ISSUE: 125
MACHINERY EXPORTERS UNION MONTHLY MAGAZINE
WE HAVE OUR SIGNATURE UNDER EVERY HALL OF EUROBLECH THE WORLD AND TURKEY OF FUTURE
WE COMPETE WITH THE WORLD
IN THE ON-VEHICLE EQUIPMENTS INDUSTRY
MOMENT IN ENGLISH
WE HAVE OUR SIGNATURE UNDER EVERY HALL OF EUROBLECH TURKISH MACHINERY THAT ATTENDED EUROBLECH, ONE OF THE WORLD’S GREATEST AND MOST PRESTIGIOUS EXHIBITIONS IN THE METAL WORKING TECHNOLOGIES INDUSTRY, PROVIDED GREAT CONTRIBUTION TO THE STRENGTHENING OF THE TURKISH MACHINERY INDUSTRY WITH ITS ADS, PROMOTIONS AND LOBBYING WORK.
T
urkish Machinery, which attended the 25th International Sheet Metal Working Technologies Exhibition EuroBlech, provided detailed information regarding the operations of the Turkish machinery industry to the exhibition participants and visitors within the scope of this organization visited by 56 thousand 301 people. To EuroBlech that is held once in every two years, 1507 companies from 40 countries had attended. The promotion activities of Turkish Machinery that won recognition of the visitors underlined the
• 118
manufacturing power and quality of Turkish machinery industry in sheet metal working with the 97 firms attending the fair this year. Sevda Kayhan Yılmaz, Germany Manager of Turkish Machinery and Vice Chairperson of Turkish Machinery Exporters’ Association (MAİB), Aydan Işıl Aydın and Tuğçe Karabörk Okan, Experts from Machinery Branch, and Ahmet Yılmaz, Germany Consultant of Turkish Machinery, had attended the exhibition to represent Turkish Machinery. While Turkish Machinery
Manufacturers’ Association (MİB), a member of Turkish Machinery Federation (MAKFED), attended the exhibition with its own stand, Hannover Consul General Banu Malaman and Hannover Commercial Attache Nilüfer Sandallı visited the stand of Turkish Machinery and made contacts. And the Extim firm of Turkish Machinery that carry out editorial work all around Germany throughout the exhibition period held meetings with the representatives of various sectoral publications within the scope of lobby work.
A STEP TOWARDS COOPERATION BETWEEN THE TURKISH MACHINERY AND THE TECHNOLOGY ACADEMY Moreover, the exhibition witnessed a meeting with Sebastian Brinkel, Director of Technology Academy that has a cooperation agreement with MAİB, and Christoph Schöllhammer, Deutsche Messe. Besides discussing the cooperation plan to be made with Technology Academy within the framework of the Win Fair that will be held in İstanbul on 14-17 March 2019 with the main theme of “360 degrees manufacturing industry” uniting all six fairs under a single roof, it was also decided to enrich the MAİB stand at the Win Fair by setting up a smart plant simulation that will be managed remotely using the virtual reality management technology with the cooperation of Technology Academy and to start the preparation for this right away. During the fair that will continue until October 30, comprehensive information will be provided to foreign visitors and participants regarding the Turkish machinery industry at the stand of Turkish Machinery, and problems and solution suggestions of the Turkish firms will be listened by visiting their stands.
IHI DALGAKIRAN TO INCREASE ITS LOCALITY RATE TO 70 PERCENT THE COMPRESSOR PLANT OF IHI DALGAKIRAN, A COOPERATION OF JAPAN IHI AND DALGAKIRAN KOMPRESÖR, IS OPENED IN THE İMES ORGANIZED INDUSTRIAL ZONE OF KOCAELİ. IHI DALGAKIRAN THAT HAD BEEN FOUNDED LAST YEAR AFTER A DECADE LONG EFFORT LAUNCHES ALMOST 40 COMPRESSORS AND PLANS TO INCREASE ITS LOCALITY RATE TO 70 PERCENT IN SHORT AMOUNT OF TIME.
I
HI DALGAKIRAN that was established with the protocol signed last February held an official opening ceremony for its plant at İMES Organized Industrial Zone of Kocaeli on October 11. Yakup Tüfekçi, General Manager of IHI Dalgakıran, made the opening speech of the ceremony. “IHI DALGAKIRAN was officially founded in February 2017, but this investment is a product of a decade long work. At our R&D department, we offer service as a JapaneseTurkish partnership. And soon, we will officially open the R&D center of IHI DALGAKIRAN. We provide service to the leading firms in various different industries extending from turbo compressors, iron&steel to automotive, textile to pharmaceuticals, petrochemicals and chemicals, food to energy, electricity&electronics to glass industry and construction, and maritime to mining industries. We will increase our locality rate to 70 percent in approximately two months” said Tüfekçi. CONTRIBUTING TO EXPORT Adnan Dalgakıran, IHI DALGAKIRAN Chairman, who began his speech by
thanking Ömer Dalgakıran that bring the company to its current state, underlined the fact that they are increasingly exporting the turbo compressors that they manufacture. “By establishing IHI DALGAKIRAN Turbo Compressor production facility in Turkey, we both decrease import and contribute to export” said Dalgakıran. Dalgakıran, also, mentioned in his speech that the turbo compressors are seen only a level below the plane engines in terms of technology. “With this cooperation, we also brought significant technology knowledge to Turkey. In our production, we target Middle East, Turkic Republics and Europe. The investment of such a large Japanese firm in such hard days of Turkey is a sign of trust. For years, we have been saying that added value should be prioritized
and advanced technology products should be preferred in production. And this investment is a move on this path” said Dalgakıran. MOST ADVANCED TECHNOLOGY AFTER CHINA AND JAPAN Kazuo Kobayashi, CEO of IHI DALGAKIRAN, stated that IHI Corporation is the number one company of its field, particularly in China and Southeast Asia. “These compressors can be used everywhere in the world and are ranked really high in terms of importance. This facility that we open today is the third plant to have the most advanced technology after China and Japan. IHI DALGAKIRAN generates solutions that will fulfill the needs of the industry by manufacturing turbo compressors at varying pressure
and capacity levels for each sector that it provides service to under the supervision of its R&D team composed of Turkish and Japanese engineers” said Kobayashi. BUILDER OF THE OSMANGAZİ BRIDGE IHI Corporation, the industrial giant of Japan, had a background of more than 165 years. The firm, which has a wide service range from off-shore plants, bridges, industrial machinery and facilities to aviation product design and production, holds almost 80% of the total turbo compressor market share in Japan. Japanese IHI Corporation was also one of the builders of Osmangazi Bridge along with Otoyol Yatırım ve İşletme A.Ş., and thus it is known well by the Turkish public. 119 • OCTOBER 2018
MOMENT IN ENGLISH
ŞENMAK R&D CENTER COMMENCED OPERATIONS:
A FIRST IN PLASTIC PROCESSING MACHINERY ŞENMAK MAKİNE, MANUFACTURER OF PLASTICIZING EQUIPMENTS, BROKE A GROUND IN THE TURKISH PLASTIC PROCESSING MACHINERY INDUSTRY. ŞENMAK R&D CENTER IS CERTIFIED BY THE TURKISH MINISTRY OF INDUSTRY AND TECHNOLOGY TO BECOME THE FIRST CERTIFIED R&D CENTER OF THE TURKISH PLASTIC MACHINERY INDUSTRY.
Ş
enmak Makine, which produces screws and barrels that are the most important equipments in plastic processing machinery, gained the right to receive “R&D Center Certificate” following its application to the Turkish Ministry of Industry and Technology, and became the owner of the first R&D Center in this industry. In this sense, Şenmak Makine, which supplies products to plastic machinery manufacturers in various different countries including Germany, Austria, Switzerland, France and Finland, and carries out production activities for its customers both in Turkey and in the world from automotive to electric-electronic, packaging to white-brown goods and rubber, cable, pipe/profile production, will continue its efforts to build innovative products and knowledge in the field of plasticizing equipments at its R&D Center, and offer them to the market. Hüseyin Semerci, General Manager of Şenmak Makine, reminded that R&D efforts were being made only based on need for years: “Given the conditions brought by today’s competition, our • 120
company’s growth strategy and the brandization need in the global markets; it was required to make R&D a permanent element of the corporate culture. Our priority in our R&D efforts is to prevent import, to increase export and, of course, to produce products with added value, and to develop alternative products with high added value to the traditional products league where the competition is high. There are more than 20 projects in our project pool and four of these that we had presented to the Turkish Ministry of Industry and Technology had been approved to start with. Thanks to the support provided by the Ministry, we will offer the plastic industry more durable, higher quality
products with greater ability to plasticize.” Semerci continued by mentioning their pride in being one of the important suppliers of the world renowned machinery manufacturers of Europe with their plasticizing equipment manufacturing operations. “We try to develop solutions enabling cost decrease and efficiency/quality increase not just in our own production but also in the production of our customers that we supply products to” said Semerci. Mehmet Satılmış, R&D Director of Şenmak Makine, said that they are carrying out four R&D projects at the moment: “We estimate an almost 4 billion TL R&D expense in the next two years for our projects like TÜBİTAK, TEYDEB, KOBİGEL. KOBİGEL
project is almost complete. And the final reports are being prepared for the TÜBİTAK project.” Satılmış added that they are supporting professional trainings to motivate their R&D personnel for work. “If the employee has a bachelor’s degree, we support them to get a master’s, if the employee has a master’s, we support them to get a doctorate degree. And since the R&D Center will serve also as an incubation center, it will be possible to position the personnel trained at the R&D Center at other divisions of the company” said Satılmış. Şenmak R&D Center within the body of the production facilities at Istanbul Hadımköy will work with its professional team of 21 individuals.
FOREIGN CURRENCY FREEDOM TO THE MACHINERY INDUSTRY THE COMMUNIQUE MAKING AMENDMENTS TO THE COMMUNIQUE ON THE DECREE NO. 32 REGARDING THE PROTECTION OF THE VALUE OF TURKISH CURRENCY WAS PUBLISHED ON THE OFFICIAL GAZETTE AND PUT INTO EFFECT ON OCTOBER 6. ACCORDING TO THIS COMMUNIQUE, THE MACHINERY SALES AND RENTALS CAN BE MADE IN TERMS OF FOREIGN CURRENCIES.
T
he Communique (Communique No. 2018-32/51) making Amendments to the Communique on the Decree No. 32 regarding the Protection of the Value of Turkish Currency (Communique No. 200832/34) was published on Official Gazette and put into force on October 6. According to this communique, the contract price in the machinery and equipment (goods) sales and rental contracts and other payment obligations resulting from such contracts can be agreed in terms of foreign currencies or as foreign currency indexed. While the goods are defined as “movables” in the Law Dictionary of the Turkish Ministry of Justice, it is described as “any good that can be moved, don’t break down while being moved, has financial value and can be seized.” So, regardless of the production or delivery method, all the machinery, equipment, tool or complementary system in the machinery manufacturing industry are accepted as “movables” mentioned in the sub-paragraphs 6 and 7 of the respective Communique. Moreover, the prices regarding the financial renting
(leasing) contracts that will be made can be in terms of foreign currencies within the scope of Articles 17 and 17/A of the Decree No. 32. The respective articles of the Communique are as follows: (6) It is possible for persons settled in Turkey to agree upon the contract price and other payment obligations for goods sale contracts except vehicle sale contracts
including engineering vehicles, which they will execute between themselves, in foreign currencies or based on foreign currencies. (7) It is possible for persons settled in Turkey to agree upon the contract price and other payment obligations for goods renting contracts except vehicle renting contracts including engineering vehicles, which they will
execute between themselves, in foreign currencies or based on foreign currencies. (10) It is possible to agree upon the prices associated with financial renting (leasing) contracts, which will be made within the scope of the articles 17 and 17/A of the Decree No. 32 on Conservation of the Value of the Turkish Currency, in foreign currencies. 121 • OCTOBER 2018
MOMENT IN ENGLISH
THE WORLD AND TURKEY OF FUTURE ECONOMIST MAHFİ EĞİLMEZ ASSESSES THE LONG TERM FUTURE SCRIPTS OF TURKEY IN AN ARTICLE ON HIS WEBSITE BY REFERENCING A REPORT PREPARED BY THE ECONOMISTS OF PRICE WATERHOUSE COOPERS (PWC). EVEN THOUGH THE FORECASTS OF PWC IS ENCOURAGING FOR TURKEY, THE SIGNIFICANT LOSS OF MOMENTUM EXPERIENCED ESPECIALLY IN THE MANUFACTURING INDUSTRY CONTINUES TO BE AN IMPORTANT ISSUE FACED BY TURKEY ACCORDING TO EĞİLMEZ.
E
conomist Mahfi Eğilmez published an article titled “The World and Turkey of Future” on his personal website, and made important assessments regarding the long term future of Turkey. While the study titled “World in 2050 - The Long View: How will the Global Economic Order Change by 2050?” published by the economists of Price Waterhouse Coopers (PwC) in February 2017 focuses on the rankings and sizes in the global system of 2050, it also underlines the necessity to expect significant changes. According to this report, as these changes will change the intercontinental dominance, they may as well change the economic power rankings of the countries. Before moving on to make an assessment specifically for Turkey based on this report, Mahfi Eğilmez shows the changes in the world economic power balance from 1500 to 2009 and the expected state for 2050 (Table 1). According to Table 1, North America that increased its share in the global GDP until the last quarter of the • 122
TURKEY IN 2050 AT A GLANCE
2016 The average annual growth expectation up to 2050
2030
2050
National Income* (bil. $)
National Income* (bil. $) National Income* (bil. $)
%3
GDP with current prices Ranking based on purchasing power parity
* Estimated
20th century, Europe that increased its share until the first half of the same century will lose significant power in the 21st century and lose its dominance to the Asian continent in 2050. While China becomes the economy getting the largest share from GDP, USA and Europe will rapidly lose their momentum. According to the claim in the report, the GDP total of E7 countries (China, India, Brazil, Russia, Mexico, Indonesia and Turkey) will be higher than the GDP total of G7 countries (USA, Japan,
830 Ranking
14
1.705 Ranking
12
Germany, France, UK, Italy and Canada). Within the framework of the views in the report, this change will trigger a change also in the size rankings of economies (Table 2). Based on the estimates of PwC, Table 2 shows that China will be placed at top and Germany, UK, France and Italy will drop from the top rankings while moving from 2000 to 2050. And while India, Brazil, Russia and Mexico climbs up, Turkey that was ranked 17th in 2000 will rise to 12th position in 2050.
4.087 Ranking
11 Mahfi Eğilmez says that “there is no doubt that these are estimates based on a set of assumptions” and underlines the need for these assumptions to come true for these estimates to be right. INCOME DISTRIBUTION DISRUPTS IN THE GLOBAL SCALE Eğilmez reminds that astrophysicist Michio Kaku claims that “perfect capitalism” will arise towards the last quarter of the 21st century in his book titled “Physics of Future” (Michio Kaku, Physics
TABLE 1: WORLD ECONOMIC POWER BALANCES IN 1500-2009 (PERCENTAGE, GDP)
TABLE 3: SHARES OF PRODUCTION IN GDP (PERCENTAGE) 1998
2016
1500
1913
1973
2009
2050
AGRICULTURE
12,5
6,2
3,4
25,7
34,0
31,7
28,0
INDUSTRY
25,0
19,6
0,5
21,3
25,3
23,2
15,0
22,3
16,6
0,3
18,9
22,1
20,4
12,0
CONSTRUCTION
6,1
8,6
2,9
4,4
8,7
8,5
13,0
SERVICES
48,5
53,7
EUROPE
23,9
46,4
38,4
32,0
17,0
7,9
11,9
ASIA
65,0
24,9
24,2
31,0
45,0
Source: TSI
CHINA
24,9
8,8
4,6
12,6
22,0
INDIA
24,4
7,5
3,1
5,1
14,0
AFRICA
7,8
2,9
3,4
5,3
10,0
in the Turkish economy in Table 3. “Table 3 indicates the significant loss of momentum faced in the industry and especially in the manufacturing industry that requires the real focus” said Eğilmez. Eğilmez also underlined that the production share drop in agriculture caused increase not in the industry but in the construction and service sectors, and warned: “While the world moves towards Industry 4.0 on one hand, the drop of industrial production share in Turkey and for it to be replaced by construction and service sectors are not a sign of a healthy state.”
AMERICA TOTAL NORTH AMERICA USA SOUTH AMERICA
MANUFACTURING INDUSTRY
TAX-SUBSIDIES
Source: For 1500-2009 Maddison (2008), for 2050 PwC (2017).
of Future, METU publications, 2011). “According to Kaku, perfect capitalism is the name of the system where both the producer and the consumer have infinite knowledge about the market and the operations in the market, and thus the prices are determined perfectly. There is no information regarding how the income distribution will be like in the perfect capitalism defined by Michio Kaku. On the contrary, the report of PwC indicates an increasingly disrupted income distribution” said Eğilmez and continued: “It is very doubtful how a constantly growing yet income
distribution disrupted system can achieve perfection.” Even though the PwC estimates are encouraging for Turkey, the progress reversed in the recent years and Turkey entered into a wrong path with its move after the 2001 crisis according to Eğilmez. “It is possible to see this in the loss of momentum in economy. And on the other hand, it would not be wrong to say that the structural change experienced in the economy as a result of this loss of momentum progresses in the wrong direction” said Eğilmez and indicated the direction of the recent structural change
IT IS ESSENTIAL TO BUILD AN INDUSTRY-WEIGHTED STRUCTURE Mahfi Eğilmez, also,
TABLE 2: THE STRONGEST ECONOMIES OF THE WORLD IN 2000-2050 RANK
2000
RANK
2016
RANK
2030
RANK
2050
1
USA
1
CHINA▲
1
CHINA
1
CHINA
2
JAPAN
2
USA▼
2
USA
2
INDIA▲
3
GERMANY
3
INDIA▲
3
INDIA
3
USA▼
4
ENGLAND
4
JAPAN▼
4
JAPAN
4
INDONESIA▲
5
FRANCE
5
GERMANY▼
5
INDONESIA▲
5
BRASIL▲
6
INDIA
6
RUSSIA▲
6
RUSSIA
6
RUSSIA
7
ITALY
7
BRASIL▲
7
GERMANY▼
7
MEXICO▲
8
BRASIL
8
INDONESIA▲
8
BRASIL▼
8
JAPAN▼
9
CANADA
9
ENGLAND▼
9
MEXICO▲
9
GERMANY▼
10
SOUTH KOREA
10
FRANCE▼
10
ENGLAND▼
10
ENGLAND
11
RUSSIA
11
MEXICO▲
11
FRANCE▼
11
TURKEY▲
17
TURKEY
14
TURKEY▲
12
TURKEY▲
12
FRANCE▼
Source: PwC, “World in 2050”, 2017. Yellow: E7 countries Green: G7 countries
underlines here that Turkey draws the image of an economy that stayed Industry 2.0 and Industry 3.0 at a stage that requires modernization and improvement of the agriculture and livestock policies, took a certain distance in joining the digital revolution, produces more products with low added value, is failed to show the expected move in brandization, and has an overgrown service industry. Eğilmez reminded that the world of the future will be a world dominated by Industry 4.0 in production and detailed digital information in consumption. “In short, if it would be the world of perfect capitalism as defined by Kaku, the condition of surviving in this world would be to change the unhealthy structure causing the transition from agriculture to service and establish a structure focused on industry. And in such a future, unaware consumers will be replaced by aware ones. The way to achieve this is to perform the political and social infrastructure change that will transition the economy to the level of advanced cultures” said Eğilmez. See www.mahfiegilmez. com/2018/08/gelecegin-dunyas-ve-turkiye.html for the full Mahfi Eğilmez article and the official PwC web site’s (www.pwc.com. tr) “Publications” title for the original PwC report. 123 • OCTOBER 2018
MOMENT IN ENGLISH
WE COMPETE WITH THE WORLD IN THE ON-VEHICLE EQUIPMENTS INDUSTRY TURKISH VEHICLES AND ON-VEHICLE EQUIPMENTS INDUSTRY BEGAN TO IMPROVE ITS COMPETITIVENESS WITH THE INVESTMENTS PARTICULARLY MADE IN TECHNOLOGY AND R&D. WHILE A TOTAL OF 32 BILLION DOLLARS EXPORT HAD BEEN PERFORMED IN THE VEHICLES AND ON-VEHICLE EQUIPMENTS INDUSTRY THAT IS SUBJECT TO A TRADE VOLUME OF 66 BILLION DOLLARS IN THE GLOBAL SCALE, TURKISH VEHICLES AND ON-VEHICLE EQUIPMENTS CLOSED THE YEAR 2017 IN THE 23TH PLACE OF THE WORLD RANKINGS WITH ITS EXPORT VOLUME NEAR 250 MILLION DOLLARS. THE INDUSTRY THAT MADE ITS NAME HEARD ESPECIALLY IN ASIA, MIDDLE EAST AND AFRICA AIMS TO BE MORE COMPETITIVE IN EXPORT BY INCREASING THE DOMESTIC INPUT RATE THROUGH THE PRACTICES IN THE NEW ECONOMY PROGRAM.
T
he automotive industry, which is one of the leading industries of the first industrial revolution and enabled the manufacturing industries to reach their • 124
current development level with the mass production technique, is still a leading industry of the economy in all industrialized and developed countries. As a strong indicator of mechanization,
the automotive industry is a driving force in countries that are defined as developed today and is very important due to its close relations with the other industrial branches and economies.
Since all types of motor vehicles required by the tourism, infrastructure and construction, transportation and agriculture industries are provided by the products of this industry, any change
in this industry affects the economy as a whole. On the other hand, the residence need and thus infrastructure works that gained speed with the increasing population, the urbanization services and the transportation services that enable the mobility of people and products to be mainly through highways between the cities expedite the production of commercial vehicles. Thus, while the interest in heavy-duty vehicles and light commercial vehicles constantly increase, Turkey had became an important center where the trucks and vans of both Turkish and international firms are manufactured. And the on-vehicle equipments or automotive body industry is an industry that exists almost since the birth of the automotive industry. The main production segments of the on-vehicle equipments industry that has a trade volume of 66 billion dollars in the global scale are vacuum trucks, garbage vans, on-vehicle cranes, trailer cars, fire brigade trucks, trailers and semi-trailers, dampers, road tankers, refrigerated vessels, truckmixers, concrete pumps, health care vehicles and medical waste vehicles, on-vehicle platforms, road
maintenance-repair vehicles, military and law enforcement vehicles, and other on-vehicle equipments. Of course, we should underline that these segments also divide into sub-titles within themselves, creating a sector portfolio with hundreds of groups in total. Majority of the firms that are active in the industry are engaged in manufacturing the body equipments required for vans and tow trucks, the added value production of the industry is at high levels in countries where the road transport is important and dominant, the need for the products of this industry increases and thus the number of businesses active in this industry increases.
250 MILLION DOLLARS EXPORT TO 50 COUNTRIES Turkish on-vehicle equipments industry commenced operations in 1950s and manufactured the first domestic vehicle in 1958. Even though the industry that displayed a rapid growth as of 2000s was depressed with 2009 global crisis, its production and export graphic began to rise back in 2010. Today, there are more than 50 thousand vehicles whose bodies are built in Turkey and almost all of the equipments are produced locally in Turkey. At the same time, the bodies of the chassis trucks imported from overseas are built in Turkey and the industry performs an export to 50 countries in five continents
with a volume close to 250 million dollars. The industry that has a strong export network especially in Asia, Africa and Middle East continues to add new countries to its export network. The industry increased its export to Russia, South African and European countries, and continues to be competitive in vacuum trucks, health care vehicles, cleaning vehicles, trailers, dampers, tankers, refrigerated vessels, truckmixers, on-vehicle cranes and auxiliary equipments. Moreover, there are more than 1500 firms operating in the Turkish on-vehicle equipments industry, and the firms in this on-vehicle equipments industry manufactures more than 30 different items such as dampers, compression trash boxes, fuel tanks and fire brigade trucks. Despite of the small size of these firms in the industry, the industry employees more than 100 thousand people. GERMANY IS AT TOP IN THE EXPORT OF TURKEY According to the data of the UN Statistics Division, the import and export rates are almost the same in the on-vehicle equipments trade
125 • OCTOBER 2018
MOMENT IN ENGLISH that was around 65.9 billion dollars in 2017. While the export volume was 32.1 billion dollars with an increase of 16.6 percent last year, the import volume reached 33.8 billion dollars with a similar increase of 14.7 percent compared to the previous year. Thus, the overall trade volume that was around 57 billion dollars in 2016 became 65.9 billion dollars with an increase of 15.6 percent. And Turkey is ranked 23th in the global export list of the on-vehicle equipments industry according to the 2017 end-of-the-year results. According to the UN Statistics Division data covering the January-June period of this year, Turkey rose up to the 20th place in rankings. On the other hand, TÜIK (Turkish Statistical Institute) data indicate that Turkey exported its products mostly to Germany, Brazil and Italy in the period of JanuarySeptember. Turkish on-vehicle equipments industry performed an export of 257.1 million dollars in this period, achieving a 48.4 percent increase compared to the same period of 2017. As it can be remembered, the export of the industry in JanuarySeptember 2017 was around the level 173.3 million dollars. While Germany is ranked
• 126
first in the top 10 countries that Turkey exports on-vehicle equipments to as of the period January - September, the 175.6 percent increase seen in export to this country attracts attention. While 25 million dollar worth equipments had been exported to Germany in this period, Turkey exported 14.5 million dollar worth equipments to Brazil that is ranked second in the same list with a decrease of 2.6 percent and 13.1 million dollar worth equipments to Italy that is ranked third with an increase of 39.2 percent. IMPORT FROM EUROPE TIGHTENS The import volume of Turkey within the same period reached the level of 138.1 million dollars with an increase of 22.3 percent. Turkey that is ranked 25th in the global import list with this figure made a purchase of 112.9 million dollars in the JanuaryJune 2017. According to TÜIK data, Germany is ranked first in Turkey’s top 10 countries list for on-vehicle equipments import based on the January-September results of this year, the import from this country is recorded as 99.6 million dollars with a drop of 12.2 percent. Turkey
that imported equipments worth 17.2 million dollars from Sweden that is ranked second and 11.5 million dollars from Italy that is ranked third with an increase of 260 percent. The increase seen in the purchases from Norway and India, and the decrease seen in the purchases from Spain and Netherlands are other factors that attract attention. “WE WILL GAIN STRENGTH IN EXPORT WITH DOMESTIC PRODUCTION” While almost the entire on-vehicle equipment manufacturing can be carried out as domestic production, the fact that the main inputs of the industry are import depended is argued to be one of the main issues in the industry. Burhan Fırat, the Chairman of Turkish Association of Vehicle, On-Vehicle Equipment and Construction Machine Manufacturers (ARÜSDER) appreciated the steps of the New Economy Program to support local-national production and to fight with inflation, and said: “The main, the basic inputs of our industry are imported. And thus, the fluctuations in the exchange rates affect our industry negatively. However balancing these
exchange rate fluctuations, taking steps to fight with inflation and embracing a positive attitude with local-national slogan enable us to be more hopeful for the future. Support provided to domestic products and production will bring along new R&D initiatives, new investments, dynamism and low costs.” Fırat underlined that the Turkish manufacturers contribute to the development of the industry by making the vehicles functional and respond to the demands from overseas, and noted that the on-vehicle equipment industry of Turkey is at a level that can compete with the firms in Europe with their high quality production. Fırat said that they aim to be the central base of the vehicle body industry with the strengthening domestic production. “All chassis trucks and vans manufactured or imported in Turkey require body equipments. And the industry firms to fulfill the expectations regarding production capacities and quality blocks the path of import in similar products. We used to import numerous products such as trash boxes, vacuum trucks, fire brigade trucks, dampers and platforms in the past and now, we even export these products to those countries we used to import from by manufacturing them in Turkey thanks to the on-vehicle equipment systems developed by Turkish producers.” said Fırat. Fırat added that majority of the ARÜSDER members are exporters. “We export products especially to Asia, Middle East, Africa and Turkish Republics. And we had even begun to be more competitive in export to European Countries.” concluded Fırat.
EXPORT FIGURES IN RESPECT TO THE ACTIVITY FIELD OF THE MACHINERY AND ACCESSORIES (JANUARY 1 - AUGUST 31, 2017 AND 2018) 2017 QUANTITY (1000 TONNES)
VALUE (MIL $)
ENGINES, ACCESSORIES AND SPARE PARTS
106
INDUSTRIAL AIR CONDITIONERS AND COOLING MACHINES
2018
Kaynak: All Exporter Unions Database CHANGE (%)
$/KG
QUANTITY (1000 TONNES)
VALUE (MIL $)
$/KG
QUANTITY
VALUE
1.575
14,9
110
1.717
15,6
3,9
9,0
372
1.501
4,0
379
1.714
4,5
1,7
14,2
OTHER INDUSTRIAL WASHING AND DRYING MACHINES
364
1.009
2,8
394
1.141
2,9
8,1
13,1
CONSTRUCTION AND MINING MACHINES
199
673
3,4
242
862
3,6
21,2
28,2
PUMPS AND COMPRESSORS
79
582
7,4
91
713
7,8
15,4
22,5
MACHINE TOOLS
73
493
6,8
82
612
7,5
12,0
24,1
AGRICULTURE AND FORESTRY MACHINES
110
494
4,5
129
602
4,7
17,3
21,9
TURBIN, TURBOJETS, TURBO PROPELLERS
12
472
39,2
13
507
38,6
9,2
7,5
TEXTILE AND CLOTHING MACHINES AND ACCESSORIES
72
408
5,7
83
488
5,9
15,2
19,6
VALVES
40
362
9,1
44
422
9,6
10,5
16,7
REACTORS AND BOILERS
44
343
7,8
44
405
9,2
0,3
17,9
FOOD INDUSTRY MACHINES, ACCESSORIES AND SPARE PARTS
67
352
5,2
69
395
5,7
2,7
12,2
WEAPONS AND AMMUNITION FOR THE DEFENSE INDUSTRY
17
295
17,4
17
367
21,9
-0,8
24,6
INDUSTRIAL HEATERS AND COOKERS
32
227
7,2
41
281
6,9
28,2
23,8
ROLLER AND FOUNDRY MACHINES, MOULDS
30
245
8,1
35
271
7,8
14,4
10,4
LOAD LIFTING, CARRYING AND STOWING MACHINES
49
203
4,2
60
268
4,4
23,8
31,7
GUM, PLASTIC, RUBBER PROCESSING MACHINES
11
116
10,6
14
150
10,6
29,6
29,4
PACKAGING MACHINES, ACCESSORIES AND SPARE PARTS
6
125
19,6
8
148
19,0
22,6
18,9
OFFICE MACHINES
3
108
36,9
3
112
39,0
-2,0
3,6
BEARINGS
9
97
11,3
10
106
11,0
12,7
10,3
PAPER MANUFACTURING AND TYPOGRAPHY MACHINES
10
63
6,4
10
72
7,6
-3,0
14,2
LEATHER PROCESSING AND MANUFACTURING MACHINES AND ACCESSORIES
2
11
5,3
1
8
6,2
-34,0
-23,1
133
884
6,6
152
1.054
6,9
14,2
19,2
1.840
10.637
5,8
2.029
12.417
6,1
10,3
16,7
PRODUCT GROUP
OTHER MACHINES TOTAL
127 • OCTOBER 2018