December 2016
Issue: 103
Machinery Exporters Union Monthly Magazine
in english
FAR EAST FAIR OUTING END IN MUMBAI INDIA ITME 2016, which is accepted in three most important exhibitions around the world in the field of textile machinery and accessories, was witnessed of effective advertisement and promotion actions of the TEMSAD and the Turkish Machinery.
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etween the dates 3-8 December, the Turkish Machinery attend for the first time in INDIA ITME 2016 that is seen in three most important exhibitions around the world in the field of textile machinery and accessories. The Turkish Machinery has contributed to strengthen the image of the Turkish machine sector with ads and promotion actions in India. Textile Machinery and Accessories Industrialists’ Association (TEMSAD) as a member of Turkish
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Machinery Federation (MAKFED) introduced the power of the Turkish machine industry to Turkish and outlander participants by the way of advert in English. From various points of the world 1.500 companies participated the INDIA ITME Trade Fair that held once in four years. 16 Turkish companies have been represented Turkish brands in exhibition that hosted 150.000 visitors. The Turkish Machinery has kept informed visitors about the Turkish machine sector, its activities TEMSAD, and subsector associations.
SECTORAL COOPERATIONS AT ISSUE Here are Turkish representatives: Ali Rıza Oktay Chief of the Ministry of Economy Turkey, General Directorate of Export’, MachineryAutomotive-Electrical, and Electronic Product Government Office, Kutlu Karavelioğlu vice chairman, Sevda Kayhan YIlmaz and Mehmet Ağrikli executive board members of the Machinery and Accessories Exporters’ Association’s (MAİB), Adil Nalbant CEO of TEMSAD, the Machinery Branch Manager Mehtap Önal, and Branch Chief Er-
inç Tarhan The Turkish Machinery has given a dinner in honor of exhibition that put business people together. Turkey’s Mumbai Consul General Erdal Sabri Ergen, Trade Consultant Salih Ünver, CEOs of Indian Textile Machinery Manufacturers Association ITAMMA and TMMA, Rector of the Bangladesh Textile University, CEO of the Board of INDIA ITME Society were among participants. Mr. Mehmet Ağrı, Mr. Adil Nalbant, and Mr. Erdal Sabri Ergen have given speeches and informed the participants about the Turkish machine industry. Executive board
members of MAİB, Ms. Kayhan YIlmaz noted that India is the country, which offers numerous advantages in terms of machine sector due to low-cost labor, rich raw material resources, infrastructure, and old technology. Sevda Kayhan Yılmaz underlined that INDIA ITME is one of the three most important trade fairs around the world in the field of textile machinery. “We Turkish Machinery are very pleased to attend exhibition for the first time with TEMSAD that is one of our important associations in Turkey. 16 Turkish participant companies stated that they had a suc-
cessful action in general. I believe that we strongly emphasized the power of the Turkish machine industry. We have held various meetings with the Indian Textile Ministry and Indian Textile Machinery Manufacturers Association. I believe that these talks will be a massive positive return to the textile machinery sector. We have worked to add Turkish firms to the program that would provide incentives for the machinery purchase. In this regard they also stated that they would make a drop on them. By taking advantages of Indian market, we can further increase our export.” Ms. Kayhan Yılmaz said. THE VISITORS AND THE PARTICIPANTS WERE KEPT INFORMED The Turkish Machinery introduced the power of the Turkish machine industry to visitors and participants during the INDIA ITME Trade Fair, which lasted until 8 December. Karnataka Textile Minister Sri Rudrappa Manappa Lamani, Indian Textile Machinery Manufacturers Association Chairman R. Rajendran were kept informed about the Turkish machine sector.
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in english
MAİB STANDS UP FOR SUSTAINABLE DEVELOPMENT The Machinery and Accessories Exporters’ Association’s (MAİB) carried out the publicity meeting of ‘the Modern Approaches in Manufacturing Teqniques in Machinery Sector’ project, which supported by The Turkish National Agency in Ankara on 26 December.
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ithin the scope of the project ‘’the Modern Approaches in Manufacturing Teqniques in Machinery Sector’ that has gone live by cooperation Turkey, Germany and Poland. The representatives of Turkish companies in machine sector were kept informed about Industry 4.0 and the latest developments in this area. MAIB executive board member Sevda Kayhan YIlmaz, Siemens deputy general manager, Ali Rıza Ersoy, Durmazlar machine R&D mechatronics general manager Kemal İleri made speeches in the publicity meeting on 26 December. Sevda Kayhan Yılmaz stated that the project, which is included the training programs in Germany and Poland in order to follow the developments in the field of industry 4.0 contributed greatly to Turkish companies in the way of knowledge transfer, experience among different stakeholders. “We need to give the first priority in economy to industrialization in order to overcome the middle income obstacles that hamper the developing countries. We should increase the share of the industry to 40 per cent in the GNP. Therefore we have to keep pace with the new concept of competition in which the production processes are constantly developed depending on the technological
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transformation. We need transform our industry into a piece of advanced technology automation technology. Developed countries know very well that productivity must first integrate this transformation into machine industry in order to stand out in terms of price advantage to emerging countries. Although the name is the industry 4.0 Revolution, we can also refer to it as a lifestyle revolution. Not only the individuals and institutions that cannot keep up with it, but also the societies will suffer. For this, not only the revision of the products and the means of production, but also the transformation of the standards of education, law and product is necessary.” said Ms. Kayhan Yılmaz. Sevda Kayhan Yılmaz pointed out that as MAİB they carried out vari-
ous studies to inform their members about the transformation in this area. Ms. Kayhan Yılmaz emphasized that they are not satisfied with watching technological developments. Sevda Kayhan Yılmaz said that the project, which has gone live with financial support of European Union, should been an example for all sectors. “We Turkish Machinery as ‘Turkey’s growth machine’ are determined to accelerate the adaptation of our firm to this process. ‘’The Modern Approaches in Manufacturing Teqniques in Machinery Sector’ project was an important opportunity for our firms to raise their knowledge and experience. We believe that project partners will have an important role in the dissemination of training, booklets.
INDUSTRIAL PROPERTY LAW CAME INTO FORCE Industrial property law was enacted in the official gazette on January 10, after its adoption in the Turkish parliament (TBMM). Industrial property law, which collects industrial rights under one roof, brings with it many innovations in practice.
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ndustrial property law, which consists of a total of 199 articles, six of which were provisional, was adopted after the negotiations lasted three days in the Turkish parliament in the last days of the year. The law went into effect after being published in the official gazette on January 10, following the approval of President Recep Tayyip Erdogan. With the industrial property law numbered 6769, it is aimed to protect the rights related to trademarks, geographical signs, designs, patents, useful models and contribute to the realization of technological, economic and social progress in this process. The law also covers applications for trademarks, geographical signs, designs, patents, utility models and traditional product names, registration and post-registration transactions, and legal and penal sanctions for violation or these rights. In addition to the industrial property law, the name of the Turkish Patent Institute was changed to ‘Turkish Patent and Trademark Office’. The short name of the institution is ‘Turkish patent’. Abdullah Akbulut, Deputy director General of the Patent, who makes a statement about the innovations introduced by the law. “According to the provisions published in the official gazette, those who produce, sell, import or export
counterfeit goods, carry, store for commercial purposes, will be fined up to three years imprisonment and up to 20.000 days penalty. Those who lift the mark indicating that is is brand protected with authorization from the goods or packaging will be given prison sentences of one to three years and forensic money up to 5.000 days. Even if the person is not authorized to transfer the rights to another brand, license or pledge by giving a license to people from two to four years imprisonment, up to 5.000 days of smart money is foreseen. Sellers of counterfeit goods will not be punished if they can uncover the producers of counterfeit good and if they
can confiscate the manufactured goods.” said Mr. Akbulut. “This law is necessary to ensure that a strong industrial property system, an accelerated application and registration processes, an efficient Turkish Patent and trade Authortiy (TPMK) with sufficient expert staff, international integration, an agency system included in the pre-recorded work system and specialized labor courts.” told Kemal Yamankaradeniz, Chairman of Destek Patents. Kaan Dericioğlu, Chairman of the Board Ankara Patent Office, underlined that the new law could contribute to the creation of awareness of the intellectual and industrial property right.
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in english
THE FAIRS GAIN MORE STRENGTH WITH ‘GROWTH MACHINE’ In 2016, the Turkish Machinery has been one of the strongest participants of prestigious fairs organizes all over the world. In 2010-2016 periods, Turkish machine manufacturers have globetrotted in order to promote Turkish brand. The Turkish Machinery has increased their power in international sectorial trade fairs like Germany, Italy, USA, and Far East markets.
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nternational sectorial exhibitions determine new technologies and production trends, bring global business partners together, and create new trade volumes. In addition, the sector is strengthening its memory with imparted knowledge in parallel events. According-
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ly, the Turkish machine industry does not compromise its strategies for $ 100 billion export target, which would constitute 20 per cent of 2023 total export target. The Turkish Machinery has attended 68 international exhibitions since 2012. 20 fairs in 11 countries in 2016, 16 trade fairs in 2015,
13 exhibitions in 2014, 11 fairs in 2013, and 8 trade fairs in 2012. The Turkish Machinery contributed positively to the formation of the ‘strong’ Turkish machine perception in the visual memories of the trade fairs, and continued to be the visible ace of the Turkish machine industry with is sponsoring
efforts in fair organizations. At the same time, it continued to stand behind the sector with the spiritual support. The Turkish Machinery has gone on to take steps towards regional cooperation at global exhibitions. MORE THAN A TRADE FAIR Trade fairs maintain their importance as the most important players in the convergence point of global trade and economy. Sectorial fairs allow the participating firms to capture demand directly, in the shortest time and in the most effective way. Thus the trade fairs, which achieve significant gains in terms of both sales and promotion become a very important solution point in the global trade volume that is declining in recent years, the necessity of firms to be dynamic, flexible, creative, harmonious and following the world. In this respect the fairs enjoy the best of both worlds. OPEN UP TO THE WORLD IN 80’S The intensive participation of Turkish firms in international fairs began to take place in the 80’s, when the Turkish industry had undergone a major transformation. The Turkish industrialists remember it very well: It was a serious revolution in the Turkish machine sector that learned marketing strategies,
IFAT EURASIA, Germany
Hannover Messe, Germany
established business associations, with a smattering of foreign language in trade fairs. Every year, long and exhausting efforts in export are being taken with increasing sales figures. On the one hand tough global competition, and on the other targets of the sector require more work, more production, and more export. In this sense, over the years the Turkish Machinery has been working in order to play a bigger part in more markets and showcase the power of the Turkish machine to global buyers. GERMANY IS INITIAL OBJECTIVE The Turkish Machinery’s initial target is Germany. Germany is one of the world’s largest machine
producers and exporters. and this country is heart of the global fairs. Every year in Germany, there are dozens of global exhibitions for machinery and sub-sectors. The Turkish Machinery has participated in these fairs with special importance. It has gone to create a strong sense of Turkish machine awareness in the visual memories of visitors. Accordingly the Turkish Machinery has attended in nine prestigious fairs in Germany in 2016. That means half of the all fairs in 2016. Consultant of the Turkish Machinery in Germany, Ahmet YIlmaz said: “Quite a while the Turkish Machinery has attended trade fairs in Germany only to see new technologies and to buy them. But now Turkish machine sector has been growing so place is taken in fairs by Turkish companies. As a fair follower for 25 years, I should say the point reached is quite positive for Turkish machine sector. Before we could see five or ten Turkish participant companies in exhibitions but now Turkey is the second or the third biggest participant country in trade fairs. When we remember our past in trade fairs, we laugh at our product, design, booth, brochures, and booth staff. This is because we are am-
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ateurs. But today we have reached a fairly good position with our product range at the exhibition.” SERVICE AFTER SALE IS IMPORTANT When German companies and exhibitors come to our booth, we see that they are extremely surprised because of good products and product range. German buyers focus first on after sales service, before they purchase precisely in this regard, Turkish producers remains in a weak position. The product should be ready for all the scenarios in the background, when it is exhibited in the fair. Otherwise, it is a wear possibility that certain sales will turn into export. It is not enough to show exhibit only the product in fair.” said Mr. Yılmaz. IMPRESSIVE WORK BY THE TURKISH MACHINERY Director of Hannover Fairs Turkey, Alexander Kühnel said: “During the last 10 years Turkey has experienced a serious leap in Hannover Messe Fair. The number of the Turkish participants increased 40 per cent and a rise of 195 per cent on a square meter basis. It is gratifying that Turkey is indicating its development. In this process, the
ITMA, Italy
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EuroBLECH, Germany
promotional action that carries out by the Turkish Machinery in international fair, provide a great contribution to the sector. To exemplify they have taken a very effective step in promoting the Turkish machine industry with the opening sponsorship in Hannover Messe fair for the last year. Each year Hannover Messe host a different ‘partner country’, last year the Turkish Machinery have been doing so effective advertising and they have put the partner country into the shades.” RISING IN PARTICIPANTS Agora Tourism was Turkish representative in Messe München that is one of the strongest fair in Germany. Fairs Director of Agora Tourism, Burak Tarkan said that the participation of Turkish machine producers in sectorial fairs has increased in recent years. “Turkey was represented by 59 companies and 4.000 square meter for booth in the Bauma Munich Construction Machines and Heavy Equipment Fair in 2007. But in 2016, this number reached 142 firms and 12.300 square meters. In terms of quality, in the past years foreign buyers did not prefer Turkish machine. Turkish producers have made great progress over the years; today they are in market with innovative products. Especial-
ly in the last 20 years Turkish machine manufacturers have seriously disciplined themselves. There is a lot of interest in the Turkish booth in many trade fairs.” said Mr. Tarkan. HIGH INTEREST IN USA FAIRS Another target market for the Turkish Machinery is the USA in recent years. Atlas Expo was Turkish representative in USA fair. Founder of Atlas Expo, Fatih Bark said that the stability of the European market, political and economic troubles in the Middle East, make Turkish machine producers looked at USA market. “Until 2010, only some of the Turkish machine industry giants showed interest in the market. Especially SME were not brave to take part in USA. But this country is recently target by many Turkish companies. Until 2012, three or four leading Turkish companies had attended machine fairs in USA but in 2015, 23 Turkish companies took place in machine fair in USA with 3.600 square meter booth. The USA market is a market that needs to be tough and patient. The Turkish producers need to follow the Fabtech and IMTS fairs in the USA. Compared to the counterparts in Europe, we can evaluate Febtech with EuroBLECH, and IMTS with EMO. Both fairs are well known in the USA. “ Said Mr. Bark.
WHEN SECTOR COME TOGETHER, BELIEVE IN SUCCESS GOES UP Cem Savcı stated that the Turkish machine sector has reached a prestigious position in the world in recent years. “One of the most important factors in our success is that we are strong organized structure and the forces we have created together” said Mr. Savcı. in 2014. SO Turkey is still Europe’s 6th largest machinery manufacturer. The aim of our association is to bring Turkish machinery sector to an important and preferred position in the world together with the Turkish climate sector.
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n 1992, Air-Conditioning and Refrigeration Manufacturers’ Association (İSKİD) that was established with the contributions of the leading companies and people of the air conditioning and cooling sector, has 107 members and strong power in the Turkish machine sector. We made an interview with İSKİD CEO Cem Savcı about future strategies, targets and 2017 predictions. As ISKID may we briefly introduce you? ISKID was established in 1992 in order to provide cooperation between the manufacturers and /or the main importers of air conditioning, cooling, and air conditioning devices in Turkey. One of our aim is also to work for resolution of the problems of its member. It is an organization that carries out activities o behalf of
the sector for the development of the climate industry. The numbers of companies represented by ISKID members reached over 100 in 2016 and these companies represent 90 per cent of the Turkish market. We would like to hear from you about the Turkish machine sector’s current status and future strategies. The Turkish machine industry closely follows the technological developments, produces high quality and places great importance on R&D work. Your labour force, installation, advanced suppliers industries are among the most important advantages of the Turkish machine industry. These advantages are also reflected in the sector’s figures: Turkey ranks 26th in exports and 22nd in imports in world machinery trade ranking
What kind of fields have you concentrated during your administration? Of course we are on the agenda to go on our efforts in order to enlarge our sector, to care about the environment, and to contribute to the Turkish economy. At this point carrying out studies for the training of qualified labour force, making the sector competitive in world market, and strengthening the sector with public relations occupy our agenda. What can you say about machine manufacturers’ approach to nogovernmental organizations and their ability/desire to take part in this structure? The Turkish machine sector has made great progress in recent years. One of the most important factors in our accomplishment is that we are robust organized productions and strengthen we create together. This organized structure has gained more importance in recent years and our industrialist has begun to find stakeholders at every step.
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in english EXPORT FIGURES IN RESPECT TO THE ACTIVITY FIELD OF THE MACHINERY AND ACCESSORIES
Source: All Exporter Unions Database JANUARY 1 - NOVEMBER 30, 2015 QUANTITY (1000 Tonnes)
VALUE (Mil $)
$/kg
ENGINES, ACCESSORIES AND SPARE PARTS
101,5
1.642
16,2
INDUSTRIAL AIR CONDITIONERS AND COOLING MACHINES
420,9
1.741
OTHER INDUSTRIAL WASHING AND DRYING MACHINES
419,3
OTHER MACHINES
151,7
CONSTRUCTION AND MINING MACHINES
217,5
PUMPS AND COMPRESSORS MACHINE TOOLS
PRODUCT GROUP
QUANTITY (1000 Tonnes)
(%) CHANGE
VALUE (Mil $)
$/kg
116,4
1.840
15,8
14,6
12,1
4,1
437
1.785
4,1
3,8
2,5
1.188
2,8
446,7
1.241
2,8
6,5
4,5
1.023
6,7
145,1
982
6,8
-4,3
-4,1
862,1
4,0
206,3
772,5
3,7
-5,1
-10,4
84,8
639,5
7,5
88,7
621,3
7,0
4,6
-2,8
89,6
600,2
6,7
85,1
579,5
6,8
-5,1
-3,4
124,5
603,9
4,8
119,7
557,3
4,7
-3,8
-7,7
WEAPONS AND AMMUNITION FOR THE DEFENSE INDUSTRY
26,7
476,8
17,8
34,1
547,5
16,0
27,7
14,8
TEXTILE AND CLOTHING MACHINES AND ACCESSORIES
69,2
370,3
5,3
85,2
458,3
5,4
23,2
23,8
REACTORS AND BOILERS
58,2
407,9
7,0
54,3
408,2
7,5
-6,7
0,1
VALVES
50,7
445,7
8,8
47,2
397
8,4
-6,9
-10,9
FOOD INDUSTRY MACHINES, ACCESSORIES AND SPARE PARTS
11,8
305,8
25,8
12
370,6
30,7
2,0
21,2
TURBIN, TURBOJETS, TURBO PROPELLERS
70,5
416,7
5,9
62,7
368,6
5,9
-11,1
-11,6
ROLLER AND FOUNDRY MACHINES, MOULDS
37,3
250
6,7
35
257,3
7,3
-6,1
2,9
INDUSTRIAL HEATERS AND COOKERS
36,2
248,5
6,9
33,5
244,4
7,3
-7,5
-1,7
LOAD LIFTING, CARRYING AND STOWING MACHINES
49,8
226
4,5
45
208,2
4,6
-9,5
-7,9
GUM, PLASTIC, RUBBER PROCESSING MACHINES
10,8
118
10,9
12
131
10,8
11,8
11,1
AGRICULTURE AND FORESTRY MACHINES
QUANTITY
VALUE
OFFICE MACHINES
3
153,5
51,2
3,1
130,4
40,9
6,4
-15,0
PACKAGING MACHINES, ACCESSORIES AND SPARE PARTS
6,5
124,8
19,2
6,8
130,1
18,9
6,0
4,2
10,7
117,5
10,9
10,1
114,2
11,2
-5,6
-2,9
PAPER MANUFACTURING AND TYPOGRAPHY MACHINES
9
69
7,6
8,7
61,1
7,0
-3,2
-11,5
LEATHER PROCESSING AND MANUFACTURING MACHINES AND ACCESSORIES
1,9
4,6
1,8
10,5
5,8
-7,6
17,1
5,8
1,7
1,5
BEARINGS
TOTAL
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JANUARY 1 - NOVEMBER 30, 2016
2.063
8,9 12.041
5,8
2.097
12.218