T UR K I SH PLAST ICS INDUSTRIALIS TS' F E D E RAT ION M A G A ZIN E
APRIL - JUNE 2013 Issue:3
Turkish Plastics Industry discusses its own future: WHAT PROBLEMS SHOULD BE SOLVED
FOR
SUSTAINABLE
GROWTH?
PLASFEDDERGİ
Selçuk Aksoy President PLASFED Turkish Plastics Industrialists’ Federation
Greetings from PLASFED PLASFEDMAGAZINE Turkish Plastics Industrialists’ Federation Magazine e-journal: www.plasfed.org.tr • Licensee Selçuk Aksoy • Editorial Board Hüseyin Semerci - Şenmak Makina Reha Gür - Eurotec Yavuz Eroğlu - Sem Plastik Sibel Destereci Yılmaz - Tepsan Plastik Mevlüt Çetinkaya - Petkim Ahmet Yalçınkaya – Yalçınkaya Plastik Kurt Kuruç - Farmamak Erdoğan Çiçekçi – Çipitaş Sentetik Mehmet Turhan Onur – Ravago Group Yakup Ülçer - Enplast Murat Cansever - Eurotec Talha Apak – Apak YMM Adnan Akkurt – Gazi Üniversitesi Behçet Gülenç – Gazi Üniversitesi Hüseyin Yıldırım – Yalova Üniversitesi Kerem Cankoçak – İstanbul Üniversitesi Levent Kurnaz – Boğaziçi Üniversitesi Mehmet Emin Yurci – Yıldız Teknik Üniversitesi Mehmet Sankır – TOBB Ekonomi ve Teknoloji Üniversitesi Mustafa Öksüz – Yalova Üniversitesi Nevzat Artık – Ankara Üniversitesi Nurseli Uyanık – İstanbul Teknik Üniversitesi Yusuf Menceloğlu – Sabancı Üniversitesi • Editor in Chief Barbaros Demirci • Editor Mehmet Pala • Editorial Executive Erol Türker • Editorial Preparing Mediaetik İletişim Ajansı • Graphic Designer Burak Çetiner – Pusula Basım Tel: 90 212 671 8303 • Advertorial Coordinator Selçuk Bostancı • Contact Barbaros Cad. İstanbul Ticaret Sarayı, No:294 Giyimkent – İSTANBUL / TURKEY Tel: 90 212 438 2619 Faks: 90 212 438 1593 www.plasfed.org.tr plasfed@plasfed.org.tr • Print Ümit Matbaacılık Tel: 90 212 565 4269
We are proud to present you the third issue of our magazine. In this issue, we have chosen as cover story the fair competition for a sustainable plastics industry, a topic which we find critical for our sector. Doubtlessly, talking about this issue, black economy, non-standard manufacturing and resulting erosion of value come to our mind first. Considering the criticism – unfair in our view – that the sector receives with respect to health and environment issues, plastics industrialists must be more careful than anyone else, because low-quality, non-standard or imitation products that are released to reduce costs and increase the profit margin do not only create unfair competition but they also cause the whole sector to lose value in consumer’s view, and hypothecate the future of our sector. In other words, we deprive ourselves of tomorrow to save today. Of course, the problems are not specific to plastics sector but to whole manufacturing industry. According to a study conducted by the Ministry of Finance, black economy accounts for 26 per cent of general economy. There are also studies that measure this rate as 42 per cent. Unrecorded employment is about 36 per cent according to TÜİK (Turkish Statistical Institute) Almost the entire plastics sector in Turkey consists of small and mid-scale enterprises. For this reason, unrecorded economy and employment is very critical for our sector. The companies which do not manage to reach the economy of scale may resort to unrecorded economy and unfair competition. We can also say that the governments tolerated this in the past. We see that the business enterprises in the sectors of paper, glass, and metal which plastics competes as a material are larger in scale, organise better, thus have a stronger self-regulation. As a federation, now we make our founding associations and stakeholders heard better, and we are represented much better both before the public and the sector. We carry to the public agenda what has been made and neglected up to now in a more realistic, deeper and stronger manner, and present such issues to decision-makers. I am also glad to state that we have yielded important and successful results in a short time. We make intensive efforts to define “ethical rules for fair competition”, which we believe would yield important results for the sector in the future. In every subject, plastics industrialists are determined to set forth and discuss all problems, and take necessary measures as well as making criticism. The document “Ethical Rules for Plastics Processing Industry” which we have opened to discussion is one of the most solid examples of this. If we talk about a modern country and a powerful economy, we cannot escape from the realities imposed by fair competition. Not fighting unfair competition means injustice towards honest manufacturers. I believe that plastics industrialists support fair competition. Another important development we experienced in the last three months was committee and council elections of trade associations. We congratulate our colleagues who have been elected to management of chambers, councils and vocational committees, and expect them to do their best for the plastics sector on the ground of the chambers they are appointed to and their roof organisation TOBB (Union of Turkish Chambers and Commodity Exchanges). I wish you prosperity and health.
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PLASFEDDERGİ
Barbaros DEMİRCİ PLASFED/PAGDER Secretary General
FROM THE INDUSTRY
Structural problems in plastic processing machinery industry persist
Turkish plastics processing machinery industry closed 2012 with an increase in production and exports. However, the industry’s interest in second hand and cheap machines continues. 70 to 80 per cent of domestic demand in Turkey is still met by imported machines. Turkey is one of the leading markets with its machinery-equipment investment worth of USD 750 million. Serious steps should be taken, such as granting incentives, to make Turkey, a crucial part for development of the industry, a centre of attraction for both domestic and international manufacturers of machinery.
EXECUTIVE SUMMARY: Turkey, is in a situation that it can meet the 70 – 80 % of the demand for plastics processing machines, accessories and parts through imports, is a net importer regarding the aforementioned manufactures and cannot provide enough added value with low export prices when compared to the developed countries despite the fact that the unit export prices came close to the import prices in 2012. While the plastics industry is developing swiftly, the production of plastics processing machines are not developing in parallel with the said manner and the industry is continuously losing its ground due to cheap plastics machines producer countries, particularly China. The gradual downsizing in the plastics processing machine industry in Turkey Plastics is caused by the fact that there is not a state strategy towards the processing machines industry, the domestic manufacturers are not protected enough and that the plastics product manufacturers prefer cheap and second hand machine imports in order to get the edge over competition. The plastics industry made an investment of USD billion 5.7 in machines and equipment between the years 2003 – 2012 and the average annual amount of the investment made in the last 3 years is around USD billion 750. 24 % of the said amount was comprised of injection, 18 % of extrusion and 28 % of shearing, splitting and forming machines. While a production of USD million 311 was made in plastics processing machines industry in 2012, USD million 123 of the said amount was exported. It is observed that the internal market sales are USD million 785 against USD million 596 of imports. It is also observed that the plastics processing machines production increased by 5 %, exports by 20 % in 2012 when compared to 2011 while the imports decreased by 14 % and domestic sales by 11 %. It can be seen that the exporting markets which fall within the first 10 spots in the exports of Turkey comprise the 13.4 % of the total world plastics processing machines total imports. In order for Turkey to increase its plastics processing machine exports, it should increase its advertising activities towards the other countries which fall within the remaining 86, 6 % of the world plastics processing machine imports. Turkey can set up the necessary incentive substructure for global machine manufacturers to invest in Turkey by using its cheap and qualified manpower and experience in machines manufacturing and special incentives can be provided to the global players for their investments on plastics processing machines in Turkey. Turkey could be turned into a production and exports base for at least some of the plastics processing machines with the incentive substructure which is to be applied in the said manner. In case of achieving the aforesaid goal, other models of the machines can be manufactured in Turkey and the machines needs of the West can be supplied from Turkey. It is necessary for “Cooperation before Competition” to be established amongst companies which manufacture the main machines and parts for these machines in order to achieve this goal. For the sustainability of the global competition, it is necessary for the relationship of the machines and accessories and parts manufacturers to be approached as a long term “Joint Venture” which consists a common design and that depends on mutual trust. In the contrary case, the global players could meet their accessory and part needs from abroad and make value added transfers to abroad after making investments in Turkey. If Turkey becomes a global player in machines manufacturing, this could enable for accessory and parts concerning this industry to be manufactured at a fast pace and exported with a higher added value.
2
FROM THE INDUSTRY
PLASFEDDERGİ
In this day and age the manufacturing of machines which provide added value requires great R&D expenditures. It is difficult for the domestic machine manufacturers, all of which are at SME level, to make such R&D expenditures and reach the technological level used by the Western countries in manufacturing due to their financial in capabilities. For that reason, rather than main machine production in Turkey, the manufacture of accessory and parts of these machines at the required quality level and entering into supply system of the global players of our industry and Turkey becoming the manufacture and exports base for plastics processing machine accessories and parts could be the second strategy to pursue.
TURKISH PLASTICS PROCESSING MACHINES INDUSTRY Plastics processing machines production, which was USD million 53 in 2003, increased to USD million 243 in 2008 and entered into an uptrend after facing a decline in 2009 and 2010 due to the negative effect of the global crisis. Production in 2012 was USD million 311 which was 5.1 % higher compared to the production in 2011.
Plastic Processing Machines Production (USD million) 311 296 243
180
179
167
164 141
83 53
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
The imports of plastics processing machines which was USD million 257 in 2003 continually increased and entered into a downtrend in 2009 due to the negative effect of the global crisis after increasing up to USD million 507 in 2008. Imports, which reached its highest level with USD million 692 in 2011. The imports of plastics processing machines declined by 14 % to USD million 596 in 2012.
Imports of Plastics Processing Machines (USD million) 692 596
408
421
486
459
507 452 312
257
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
The 10 countries received a share of 91 % on a value basis and a share of 94 % on a number basis in 2012. Germany, China and Italy are the first 3 countries from which we import plastics processing machines. The aforementioned countries are the countries with which we have conducted imports in the last two years both on a value and number basis.
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FROM THE INDUSTRY
PLASFEDDERGİ
First 10 Countries In Plastics Processing Machines Imports (USD million) COUNTRY Germany China Italy Austria Taiwan France Switzerland Netherlands Japan Canada Total Of 10 Countries Others Grand Total
2011 USD million Units 210 1.068 130 5.459 104 2.422 44 143 35 383 27 88 24 70 21 104 16 32 15 32 624 9.801 67 771 692 10.572
2012 USD million 158 148 82 37 36 31 22 11 10 9 543 53 596
COUNTRY Germany China Italy Austria Taiwan France Switzerland Netherlands Japan Canada Total Of 10 Countries Others Grand Total
Units 836 4.528 552 44 165 287 105 195 42 60 6.814 438 7.252
Source : TURKSTAT
The plastics processing machines and accessories and parts exports, which was USD million 22 in 2003, went through a regression in 2009 and 2010 due to the negative effects of the global crisis after going up to USD million 95 in 2008. Exports, which went up to USD million 103 in 2011, increased by 20 % in 2012 and rose to USD million 123. 123
Exports of Plastics Processing Machines (USD Million) 103 95
65
72 65
72
57 33 22
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
The plastics processing machines exports made to the 10 countries in 2012 constituted the 59 % of the total exports on the dollar basis and the 40 % on the number basis. The first 3 countries to which we have conducted plastics processing machines exports in 2012 are Russia, Iran and Germany. The total share of the first 10 countries is about 13,4 % in the world plastics imports.
First 10 Countries In Plastics Processing Machines And Accessories And Parts Exports ÜLKELER Iran Russian Fed. Azerbaijan Bulgaria Romania Germany South Africa Kazakhstan Uzbekistan Iraq Total Of 10 Countries Others Grand Total
2011 Milyon $ Adet 17,2 507 14,5 271 5,2 141 4,8 146 4,2 59 3,8 52 3,4 14 3,1 155 2,4 75 2,2 149 60,8 1.569 41,7 1.444 102,6 3.013
ÜLKELER Iran Russian Fed. Azerbaijan Bulgaria Romania Germany South Africa Kazakhstan Uzbekistan Iraq Total Of 10 Countries Others Grand Total
2012 Milyon $ Adet 16,7 343 11,9 318 8,6 77 7,6 99 6,9 224 5,5 137 4,8 34 3,9 225 3,4 53 2,6 49 72,1 1.559 50,6 2.371 122,7 3.930
Dünya İthalatındaki Payı 3,20 1,19 5,70 0,14 0,16 0,13 1,01 0,17 0,94 0,56 13,2 86,8
Source : TURKSTAT
While the average unit import price for plastics processing machines and accessories and parts was 13.25 dollars/kg in 2011, it regressed to 12.72 dollars/kg in 2012. An average regression of 4 % was experienced in this period. The unit import price significantly regressed for most of the machines apart from the shearing, splitting and forming machines and accessories and parts.
4
FROM THE INDUSTRY
PLASFEDDERGİ
While the average unit export price for plastics processing machines and their accessories and parts is 11.2 dollars/kg in 2011, this number increased by 7.5 % in 2012 and rose to 12.04 dollars/kg. It can be observed that the unit export price for all of the items apart from injection, shearing, splitting and forming machines and accessories and parts increased in 2012. The unit import prices for plastics processing machines have always been higher than unit export prices since 2003. This circumstance is the proof of the fact that Turkey imports machines with higher added value and manufactures and exports machines with lower added value.
Avarage Unit Foreign Trade Prices For Plastics Processing Machines ($/kg) 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0
2003
2004
2005
2006
2007
2008
Import Prices
2009
2010
2011
2012
Export Prices
Turkey has always had foreign trade deficit in plastics processing machines. Its foreign trade deficit peaked in 2011 with USD million 589. Then in 2012 the foreign trade deficit decreased by 20 % down to USD million 474. The plastics industry, in parallel with the increase in its processing capacity, makes investment in machine and equipment with an increasing trend every year. The machine and equipment investment of the industry, which was USD million 288 in 2003, peaked in 2011 with USD million 885. The total machine equipment investment in 2012 decreased by 11 % and went down to USD million 785. 885
Domestic Market Sales of Plastics Processing Machines (Machinery Investments of Turkish Plastics Industry) (USD Million)
785
656 558
595 558
505 458 414 288
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
The plastics industry made a total of 5.7 billion dollars of investment in machines and equipment between the years 2003 – 2012 and the average investment amount for the past three years is above USD million 750. The 24 % of the said amount was formed by injection, 18 % by extrusion and 28 % by shearing, splitting and forming machines. A manufacture of USD million 311, imports of USD million 596, exports of USD million 123 and domestic market sales of USD million 785 (machine and equipment investment of plastics industry) occurred in the plastics processing machines and their accessories and parts industry in 2012.
Supply – Demand Equilibrium In Plastics Processing Machines (USD Million) 2011
2012
% Increase 2012 / 2011
Production
296
311
5
İmports
692
596
-14
Exports
103
123
20
Domestic Sales
-11
885
785
Exports / Manufacture ( % )
35
39
İmports / Domestic sales ( % )
78
76
Exports / İmports ( % )
15
21
It can be observed that the 76 % of the domestic sales (machine equipment investment of industry) was provided with imports, that the 39 % of the total manufacture was exported and that the export coverage ratio of import was 21 % for the plastics processing machines and their accessories and parts industry in 2012.
5
PLASFEDDERGİ
BREAKING NEWS
AGENDA (COVER)
Plastics sector is on a junction:
Remaining an SME is not the solution. Turkish plastics sector is in the third place in Europe. It is possible to step up to the second place in a short time. However, the basic problems arising in the manufacturing industry have started to put pressure on the sector. Moreover, because of the relatively low costs of first investment many countries that are today’s markets have engaged in investment either to use the advantage of raw material or provide their market’s products with low added value. Turkish plastics sector needs a new approach particularly with respect to the structural problems it experiences with production with high added value and the pressure of increasing international competition. The concerns for the sustainability of 30-billion-dollar production and 12-billion-dollar added value are not groundless. A study conducted by the World Bank and the Undersecretariat of Treasury revealed that the SMEs in Turkey grow much slower than the SMEs of most countries with similar economic conditions. Moreover, the scale of SMEs in Turkey remains fixed without stepping up to the next level for longer compared to most of its neighbouring countries including European countries. According to the study based on a survey, 5 problems with top priority are access to funding (25,9 per cent), tax rates (18,2 per cent), political instability (17,5 per cent), unrecorded economy (14,7 per cent), and unqualified labour (9,1 per cent). As a market, Turkey has the capacity to sustain the operations of large companies and support the growth of SMEs. In addition, the demographic opportunities created by the young population show that the economy, and plastics sector in parallel, has a high potential of growth - provided that right steps are taken. What is “absent” in Turkey for the plastics sector is raw material. Moreover, the problem of raw material has become “one of the structural problems” of the sector. Sector’s dependence on raw material was 87 per cent by 2012. It looks like the investments in plastics sector made in neighbouring countries will challenge the sector in short- and mid-term. Kemal Zorlu, one of the experienced figures of the sector, reminds that many machinery manufacturers, primarily the European machinery manufacturers race one another to sell machinery to their neighbouring countries under favourable conditions, using the incentives and funding
powers of their own countries. Another problem in Turkish plastics sector is the size of the companies. The sector has 14 thousand companies with various sizes but only 18 of them are among the largest 500 companies of Turkey. According to Hüseyin Semerci, the Chairman of PAGDER, there must be a basic framework should be formed for a mechanism for taking the opinion of the sector in permission and licensing procedures of entering the sector, and not issuing a license when necessary.
Working harder and cooperating is the only way out With its economy and social life, the Aegean Region has been the area of interest for Turkey and even its immediate circle. Historically, our region has a rooted culture with its intensive production and commercial activities. It is possible to say that the same is true for the plastics sector. Erol PAKSU Chairman/EGEPLASDER Our association tries to Aegean Plastic Industrialcontribute to the develists Solidarity Association opment by its activities depending on this culture. We take pride and joy in social responsibility and community activities of our member companies and businessmen as well as their success in business.
A strong association for a strong industry As the Association of Ankara Plastics Industrialists, we have started to a new period. As you know, we have assumed office in the General Assembly of our Association, one of the most prominent organisations of our sector, through the courtesy Yunus KARAKAŞ Chairman / Association of of our colleagues. First Ankara Plastics Industrial- of all, I am glad to have ists (APSD) the chance to greet you on behalf of the members of our association, in this first letter of mine.
“Turkey and Bursa deserve a larger plastics sector” Usage of plastics is proportionate to the level of welfare. Consumption of plastics in developed countries is a few times as ours. As Turkish plastics industrialists, we have established capacity with a sizeable investment. Now our share in global plastics sector is around İlker BİLİKTÜ 1,6 per cent. We are one Chairman/Association of the largest plastics inof Bursa Plastics and dustries of Europe. Every Packaging Industrialists individual in our country (BURPAS)
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is in contact with products of plastics industrialists, including the bed they sleep in. Let alone our products intended for direct consumption, we have products that are in use in nearly all sectors.
Time to switch to new products Kayseri is one of the leading provinces of Turkey in plastics industry. We are working for the development of our sector under the roof of KAYPİDER in Kayseri, of PLASFED nationwide. We are all aware of our agenda with respect to our short-term probYusuf ÖZKAN C h a i r m a n / A s s o c i a - lems. It would be better tion of Kayseri Plas- for us to work on long tics Business Owners term problems we have (KAYPİDER) to solve or on the goals we have to set. Certainly, one of the most pressing matters among these is the transition to new products or products with higher added value.
“Profitability of the sector is low, and there is no room for mistake” The plastics industry in Turkey has great potential. We are one of the three largest countries in Europe in the size of plastics industry. We have a major market, and our exports – for now – remains strong and we are displaying Hüseyin SEMERCİ a performance above Chairman /Turkish Plastics the overall growth of Industrialists’ Assocation our country. However, (PAGDER) this had better not lead anyone to wrong conclusions. We are passing through a critical phase. Neither we nor the decision makers have room for a mistake. There are things we need to accomplish in order to ensure the healthy growth of the sector and to reach a sustainable business environment. First of all I should underline that the problem “if the neighbour is making good money, I should invest in the same field” which is observed not only in the plastics industry but in all manufacturing industries applies to the plastics industry, as well.
PAGDER has started a voluntary initiative for honest and fair competition, Codes of Ethics Established for Plastics Processing Industry With an initiative that sets an example for the manufacturing industry, PAGDER has taken action to define codes of ethics resembling the top-tier organ-
BREAKING NEWS
isations such as United Nations, for plastics industry. The codes of ethics include a set of rules ranging from environment to fair competition and rights of children. “Codes of Ethics for Plastics Processing Industry” is going to function through voluntary adoption by the institutions and organisations. It will be governed by an assessment and monitoring system to be established by PAGDER. The companies which adopt the codes of ethics and pass the assessment will be entitled to use the specially-designed logos in all kinds of communications they conduct. Commenting on the publication of Codes of Ethics for Plastics Processing Industry, Hüseyin Semerci, the Chairman of PAGDER said “our codes of ethics address all aspects of modern business life. As PAGDER, our sense of responsibility has encouraged us to establish and accept these rules. I hope this initiative and our responsible actions find appreciation and acceptance”.
The Executive Board Assembly of EUROMAP, Association of European Manufacturers of Plastics and Rubber Machinery is going to be held in İstanbul in November
48th Executive Committee of EUROMAP, the Association of European Plastics yielded important developments for Turkey. While the Executive Board meeting scheduled for November was decided to be held in İstanbul, it was also decided that EUROMAP will not support PLAST EURASIA.
PLASFED takes part in the Committee that will direct the promotional and regulatory activities intended for the sector In the Plastics Workshop organised in Ankara, a “ Ste e r i n g Committee” was e s t a b lished to direct the efforts for regulatory activities related to promotion, coordination, and legislation intended for the sector. Ministry of Environment and Urban Planning and Ankara Chamber of Commerce became the other members of the Committee which PLASFED is also a member of.
The plastics sector met in the Symposium of plastics, rubber, and polymer technologies in Ankara “International Symposium of Plastics and Rubber Technologies and Exhibition of Products” which brings together the scientists and
industrialists working on the fields of plastics, rubber, polymer technologies was held in Ankara.
Plastics sector’s power of representation in the chambers of Commerce and Industry is on the increase In April and May, the plastics sector had the excitement of elections for the chambers and commodity exchanges. Members of the plastics sector have increased the representation power of the sector by taking part in management organs as well as in committees in chamber and commodity exchange elections. Commenting on the issue after the elections, Selçuk Aksoy, the Chairman of PLASFED underlined the necessity of the sector to enter a phase of stronger initiatives before the decision-makers and said “I believe that our elected friends will conduct a powerful representation for solving the sector’s problems. As all members of the sector, we are always ready to do our best to make contributions to the efforts, with our full force, knowledge and experience. We are at the service of our representatives for every step intended for the development of our sector.”
PAGDER makes progress with the project of Development of International Competitiveness (DIC) aimed at South Africa and Indonesia Within the scope of the DIC project implemented by PAGDER and the funding of the Ministry of Economy, two business visits are scheduled for September and November. Under this project, PAGDER has scheduled a business visit to South Africa from September 22 to 28 and to Indonesia from November 17 to 24, 2013. With the funding of the Ministry of Economy, PAGDER has made progress in DIC projects which have recently become one of the most common tools for access to new markets and enhancing the business capacity - competitive power of companies. Training activities were made in accordance with the needs analyses conducted under “Training and Development Needs Analysis Project for Increasing the Export Potential of the Sectors of Plastics Industrialists Association” that was approved and commissioned by the Ministry of Economy in 2011. Within the scope of the project, a total of four training sessions “Advanced Foreign Trade Training, Customer Satisfaction Training, Train-
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PLASFEDDERGİ
ing for Transformation Management and Innovation, and Marketing Training for Salespeople” were completed. The organisation stage of business trips, which is the other step of the project has been put into practice.
Flag Taken Over in the Association of Ankara Plastics Industrialists Yunus Karakaş is elected the chairman of the General Assembly of the Association of Ankara Plastics Industrialists (APSD). New APSD board members and companies: 1.Yunus KARATAŞ (Chairman) Büyük Anadolu Kauçuk 2.Mehmet GÜL – Na-me Endüstri Ürünleri 3.Aykut KONUK – Özay Plastik 4.Ahmet AĞZIYAĞLI – Koray Tıp Teknik 5.Osman ÖZ – Öztepe Plastik
BURPAS has intensified its efforts for Specialised Organised Industrial Zone (OSB) and generation of electricity İlker Biliktü, Chairman of the Association of Bursa Plastics And Packaging Industrialists (BURPAS) and the vice-chairman of PLASFED, has stated that they have made progress in the efforts for the establishment of Specialised
OSB, and that they also aim to establish a power plant to provide service to the industrialists that will operate in this zone. In his statement, İlker Biliktü, Chairman of the Association of Bursa Plastics And Packaging Industrialists (BURPAS) and the vice-chairman of PLASFED, also said that the plastics sector of Bursa keeps growing at a great pace, thus makes an increasingly better contribution to the economy of Bursa. Reminding that products used in all kinds of areas from automotive to agriculture, food sector to healthcare are manufactured by our plastics sector, Biliktü said “these products make up an integrated part of our life”.
Yavuz Eroğlu, the Chairman of WFO: 55-meter garbage mountains pollute the East of the Mediterranean Sea in Lebanon Yavuz Eroğlu, Middle East and Africa Director of Waste Free Oceans-WFO Turkey carried out by the Association of Plastics Manufacturers in Europe - European Plastics Converters
PLASFEDDERGİ
BREAKING NEWS
EuPC for removing garbage from the seas stated that Mediterranean Sea is one of the prioritised areas within the scope of the project. Stating that the garbage mountains that reach 55 meters high in Lebanon are one of the most obvious examples of pollution, Eroğlu said that not only Turkey but all countries that have coasts on the Mediterranean Sea are under the threat.
EGEPLASDER is one of the 20 clusters that have been awarded Quality Label in Turkey. One of the contributing and p a r t i c i p at i n g business clusters in “Cluster Comparison Project” within the scope of Capacity Development Project for Cluster Directors conducted by the Associations of Aegean Exporters, EGEPLASDER has been awarded the “Bronze Quality Certificate” prepared by the European Secretariat for Cluster Analysis-ESCA.
Plastic packages are numbered for environmental contribution PA G D E R has explained the actual purpose of the “n u m b e r i n g ” system that is subject to contexts which depend on false information. Reminding that messages such as “you can recognise unhealthy products from their numbers” are sometimes conveyed to public, Hüseyin Semerci, the Chairman of PAGDER has stated again that the actual purpose of such numbers is to make distinguishing among types of plastics in recycling.
PLASFED MAGAZINE Prepares a Special Issue for the K-Fair Assuming the task of being the voice of the sector for the world’s largest plastics trade show K 2013, PLASFED MAGAZINE prepares a special issue for K 2013 both in English and in sp Turkish. Aiming to catch the attention of social and economic stakeholders as well as the members of the sector with high readability and its style of news magazine, PLASFED MAGAZINE will reach large MAGA masses in the K 2013 trade mas show to be held in Düsselsh dorf, Germany from 16 to d 23 October, 2013, which is one of the most powerful platforms of representation for Turkey.
It will be possible to bring the assets abroad to Turkey with lower taxes For the second time, the government has made a law that will allow registration of the assets which belong to the companies or persons but are kept abroad and not shown in the records in Turkey, for a lower tax. According to the law, such assets may be brought to Turkey until 31 July 2013. The assets must be in the property of the company or the person as of 15 April 2013. Such assets will be subject to a 2-per-cent tax.
Certain principles will be defined for using recycled plastics in food packaging
After the permission for the usage of recycled plastics in the middle layers of multiplelayer food packages upon PAGDER’s initiative, the progress has been evaluated in the second meeting. Selçuk Aksoy, the Chairman of PLASFED, Hüseyin Semerci, the Chairman of PAGDER, and the representatives of about 40 companies manufacturing food packages and recycled plastics attended the meeting that was directed by Yavuz Eroğlu, the Vice-Chairman of PAGDER. In the meeting, the attendants were informed about the process, and the fact that the use of recycled plastics is permitted under the functional barrier if certain conditions are fulfilled as the result of the initiatives made before the Ministry of Food, Agriculture and Livestock was reminded, as the companies that use recycled plastics in the middle layer of multiple-layered food packages were imposed penalties. The view of a set of principles to be defined by the sector for making the best use of this process in the future was adopted, and the fact that it was officially reported that the use of recycled plastics under the functional barrier is permissible as long as the necessary conditions are fulfilled in accordance with the provisions of the communique in force was underlined in the meeting. Murat Akyüz, the Chairman of İKMİB:
The EPDK communique will have adverse effects on the chemistry sector including the plastics sector Murat Akyüz, the Chairman of İKMİB has stated that the communique issued by the Energy Market Regulatory Authority (EPDK), which will enter into force on July 1 had provisions that
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would have adverse effects on the chemistry sector including plastics. He stated that the communique, which “disrupts the chemistry of the sector” in his own words, includes items that would have an impact on manufacturing and export of all subsectors of chemistry such as mineral oils, as well as paints, cosmetics, and plastics. According to Akyüz, the size of the regulations will affect the export targets of the sector.
Hakan Plastik sold to Swiss Georg Fischer One of the world’s leading manufacturers of pipe systems, Georg Fischer company of Swiss origin purchased Hakan Plastik, a rooted company of Turkish plastics sector. Regarding the transaction, Hakan Plastik stated that its management will keep the office. It was also stated that “While Hakan Plastik have gained the ability to implement its strategy of providing customeroriented solutions faster and more powerfully through the partnership process, GF had the chance to add the markets of Turkey and neighbouring countries to its growing portfolio and complete its high quality products with the pipe systems of the same quality”.
PLASTECH, the organisation of EGEPLASDER-İZFAŞ brings the sector together
The second PLASTECH fair organised by the cooperation of EGEPLASDER and İZFAŞ has ended. While companies from 10 different countries attended the fair held in İzmir, there were visitors from 29 different countries. 133 domestic and foreign companies displayed their products in the fair.
Negative propaganda on plastics costs the number of trees equivalent to the forest Belgrade in three years! The misconceptions about single-use products due to lack of information and negative statements with regard to this misconception affect the consumer behaviour. The research
BREAKING NEWS
conducted by PAGDER revealed that the majority of consumers prefer “paper cups” for being environment-friendly and healthy. What is more interesting is that most of the consumers do not know that the surface of paper cups that contacts liquid is covered with plastics.
Cooperation agreement signed between PAGDER and BAP, the Bulgarian Association Polymers Industrialists A cooperation agreement has been signed between PAGDER and BAP, the Bulgarian Association Polymers Industrialists. After the meetings held in PLASTECH – 2, Plastics, Packaging, and Technology Fair organised by İZFAŞ and EGEPLASDER in April, a cooperation agreement that is intended to enhance the cooperation between the two countries in industrial and commercial aspects was signed between Venelin Marinov, the Chairman of BAP and Hüseyin Semerci, the Chairman of PAGDER. Therefore, PAGDER has made its fourth recent cooperation agreement with a non-governmental organisation after BPF – British Plastics Industrialists Federation, OPPI – Organisation of Indian Plastics Industrialists, and Assocomaplast – Association of Italian Plastics and Rubber Machinery Manufacturers.
The LİYAKAT Association reaches the disadvantaged women with the project “Labour is Ready. Come on to the Table” The Leader Creative Participants Association (LİYAKAT) has been successful with the programme it applied to 15 disadvantaged women within the scope of the project called “Labour is Ready. Come on to the Table”, which is intended to raise awareness for female labour. Being employed in sector’s companies after being trained as plastics injection operators, the women have reached the income that will allow them to make a living.
D–8 countries to establish a common association in the field of petrochemicals The international cooperation network of PLASFED is expanding. D-8 countries have decided to establish an association that will include the companies and organisations o p e r at i n g in petrochemicals sector only.
It was decided in the meeting where Turkey was represented by PLASFED and PAGDER that the preparations shall be complete until 2014.
Zoning, parcelling and infrastructure implementations in PAGDER & ASLAN OSB to be completed by September The progress made in PAGDER & ASLAN Private OSB the first organised industrial zone (OSB) for plastics established in Kırklareli district Vize was evaluated by the sector’s representatives. In the meeting held in the presence of Hüseyin Semerci, the Chairman of PAGDER and Fidan Arslan, the Chairman of the Board of PAOSB, it was reminded that the private OSB provided the investors with the rights to be included in the project or assign their rights whenever they want. Stating that zoning, parcelling, and infrastructure projects are planned to be completed by September 2013, Fidan Arslan stated that such initiatives would also revive employment in the region, and that he is happy to provide plastics industrialists with an opportunity for investment with incentives and establish a modern manufacturing site.
INTERVIEW: A Success Story Koray Tütek, the Vice-General Manager of Serdar Plastik: “The sectors complementing one another should unite” K o r a y Tütek, the Vice-General Manager of Serdar Plastik, one of the Turkish plastics companies “with products in space” and which catches attention with original designs said that transition to value-added products was inevitable in plastics sector. Tütek also stated that a new road map should be drawn for transition to new areas with high added value, and that it is important for the complementing sectors to come together at this point. Emphasizing that larger companies should show a more generous attitude towards ownership on product designs and products, Tütek stated that the companies should embrace an “efficiencybased” approach for designing and marketing such products.
INTERVIEW: EXPERIENCE Hayrullah Yelkenci, Former Chairman of PAGDER and one of the connoisseurs of the sector: “Half of the existing plastics processing machines have to be replaced” Former Chairman of PAGDER and one of the connoisseurs of Turkish plastics processing machinery sector, Hayrullah Yelkenci answered the
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PLASFEDDERGİ
questions of PLASFED MAGAZINE. Expressing hope for the future, Yelkenci signals a difficult period for plastics processing machinery. Having experienced all the stages that the sector has undergone since the time he started manufacturing machinery in 1969, Hayrullah Yelkenci is of the opinion that the conducts of the members will play a role in shaping the future of the sector. Yelkenci underlines that it is important to unite in communicating the problems of the sector and the efforts made yield the results.
ATLAS: The largest African economy and BRICS country South Africa has promising potential South Africa, the largest economy of Africa, which receives a foreign capital of up to 8 billion dollars per year, promises a strong market for the plastics sector. Having been included in the target countries of Turkey, South Africa will keep attracting attention in the future. Catching increasingly more attention with its struggle against the racist government, Nelson Mandela as the symbol of this struggle, and FIFA World Cup 2010, this country has star prospects in the future.
INTERVIEW: PROFILE Kemal Zorlu, the Chief Executive Officer of Zorlu Holding: “Non-standard production is a betrayal on next generations” Incorporating the rooted brands of Turkey such as Egeplast and Egeyıldız, Mazhar Zorlu Holding prepares for new investments in the plastics sector. Answering the questions of PLASFED MAGAZINE, Kemal Zorlu, the CEO of Mazhar Zorlu Holding, stated that the sector will be under the pressure of competition due to the investments made in the market countries, and that domestic competition will become more severe due to the major companies entering the Turkish market. Stating that one of the most important ways to respond this process is investment in target countries, Zorlu underlined that his companies concentrated on this solution. Pointing to the non-standard production as one of the top priority problems inside Turkey, Kemal Zorlu stated that the companies damaging the sector’s image have become one of the most problematic issues other than decision-making processes or facts that cannot be directed.