Turkey Business & A Investment Newsletter
Investment Support And Promotion Agency Of Turkey (ISPAT)
FOR MORE POWER INVEST IN TURKEY
TO YOUR GLOBAL BUSINESS
PUSH THE BUTTON
n°23 March 2011
France, Belgium, Luxemburg & Monaco Office For any contact : François BERNARD Permanent Representative fbernard@invest.gov.tr DR
GSM : +33 631 272 572
TURKEY’S EXPORTS INCREASE 22 PERCENT IN JANUARY, HITTING US $ 9.65 BILLION 02.02.2011 Hurriyet Daily News - Turkey’s exports rose 22.67 percent in January, compared with the same period last year, said Mehmet Buyukeksi, the Chairman of the Turkish Exporters’ Assembly (TİM). “Turkey increased its January exports to USD 9.65 billion, compared with USD 7.9 billion in the same period of last year,” said Buyukeksi in a meeting in the Black Sea province of SamsunThe leading sector in January was the automotive sector, reaching USD 1.49 billion, followed by ready-wear and chemicals, with export volumes of USD 1.31 billion and USD 1.21 billion, respectively.
TWO TURKISH DEALERS AMONG TOP 50 FAST GROWING RETAILERS 01.01.2011 Vatan - Global consultancy services firm Deloitte’s “Global Powers of Retailing 2011” report sheds light on the performance of the retail business worldwide. According to the report, Turkish retailers BIM and Migros maintained their place in the “First 250 Global Retailers” list, and entered the top 50 fastest growing retail dealers list. Migros ranks 4th with USD 3.7 billion in sales, while BIM ranks 6th with USD 3.4 billion among the top ten retailers in Africa/the Middle Eastern region. Meanwhile, on the overall fastest growing retailers list, BIM took 8th place and Migros ranked 19th.
NUMBER OF THE MONTH
18,9%
The industrial growth rate increased 18,9% in the month of march 2011 compared to the same month in 2010 according to TurkStat (Today’s Zaman, 09.03.2011)
« INVEST IN TURKIJE » IS DE TURKSE OFFICIËLE INSTANTIE DIE DE LEIDING VAN DE STEUN EN VAN DE BEVORDERING VAN DE INTERNATIONALE INVESTERINGEN WE KUNNEN JULLIE HELPEN TER WERELD, MET NAME IN FRANKRIJK, IN BELGIË EN IN HET LUXEMBURGSE OM TE INFORMEREN. ALS JULLIE WILLEN ONS KENNISMAKEN, KUNNEN JULLIE ONS BEREIKEN MET VERSCHILLENDE WIJZE. VOOR EEN PERSOONLIJK EN VERTROUWELIJK BIJEENKOMST, KUNNEN JULLIE BEREIKEN DE PERMANENTE VERTEGENWOORDIGER VOOR FRANKRIJK, BELGIË,LUXEMBURG. MOBIELE : 00 33 631 272 572 (AFGEROEPEN EERST EN VOORAL) ADRES : 55 AVENUE MARCEAU 755116 PARIJS FAX: 00 33 170 248 761
INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)
FOR ANY CONTACT : DR. François BERNARD PERMANENT REPRESENTATIVE fbernard@invest.gov.tr
NEWSLETTER NO.23 MARCH 2011 P.01
Banking Turkey’s banks enjoy surge in brand value 02.02.2011 Vatan - Turkish banks climb in value as well as prestige with their performance during the global financial crisis. Undamaged by the economic turmoil, 11 banks from Turkey take their place in the “Top 500 in Global Banking” list of the Londonbased consultancy group Brand Finance. Three Turkish banks, Isbank, Akbank and Garanti, have entered the world’s 100 most valuable banks ranking, leaving behind many well-established international banking corporations. Brand Finance rated Garanti and Akbank AAA - or “extremely strong”, and Isbank AA or “very strong”.
Spanish bank BBVA: Turkey is an excellent market 03.02.2011 Aksam - Banco Bilbao Vizcaya Argentaria S.A (BBVA), one of Spain’s leading banks and a shareholder of Turkey’s Garanti Bank, has reported a 9.4 percent rise in its 2010 profits. BBVA recently entered the Turkish banking market by acquiring a 29.4 percent share in Garanti Bank from Dogus Holding. The firm’s net profit increased by 9.4 percent over the year 2009 to reach EUR 4.6 billion, said a statement. The bank also limited its core capital ratio to 8.6 percent due to the Garanti Bank acquisition, which will be paid off either in late March or early April this year. Stressing the importance of Turkey’s young population, BBVA's Chairman and CEO, Francisco González, said that Turkey is an excellent market in which to do business, with a very reputable international position. “We have partnered with Turkey’s leading bank and are extremely content with the Garanti Bank acquisition,” he said.
Turkish banking sector profits rose 8.7 percent in 2010 08.02.2011 Reuters - In 2010, net profit in Turkey's banking sector rose 8.7 percent to TRY 21.93 billion (USD 13.90 billion) as the country emerged from the global financial crisis, the country’s Banking Regulation and Supervision Agency (BDDK) said on Monday. Loans were boosted by a 33.9 percent rise to TRY 525.9 billion in the period, while deposits grew 19.9 percent to TRY 617 billion, said the regulator. Banking sector assets rose 20.8 percent to TRY 1.007 billion, it said.
ING Bank: Turkey in a strong position to attract investments 14.02.2011 Yeni Şafak - Turkey’s successful tackling of the global financial crisis and rapid recovery continue to bring admiration and praise from the leading names of international finance. ING Bank’s Chief Economist Mark Cliffe said that the global financial crisis, stemming from the problems of the US housing market, had affected a number of countries since its outbreak three years ago. Stating that the crisis is not completely over but has relatively waned in effect, Cliffe said that “the crisis hit the banking and finance sectors first and then the national budgets” noting that Turkey’s strong economy helped the country overcome the crisis. “Turkey’s position is strong and the country is very attractive in terms of foreign investments,” said ING’s chief economist. Talking about the country’s EU accession, Cliffe said that Turkey’s economic growth and young population will contribute a great deal to the EU.
FOR ANY CONTACT : DR. François BERNARD REPRESENTANT PERMANENT FBERNARD@INVEST.GOV.TR
P.02 NEWSLETTER NO.23 MARCH 2011
IINVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR
Industry German steel producer invests in Turkey 01.02.2011 Sabah - Germany’s Tröster Systeme und Komponenten (TSK) and its Turkish partner mining company Velutsan will start operations in their jointly built steel construction plant on February 18. Located in the northwestern Turkish province of Balikesir, the TSK Velutsan steel plant will initially employ 400 people and will add 200 more before the end of the year. Known for its “Mero” and “Schmidlin” brands, TSK has invested EUR 7 million in the plant, according to a statement by the company.
“Turkey’s annual gold production can top 100 tons” 04.02.2011 Hurriyet Daily News - Turkey has the potential to produce 100 tons of gold annually, an executive of a leading mining firm told Anatolia news agency. The annual gold production in Turkey today stands at around 15 tons, according to Mehmet Yılmaz, Manager of local TÜPRAG Metals Mining. The location of some 800 tons of gold is mapped and investments in this sector can up the country’s production to the level of 100 tons per year, he said. “Gold is known as a safe haven among investment tools,” said Yılmaz. “Thus we think that the interest in gold will increase day by day. This will positively contribute to gold production in our country.” According to a rough estimation, the total gold reserves in Turkey are 7,000 tons, Yılmaz said.
Ravago to produce prime grade plastic in Turkey 07.02.2011 Posta - Ravago, one of the oldest plastic producers in Europe, will expand its presence in Turkey by investing EUR 16 million in a new production plant. The Belgian company will produce prime grade plastic in Turkey, cutting down the country’s dependency on imports of premium grade plastics, while increasing its exports. Ravago has been active in the Turkish market for a decade with two front companies, Enplast and Mardav. Enplast specializes in the production and export of petrochemicals, while Mardav sells building insulation materials. Ravago Turkey’s CEO Mehmet Onur said the company is aiming to grow 30 percent this year and increase its turnover of EUR 400 million to reach EUR 1 billion by 2015. “Ravago will be investing in two new production lines in Turkey. One of them, worth EUR 26 million, involves the production of materials used in 20 different sectors. The other one is tailored for any sector, except food production. We are aiming to introduce prime grade plastic production to Turkey,” he said.
INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)
FOR ANY CONTACT : DR. François BERNARD PERMANENT REPRESENTATIVE fbernard@invest.gov.tr
NEWSLETTER NO.23 MARCH 2011 P.03
Energy OMV to manage Mideast operations via Petrol Ofisi 17.02.2011 Milliyet - Austrian energy company OMV will restructure its recently acquired Turkish oil retailer Petrol Ofisi into a regional operations center for its activities in the Middle East. OMV has taken control in Petrol Ofisi by increasing its shares in the company to 95.75 percent last October. Wolfgang Ruttenstorfer, CEO of OMV, said that Petrol Ofisi will be turned into a management center to control OMV’s other activities in Turkey’s energy sector and that the company will focus on oil and gas exploration/production in neighboring countries to meet Turkey’s growing demand.
RWE to launch EUR 500 million power plant in Turkey 17.02.2011 Habertürk - German energy company RWE will commission its EUR 500 million gas fired power plant in Turkey by the end of 2012. One of Europe’s leading companies in the energy industry, Essen-based RWE’s plant under construction in the Aegean province of Denizli will provide electricity for some 3.5 million homes. “Turkey is a bridge between energy producers and consumers,” said Andreas Radmacher about their future plans, referring to the strategic location of the country. “Turkey is also an important market with its rapidly growing population and remains the cornerstone of RWE’s strategic plans in taking our operations in natural gas, electricity production and in other fields of the energy industry, further,” he added.
Energy projects make up a third of FDI flow to Turkey 21.02.2011 Milli Gazete - The main recipient of FDI in 2010 is the Turkish energy sector, attracting nearly a third of the total USD 9.8 billion of foreign investments. 116 energy companies with foreign capital constituted 34 percent of the total foreign investments the country received last year. The total number of foreign companies in Turkey has risen to 26,000, with 3,200 new companies established in 2010. Of the 3,200 new companies established last year, some 1,300 businesses originate from the EU. Among them, 460 companies are from Germany, 162 from the Netherlands, 161 from the United Kingdom, 96 from Italy, with the remainder coming from other EU member countries.
FOR ANY CONTACT : DR. François BERNARD REPRESENTANT PERMANENT FBERNARD@INVEST.GOV.TR
P.04 NEWSLETTER NO.23 MARCH 2011
IINVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR
Service Turkey to be the “second home” of Dutch insurer Eureko 16.02.2011 Dünya - Active in Turkey since the acquisition of the majority shares in Garanti Sigorta in 2007, Dutch insurance group Eureko has set its eyes on becoming one of the top five in the country’s booming insurance sector. Introducing a number of innovative products in the Turkish insurance sector after joining forces with Garanti Sigorta, Turkey took the central role in Eureko’s future plans, according to Eureko Turkey’s General Manager Okan Utkueri. “Eureko intends to make Turkey its second home,” said Utkueri. “Turkey’s young population and growing economy provide a strong growth base for insurance companies. We are aiming to increase our share in non-life insurance and become one of the top five insurers in the country,” he added.
Ageas acquires 31 percent of Turkish insurer Aksigorta 18.02.2011 Dünya - Belgian insurance company Ageas has announced the acquisition of a 31 percent share in Aksigorta, one of Turkey’s leading insurers. Ageas will take over half the shares of Sabanci Holding’s 62 percent, meaning that Ageas and Sabanci will have equal control in Aksigorta’s management. The remaining shares are publicly traded in the Istanbul Stock Exchange (ISE). “Turkey is a fast developing country with its attractive growth potential in terms of non-life insurance and low insurance penetration levels,” said Ageas Chief Executive Bart De Smet in a statement on the acquisition deal.
Qualcomm opens Turkey office 21.02.2011 Haberturk - Qualcomm, known for its wireless communication technologies and mobile device processors, has opened its first office in Turkey. Turkey’s strong embrace of the 3G technology and rapid growth in the number of subscribers, reaching 20 million in 1.5 years, has led the patent owner of the 3G technology to open up shop in the country. “Qualcomm has decided to invest in Turkey as one of the key emerging markets in line with the company’s 2011 plans to focus on transition from 2G to 3G, emerging markets, smart phones and new mobile device categories,” said Qualcomm CEO Paul Jacobs. Bill Davidson, Qualcomm’s Vice President of the Global Marketing Department, also underscored Turkish mobile users’ rapid adaptation of the 3G technology, saying, “The growth of the Turkish market has been impressive, which has led Qualcomm to invest in the country.” Davidson said that Qualcomm’s Turkey office will play a role in addressing the demand for smart phones and high speed mobile internet by better understanding the localized needs.
INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)
FOR ANY CONTACT : DR. François BERNARD PERMANENT REPRESENTATIVE fbernard@invest.gov.tr
NEWSLETTER NO.23 MARCH 2011 P.05
Corporate Strategy Turkey, Kyrgyzstan to deepen ties, abolish visa requirement 03.02.2011 Today’s Zaman - Turkish and Kyrgyz leaders announced on Wednesday that they have taken significant steps that will help take bilateral relations between the countries to a strategic level. They include the establishment of a high-level strategic cooperation council and the abolishment of visa requirements for their nationals. The announcement came from Turkish Prime Minister Recep Tayyip Erdogan at a joint press conference following talks with his Kyrgyz counterpart, Almazbek Atambayev, in Bishkek. “On this occasion, we have made a joint decision to establish the High-Level Strategic Cooperation Council,” Erdogan was quoted as saying by the Anatolia news agency. Following consultations between the two countries’ foreign ministries, the first meeting of the council will be held in Turkey in March, he added. Furthermore, with regard to the idea behind the establishment of the joint council, Erdogan said it is of utmost importance for the two countries’ business associations, as well as various state bodies, to regularly meet and discuss ways to boost bilateral economic relations.
Britain to double trade with Turkey by 2015 11.02.2011 Hurriyet - Britain aims to double trade with Turkey by 2015, according to the British government’s Trade White Paper outlining the country’s trade and investment strategies. The paper’s chapter on Turkish-British trade emphasizes Turkey’s EU Customs Union membership and continuous British support for Turkey’s EU accession process. The paper cites reports forecasting Turkey as Europe’s second largest economy in 2050, and calls for increased trade between Britain and Turkey. “Turkey’s pro-trade approach and its search for trade deals focusing on the Middle Eastern and Caucasian markets offer significant opportunities. Britain aims to double its trade with Turkey,” said the paper. Trade advisor to the Prime Minister of Britain, Leon Brittan, said that the Trade White Paper endorses improving business relations with Turkey and doubling bilateral trade.
FOR ANY CONTACT : DR. François BERNARD REPRESENTANT PERMANENT FBERNARD@INVEST.GOV.TR
P.06 NEWSLETTER NO.23 MARCH 2011
IINVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR
Nuri Otay, General Manager of Ford Otosan, said that Turkey, along with the BRIC (Brazil, Russia, India and China) countries, was included in the company’s plans for future growth markets. “Ford has already added Turkey to BRIC countries where the company aims for growth in the future,” said Otay, adding that similar views were shared in a meeting he attended in Ford headquarters in Detroit, USA. Zaman 14.03.2011
QUOTE OF THE MONTH
CONTACT For any information or request for an appointment in France, Belgium, Luxemburg ; or if you are in charge of an investment project in Turkey, do not hesitate to contact me :
France, Belgium, Luxemburg, and Monaco Office
Dr. François BERNARD Permanent Representative INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)
55, Avenue Marceau 75016 PARIS; Fax : +33 170 248 761 @ fbernard@invest.gov.tr Gsm : +33 631 272 572 ; Tél : +33 146 946 725 FOR ANY CONTACT : DR. François BERNARD REPRESENTATIVE fbernard@invest.gov.tr INVEST IN TURKEY © surPERMANENT Facebook
NEWSLETTER NO.23 MARCH 2011 P.07