Industry
From The Report: Turkey 2012
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In defiance of global economic woes, Turkey managed to grow its export base, which resulted in an increase in industrial production of 9%. Turkey has been seen as an inexpensive alternative to European export products, mainly for regional buyers, and the country has hosted a booming trade in consumer goods. Vehicle sales rose by some 14%, steel production by 17%, and white goods sales jumped 19% in 2011. The government is currently focused on increasing investments into research and development (R&D), in the interest of making Turkey a value-added and high-tech exporter. Free zones and technology parks are central to this strategy, as are a raft of newly announced incentives for investors into R&D activities.

The chapter has interviews with several of Turkey’s top industrial players, including Hüseyin Özdilek, the Chairman of Özdilek Holding; Tuncay Özilhan, the CEO of Anadolu Group; and Muharrem Dortkasli, the President & CEO of Turkish Aerospace Industries.

Articles from this Chapter

Overview

Gaining ground: Building a global reputation for exporting high-quality products
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From Ottoman textiles to high-tech weapons systems, Turkey has a long history of industrial activity. The challenge now is reducing the trade imbalance while maintaining impressive growth. Booming domestic demand and record exports increased industrial production in Turkey by almost 9% in 2011, powering economic growth that was second only to China among G20 nations. Productivity gains, proximity to affluent export markets and government incentives to lure investment are all lifting manufacturing…

Interview

OBG talks to Hüseyin Özdilek, President, Özdilek Holding
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Interview: Hüseyin Özdilek HUSEYIN ÖZDİLEK: The textiles sector is labour intensive, and because cotton can be speculated on the stock market its price rises artificially. Currently, the price of cotton is distorted by speculation, which is naturally having an effect on supply and demand, and, ultimately, the production of finished goods. In addition, it is impossible for Turkish firms to compete with China and India in terms of labour costs. Turkey therefore has to rely on its proximity…

Interview

OBG talks to Tuncay Özilhan, CEO, Anadolu Group
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Interview: Tuncay Özilhan Is increased competition from foreign companies, which are drawn by demographic growth, squeezing local manufacturers? TUNCAY ÖZİLHAN: Over the past two decades, Turkey has experienced two major economic transformations. First, it became part of the EU’s Customs Union, and second, following the 2001 financial crisis, Turkey transformed itself into a real market economy through IMF standby agreements. This opened the door to global competitors, and since 2003, the…

Analysis

Steel resolve: Production of steel remains strong with high domestic demand and new export markets
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Even as global steel output hit a new record, Turkey clocked the world’s fastest growth in steel production in 2011. Now consumption worldwide is set to decrease due to continued economic strains in Europe and a slowdown in China. In spite of these challenges, however, Turkish steel should still see robust growth in the coming years as domestic demand remains strong. Turkey ranked as Europe’s second- and the world’s 10th-largest producer of steel in 2011, with output hitting 34.1m tonnes,…

Interview

Domestic production: OBG talks to Muharrem Dörtkaşl›, President and CEO, Turkish Aerospace Industries (TAI)
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Interview: Muharrem Dörtkaşl How is the defence industry tailored to address national security concerns? MUHARREM DÖRTKAŞLI: Turkey shares borders with eight countries and has coastal borders extending some 7200 km. Externally, Turkey is maintaining relationships all over the world, and homeland security and national defence are closely related with our neighbours’ political status. Meanwhile internally, Turkey has suffered from decades of terrorism and ethnic conflict. Thus, the defence…

Analysis

A driving force: Automobile production has been increasing steadily
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With production expanding, heightened foreign interest and a new push to build a domestic car brand, the automotive sector in Turkey is currently experiencing a surge in output. This comes as the country has established itself as a natural base for supplying both European and Middle Eastern markets, with the sector’s contributions to exports being of major importance to the economy as a whole. At the same time, economic growth, credit expansion and an improving transport infrastructure –…

Analysis

In the zone: Industrial parks provide incentives for local and foreign investors alike
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With economic activity in Turkey traditionally centred on the north-western provinces around Istanbul, along with the Izmir and Ankara urban areas, successive governments have attempted to incentivise businesses to establish themselves in other, less-developed regions. Since the 1960s, a key part of this strategy has been the creation of a variety of different classes of industrial zone. These aim to create a fairer spread of wealth around the country, while also, more recently, to encourage…