March 2018
Issue: 118
Machinery Exporters Union Monthly Magazine
in english
NEW ERA IN AKDER The 12th Ordinary General Assembly of the Fluid Power Association (AKDER), a member of MAKFED, was held in Istanbul on March 14th. The new Board of Directors headed by Semih Kumbasar has begun active duty.
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KDER members met on March 14th to determine the new executive board. Following the 11th term Chairman Suat Demirer's speech at the meeting held with the participation of authorities from the association member companies,
the chairman and members of the council were elected. After reporting the activities in the period, the report by the supervisory board of the association was read and the draft budget for the year 2018-2019 was approved. Following the unanimous vote of the board of directors and super-
visors, the board of directors was appointed. At the AKDER General Assembly, which elected Semih Kumbasar as the Board Chairman, along with the new management committee to serve in 2018-2020 period, the supervisory board, ethics committee and representatives of Federation of Machinery Manufacturing Industry Associations (MAKFED) were also appointed. Semih Kumbasar said that AKDER will continue its work with the same determination in the new period in his short speech after the ceremony, and thanked the members who attended the general assembly.
AKDER 2018-2020 BOARD OF DIRECTORS
AKDER
AKIŞKAN GÜCÜ
President of the Board DERNEĞİ M. Semih Kumbasar Board Members Ebru Dalkıran Pidik Emre Semiz Hasan Fehmi Civan Mark Minasyan Osman Türüdü Sevda Kayhan Yılmaz
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OSO INC. GENERAL ASSEMBLY MEETS The Ordinary General Assembly Meeting of the Joint Purchase Organization (OSO), which was founded under the leadership of the Association of Machine Exporters (MAİB), was held in Istanbul on March 6.
O
SO Inc., a broadbased purchasing organization founded by a large number of companies in 2005 under the leadership of MAİB, acts as an auxiliary mechanism to ensure integration into the economy of scale by minimizing input costs with its high bargaining power. At the Ordinary General Assembly Meeting of OSO Inc. held in Istanbul on March 6th, OSO Inc General Manager Suat Sarı provided information about the organization's activities, activity reports and financial statements and shared the 2018 targets and works on procurement issues that will be included in the system with the members. After the presentation, the members of the executive board, annual reports and financial statements were acquitted with unanimous vote.
OSO MIXED ORGANIZED INDUSTRIAL ZONE TO BE FOUNDED One of the most prominent agenda items in the meeting was the OSO Mixed Organized Industrial Zone, planned to be established in Vize county of Kırklareli. All shareholders was informed that the project in which national and international companies with modern infrastructure and services, equipped
with state-of-the-art technology will operate in order to enable OSO Inc partners to operate in more modern production fields will be established in the field near PAGDER-ASLAN OIZ with the cooperation of OSO Inc. partners. General Assembly Meeting ended with the closing speech of Murat Akyüz, OSO Inc. Board Chairman about the increased acceleration of the organization.
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in english
WOODWORKING MACHINERY MANUFACTURERS IN DUBAIWOOD SHOW Woodworking Machinery and Supply Industry Businessmen Association (AİMSAD) and Turkish Woodworking Machinery Manufacturers participating in DubaiWood Show Fair held numerous bilateral meetings with foreign supply chains. AİMSAD delegation and members. On the last day of the fair, a meeting with the participating Turkish companies was held at Turkish Consulate in Dubai, regarding the investment opportunities in Dubai. AİMSAD member companies participating in DubaiWood Show Fair for the first time this year with AİMSAD organization stated that they are very pleased with the interest shown by the buyers and that they would like to participate in the fair next year as well.
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early 10.000 industry professionals from 55 different countries attended DubaiWood Show 2018 Fair organized in Dubai, the United Arab Emirates on March 12-14. In the fair which Turkey participated with AİMSAD organization, six countries introduced the new machines they developed. Turkey's stand which received special attention from foreign buyers, Oman and Saudi Arabia in particular, was one of the stands which witnessed the most bilateral meetings by foreign supply chains. AİMSAD Secretary General Arif Onur Kaçak emphasized that the Turkish companies attracted great interest even though they did not attend the fair with the machine park. He stated that they will join the DubaiWood
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Show Fair next year with the machine park and commented that "Turkish machine makers will create a bigger impact in this fair in the coming years." INVESTMENT OPPORTUNITIES IN DUBAI STUDIED DubaiWood Show 2018 was more active than Turkish woodworking machinery manufacturers expected, and Dubai Infrastructure Development Minister Dr. Abdullah bin Mohammed Belhaif Al Nuaimi also visited the Turkish stand and received information about Turkey's woodworking machinery and supply industry sector. In addition, Gabon Forest Minister Pacome Moubelet Bouyeba and Gabon government officials had a special meeting with
GREAT ATTENTION FROM OMAN AND SAUDI ARABIA AİMSAD Secretary General Arif Onur Kaçak pointed out that many of the Turkish companies attended the DubaiWood Show for the first time and stated that buyers from Oman and Saudi Arabia were very interested in Turkish machinery makers. He also said that the bilateral talks in DubaiWood Show were very important as the Omani buyers are not an audience of customers that they can reach in Istanbul or Germany Ligna Fair. "In this sense, we had a very useful fair period for our members," Kaçak continued, highlighting the fact that Turkish companies carried out many bilateral business negotiations with Arab countries such as Saudi Arabia, Algeria, Morocco and Tunisia, and with Indian visitors.
SAHA IS 3 YEARS OLD The third anniversary meeting of the Defense, Aviation and Space Aggregation (SAHA) which is one of Turkey's nationalization efforts, held on March 17, turned into a defense industry summit. SAHA Expo Fair, which will be held for the first time in September, was also introduced to the attendants in the event. country, the security of our region will always be threatened as long as the oil and especially the natural gas reserves in the Eastern Mediterranean stand. We know that we must be ready to defend ourselves with all our power and facilities at any moment on land, in the air, in the sea, and in the space, and that this is an obligation."
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he meeting hosted by Defense, Aviation and Space Aggregation Association witnessed a high attendance. SAHA Chairman Hasan Büyükdede, Chief Advisor to the President Prof. Dr. Davut Kavranoğlu, Chief Advisor to the Prime Minister Dr. Metin Yerebakan, Deputy Minister of National Defense Şuan Alpay and Undersecretary of Defense Industry Prof. Dr. Ismail Demir as well as numerous bureaucrats, senior managers from Aselsan, Havelsan, Aspilsan and TAI, and SAHA member industrialists who manufacture for the defense industry participated in the meeting. “WE HAVE TO BE STRONG ON THE LAND, IN THE AIR AND THE SEAS” SAHA Chairman Hasan Büyük-
dede, who made the opening speech of SAHA's third foundation anniversary event, emphasized that they are in close cooperation with the Undersecretariat of Defense Industry and all affiliated institutions, military factories and facilities, STM-coordinated naval workplaces, and foundation companies such as TEI, TAI, Roketsan, Aselsan, Havelsan and Aspilsan, and that they aim to be a point of contact between approximately 65000 industrial facilities, shipyards and universities existing along the line extending from Tekirdağ through İstanbul, Gebze, Kocaeli, Sakarya, Yalova, Bursa to Düzce. Referring to the fact that SAHA has reached 270 companies so far and will reach 300 companies by the end of the year, Büyükdede said, "In the geographical region which also includes our
“I WHOLEHEARTEDLY BELIEVE THAT BEING AN INDUSTRIALIST IS A FORM OF HEROISM” Prof. Dr. İsmail Demir, Undersecretary of Defense Industry, who started his speech by saying "I believe with all my heart that your industrialism is a heroism," stated "The bureaucracy does not know the problems of the work other than the dust, dirt, rust, and working day and night. I witnessed in my first days of Undersecretariat that the center of the defense industry is entirely considered to be Ankara. It is a big mistake that a region with such a heavy industrial infrastructure such as Istanbul and its surroundings is excluded from the defense industry and that it has not even attracted any attention to this day. With SAHA this situation is now overcome. On the other hand, we are developing different practices in the bureaucracy, breaking down bureaucratic habits."
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in english
ACTIVE MARKET CONTROL AND SURVEILLANCE BEGINS The Ministry of Science, Industry and Technology General Directorate of Industrial Products Safety and Control, and Machine Manufacturers Association (MİB) started a joint work against unfair competition in the sector and prevention of under-thecounter production.
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ir Compressors Workshop organized in Istanbul on March 6 was held under the leadership of the General Directorate of Industrial Products Safety and Supervision. The workshop, in which the problems encountered in the market surveillance and control of air compressors were discussed and solution proposals were evaluated, the necessary regulations that need to be made in order to make the controls more efficient and productive were also discussed. Accordingly, it was shared in the meeting that the auditors who are trained about compressors will go
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to the field and test the products in terms of conformity with their technical legislation. THE RESULTS OBTAINED WILL BE SHARED WITH THE PUBLIC Representatives of the Ministry of Labor and Social Security, the Ministry of Economy, and Istanbul Provincial Directorate of Science, Industry, and Technology participated in the meeting, which was attended by Şakir Karakaya the Head of Department of Industrial Products Safety and Supervision, Alpaslan Bulut the Mechanical Inspection Branch Manager, Dilşad Bayram the Ministry Coun-
selor and MİB members. The auditors appointed by the Ministry will initiate inspections according to the checklists specially prepared for the products by the General Directorate of Industrial Products Safety and Supervision. The results obtained from these inspections, which will continue until the end of the year, will be shared with the public at a meeting to be held. After the roadmap to be designated, the Ministry officials and MİB members will continue to work within the framework of their assigned tasks and will create the necessary operational infrastructure for effective surveillance in 2018.
“WE PRODUCED TURKEY'S FIRST NATIVE ROBOTIC GUN BARREL BENCH” Technical Sales Manager of SBM Technics brand Tanju Türkyılmaz stated that they launched Turkey's first native machine "Robotic Gun Barrel Bench" and added that they are ready to meet the barrel demand by firearm manufacturers and the defense industry.
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kım Metal, providing service for many sectors including automotive and house appliances, introduced Turkey's first native machine "Robotic Gun Barrel Bench" to the sector under SMB Technics brand after long R&D works. Tanju Türkyılmaz, Technical Sales Manager of SBM Technics brand, stated that there is a limited number of examples
of barrel benches in the world, and the fact that it is very difficult to buy these machines the price of which is 400 thousand Euros in Japan encouraged them to work on this field. Türkyılmaz; "The number of barrel production benches imported from abroad can be counted on two fingers because it is a very costly machine. For this reason, the manufacturers buy singleturret benches and work with them instead of pay-
ing 400 thousand Euros. Unfortunately, this causes waste of time, cost increase and a waste of energy for the manufacturer. We set out with the aim of offering this service in our country with more affordable prices. We concentrated our attention on the parts which are difficult to process. We continued the process with the method known as 'Balance Cutting' in the world and as 'simultaneous turning' in our country. In 2014 we
achieved very good results with the prototype bench we produced. The 'Robotic Gun Barrel Bench' we currently use in our factory completed the endurance tests successfully. We are increasing the capacity of our machine, which we continuously operate in three shifts. Starting with 300 mm, we have reached 1000 mm processing capacity. While the average turnaround time of a gun barrel is 330 seconds, it decreased to 145 seconds with our machine. This is a truly undeniable success for the barrel industry. It is possible to process 10 thousand pieces of barrels in one month with our workbench which is integrated with automatic loading and unloading robot." Türkyılmaz, who stated that they can offer the barrel machining bench together with the robotic automation which is their own manufacture, underlined that these arms, which are integrated optionally, make the work of the companies much easier.
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in english
KEYSTONE OF THE INDUSTRY: FOUNDRY SECTOR RUNS TO FUTURE Metal processing and casting which is one of the oldest occupations of humankind maintains its importance today as well and provides inputs for every sector of the industry. There is at least one cast product in 90 percent of industrial products manufactured, and Turkish foundry sector continues to be a keystone for manufacturing sectors. Turkish foundry sector currently ranks 11th in the world and 3rd in Europe.
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etal processing and shaping, one of the earliest occupations in human history, began with the use of the first metal and metal oxides in the 9000s BC. Copper beads, hooks, and plates dating to 7500 BC were found in Çayönü
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Tepesi and Çatalhöyük in Anatolia, and the production of various cast objects from arsenic copper to bronze and brass were the driving power of various states founded throughout history in Northern Mesopotamia, Eastern, and Central Anatolia. Hittite King Anitta who was the
first ruler in history to sit on an iron throne and the Urartu who were known as mining masters can be considered the cornerstone of casting industry in Anatolia. During Seljuk and Ottoman Empires, casting quarries spread throughout Anatolia, reaching a commercial status, and after the
mastery gained in cannon casting, the importance of casting increased especially in the defense industry. With the Republic era, the Turkish foundry industry left small workshops and guild system and developed into large-scale industrial organizations. It is possible to observe this development with important production centers located in many cities such as Istanbul, Bursa, Kocaeli, Sakarya and Ankara, EskiĹ&#x;ehir, Konya, Ä°zmir, Denizli, Samsun, Corum, Trabzon, Adana, KahramanmaraĹ&#x;, and Gaziantep. KEYSTONE OF PRODUCTION Foundry is one of the most important industries that have been used for centuries to process and shape metals. At every step of our daily life, from jewelry to heavy industrial benches, from agricultural machines to marine machines, materials produced with casting method are used in many different areas, and many industrial enterprises operate foundries within their own structures. The foundry, containing 7-8 thousand years of experience in the world, experienced its true development in the 19th and 20th centuries with the "Industrial Revolution". With the developing machinery and automotive industry, an annual production of 100 million tons has been achieved and casting of steel, nodular iron, aluminum and magnesium materials developed to replace the classic gray cast iron played an important role in this growth. When we look at the foundry sector products in terms of variety, size, and quality, we see a situation that cannot be expressed with numbers. The foundry sector continues to maintain its "indispensable" significance for manufacturing industries in this sense, while its products continue to form the basic and very important inputs of the manufacturing sectors. So much
so that at least one casting product is to be found in 90 percent of manufactured industrial products. In this context, the Turkish foundry sector is also one of the cornerstones of Turkish manufacturing industries. The Turkish foundry sector, which is capable of meeting all the production demands, especially machinery and accessories, transportation vehicles and defense industries, with its technical experience gained in processes from design and prototype to test and final product, and its facilities, also stands at an important position in export as it is a production area that has a high value-added. More than 70 percent of the sector inputs are domestically sourced, and the sector continues to be the basis for many industrial productions by creating high-quality employment and with its outputs. Experts show the contribution of the foundry sector in the production of pumps and valves as the most striking example of this situation. IT IS NECESSARY TO KEEP UP WITH NEW DEVELOPMENTS FOR A SUSTAINABLE GROWTH Casting production can be examined in four main groups according to the basic metallurgical proper-
ties: iron (pig, nodular, temper), steel, copper alloys and aluminum alloys. If evaluated according to the investment area, automotive foundries are used for mass production in high quantities, while businesses that will manufacture in lower rates in machinery and other areas carry out their production with infrastructures at different technologies. For example, the majority of steel foundries produce wear parts for cement and infrastructure industries. And some facilities put products they manufactured with casting technology, such as radiators, alloy wheel rims and door handles, through final processes and then deliver the final product to the end user. However, when the developments in the target market, the change in competitiveness, tracking and implementing the innovations, and the financial powers are considered; it is expressed by sector experts that it is difficult for many casting factories and workshops operating in Turkey to survive in the long term unlike the examples in EU and USA. Experts emphasizing that there will be no significant decrease in the total production capacity of more than 1.5 million tons of the domestic capacity of about 2 million tons is produced
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in english
by large-scale companies also underline that big companies must continue to make moves in terms of administrative, technical, commercial and, most importantly, product structure to maintain their competitiveness. GROWTH IN GLOBAL CASTING PRODUCTION IS SLOWING DOWN According to 51st Global Casting Production Statistics by American Foundry Society (AFS), in 2016, total casting production grew at a rate of less than 0.5 percent and continued its low growth/stagnation trend for the last two years and amounted to 104 million 378 thousand 931 tons. The total casting production in Turkey was 1 million 898 thousand 500 tons. In the survey, the data of 36 countries from four continents were taken into the account, and yet increase is observed only in 14 out of 32 countries, which gave their data on production in the last two years. The total tonnage of the top 10 casting producing countries in the world is 91.4 million tons. According to the survey, China's production in 2016 increased by 5.4 percent compared to the previous year and reached 47.2 million tons, and China continues to
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make up about 45 percent of the world's total casting production on its own. According to the data from Indian Foundry Association; the Indian casting industry solidified 11.3 million tons of production with an increase of 5.4 percent and drew away slightly further from the US. In the US, the downward trend since 2014 continues due to weak positions in agriculture, oil and mining industries. However, an increase of 2.8 percent in tonnage and 4.7 percent in sales for 2018 is anticipated. 1.3 MILLION TONS OF PRODUCT WAS EXPORTED IN 2017 Foundry sector and craft in Turkey, along with its deep-rooted history, developed through private investments during industrialization period and reached an important point in Europe and the world. Casting production in Turkey was 1.9 million tons in 2016, thus remaining the 3rd place in Europe right after Germany and Italy. The Turkish foundry industry continues to rank 11th among global casting producers. Turkish foundry sector is striving to make its own export and value-added move in 2023 growth and export goals. The casting sector, which is one of the oldest and
deep-rooted areas of the industry, is used as an intermediary in numerous industrial fields and for this reason, it is foreseen that the industry will continue to exist in the future like a sine qua non. On the other hand, Turkish foundry industry is continuing its growth trend in the recent years. According to unconfirmed figures, the sector that produced 2 million 155 thousand tons of goods with a total value of 4.6 billion Euros with an increase of 13.5 percent in 2017, transferred about 1 million 340 thousand tones which constitute 62 percent of it to the export markets. The Turkish foundry sector continues to export casting parts mainly for automotive, heavy vehicle and commercial vehicle manufacturing industries, and energy, pump and valve sectors to the Euro Zone, which is the target market of the sector; and it aims to maintain the growth trend both in domestic and foreign markets and to experience a value based increase in the range of 10-13 percent in 2018. WORLD IS STAGNATING, TURKEY IS GROWING The fact that Turkey's casting production increased at an average of 7 percent between the years of 2011 and 2017 while the increase of global scale casting production continues to slow down every year is an important development. On the other hand, the Turkish foundry has been exporting more than 60 percent of its production since 2008. By 2017, this ratio reached 62 percent, and the export rate reached 71 percent by value. These rates are important for the sector as they show its global competitive power. Turkish foundry industry which made up of 1.43 percent of the world foundry production in 2012, increased its production tonnage share to 1.82 percent according to 2016 world casting production figures disclosed in December 2017.
MACHINERY AND ACCESSORIES EXPORT FIGURES OF TURKEY
PRODUCT GROUP
Source: All Exporter Unions Database JANUARY 1-FEBRUARY 28, 2017
JANUARY 1-FEBRUARY 28, 2018
QUANTITY (1000 Tonnes)
QUANTITY (1000 Tonnes)
VALUE (Mil $)
$/kg
VALUE (Mil $)
$/kg
(%) CHANGE
QUANTITY
VALUE
ENGINES, ACCESSORIES AND SPARE PARTS
23,9
356,2
14,9
25,1
416,2
16,5
5
16,8
INDUSTRIAL AIR CONDITIONERS AND COOLING MACHINES
60,1
238,7
4
70,4
322,1
4,6
17
34,9
OTHER INDUSTRIAL WASHING AND DRYING MACHINES
68,2
181,9
2,7
71,1
218,6
3,1
4,3
20,2
CONSTRUCTION AND MINING MACHINES
38,3
125,4
3,3
44,8
177
3,9
17
41,2
PUMPS AND COMPRESSORS
15,4
108,1
7
18,7
146,9
7,8
21,5
35,8
MACHINE TOOLS
14,3
94,4
6,6
17
126,6
7,4
19,2
34,1
TEXTILE AND CLOTHING MACHINES AND ACCESSORIES
15,2
79,7
5,2
16,9
102,3
6
11,5
28,4
AGRICULTURE AND FORESTRY MACHINES
19,8
86,6
4,4
21,7
99,6
4,6
9,7
14,9
VALVES
8,2
72,3
8,7
8,7
86,3
9,9
5,5
19,5
REACTORS AND BOILERS
8,7
64,4
7,4
8,8
85,6
9,6
1,8
33
TURBIN, TURBOJETS, TURBO PROPELLERS
2,7
84,2
31
2,5
85,4
33,9
-7,3
1,5
FOOD INDUSTRY MACHINES, ACCESSORIES AND SPARE PARTS
12,4
65,6
5,3
12,2
74,8
6,1
-2,2
13,9
WEAPONS AND AMMUNITION FOR THE DEFENSE INDUSTRY
3,5
39,8
11,4
2,5
61,3
24,4
-28,4
53,9
ROLLER AND FOUNDRY MACHINES, MOULDS
6,6
50,1
7,5
7,3
61,1
8,3
10,2
22
LOAD LIFTING, CARRYING AND STOWING MACHINES
8,4
38,1
4,5
12,2
53,5
4,4
45,2
40,2
INDUSTRIAL HEATERS AND COOKERS
6,4
42,8
6,7
7
51,8
7,4
10
21,1
PACKAGING MACHINES, ACCESSORIES AND SPARE PARTS
1,3
22,4
17,1
1,7
29,7
17,4
30,1
32,7
GUM, PLASTIC, RUBBER PROCESSING MACHINES
1,7
19,3
10,9
2,7
26,4
9,5
57,4
36,7
BEARINGS
1,7
19,1
11,2
2,1
25,5
12
24,4
33,4
OFFICE MACHINES
0,5
29,5
51
0,6
22,3
34,8
10,9
-24,4
PAPER MANUFACTURING AND TYPOGRAPHY MACHINES
1,9
10,9
5,6
2
14,6
7
7,1
34,3
LEATHER PROCESSING AND MANUFACTURING MACHINES AND ACCESSORIES
0,4
2,5
5,4
0,4
2,8
6,7
-10,6
9,4
OTHER MACHINES
27,7
170,6
6,2
32,4
224,3
6,9
17,2
31,5
348,3
2.0
5,8
390
2.5
6,5
12
25,6
TOTAL
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