars between 2003 – 2015 September and 79 % of this investment was met by imported machines. It is observed that an annual average of 608 million dollars machinery and equipment investment has been made within the last 13 years.

INVESTMENT OF PLASTICS INDUSTRY Annual investment of machinery and equipment in Turkish Plastics Industry has been realized as USD 821 million between the periods of 2011 – 2015. Thirty six percent of which was presses and other machines, 23 % injection machines, 18 % extrusions, 5 % thermoform machines, 3 % blow molding machines and 14 % parts and

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Of the USD billion of 555 investment within the first half of 2016, 35 % was comprised of presses and other machineries, 20 % of injection machines, 17 % of extrusion machines and 21 % of components and parts. Thermoform and blow molding machines shared 5 % and 2 % respectively.

2.6. PLASTIC PRODUCT IMPORT BY COUNTRIES

2.5. PLASTICS PRODUCT IMPORTS Plastic product import realised as 301 thousand tons and USD 1 billion and 509 thousand in the first half of 2016 and expect to be 602 thousand tons and USD 3 billion and 18 million by the end of 2016 increasing by 3 % on amount and 5 % on value base with respect to 2015

In the first half of 2016, biggest import was realized in 3920 custom duties numbers (other plate, sheet, pellicles and slides from plastic) on amount and value base. The import of this product group constituted 43 % of total end products imports on amount and 31 % on value base.

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Turkey imports plastic product from over 100 countries every year. Import, made from 10 main countries in 2015, comprised 72 % on amount basis and 76 % on value basis of the total imports. The share of top 10 countries remained the same in the first half of 2016. It is observed that China has become prominent since 2014. In the first half of 2016 China shared 27 % of total end product imports on amount and 20 % on value base and Germany, Italy, South Korea and France have preserved position in being the countries with which import is conducted the most.

2.7. PLASTIC PRODUCT EXPORT: Plastic end products export realized as 784 thousand tons and USD 2 billion and 113 million in the first half of 2016. It is expected to increase to 1 million 568 thousand tons and USD 4 billion and 226 million by the end of 2016, staying with the same amount but decreasing by 4 % on value base with respect to 2015.

In the first half of 2016, HS codes of 3920 (other plate, sheet, pellicles and slides from plastic) and 3923 (plastic products for moving furniture, tap, cap, capsule) shared the biggest parts of total exports on amount and value bases. These 2 groups of products shared 46 % of total plastics end products exports on amount and 42 % on value base.

2.8. PLASTIC PRODUCT EXPORT BY COUNTRIES Turkey exports plastic end products to approximately 150 countries. While the 10 leading countries received as share of 46 % on amount and 45 % on value basis in 2015, these shares stayed at the same levels in the first half of 2016. Iraq, Germany, UK, France and Israel comprised the leading 5 export markets to which plastic end product is exported in the first half of 2016.

Russian Federation, which shared 2, 8 % and took place in the first 10 leading export markets in 2015, itâ&#x20AC;&#x2122;s share declined to 1,16 % and place to 25th in the first half of 2016. On the other hand, Bulgaria and Spain placed in the first 10 leading export markets in this period.

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2.9. PLASTIC PRODUCTS FOREIGN TRADE PRICES Unit import prices of plastic products has always cruised over unit export prices since 2000.

2.11. PLASTıC PRODUCT DOMESTıC MARKET CONSUMPTıON

In the first half of 2016, plastic end products average import unit price realized as USD 5,01 USD/kg in increasing by 2 % compared to 2015. On the other hand, average export unit price, realized USD 2,70 USD/kg decreasing by 2 % with respect to 2015.

2.10. FOREIGN TRADE SURPLUS IN PLASTICS PRODUCT Turkey always gives foreign trade surplus in plastic products. In the first half period of 2016, foreign trade surplus of plastics end products realized as 483 thousand tons and USD million of 604 and expected to be 966 thousand tons and USD 1 billion and 209 million, decreasing by 2,5 % on amount and 17 % on value bases compared to 2015.

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Plastics products domestic market consumption, which realized as 4,1 million tons and USD billion of 17,2 in the first half of 2016, is expected to be 8,3 million tons and USD 34,4 billion by the end of 2016 increasing by 9 % on amount and 10 % on value base.

Approximately 2 million and 50 thousand tons of total plastics end products domestic consumption were indirectly exported in the first half of 2016 through channels of exporter industries such as automotive, packaging, construction and electronics. The remaining 2 million and 50 thousand tons section; on the other hand, was directly consumed by consumers.

2.12. GENERAL SUPPLY AND DEMAND EQUILIBRIUM IN THE FIRST HALF OF 2016 AND EXPECTATIONS BY THE END OF YEAR IN PLASTIC PRODUCTS

3. TURKISH PLASTIC RAW MATERIAL INDUSTRY 3.1. PLASTIC RAW MATERIAL MANUFACTURING It is presumed that plastic raw material

The growth of consumption has been the engine of production increase in the first half of 2016. As a summary in this period; Production has been realised as 4,6 million tons and USD 17, 8 billion. The production is expected to increase to 9,2 million tons and USD billion of 35,6 increasing by 8 % on amount and value bases by the end of the year.  Imports has been realized as 301 thousand tons and USD billion of 1,5 and expected to be 602 thousand tons and USD 3 billion and 18 thousand, increasing by 3 % on amount and 4 % on value base by the end of the year.  Exports has been realized as 784 thousand tons and USD 2,1 billion and expected to increase to 1 million 568 thousand tons and USD 4 billion and 226 thousand, staying at the same level on amount but decreasing by 3 % compared to 2015 by the end of 2016.  Domestic consumption, including those used for indirect exports, realized as 4 million 130 thousand tone and USD 17,2 billion and expected to increase to 8 million and 259 thousand tons and USD 34 billion and 353 thousand increasing by 9 % on amount and value bases by the end of the year.  Foreign trade surplus realized as 483 thousand tons and USD 604 million and expected to increase by 2 % on amount and decreasing by 17 % on value base “compare to 2015 by the end of the year.  Seventeen percent of domestic production on amount and 13 % of on value bases were exported.  Seven percent on amount and 9 % on value bases of domestic consumption, including those used for indirect export, was met by imports.  Export-import coverage ratio, on the other hand, realised as 261 % on unit basis and 140 % on value basis.

manufacturing, in the first half of 2016 ended with approximately 507 thousand tons. Thirty one percent of the total plastic raw

materials produced in the first half of 2016 in Turkey is LDPE. On the other hand 24 % of the production is PET, 14 % PVC, 9 % PS, 9 % HDPE.

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3.2. PLASTIC RAW MATERIALS IMPORT In the first half of 2016, 3 million 414 thousand tons of plastics raw materials were imported with a value of USD 4 billion and 530 million. Imports of plastics raw materials are expected to be 6 million 828 thousand tons and USD 9 billion and 60 million by increasing 8 % on amount and decreasing by % 4 on value bases by the end of the year.

The dependency of Turkish Plastics Industry on plastic raw material supply is still continuing as 86 % in 2015. 3.3. PLASTIC RAW MATERIAL IMPORT BY COUNTRIES

In the first half of 2016 the plastics raw materials in the 3901 and 3902 HS groups (polyethylene and polypropylene) shared the biggest part of the total imports on amount base. These raw materials shared 57 % of total plastics raw materials imports.

On the other hand in the same period the raw materials also in the 3901 and 3902 HS groups (polyethylene and polypropylene) shared the biggest part of the total imports on value base. These raw materials shared 53 % of total plastics raw materials imports.

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Turkey imports plastics raw materials from over 100 countries. 10 countries comprised approximately 64 % on amount and 66 % on value bases of total imports in the first half of 2016. In the first half of 2016, S. Arabia, S. Korea and Germany ranked as the top 3 country in total plastic raw material imports and these 3 countries received a total share of 33 % on amount and 34 % on value bases within our total national plastic raw material import in the first half of 2016.

3.4. PLASTIC RAW MATERIAL EXPORT 327 thousand tons and USD 400 million of plastic raw material was exported in the first half of 2016 and exports are expected to be 784 thousand tons and USD 959 million, increasing by 14 % on amount and 3 % on value base by the end of the year.

In the first half of 2016 the biggest part of total exports on unit base has been realized in polyacetals and acrylic polymers on amount and value bases.

basis within total export in the first half of 2016. Italy, Germany, Egypt, Iran and Bulgaria ranked as the top 5 countries in plastics raw material exports in this period on unit and value base.

3.6. PLASTIC RAW MATERIAL FOREIGN TRADE UNIT PRICES Plastic raw material average unit import price in the first half of 2016, was 1.33 USD/ kg and displayed a decrease of 9 % with respect to 2015 averages. In the same period, plastic raw material average unit export price was 1.22 USD/kg and displayed a decrease by 26 % with respect to 2015 averages.

3.5. PLASTIC RAW MATERIAL EXPORTS BY COUNTRIES Turkey exports plastic raw material to over 100 countries and 10 countries received a share of 52 % both on amount and value

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Turkey’s plastic raw material unit prices are approximately 8 % higher than export prices. In other words, while Turkey is importing plastic raw materials with high added values, it exports with low ones.

3.8. PLASTICS RAW MATERIALS DOMESTIC CONSUMPTION Plastics raw materials domestic consumption realized as 3 million 600 thousand tons in the first half of 2016 and expected to be 7 million 100 thousand tons increasing by 8 % compared with 2015

3.7. PLASTICS RAW MATERIALS FOREIGN TRADE DEFICIT Turkey is a country that always gives foreıgn trade deficit in plastic raw materials trade. Foreign trade deficit for plastics raw materials in the first half of 2016 stood at 3 million 47 thousand tons and USD billion 4 and 83 million. By the end of 2016 foreign trade deficit is estimated to be 6 million 94 thousand tons and USD billion of 8,2.

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3.9. PLASTIC RAW MATERIAL GENERAL SUPPLY AND DEMAND EQUILIBRIUM EXPECTATıONS FOR 2016 Regarding realizations in the first 6 months, plastics raw materials expectations for 2016 are as follows; Domestic production will preserve the 2015 levels, Import will increase to 6,83 million tons increasing 9 %, Exports will increase 734 thousand tons increasing by 14 %, Domestic consumption will increase to 7,01 million tons increasing by 8 %, Foreign trade deficit will increase to 6,1 million tons, The share of imports within total supply will be 87 %, The export-import coverage ratio will be 11 %.

In the first half of 2016 the biggest part of total exports on unit base has been realized in polyacetals and acrylic polymers on amount and value bases.

basis within total export in the first half of 2016. Italy, Germany, Egypt, Iran and Bulgaria ranked as the top 5 countries in plastics raw material exports in this period on unit and value base.

3.6. PLASTIC RAW MATERIAL FOREIGN TRADE UNIT PRICES Plastic raw material average unit import price in the first half of 2016, was 1.33 USD/kg and displayed a decrease of 9 % with respect to 2015 averages. In the same period, plastic raw material average unit export price was 1.22 USD/kg and displayed a decrease by 26 % with respect to 2015 averages.

3.5. PLASTIC RAW MATERIAL EXPORTS BY COUNTRIES Turkey exports plastic raw material to over 100 countries and 10 countries received a share of 52 % both on amount and value

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4. CONCLUSION Turkish Plastics Industry is considered as an importer sector while foreign trade and its contribution to the national economy are calculating. The main reason for that, plastic raw materials imported by the petrochemical industry is considered as the import of the plastics industry and the plastics industry is considered as the sector giving huge foreign trade deficit, although gives surplus. This situation creates a negative perception for the sector. Plastic raw materials which are used to produce plastics end products are completely produced by the petrochemical sector. Therefore, plastics raw materials foreign trade must be located in the petrochemical sectorâ&#x20AC;&#x2122;s records The main problem arises due to the perception of considering plastics end product and polymer industries are the same sectors. However, iron and steel are raw materials while plastics are semi or finished products such as water pipe, automobiles, refrigerators, food packaging. Plastic end products industry has exported approximately 18 % of the total production on amount base for the last 2 years. The total export value of USD 5 billion in 2014 declined to USD 4,4 billion in 2015 due to the decline in unit export prices. On the other hand, it is expected to increase to 1 million 568 thousand tons and USD 4 billion and 226 million by the end of 2016, staying with the same amount but decreasing by 4 % on value base with respect to 2015. However, Turkey exports at least 50 % of plastics end products production when indirect exports realized by automotive, food packaging and other exporter industries are taken into account. So, with direct and indirect exports, Turkish Plastics Industry gives about USD 15 billion foreign trade surplus. Turkish Plastics Industry is considered as one of the biggest importer industries by the government, since the imports

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of polymers are involved in the plastics industry import records. In these days, the largest parts of engines, steel and main parts and components are imported for the motor vehicles production in automotive industry which is the main exporting sector. But these kind of imports are not included in the foreign trade of automotive industry. Plastics industry meets large amount of raw materials by imports like automotive sector. From this point of view, it is seen that the calculation of the foreign trade surplus / deficit for other sectors are not realized for plastics industry and due to the insufficient production of polymers, huge imports of raw materials are included in plastics industry trade records, and this creates unfair negative perception for the plastics industry. However, there is also very much difference between the value added of the polymer and plastics industry since the average unit export price of plastics end products is about USD 3/kg while it is USD 1/kg for polymers. Entrepreneurial, design, innovation, employment and profitability nature of the companies operating in plastics industry differs from those operating in polymer sector. Indeed, researches conducted in many countries, employment is created only 2 by petrochemical industry in response to the 15 employment created by plastics industry. Oil and polymer rich Middle Eastern countries want to take the main plastics end product producer countries, including Turkey, to their own countries from all over the World by attractive incentives, since they could not create jobs and added value at their countries. Therefore, we believe that we should get rid of that negative perception. Because of these negative perception, taxes are increased for the raw materials which are not feasible to produce due to lack of oil production.

Import duties and protection measures are taken to those raw materials which are introduced as the strategic production. Today, especially in European polymers companies left to produce these products or shifted the production to the Middle Eastern countries. High import tax problem of the Turkish Plastics Industry remained unchanged in 2015. The important thing is to produce high value-added raw materials in Turkey. The raw materials such as polypropylene and polyethylene, which the industry cannot meet the needs from the domestic production, pay taxes when importing raw materials and this adversely affects our competition. When these drawbacks of the added value provided by our industry are eliminated, the industry will add more to the national economy. Turkish Plastics Industry grows rapidly and share more in global plastics industry. The 2023 export vision of the industry is to accrue at least 17 billion dollars of the 50 billion dollar export target of the chemical industry. In order for to increase the current export prices plastics industry export, which is less than 6 billion dollars, to 17 billion dollars, the industry must export 6 million tons of product and escalate total manufacturing to 28 million tons by 2023 with an annual growth of 14 % in order to meet domestic demand. On the other hand, it is known that the aforementioned export target is also possible through export of 3.8 million tons of product by increasing the unit export prices to 4.5 $/kg. In this case, manufacturing must reach to a level of 18 million tons by 2023 with an annual growth of 9 %. Under current circumstances, attainment of 17 billion dollars of export seems extremely difficult. However, the

realisation of export on such levels, in parallel with its growth, the industry must take measures which will increase its unit export prices, which cruises around 3 $/kg to 4,5 $/kg, average of developed countries alongside with making the best of the investment incentives. Negative developments in Turkish and the world economy, makes it difficult to compete with the standstill or even declining sales prices and narrow profit margins. The most important problem of the industry that it can’t provide sufficient added value. There are mainly two ways to provide higher value-added production and exports. To produce innovative high value-added products or to increase profit margins by reducing costs without compromising quality. To enhance production and export opportunities in a competitive global market without compromising on quality, the industry must produce environmentally friendly at EU standards. The companies which can’t compete with the change in prices due to increasing global competition, must issue the “Costs of the Competition “to the forefront, to increase profitability. To create a successful competition that makes the difference in cost, it is necessary to implement changes in the changing world beyond the known method of saving techniques. In order to adopt to changes, R&D and P&D should be given first priority and also customer satisfaction must be focused on creating a value chain. Ascending face of global competition, the only way to develop a competitive advantage is to manage the present and future costs and establish a new cost management system.

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TURKEY PLASTICS PROCESSING MACHINERIES INDUSTRY FOLLOW â&#x20AC;&#x201C; UP REPORT 2016/6 MONTHS EXECUTÄąVE SUMMARY While the plastics industry is developing swiftly, the production of plastics processing machines are not developing in parallel with the said manner and the industry is continuously losing its ground due to cheap plastics machines producer countries, particularly China. The gradual downsizing in the plastics processing machine industry in Turkey Plastics is caused by the fact that there is not a state strategy towards the processing machines industry, the domestic manufacturers are not protected enough and that the plastics product manufacturers prefer cheap and second hand machine imports in order to get the edge over competition. Annual machinery investment of Turkish Plastics Industry realized as USD 821 million for the last 5 years between 2011-2015 period. In this period, investments of presses and other machines constituted 36 % of total investments while injection machines 23 %, extrusion machines 19 %, thermoforms 5 %, blow molding 3 % and parts and components 15 %. A production of USD 232 million, imports of USD 286 million, exports of USD 75 million and domestic market sales of USD 443 million (machine and equipment investment of plastics industry) occurred in the plastics processing machines and their accessories and parts industry in the first half of 2016. Industry gives USD

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211 million of foreign trade deficit in this period. It can be observed that the 65 % of the domestic sales (machine equipment investment of industry) was provided with imports, that the export coverage ratio of import was 23 % for the plastics processing machines and their accessories and parts industry in this period. Turkey can set up the necessary incentive substructure for global machine manufacturers to invest in Turkey by using its cheap and qualified manpower and experience in machines manufacturing and special incentives can be provided to the global players for their investments on plastics processing machines in Turkey. Turkey could be turned into a production and exports base for at least some of the plastics processing machines with the incentive substructure which is to be applied in the said manner. In case of achieving the aforesaid goal, other models of the machines can be manufactured in Turkey and the machines needs of the West can be supplied from Turkey. If Turkey becomes a global player in machines manufacturing, this could enable for accessory and parts concerning this industry to be manufactured at a fast pace and exported with a higher added value.

1. ECONOMIC SITUATION 1.1. WORLD ECONOMY Markets witnessed severe bouts of volatility due to the widely unexpected “leave” result of the Brexit referendum held on June 23. Sterling depreciated considerably and safe haven assets attracted strong demand. In the aftermath of the referendum, emerging expectations that leading central banks would loosen their monetary policies in order to struggle with rising risks stemming from the outcome of Brexit have given the markets the opportunity to take a sigh of relief. Indeed, the head of BoE, Mark Carney, hinted that policy rate, which currently stands at 0,5 %, could be cut in summer months. The new picture arisen with Brexit and the Brexit related issues caused the Fed’s rate hike expectations of the markets for 2016 weaken to a large extent while only 1 rate hike is anticipated in 2017. Fed officials also revised down their interest rate expectations for the coming years in June meeting. Euro Area consumer prices increased in June for the first time in 5 months. The final reading suggested that economic growth in the region came in at 0,6 %. It was a positive development that the highest contributions to growth came from household expenditures and private sector investments. Oil prices fluctuated during the recent weeks in response to the trajectory of the US dollar, the US crude inventories and the changing expectations for global growth. In June 2016, seeking direction in global markets has been effective, and the developing countries in the financial

market has been dominated by a wavy appearance. OECD Economic Outlook report released in early June stated that due to the global economy’s low growth trap, global growth for 2016 and 2017 has been estimated at 3 % and 3,3 % respectively. As a summary; the main factors attracting global economic growth down in 2015, is expected to continue in 2016, ensuring the sustainability of global growth in 2016 is taken as the main target. Emerging and developing economies are faced with adverse conditions, geopolitical tensions are increasing the challenges of the global economy. The three main factors that will affect the global economy in 2016; The Fed’s monetary normalization, the course of China’s economy and the unstable commodity prices. Apart from the main factors, the subjects which will affect the global and Turkish economy, are as follows: • Recovery in the US economy, • Developments in the euro area, • Current problems in Greece and Ukraine, • Immigration issues, labor market participation capacity and other political issues , • Developments in emerging markets, • The ability of commodity exporters, to tolerate adverse effects caused by the rapid decline in commodity prices capabilities, • The trend of regional trade agreements between USA and Europe, • The decisions of the countries to reduce carbon emissions.

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1.2. TURKISH ECONOMY 1.2.1. GROWTH In the first quarter of 2016 the positive trend in economic activity continued and Turkey’s economy grew slightly above the market consensus of 4,5 % and 4,8 % on an annual basis during this period. In this period, growth in domestic demand has been the basic dynamics of economic growth. On the other hand, national income on the basis of the USD has continued to decline due to the impact of the depreciation of TL. The consumer spending sharing 80 % in GDP have shown the fastest annual increase for the last 18 quarters. During this period, the strong performance of consumer spending contributed by 5,9 % due to the increase in the minimum wages and decisive recovery in private consumption. The highest increase of 10,9 % in public expenditure in this period has also been realized for the last 5 years. This case resulted from recording the fastest rise in goods and services expenditures since the last quarter of 2009. In this context, the contribution of public consumption expenditure growth has occurred at a relatively high level of 1,25. Total investment expenditures don’t have a significant impact on growth in the first quarter. While the growth of private sector investment spending reducing as much as 0,1 percentage points, the level of public investment spending has contributed negligible level on growth. The weak investment expenditures negatively affect medium-term growth Continued flow of asylum-seekers in 2015 with the support of the domestic demand -induced growth performance exhibits Turkey’s economy has continued this trend in the first quarter of this year. The basic dynamics of the growth of consumer spending in the 2nd quarter of the year is expected to continue. On the other hand, the ongoing problems in our main export markets, the current trend of commodity prices, it is not possible to draw a positive picture for the upward

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trend in net exports due to import demand. In this context, moderate growth in economic activity will continue and the economy is expected to finish with a growth rate in 2016 as 3,5 % is. As OECD upgrading the growth forecast for Turkey, from 3,4 % to 3,9 % also downgrade for 2017 from 4,1 % to 3,7 % OECD foresees inflation would be 7,9 % and 7,3 % in 2016 and 2017 respectively, pointing out the minimum wage increase will have a negative impact on Turkey’s competitiveness and exports. manufactured at a fast pace and exported with a higher added value.

1.2.2. UNEMPLOYMENT The number of unemployed above the age of 15 in Turkey in April 2016 increased by 3 thousand persons compared to the same period last year which was 2 million 824 thousand people. Unemployment rate realized as 9,3 % with a 0, 3 percentage points decrease. In the same period; Non-agricultural unemployment rate was estimated to be 11 % with a 0,6 percentage point decline, while the youth unemployment rate that includes the 15-24 age group, realizing as 16 % decrease by 1 percentage point, this ratio decreased 0,3 % points in the 15-64 age group and has been realized as 9,5 %. The ratio of persons who worked without any social security institutions in April 2016, amounted to 33,5 % with an increase of 0,2 points compared to the same period of the previous year.

1.2.3.

INDUSTRIAL PRODUCTION

Industrial production has made a poor start to the second quarter of the year. Industrial production increased 0,7 % on an annual basis in April showed the weakest performance since July 2015. The slowdown in industrial production in this period has come to the fore. Manufacturing industry capacity utilization rate (CUR) has reached the highest level since October 2013 realized as 76, 1 % in June by increasing 1 %. Manufacturing PMI is a row of 4 months has pointed to worsening operating conditions in the manufacturing sector realized under the 50 threshold. The index declined to 47,4 in June to the lowest level since April 2009. During this period, it is seen that the production and new orders fell sharply. 1.2.4. FOREIGN TRADE Exports in June 2016, compared to the same month of 2015 rose by 8,1 % to USD 12 billion 916 million dollars, and imports realizes as USD 19 billion 475 million, increased by 7 %. The foreign trade deficit in June 2016 increased by 6 % to USD 5 billion 559 million. While the share of exports to European Union (EU-28) in June 2015 was 46,1 %, in June 2016 increased to 48,5 %. Exports to the EU, with an increase of 13,8 % compared to the same month of 2015 increased to USD 6 billion 267 million. Exports to Germany in June 2016 was USD 1 billion 228 million, UK, Italy and USA followed Germany respectively. Imports from China, in June 2016 have been realized as USD 2 billion 602 million. Germany, US and Russia followed this country respectively. The share of manufacturing products based on ISIC Rev. 3 in total exports in June 2016 realized as 94,3 %. The

share of exports of high-tech products manufacturing industry realized by 3,5 %, while the share of medium-high technology products by 33,4 %. The share of manufactured goods in total imports is 86,2 % the share of high-tech products in total imported manufactured goods in June was 20,4 %, while the share of medium-high technology products realized as 42,9 %, respectively. While export-import ratio in June 2015 was 65,7 % in 2015, it rose to 66,3 % in June 2016. Considering that a 2-year transition period for Brexit foreseen in the short term in terms of commercial relations between the parties is considered to have significant risk. However Brexit, United Kingdom and / or in the case of medium and weaken the EU economy over the long term can be especially composed downward pressure on exports. In addition, our largest export market, with the Brexit indirectly, depending on political developments in the EU, our country will be able to induce a negative impact on the economy. In the near term, improvement in TurkeyRussia relations will support our external trade in this context, the positive export trend, the moderate trend in oil money to strengthen domestic demand and commodity prices is expected to continue, albeit losing momentum in line with the trend of imports down. 1.2.5. INFLATION Domestic producer price index in June 2016 showed 3,41 % increase compared to the same month of the previous year. CPI (2003 = 100) increased 7,64 % in June 2016 compared to the same month of the previous year.

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1.2.6.

EXPECTATIONS

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costs. Similar to 2015, avoiding risks rather that growth expectations will be focused. (Sources: Türkiye İş Bankası and Akbank Economic Publications, Ministry of Development, TSI)

2. TURKISH PLASTICS PROCESSING MACHINERIES INDUSTRY 2.1. PRODUCTION Plastics processing machines and parts and components production realized as USD 232 million in the first half of 2016 and expected to be USD 464 million by the end of the year, increasing by 18 % with respect to 2015.

Taking the first half realization into account, production of all machines other than blow molding and presses, are expected to increase with compare to 2015.

In this period, injection machines shared 4 %, extrusion machines 16 %, thermoform machines 12 %, presses 33 % and parts and components 35 % in total production. The share of blow molding machines stayed less than 1 %.

2.2. IMPORTS In the first half of 2016, total plastics processing machines and components imports realized as USD 286 million and expected to increase to USD 573 million by the end of the year, decreasing by 1 % with respect to 2015.

In the first half of 2016, injection and extruders shared 20 %, blow molding and thermoform 3 %, presses and other machines 38 % and parts and components 7 % in total imports.

2.3. EXPORTS Plastics processing machines exports realized as USD 75 million in the first half of 2016 and exports are expected to increase to USD 150 million by the end of the year, increasing by 14 % with respect to 2015.

It is expected that imports of all machines other than injections to increase in 2016 with respect to 2015.

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In this period, exports of all machines other than blow molding and presses and other machines increased.

92 % on value base in the first half of 2016. China, Italy and Germany are the first 3 countries from which Turkey imports plastics processing machines. These countries share 21 % of imports on value base. 2.5. UNıT FOREıGN TRADE PRıCES

In the first half of 2016, injections shared 6 %, extrusions 25 %thermoforms 14 %, presses and other machines 41 % and parts and components 13 % in total exports. The share of blow molding machines in total exports stayed at less than 1 %. In the first half of 2016, average unit import prices of plastics processing machines and parts and components realized as USD 12/kg, increasing by 8 % with respect to 2015. In this period, average import prices for extruders and thermoform machines increased, while prices for injection machines stayed at the same levels and others decreased.

2.4. PLASTICS PROCESSING MACHINES FOREIGN TRADE BY COUNTRIES The plastics processing machines exports destine to the 10 main countries in the first half of 2016 constituted the 38 % of the total exports on amount and 47 % on value basis. The first 3 countries to which Turkey has conducted plastics processing machines exports in this period are Iran, Russian Fed. and S. Arabia. These countries share 66 % of imports on value base. China itself shared 8 % of total imports on unit and 24 % on value base. On the other hand, the 10 main countries received a share of 10 % on unit and 98

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Average unit export prices for plastics processing machines and parts and components realized as USD 11/kg in the first half of 2016, staying by at the same level of 2015. In this period, the average export prices for all machines declined, other than extruders and parts and components.

INVESTMENTS OF PLASTICS INDUSTRY )

In this period, the average unit export prices for plastics processing machines realized 15 % less than the average unit import prices.

2.6. FOREIGN TRADE DEFICIT Turkey has always had foreign trade deficit in plastics processing machines. Its foreign trade deficit, which was USD million of 589 in 2011, decreased to USD million 211 in the first half of 2016. Foreign trade deficit is expected to be USD 422 by the end of 2016, decreasing by 5 % compare to 2015.

Foreign trade deficit for all machines other than blow molding, thermoform, presses and other machines is expected to decrease by 2016 with respect to 2015. 2.7. DOMESTIC SALES ( MACHINERY

The plastics industry, in parallel with the increase in its processing capacity, makes investment in machine and equipment with an increasing trend every year. The machine and equipment investment of the industry, which reached to its maximum level in 2011 with USD million of 885, realized as USD 443 million in the first half of 2016. Machinery investments of plastics industry is expected to reach to USD 886 million by the end of 2016, increasing by 6 % with respect to 2015.

It is expected that all machinery investments of plastics industry, other than injection machines to increase in 2016. In the first half of 2016, the share of

presses and other machines realized as 35 %, injections 20 %, extruders 17 %, blow molding 2 %, thermoform 5 % and parts and components 20 % in the total machinery investment of the plastics sector.

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Annual machinery investment of Turkish Plastics Industry realized as USD 821 million for the last 5 years between 2011- 2015 period. In this period, investments of presses and other machines constituted 36 % of total investments while injection machines 23 %, extrusion machines 19 %, thermoforms 5 %, blow molding 3 % and parts and components 15 %

3. SUPPLY AND DEMAND EQUILIBRIUMS 3.1. TOTAL PLASTICS PROCESSING INDUSTRY A production of USD 232 million, imports of USD 286 million, exports of USD 75 million and domestic market sales of USD 443 million (machine and equipment investment of plastics industry) occurred in the plastics processing machines and their accessories and parts industry in the first half of 2016. Industry gives USD 211 million foreign trade deficit in this period.

It can be observed that the 65 % of the domestic sales (machine equipment investment of industry) was provided with imports in this period.

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3.2. SUPPLY & DEMAND BALANCE IN INJECTION MACHINES 10 million dollars of production, 83 million dollars of imports, 5 million dollars of exports and 87 million dollars of domestic market sales (injection machines investment of plastics industry) were made in the plastics injection machines in the first half of 2016. It can be observed that 94 % of the domestic sales (injection machines investment of the industry) was provided by imports and USD 78 million of foreign trade deficit realized in this period.

99 % of the imports of plastics injection machines on unit and 98 % of it on value base is conducted mostly from 10 countries in the first half of 2016. China receives a share of 67 % on a unit basis and 47 % on a value basis for the imports of plastics injection machines. It can be observed that Italy, Japan and Taiwan are the countries from which Turkey imports the most following China. The 48 % of the exports of plastics injection machines on a unit basis and 63 % on a value basis is made to 10 countries. Iran, Kazakhstan and Algeria have been the biggest markets to which Turkey has exported plastics injection machines in this period.

3.3. SUPPLY & DEMAND BALANCE IN EXTRUSION MACHINES USD 37 million of production, USD 57 million of imports, USD 19 million of exports and USD 76 million of domestic sales (injection machines investment of plastics industry) were made in the plastics extrusion machines in the first half of 2016. In the same period, foreign trade deficit of extrusion machines realized as USD 38 million. It can be observed that the 75 % of the domestic sales (injection machines investment of the industry) was met by imports in the same period.

The 98 % of the imports of plastics extrusion machines on a unit and value basis made from 10 countries. The countries from which Turkey imports most are Germany, Italy and Japan in this period. These countries shared 66 % of total extrusion machines imports. In the same period, the 45 % of the exports of plastics extrusion machines on a unit basis and 70 % on a value destine to 10 countries. The countries to which exports of plastics extrusion machines is made the most are Russian Fed., Algeria and Qatar.

3.4. SUPPLY & DEMAND BALANCE IN BLOW MOLDING MACHINES USD 1 million of production, USD 10 million of imports and USD 10 million of domestic market sales (blow molding machines investment of plastics industry) were realized in the first half of 2016. Exports of blow molding machines realized at a negligible level and USD 10 million of foreign trade deficit realized in this period. It can be observed that the 97 % of the domestic sales (blow molding machines investment of the industry) was provided by imports in the same period.

Ä°n the first half of 2016, Turkey imported blow molding machines from 10 countries 2016 and Italy, Germany and France shared 67 % of total imports.

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imports most are Taiwan, Germany and China. The 43 % of the exports of thermoforming machines on a unit and 77 % on a value basis destine to 10 countries. The countries to which exports of thermoforming machines is mostly destine to are S. Arabia, UAE, S. Africa, and UAE Germany and Australia in the first half of 2016. These countries share 36 % of total exports In this period, Turkey exported blow molding machines only to 4 countries and 21 % of total exports realized to Azerbaijan.

3.6. SUPPLY & DEMAND BALANCE IN PRESSES AND OTHER MACHINES 3.5.SUPPLY & DEMAND BALANCE IN THERMOFORM MACHINES USD 27 million of production, USD 7 million of imports, USD 11 million of exports and USD 23 million of domestic market sales (thermoform machines investment of plastics industry) were realized in the first half of 2016. Foreign trade deficit of thermoform machines realized over USD 3 million in this period. It can be observed that the 31 % of the domestic sales (thermoform machines investment of the industry) was provided by imports in the same period.

The 85 % of the imports of thermoforming machines on a value basis made from 10 countries. The countries from which Turkey 102

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USD 77 million of production, USD 110 million of imports, USD 31 million of exports and USD 156 million of domestic market sales (presses and other machines investment of plastics industry) were realized in the first half of 2016. It can be observed that the 70 % of the domestic sales (thermoform machines investment of the industry) was provided by imports and USD 79 million of foreign trade deficit realized in this period.

4. RESULT General problems in the machinery manufacturing industry, can also be applied to the plastic processing machines industry. In addition to these general problems, the absence of any national strategy and enough protection for domestic manufacturers of machine industry are the major problems faced in the plastics processing machines. Turkey, as for plastic processing machinery has a very serious investing plastics industry. Thus, Turkey is one of the world’s most important market in this area. But 80 % of the market is dominated by imported machines. Turkey is a net importer in the plastics processing machines trade and machines exported are far from providing high added value when compared their unit prices. The developments in the plastics processing machines and their accessories and parts industry, despite significantly developing the plastics industry and the propensity to invest following the similar pattern, is under constant pressure of the cheap imports conducted in China. Imports receives a higher margin in sharing the increasing demand.

The lack of a state strategy for the plastic processing machinery sector, adequate protection of domestic producers and provide competitive advantages of plastic products manufacturer, they choose the second-hand imports of machinery. The most important problems encountered in Turkey include plastic processing machinery sector; • There is not a certain vision of the sector. • Horizontal and vertical cooperation before competition between firms is not available. • R&D, P&D, industrial design and product development efforts are insufficient in the industry. • Patents and trademark investments are not enough in the industry. • Industry’s international technical compliance is insufficient. • Equity capital and working capital of the companies are inadequate. • Energy costs are high. • The industry needs for the marketing customer relationship management.

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INTERNATIONAL PLASTIC PACKAGING TECHNOLOGIES CONGRESS INNOVATIVE PACKAGING TRENDS AND BRANDING November 1, 2016, Istanbul Hilton Bomonti Hotel

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for more info www.turkishpic.com

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TURKISH PLASTIC INDUSTRY CONGRESS PLASTICS ON VEHICLES December 6, 2016, Istanbul Hilton Bomonti Hotel

for more info www.turkishpic.com

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