AprÄąl 2017
Issue: 107
Machinery Exporters Union Monthly Magazine
in english
THE TURKISH TEXTILE MACHINE GROWS STRONGER IN FAR EAST INDO INTERTEX Fair was held in Indonesia’s capital, Jakarta on April 19-21. The Turkish Machinery participated in the INDO INTERTEX Fair for the first time and continued its support for the Turkish machine exporters.
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he INDO INTERTEX Fair, which organized by the Indonesian Textile Manufacturers’ Association, was held this year for 16 times. The INDO INTERTEX Fair stands out as the most important trade fair in the field of textile and textile machinery in the ASEAN countries such as Indonesia, Malaysia, Thailand, Philippines, Singapore, Brunei, Vietnam, Laos, Myanmar and Cambodia. The Turkish Machinery make a point of participating in fair at least once a year in the textile machinery sector, which has an important share in Turkey’s machine exports. The Turkish Machinery participated in the INDO INTERTEX Fair that takes place in Jakarta, capital of Indonesia, after the ITMA Fair in 2011 and 2015 and, the ITME Fair in 2016. By this way, The Turkish Mac-
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hinery continues to increase the effectiveness of Turkish textile machinery in South East Asia. Machine Branch Experts Aydan Işıl Aydın and Tuğçe Karabörk performed a duty at the Turkish Machinery’s booth. Runners of seven Turkish companies including Cüneyt Alkan, Vice Chairman of Textile Machinery and Accessories Industrialists’ Association (TEMSAD), that is member of Turkish Machinery Federation (MAKFED) promoted their products and service in Far East market. ONE OF THE GATES TO ASIA MARKET There were 516 companies in the fair, which were held in one hall for textile and textile machinery fields. The exhibition has attracted a large number of companies from Asian countries especially from China, So-
uth Korea, and Taiwan. The fair offers qualified opportunities for entry into Asian market due to the presence of participants and visitors from Asian countries. The Turkish Machinery’s promo in the entrance of the fair hall caught visitors’ attention during three days by 19.273 visitors. The Turkish Machinery’s announcement was on the back page of the fair catalog as well. Brochures showing Turkish companies’ products, hall and stand numbers and, brochures showing Turkish machine export were issued to visitors during the exhibition. Turkey’s Jakarta Trade Consultant, Murat Taşkın performed a visit the Turkish Machinery’s booth that was gotten attention by visitors. Mr. Taşkın provided up to date information about textile machine sector in Indonesia.
ISK-SODEKS ISTANBUL 2018 IS SIGNED AND SEALED ISK-SODEX Istanbul 2018 is foremost meeting point of Eurasia in its own sector. The founders of the ISK-SODEX Istanbul 2018 are DOSİDER, ISKAV, İSKİD, İZODER, TTMD and Hannover Messe Sodeks Fair Organisation. The deal, which includes support for the fair, creation of common synergies and enhancement of success, was signed with participation of stakeholder associations ESSİAD, KBSB, MTMD, POMSAD and SOSİAD.
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usiness people attended the singing ceremony of the fair to be held between the dates of 7-10 February 2018 at TÜYAP Fair and Congress Center. Here are the ceremony participants: Süleyman Bulak, Secretary General of Natural Gas Appliances Industrialist and Businessmen Association (DOSİDER), Hakan Semerci, Chairman of Association of the Aegean Industrialists and Businessmen of Refrigeration, Alexander Kühnel, General Director of Hannover Messe Sodeks Fair Organization, Heating, Vural Eroğlu, Chairman of Cooling air Conditioning Research and Training Foundation, Cem Savcı, Chairman of Air-Conditioning and Refrigeration Manufacturers’ Association (İSKİD), Ertuğrul Şen, Vice Chairman of Thermal Insulation, Waterproofing, Sound Insulation and Fireproofing Material Association (İZODER), Hacı Ahmet İlhan, Chairman of Boiler and Pressure Vessel Manufacturers Association (KBSB), Nezih Giray, Director of Turkish Mechanical Engineers Association (MTMD), Sarven Çilingiroğlu, Chairman of Turkish Society of HVAC and Sanitary Engineers (TTMD), Kutlu Karavelioğlu, Chairman of Turkish Pump and Valve Manufacturers’ Association (POMSAD), Metin Terzibaşıoğlulları, Chairman
of Refrigeration Industry Businessmen Association (SOSİAD). With the protocol signed, the founders of the fair took steps to accelerate the work of the executive committee and the technical committee to ensure that the organization was carried out effectively with the participation of stakeholder associations. ISK-SODEX ISTANBUL 2018 IS IN THE 14 HALLS ISK-SODEX Istanbul 2018, which will be exhibited new products, and services in heating, cooling, ventilation, insulation, pump, valve, installation, compressor and water treatment companies, will take place in 14 halls covering 50.000 square meter in the TİYAP Fair and Congress Center. There will also be new product groups in the ‘Energy Efficiency’ and ‘Building Automation’ particular ex-
hibition areas, which will be held for the first time in the fair where new trends in the HVAC-R sector can be followed. ISK-SODEX Fair that is prepared to experience a different and stronger experience than usual time, will be exhibited in the new exhibition area with enriched product range. The fair welcomed 1.294 companies from 47 countries, and 83.764 visitors in 2016. A large number of buyers, editors, and associate runners from Germany, Azerbaijan, Bulgaria, Czech Republic, Cameroon, Ethiopia, Georgia, Greece, Iran, Italy, Israel, Jordan, Spain, Kyrgyzstan, Kosovo, Pakistan, Romania, Tunisia, Turkmenistan and Ukraine had the opportunity to meet Turkish exporters in the framework of the international trade delegation program and B2B meeting, supported by the Ministry of Economy.
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in english
SUBMARINE ROBOTICS COMPETITION IN YILDIZ TECHNICAL UNIVERSITY Turkey’s second, 2017 Remote Controlled Submarine Robotics Competition (MATE ROV) that is sponsored by the Turkish Machinery, was held at the Yıldız Technical University Davutpaşa Campus on 29-30 April.
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alifornia-based Marine Advanced Technologies Education (MATE), a subcontractor of the The National Aeronautics and Space Administration (NASA) launched remote Controlled Submarine Robotics Competition (MATE ROV) in 2002. The first regional stage of the Remote Controlled Submarine Robotics Competition was held in Turkey for the second time this year. The Turkish Machinery was among the sponsors of the event that took place at the Yıldız Technical University Davutpaşa Campus on 2930 April. The competition consisted of mechatronic design, technical documentation, team presentation and submarine tasks. The win-
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ner of ‘the Researchers’ category İstanbul Technical University ROV Team and the winner of ‘the Regulatory’ category ALEV High School Robotic club had the right to represent Turkey in the international competition to be held in Long Beach, California on June 23-25. THEME OF THE YEAR IS PORT CITIES IN THE FUTURE This year the competition was organized under the theme of ‘Future Port Cities: Trade, Entertainment, Health and Safety’. In the competition, the task to be performed in a controlled pool are as follows: Maintenance and repair of an entertainment platform, detection an sampling of contamina-
ted sediments, detection, positioning, and installation of a special transport system (hyper loop) of containers that have fallen overboard. Istanbul Technical University ROV Team, Istanbul Gedik University Robotic Team, Yıldız Technical University IEEE Robot Team, Karadeniz Technical University ROV Team, Marmara University Robot Team and Yıldız Technical University ROV Team participated in ‘the Researchers’ category of the competition this year. In ‘the Regulatory’ category, ALEV High School Robotics Club won right to represent Turkey in the US by repeating its success once more. ALEV High School Robotics Club’s project ‘the Sixmotor Robot’ is able to move submarine under 4 axes, and lift the objects of a certain weight to the surface by the robotic arm.
A STRATEGICAL SECTOR: INDUSTRIAL OVEN PRODUCTION Mehmet Özdeşlik, chairman of the EFSİAD said that Turkish Industrial Oven Manufacturing is advanced and has exported to several countries. Mr. Özdeşlik drew attention to export that is lower 4-5 times than import. He see the import as biggest problem of the sector’s growth. blocking the development of our industry to the desired level.
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ndustrial Furnace Industrialist and Businessmen Association (EFSIAD) aims to make its members and Turkey more active in global markets and to have a fair share in global trade while the world is rapidly changing and developing. Mehmet Özdeşlik emphasizes that as a professional organization, EFSIAD is important not only for the industrial furnace sector but also for all industrial sectors. We asked Mehmet Özdeşlik, Chairman of EFSIAD about the purpose of the association and the future foresight. What is aim of EFSİAD’s foundation? The main aim of our association is to provide cooperation, solidarity in cultural, professional, technical, commercial, legal and administrative
matters and information exchange among members. In addition to that, we are also in charge of analysing Turkey’s targets, strategic plans, policies, legislation and practices as well as potential markets, sectors and cyclical developments, local and global economic developments. What can you say about the current position of your sector? Turkey’s industrial furnace manufacturing sector is highly developed. We export to many countries. However, industrial furnaces import is higher than export 4-5 times. We know that in addition to import, second-hand furnaces have entered Turkey as well. Especially secondhand furnaces that come cheap or have completed their economic life are one of the important factors
What will CECOF membership gain to EFSİAD and its member? CECOF is an umbrella organization for VDMA from Germany, IHA from United States, which are organization in industrial heating equipment and industrial furnace. It is very proud of us that EFSIAD has been accepted in a very short time. All our members can participate in all CECOF events with the membership to CECOF. That is important because discussions on new standards, sharing sectorial views and forming of sector’s future are come up the CECOF meeting. What should be done to increase the use of domestic production machinery? What is EFSİAD’s strategy in this regard? We need to further strengthen the image of ‘Made in Turkey’ in order to increase the use of domestic machinery. While we have sold the furnaces we produce more easily abroad, we encounter foreign admiration in our country. After proving our success abroad, we see ‘acceptance’ from our domestic customers. Because of thoughts of ‘Domestic products should be half price of imported one’ our customers choose domestic products, as it is cheaper.
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in english
KEY TO THE PRODUCTION: PATTERN SECTOR Pattern is requested in every condition that produce more than one personal product, for competitive price, sustainable quality. For that the pattern sector is one of the most important rings of the industrial supply chain for each country. On the other side the pattern sector has created an important economic power relevant to other industrial sectors with added value production.
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t the basis of the industrialization lies the fact that the products are manufactured in accordance with the standards within certain tolerances and that they can be replaced without problems Scientific research is being carried out to produce these products quickly and economically, and the results obtained are used for the emergence of new production techniques or for the development of existing ones. Pattern making can be defined as the creation of the product by compacting the liquid or solid raw material into a geometry having cer-
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tain shapes and sizes. Pattern making has been being used from the beginning as the most suitable method for producing many products quickly and economically in desired specifications. NO PATTERN NO PRODUCTION Şamil Özoğul, Chairman of Tool Manufacturers’ Association of Turkey (UKUB) said that when there is no pattern there is no production as well. “Pattern less production is not possible. Pattern is requested in every condition that produce more than one personal product, for competitive price, sustainable quality. You cannot
manufacture without pattern. When you do not have pattern, external dependency in the supply of industrial products increases, import increase, foreign exchange loss increases, current account deficit grows. The pattern sector is one of the most important rings of the industrial supply chain for each country. On the other side the pattern sector has created an important economic power relevant to other industrial sectors with added value production.” said Şamil Özoğul. Indeed, Turkey’s average export value is in the range of 1.5 dollar per kilogram, while the export value of the pattern industry is between 20-
100 dollars per kilogram depending on the pattern type. WE HAVE HIGH-TECH BUT NOT QUALIFIED EMPLOYEES In this day and age, the Turkish pattern sector benefits from all the possibilities of technology in pattern design, analysis and machining processes. The pattern industry has become a technological sector based on less tradition and more scientific knowledge than in the past. The pattern industry does not ignore the know-how and experience. However, the qualified human factor, as in almost every sector, also takes place in the first place of problem titles in the pattern sector. CHINA DOMINATE THE GLOBAL MARKET While the global market leader in the pattern industry is China; South Korea, Italy, Japan, and Germany continue to be strong players. According to the UN Statistics Department, Turkey is still ranked 16th in the global pattern sector market. The Turkish pattern sector has realized exports of $ 213 million with an increase of 15.1 per cent last year. The Turkish pattern sector exported the product group ‘Metals/other casting patterns for metal carbides’ with a code of 848049 GTIP. That group exports of $ 72.3 million with an increase of 24.6 per cent last year. 848060 GTIP number ‘Patterns for mineral products’ was ranked as the second with increase of 95.6 per cent export income last year. While the first 3 countries of Turkey’s pattern exports are Germany, Italy, and Bulgaria. 98 per cent increase in the Italian market and 50 per cent loss in Russian market are remarkable.
velopment in the pattern sector is also taking place within the apprentice-assistant master-master relationship as it is in the most sectors in Turkey. Pattern-making has also tried to develop scientific knowledge in an understanding that technology is not sufficiently taken into consideration and used, mostly based on craftsmanship, handicraft. Especially since the 2000s, the automotive and white goods sectors, which have been developing rapidly, began to change the sector, as more and more qualified pattern was needed. With the skilful Pattern-master gradually adapting to this new turn, the sector has become one of the highest added value sectors where high technology has been used in a short time and highly qualified patterns have been produced. “WE MUST BE THE HI-TECH PRODUCER” Is the Turkish pattern sector that has sufficient technology, human resources and investment, ready for Industry 4.0? What steps should be taken to ensure that the sector is able to achieve this new turnaround and high value-added pattern production? Which deficiencies must be completed urgently? According to Şamil Özoğul, the answers to these questions are entirely related to the state policies and the long-term support of the sectors. Mr. Özoğul was reminded the establishment of the Japa-
nese Pattern-makers Association in 1950 and support of the Japanese government. Until the 1980s, the Japanese pattern sector was supported as a priority industry sector six times in the periods of different governments. Today, if Japan can create dozens of global brands in many sectors, especially automotive, where pattern are used intensively, there is a great contribution to the achievement of the goal and support implementation strategies put forward for the development of pattern industry 60 years ago.” underlined Şamil Özoğul. A MUST FOR AUTOMOTIVE AND WHITE GOODS With the effects of globalization and developing communication possibilities, searches in today’s world are changing rapidly. Industrial sectors such as automotive and white goods launch new models to the market frequently. After the design emerges, it is requested that it be passed quickly. The situation is turning into demand both in the domestic market and in the global market. The shortening of the design and manufacturing processes, and even the reduction in the time in the past years, also require manufacturing large and large patterns in a short time with quality and efficiency. In other words, manufacturers are able to achieve their goals by stripping away from their global competitors, and the success of the industry has a big influence.
THE PATTERN PRODUCTION PROCESS HAS 95 PER CENT OF HIGH-TECH Technology and R&D have great importance in the pattern sector as well as in other industrial sectors. The de-
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in english
STRONG COOPERATION WITH SMES: OSTİM DEFENCE AND AVIATION CLUSTER OSTİM Defence and Aviation Cluster is one of the most important clusters among Turkish defence and aviation sector. A. Mithat ertuğ, chairman of the cluster said that the defence industrial actions are highly important for the encouragement of smes within the scope of local industry.
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STİM Defence and A vi ati on C l u ster (OSSA) is a structure formed in 2008 by SMEs that produce goods and services for defence and aviation sectors in OSTİM Organize Industrial Zone. While OSSA is still empowering the related sectors with 182 members, it also increases the competitiveness of SMEs. We asked OSSA’s present and future strategies of OSSA to Mr. A. Mithat Ertuğ. Can you identify OSSA with your own words? OSSA was established in 2008 as a result of the joint action created by SMEs in the defence and aviation sector, with high competitive edge as a result of competition analysis that prepared by OSTİM Organized Industrial Zone Management, for main sectors in region. OSSA is a team in the defence and aviation sectors to increase the business strength, export and competitiveness of market. What is the production power of Turkey in defence and aviation sector? Based on the data contained in the NATO reports, Turkey’s defence spending has been fixed at 14 billion dollars over the last six years (2010-
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2015). On the other hand, the share of GDP in the same period declined to 1.69 per cent to 1.93 per cent. With our defence expenditures, the share of platforms, weapons and ammunition is 25 per cent. What is the strength and effectiveness of OSSA in defence and aviation sector? OSSA bring up the potentials and skills of our SMEs to the agenda by attending the meetings where both public and private institutions and organizations will make decision about the future of the industry. We continue to develop sectorial business links to increase our brand value and to share our industry and SMEs plans with the authorities.
Is the Turkish machinery sector sufficient to produce and develop the machinery and equipment needed by the defence and aerospace industry? As is known, we have to use the latest technology together with production and engineering with high precision in the defence and aviation sectors. Therefore our companies are also in a leading position in terms of number of engineers they employ besides the latest technology devices and equipment. Turkey’s R&D expenditures are not enough but OSSM supports our firms especially for R&D in these sectors. we are also trying to encourage our companies for R&D.
RIGHT GATE TO ITALY MARKET: ITALY CHAMBER OF COMMERCE ASSOCIATION Italy Chamber of Commerce Association is on its 130 years, since the establishment. The association, acting as assistant to the mutual trade volume between Turkey and Italy, fulfils activities in various sectors, taking in account the objectives of the smes.
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n the 97th edition of the Moment Expo dated June 2016, we had focused on the foreign commercial and industrial chambers of Turkey’s global trade partners in Turkey and we had conveyed their contribution to Turkey’s activities, their ties with the Turkish business world and how the Turkish producers can do business easier abroad. Henceforward, we are going to be more specific to the foreign trade and industrial chambers that we had introduced with general lines in our 97th issue, start a series of articles. We have appointed Italy that has a deep political and commercial background with Turkey, as the first guest of our article. How the Italy Chamber of Commerce Association provide support to Turkish entrepreneurs? What kind of activities is organized by the two countries to bring together business people? How can the Turkish business community get help from the Italy Chamber of Commerce Association? We asked all to Fatih Ayçin, Secretary General of the Italy Chamber of Commerce Association. What do commercial chambers mean for the global economy? Commercial chambers will help the bilateral trade volume of the located and representer countries by activities. Mutual recognition and acquaintance activities can be re-
Fatih AYÇIN Secretary General of the Italy Chamber of Commerce Association.
alized in different sectors by targeting SMEs. As a representative of the Italy Chambers Association we mainly engaged in promotion activities to promote and strengthen trade relations between Italy and Turkey, and organized visits of business people and institutional delegations and, mutual trade fair participation. What can you say about the current situation of Turkey-Italy trade? Trade between Turkey and Italy has progressed over time and reached a total of approximately 20 billion dollars. We think it is important progress that foreign trade volume reached 20 billion dollars in 2017, from 5.5 billion dollars in 1996. There is no competition in trade between Italy and Turkey, but a complementary structure.
What kind of services do you offer to Turkish producers who want to open up to the Italian market? We offer direct consultancy services to Turkish firms who want to open up to the Italian market, offer information directly to their requests. In this framework, we have received approximately 1.000 written requests per year, and we have also held hundred of meetings with Turkish companies that are in the process of entering the Italian market. We currently have more than 600 members, but our door is open to anyone. All the entrepreneurs who want to invest in Turkey or in Italy can get consultancy from us. What should be done to get services from the Italy Chamber of Commerce Association? The easiest way to communicate with us is e-mail. Our official website aims to inform the visitors, and cciist@cciist.com is always open to questions and requests for all Turkish entrepreneurs. Are here any sectors you specially focus on? Especially the service sector, the marketing and logistics sectors offer serious advantages. On the other hand, Italy’s current economy continues to offer new opportunities for the Turkish firms especially in the supplier industry.
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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-MARCH 31, 2016
PRODUCT GROUP
VALUE (Mil $)
$/kg
JANUARY 1-MARCH 31, 2017 QUANTITY (1000 Tonnes)
VALUE (Mil $)
$/kg
(%) CHANGE
QUANTITY
VALUE
ENGINES, ACCESSORIES AND SPARE PARTS
29,3
465,6
15,9
36,7
545,4
14,8
25,2
17,1
INDUSTRIAL AIR CONDITIONERS AND COOLING MACHINES
107,9
445,9
4,1
105,5
419,8
4,0
-2,2
-5,9
OTHER INDUSTRIAL WASHING AND DRYING MACHINES
108,8
299,6
2,8
111,7
296,7
2,7
2,7
-1,0
OTHER MACHINES
37,5
257,9
6,9
46,2
280,2
6,1
23,2
8,6
CONSTRUCTION AND MINING MACHINES
56,1
210,8
3,8
63,3
207,1
3,3
12,7
-1,7
PUMPS AND COMPRESSORS
22,6
172,2
7,6
25,5
177,2
6,9
12,8
2,9
MACHINE TOOLS
22,4
154
6,9
23,6
155,1
6,6
5,3
0,7
AGRICULTURE AND FORESTRY MACHINES
33,4
159,8
4,8
33,5
148,7
4,4
0,5
-7,0
TURBIN, TURBOJETS, TURBO PROPELLERS
3,5
81,8
23,0
4,4
133,4
29,7
26,2
63,1
TEXTILE AND CLOTHING MACHINES AND ACCESSORIES
21,9
119,4
5,4
23,5
124,9
5,3
7,3
4,6
VALVES
12,1
100,7
8,3
12,8
114,8
8,9
5,4
14,0
REACTORS AND BOILERS
11,9
95
8,0
13,6
101,5
7,4
14,9
6,9
FOOD INDUSTRY MACHINES, ACCESSORIES AND SPARE PARTS
14,7
89,5
6,1
19,9
101,1
5,1
34,9
13,0
WEAPONS AND AMMUNITION FOR THE DEFENSE INDUSTRY
13,2
192,5
14,6
6.,6
85,3
12,9
-49,8
-55,7
ROLLER AND FOUNDRY MACHINES, MOULDS
8,8
63,5
7,2
9,9
75,9
7,6
12,2
19,6
INDUSTRIAL HEATERS AND COOKERS
8,8
62,4
7,1
10,7
73,3
6,8
21,5
17,5
LOAD LIFTING, CARRYING AND STOWING MACHINES
13,2
57,3
4,3
14,1
61,8
4,4
6,9
7,9
OFFICE MACHINES
0,7
33,3
42,3
0,9
43,1
44,7
22,6
29,3
PACKAGING MACHINES, ACCESSORIES AND SPARE PARTS
1,9
35,4
17,8
2
35,4
17,5
1,9
-0,1
GUM, PLASTIC, RUBBER PROCESSING MACHINES
3,6
33,3
9,0
3,3
34,4
10,3
-9,2
3,3
BEARINGS
2,8
30
10,6
2,7
30,9
11,3
-3,4
3,1
PAPER MANUFACTURING AND TYPOGRAPHY MACHINES
2,5
17,9
7,1
3,2
21,1
6,5
30,3
17,8
LEATHER PROCESSING AND MANUFACTURING MACHINES AND ACCESSORIES
0,4
2,4
5,3
0,8
3,9
4,6
82,7
59,3
539,2
3.181
5,9
575,6
3.272
5,7
6,7
2,9
TOTAL
128
QUANTITY (1000 Tonnes)