Industry & Retail
From The Report: Turkey 2015
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Turkey’s industrial sector includes a wide variety of manufacturers, primary producers and traders, responsible between them for a sizeable share of the country’s GDP. Steel, chemicals, pharmaceuticals, electrical and electronic equipment, building materials, cars, jewellery and clothing are all major export earners and magnets for international investors. All have benefitted from – and, indeed, driven – much of the country’s recent economic growth, with goods bearing the “Made in Turkey” label now more prevalent than ever in world markets. With the size of the retail market widely expected to double over the next decade, Turkey represents a major opportunity for retailers. Yet recent years have seen big internationals pulling out or downsizing their involvement, and as the pace of economic growth slows, consumer confidence is weakening and some challenges do remain. For foreign investors, the lesson would appear to be that retail businesses still need a strong dose of local knowledge. Good geographical positioning and local partnerships may therefore be the way forward.

This chapter contains interviews with Bora Yalınay, CFO, Ülker; Sadettin Korkut, General Manager, Petkim Petrokimya Holding; and Muharrem Dörtkaşlı, CEO, Turkish Aerospace Industries.

Articles from this Chapter

Overview

Slower industrial growth in Turkey met with strong market fundamentals and rising exports
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Turkey’s industry includes a wide variety of manufacturers, primary producers and traders, responsible between them for a major share of the country’s GDP. Indeed, in 2014, exports by the entire automotive industry (including components) alone reached $22.27bn – more than the entire GDP of Iceland. Steel, chemicals, pharmaceuticals, electrical and electronic equipment, building materials, cars, jewellery and clothing are all major export earners – and major magnets for international investors.…

Interview

OBG talks to Bora Yalınay, CFO, Ülker
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Interview:Bora Yalınay What does Ülker’s $550m syndication loan, secured in November 2014, indicate for the potential of the industry and retail sector in particular and for Turkey as a whole? BORA YALINAY: First, it is important to mention that the size and attention of this syndication was unprecedented in Turkey before this. A total of 26 banks comprising more than 10 new lending relationships from Europe, the US and Asia committed to the deal. The syndication loan was the largest…

Interview

Sadettin Korkut, General Manager, Petkim Petrokimya Holding
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Interview:Sadettin Korkut What do you believe are the primary factors driving growth in the Turkish petrochemicals industry? SEDATTIN KORKUT: The petrochemicals industry provides raw materials to numerous sectors. Globally, it has assumed a level of importance on par with the iron and steel sector, as one of the primary forces in the development of a country’s industrial base. In Turkey, demand for petrochemical goods outpaces GDP growth by a factor of two. In fact, Turkey is one of the…

Analysis

Turkey’s defence sector to boost exports as it transitions from arms procurement to manufacture and sale
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Turkey has seen a transformation in its defence industry in recent years, with a noticeable shift from arms procurement to arms manufacture and sales. Turkish-made defence equipment has been attracting buyers from around the world, building on growing confidence and skill in a string of related domestic sectors, from automotives to shipbuilding and aerospace. The overall aim of the country’s defence producers is an ambitious one: the goal is to boost exports to $25bn by 2023, from around $1.6bn…

Interview

Muharrem Dörtkaşlı, CEO, Turkish Aerospace Industries
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Interview:Muharrem Dörtkaşlı What is the strategic importance of developing the Turkish aerospace and defence industries? MUHARREM DÖRTKAŞLI: The aerospace and defence industry promotes the development of different segments of the economy such as aeronautics, software, sensor systems and information technologies, as well as the country’s industrial base. Between 2006 and 2014, the annual revenue of Turkey’s aerospace and defence industry increased by 220%, and exports rose by 240%.…

Analysis

Iron in the soul: Metals industry will benefit from an expected rise in demand
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While Turkey’s metals industry may not be globally renowned, its products are a major export and source of revenue. Indeed, a “Made in Turkey” stamp can now be found on everything from the copper wires in NASA spacecraft to the steel pots and pans in many of the world’s kitchens. The sector faces some important challenges, however, in its future development. Sourcing raw materials is one of the chief ones, with moves afoot to boost domestic exploration, as well as to free up supply beyond…

Analysis

More precious: Legislative changes to further boost growth of the jewellery industry
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Turkey is one of the world’s top gold and jewellery exporters, sending manufactured pieces and fine precious metals and stones to many regional countries as well as further afield. The country imports a great deal of these valuable commodities and products, while its domestic market is a robust one – for both the buying and selling of gold, diamonds and jewellery. There is a large and developed domestic production industry for jewellery, with a growing international reputation. Legislative moves…

Analysis

Turkey’s automotive sector sees increase in investment, output and exports
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While the economic downturn in neighbouring Europe affected Turkey’s automotive industry negatively in the years after 2008 – as its largest export market shrank – 2013 saw some signs of a recovery north of the border, with a concomitant boost to European sales. European car sales grew in 2014 and early 2015, with the vast majority of Turkey’s automotive exports destined for the EU. Now, the sector faces the challenge of building on that while also keeping its interests to the fore in the…

Overview

A growth market: The sector is being formalised through a new retail law as local retailers seek new opportunities abroad
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With the size of the market widely expected to double over the next decade, Turkey represents a major opportunity for retailers. Yet with recent years seeing big internationals pulling out or downsizing their participations, and as the pace of economic growth slows, consumer confidence is weakening and some challenges do remain. At the same time though, local groups have thrived, with this applying not just to modern retail, but to traditional outlets as well. Turkish retail therefore demonstrates…

Analysis

Slower growth: Although consumer sentiment is weakening, the outlook remains positive
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Consumer sentiment in Turkey is weakening as the pace of economic growth slows and consumers tighten their purse strings, potentially slowing the retail sector’s stellar performance in recent years. Turkish retail has been one of the most appealing sectors for investors and consumers thanks to a rapidly expanding economy and a surge in per capita disposable income. On the basis of household expenditure, total retail turnover for 2013 was around $285bn – up from $171bn in 2010, according to the…