Chemicals and Chemical Products Manufacturing Industry Sector Report Announced. “Clustering as a Remedy” According to the "Chemicals and Chemical Products Manufacturing Industry Sector Report" prepared by the Istanbul Chamber of Industry (ISO), Turkey's chemical product exports doubled in the 2007-2013 period and reached 6 billion dollars.
The “Chemicals and Chemical Products Manufacturing Industry Sector Report”, created with the contributions of the chemical industry professional committees and non-governmental organizations of the Istanbul Chamber of Industry (ISO), has been announced. Accordingly, exports of chemicals and chemical products manufacturing industry, one of the sub-sectors of the chemical industry, doubled in the 2007-2013 period and reached 6 billion dollars. The share of the sector in total exports increased to about 4 percent. The sector, whose export unit value increased by 66 percent, exceeded the average value increase of the manufacturing industry by 8 points. In 2013, the sector's imports amounted to 25 billion dollars and its share in total Turkey imports was approximately 10 percent.
In the report, it is stated that the Turkish chemical industry, which contributes to the development of the economy by producing raw materials and intermediate products for all branches of industry, aims to export 2023 billion dollars in 17; It was stated that in order to achieve this goal, measures such as increasing the production capacity of raw materials and intermediate goods, production of high value-added products and clustering of the industry should be taken.
Support is necessary to reduce dependency on imports
ISO Chemicals and Chemical Products Manufacturing Industry Sector Reportwas announced at the meeting attended by sector representatives. keynote speaker ISO Nahit Kemalbay, Member of the Board of Directors, said, “It is important to support the chemical industry, which provides intermediate and raw materials to all branches of industry, in terms of both R&D and production costs in order to achieve a competitive structure and reduce dependency on imports.”
Stating that the chemicals and chemical products manufacturing industry constitutes a significant 4,5 percent of the added value produced in our manufacturing industry, Kemalbay said, “The industry, which provides raw materials and intermediate products to almost all our industries with its product variety, has an extremely strategic importance. For this reason, it is of great importance for our entire industry that our chemical industry gains a competitive structure and that it is supported by policies and investments that will reduce its disadvantages arising from dependence on imports.
Making the presentation of the report, ISO Consultant Dr. Can Fuat Gürlesel underlined that the scope of the report is also quite wide due to the wide scope of the sector, and underlined that the sector grew above the manufacturing industry average. Gürlesel said, “Generally, while the share of the export figures of the sectors in Turkey's exports remained flat, the chemicals and chemical products sector increased its share. In the coming period, foreign dependency on raw materials and intermediate products should be reduced.”
Clustering of the chemical industry, the antidote to the current account deficit
Speaking at the panel moderated by ISO Consultant Can Fuat Gürlesel, held after the announcement of the report, ISO 17th Group Basic Chemical Industry Professional Committeei Chairman Haluk Erceber said that the chemical industry, which has an indispensable feature because it provides raw materials and intermediates to all industries, has the second largest share in Turkey's foreign trade deficit. Pointing out that the sector's contribution to the foreign trade deficit has now reached $29 billion, Erceber said, “Because Turkey has opened its doors to imports in the chemical industry. We are worried that this deficit will increase to 80-90 billion dollars in the future. The antidote to this situation is clustering, but there is no clustering in the field of chemistry in Turkey. There are more than 200 clusters in Germany, which is one of the countries with a strong economy and exports over 50 billion dollars annually in this field. It is obvious that Turkey needs to establish a market-oriented cluster. It is necessary to put it into practice and see its contributions. If there was a cluster, the contribution of the sector to the current account deficit would have decreased from $29 billion to $12 billion. Only 1 percent of the companies that make up the chemical industry in Turkey are on a large scale, but this rate is 56 percent in developed countries.
Chemport Chemical Specialized Industrial Zone Clustering ProjectHaluk Erceber said, “To talk about a country with a strong industry, that country's industry must be strong in chemistry. The chemical industry is one of the main sectors. However, there is no clustering in the field of chemistry in Turkey," he said.
Machinery and equipment support required
ISO 18th Group Paint, Varnish, Resin and Various Chemical Industry Professional Committee Member Adil Pelister said that the enthusiasm of the chemical industry, which was stuck with the regulations, was broken and said, “There is no area where chemical products are not entered. Therefore, we have to give importance to this sector in Turkey as in the world. The chemical industry has 2023 billion dollars in 50 targets. This year, exports amounted to 18 billion dollars. We need to roughly double this figure. In particular, we have difficulties in terms of qualified personnel and legislation. Legislation breaks our growth target a little bit. Chemistry is an import-based industry. Therefore, KKDF should be abolished and incentives should be given in investments. "Measures that prevent rent and increase production should be taken," he said.
Sevda Arıkan, Chairman of ISO 19th Group Soap, Detergent, Cosmetics and Essence Industry Professional Committee, evaluated the history of the related sector and said, “The development in the sector is very parallel with the development in the world. The only way to survive is to keep up with the world. When we look at the history of soap, we can see its existence in Rome in 3000 BC. We also find traces of soap in Babylon in 2000 BC. Then the cleaning products pass from the Middle East to Europe. Solid soap turns into powder with washing machines. Cosmetic products date back to the 11th century BC. With the 1900s, the cosmetics industry is developing rapidly. Today, plant-based products are preferred instead of petro-chemical products in these areas.
Turkish Chemical Manufacturers Association Timur Erk, Chairman of the Board of Directors, stated that the development of Turkey depends on the development of the chemical industry and said: “We have been trying to improve the investment environment in Turkey for 12 years. We can no longer invest hundreds of millions of dollars and expect a return in seven years. No Such Thing. The chemical industry is an indicator of the development of a country's industry. If we want to develop like the USA and Germany, chemical industry zones and R&D, innovation We need to set up centres. In addition, grant support for machinery and equipment is essential for the development of the chemical industry. We must train the young population, which is our only advantage, and develop the intellectual capital.”
Paint Manufacturers Association Ahmet Faik Bitlis, Chairman of the Board of Directors, stated that the paint industry is a sector that carries less risk compared to other chemical products, and stated that there are great opportunities not only in the field of construction paint, but also in the field of industrial paint. Bitlis said, “While the growth of Western countries in the paint industry in the world is flat, Asian countries continue to grow. Turkey will continue to grow in the upcoming period, although not as much as Asian countries. If we look at the trends in the world, we observe that water-based paints come to the fore instead of solvent-based paints and that more environmentally friendly paint types are in demand.”
Mentioning the position of the chemical industry in the manufacturing industry and the recent developments, Orhan Çetinkaya, Director of the General Directorate of Industry, Chemical Industry Branch of the Ministry of Science, Industry and Technology, said, "The 2023 targets can only be achieved by giving importance to R&D and innovation, by developing university-industry cooperation, by developing technology can be achieved by increasing its capacity. Because Ministry of Science, Industry and Technology We were restructured. We have adopted the strategic planning approach for the structural transformation of the industry. We have prepared Turkey's Industrial Strategy Document (2011-2014) and set our vision as being Europe's production base for medium and high technology products.”
Tufan Çınarsoy, Secretary General of the Paint Manufacturers Association, who took the floor after the panel, said, “The strategic targets set should be transformed into an action plan by the authorities. We need to identify the sub-sectors where we can compete and grow as a country and focus on these. We must adopt a new economic model and revise the targets set in the past.”
Turkey's strongest point; use of advanced technology
In the chemicals and chemical products manufacturing industry, which is one of the four sub-sectors of the Turkish chemical industry with a production value of 2012 billion TL as of 125; As of 2012, the number of enterprises was 3 thousand 660, the number of employment was 62 thousand 483, and the added value created was 5.9 billion TL. The production value doubled in the period of 2006-2012 and reached 35.2 billion TL.
In the sub-sectors of the chemicals and chemical products manufacturing industry, the paint industry realized both the highest added value with 18 percent and the highest production value with 20 percent share. The highest investment in sub-sectors was made by the sub-industry of cleaning products with a share of 28,1 percent.
In the report, the use of advanced technology in production and high production diversity were counted among Turkey's strengths, while its dependence on foreign countries for the use of raw materials and intermediate goods came to the fore as its weaknesses.
Iraq ranks first in exports, China rose to third place
Turkey's largest markets in 0,5, with a share of 2013 percent in world chemicals and chemical products exports; Iraq, Iran, Russia and Azerbaijan. China has become the industry's third largest market. While the sector exported the most to Iraq with 443 million dollars, this country was followed by Iran with 359 million dollars and China with 351 million dollars. While the largest exporting countries of the sector in the world are the USA, Germany and China, respectively; The largest importing countries were China, the USA and Germany.
The most exported product in the sector; Inorganic chemical products, organic and inorganic components with 890 million dollars. It was followed by soaps with 457 million dollars and washing and cleaning products with 361 million dollars.
In the report, Turkey's oil and natural gas reserves are not sufficient and there is an adequate petrochemistry It was stated that the dependency on imports in chemistry continues due to the lack of production capacity.
12 strategic targets set in chemicals
The 12 strategic targets determined in the report in the Turkish chemicals and chemical products manufacturing industry are as follows:
Increasing the production capacity of raw materials and intermediate goods,
Establishment and clustering of organized specialized industrial zones,
Providing ports and infrastructure on a global scale,
Production of high value-added products,
Reducing energy costs, supporting environmental investments and expenditures,
Increasing research and development activities,
Technical and financial support of companies within the framework of harmonization with EU legislation,
2023 billion dollars of exports in 17,
Improving investment incentives and increasing investment financing opportunities,
Reducing the direct and indirect tax burden on the sector,
To train qualified human resources,
Presence of accredited institutions and laboratories for testing, measurement, classification and certification.
Source : http://www.iso.org.tr/