01 Ceramic Sanitary Ware Ninth Development Plan · CERAMIC SANITARY WARE INDUSTRY NINTH DEVELOPMENT...

UNDERSECRETARIAT OF STATE PLANNING ORGANIZATION

CERAMIC SANITARY WARE INDUSTRY

NINTH DEVELOPMENT PLAN

(2007-2013)

CONTENTS

1. PREAMBLE ..................................................................................................................

2. PRESENT SITUATION AND PROBLEMS ........................................................................ 2.1. Present Situation

.........................................................................................................

2.1.1. Number of Undertakings, Present Capacity and Use.....................................

2.1.2. Production......................................................................................................

2.1.3. Foreign Trade................................................................................................

2.1.4. Domestic Consumption ................................................................................

2.1.5. Employment...................................................................................................

2.1.6. Evaluation of Present Subsidy Measures ………...............................................

2.1.7. Competitive Power of the Industry .............................................................. ..

2.1.8. Relations with Other Industries and Auxiliary Industry .................................

2.1.9.Evaluation of Present Situation………...............................................................

2.2. Position of the Industry in the World (OECD, WTO, countries) and EU Countries

…………………………………………………………………………………………………………………………..

2.3. SWOT (Strong Points – Weak Points and Problems – Opportunities - Threats) Analysis1.....................................................................................................................

3. DEVELOPMENTS EXPECTED IN THE INDUSTRY IN THE NINTH PLAN PERIOD (2007-2013)...........................................................................................................................

3.1. Domestic Demand Projection ..............................................................................

3.2. Export Projection…............................................................................................... .

3.3. Production Projection……..............................................................................................

3.4. Import Projection…...............................................................................................

3.5. Investment Projections ..........................................................................................

3.5.1. New Capacity to be Added………….. ...............................................................................

3.5.2. Potential Investment Fields and Locations...................................................

3.6. Potential Developments in Technology, R&D Activities, Employment Market, Input Markets, Environmental Practices, etc. and Their Impact on the Competitive Power of the Industry………………….........................................................................

3.7. Potential Developments in relation with Other Industries and Auxiliary Industry .......................................................................................................................................

3.8. Role of Government in the Industry, Privatization Activities and Potential Impacts………………………………………………………………………..............

4. IMPACT OF EU ACCESSION PROCESS ON THE INDUSTRY ...........................

5. STRATEGIES, OBJECT, POLICY, PRIORITIES AND MEASURES RECOMMENDED FOR THE NINTH PLAN PERIOD2

........................................................................................................................................................

5.1. Basic Sectoral Vision and Strategy ........................................................................

5.2. Basic Objects and Policies ..................................................................................

5.2.1 Objects and Policies for EU Accession Process………................................

5.2.2. Other Objects and Policies ...........................................................................

5.3. Priorities, Measures and Legal – Institutional Arrangements for Realizing the Objects and Policies.......................................................................................................

5.3.1. Priorities, Measures and Legal – Institutional Arrangements for EU Accession Process ..................................................................................................................

5.3.2. Measures on Subsidy System……..............................................................

5.3.3. Other Priorities, Measures and Legal-Institutional Arrangements.............

5.4. Total Advantages and Disadvantages of Policies, Measures and Arrangements …………………………………………………………………………………..

1 Explanation of the SWOT is submitted in attached Schedule 2.

2 Expected to be determined considering results derived from the present situation analysis and EU perspective and basic development axes.

6. RESULT AND OVERALL EVALUATION.................................................................

6.1. Classification of Basic Objects and Policies and Priorities and Measures by Development Axes (Matrix form) .............................................................................

6.2. Basic Implications in terms of Ninth Development Plan ... .................................

SCHEDULE 1- Investment Subsidy Certificates Issued for Ceramic Sanitary Ware Industry

SCHEDULE 2- Basic Problems of Ceramic Sanitary Ware Industry and Solution Proposals

SCHEDULE 3- Collaboration Projects for Ceramic Sanitary Ware Industry

SCHEDULE 4- Ceramic Sanitary Ware Sub-Commission Members

CERAMIC SANITARY WARE INDUSTRY

NINTH DEVELOPMENT PLAN (2007-2013)

1. PREAMBLE

Description of the Industry and Its Boundaries

In a general sense, ceramics sanitary ware products with water absorption value under 0.75 where inorganic-non-metallic raw materials are mixed at specific ratios, brought into a fluid clay, then shaped in plaster and/or synthetic resin moulds and fired at 1200-1250 °C. The basic structure is composed of inorganic raw materials like clay, kaolin, quartz and feldspar. Wash basins, pedestals, toilet bowls, tanks, bidets, WC pans, urinals and shower baths are the basic products of the product range in white and color. Directs boundaries of the sector by Customs Code Sub-Heading Number is as follows.

Table 1: Ceramics Sanitary Ware Customs Tariff and Sub-Heading Numbers

69.10 Ceramic sinks, wash basins, wash basin pedestals, baths, bidets,

water closet pans, flushing cisterns, urinals and similar sanitary fixtures:

Tiles, cubes and other articles 6910.10.00.00.00 Of porcelain and china 6910.90.00.00.00 Others

According to SITC (Revision 3), Ceramic sanitary ware are classified as

81221 (Ceramic sinks, wash basins and pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar fixtures of porcelain or china)

81229 (Ceramic sinks, wash basins and pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar fixtures not of porcelain or china)

2. PRESENT SITUATION AND PROBLEMS

2.1. Present Situation

Turkey, which has started ceramic production in industrial sense in 1950s presently is

one of the leading sanitary ware producing countries in the world. The ceramic sanitary ware industry is an industrial discipline providing employment and foreign currency input to our country which has an effective and important place in the country’s economy. The industry using domestic inputs to a large extent is one of the sectors with highest competitive power of our country with its output value of 300 million US Dollars per year and 150 million US Dollars exports. Our country is first in Europe in production and exports of ceramic sanitary ware. Ceramic sanitary ware industry is one of the sectors with highest value added.

2.1.1. Number of Establishments, Present Capacity and Utilization

Production sites, foreign capital shareholdings, number of workers and capacities of establishments operating in the ceramic sanitary ware industry are given in Table 4.

Table 4 : Establishments Producing in the CSW (Ceramic Sanitary Ware) Industry

Rank:

Name of Establishment

Place

Area of

Foreign Shareholding,

Year 2005

Production

if any

(%)

Number

of

Workers

Capacity

(m2

)

Private Sector Establishments 1. ECZACIBAŞI BOZÜYÜK CSW 0 1.600 5.200.00

0 2. SEREL MANİSA CSW 0 587 2.100.000 3. KALEVİT ÇANAKKALE CSW 50 340 1.600.000 4. EGE İZMİR CSW 0 376 1.500.000 5. ÇENESİZLER ÇORUM CSW 0 400 1.400.000 6. ÇANAKÇILAR ZONGULDAK CSW 0 365 1.000.000 7. TOPRAK BOZÜYÜK CSW 0 388 930.000

8. HERİŞ KÜTAHYA CSW 0 310 700.0009. KILINÇ TEKİRDAĞ CSW 0 200 600.000

10. İDESER İSTANBUL CSW 0 166 500.00011. TURKUAZ KAYSERİ CSW 0 153 460.00012. DOĞVİT İSTANBUL CSW 0 140 320.00013. ESVİT ESKİŞEHİR CSW 0 100 300.00014. ERBE İSTANBUL CSW 0 83 250.00015. ÖZVİT İZMİT CSW 0 83 250.00016. ÇELEBİLER SAKARYA CSW 0 83 250.00017. DURAVİT İSTANBUL CSW 80 110 240.00018. ÇAĞ İSTANBUL CSW 0 73 220.00019. SEREN BOZÜYÜK CSW 0 67 200.00020. EYVİT KAYSERİ CSW 0 60 180.00021. BOZVİT BOZÜYÜK CSW 0 57 170.00022. TURAVİT ORDU CSW 0 53 160.00023. BARTIN ZONGULDAK CSW 0 40 120.000

24. SELVİT ESKİŞEHİR CSW 0 33 100.00025. ÖZIŞIK ESKİŞEHİR CSW 0 33 100.00026. ÇAMAŞ ORDU CSW 0 33 100.000

Source : Sersa 5.934 18.950.000

Table 3 : Installed Capacities in CSW Sector (Unit: One thousand pieces)

YEARS Rank Main Goods

Capacity and Capacity Utilization Rate

Capacity Unit

1999 2000 2001 2002 2003 2004 2005 Proj.

1- Ceramics Sanitary Ware

Capacity Thousand Pieces

12.335 12.970 13.405 13.615 14.340 17,150 18.950

CUR 60 % 62 % 57 % 64 % 69 % 72 % 76 %

2.1.2. Production:

a) Production Method-Technology:

The production phases of Ceramic Sanitary Ware are as follows:

- Clay, kaolin, quartz, feldspar and other auxiliary materials are ground in a mill in slurry form, deriving clay.

- The clay brought into desired consistency is shaped in plaster or synthetic resin (plastic) moulds using different casting technologies. The shaped products are dried so that the water contained in the product as moisture is vaporized.

- Dried products are glazed by robot or hand in semi-finished form. Glazed products are fired at approximately 1250 °C.

- After firing, products with reparable defects will be prepared and fired second time at approximately 1200 °C.

Since labor and energy costs are high in the Sanitary Ware, which is a labor intensive sector, the industry has been guided to use technology. Especially EU countries have given momentum to such studies and research and as a result, significant technological developments have taken place in production phases. These developments are as follows:

- Moving to battery casting technique in plaster moulds;

a) Output per unit area and per capita has increased.

b) Mould drying was achieved, allowing more than one casting per day.

c) Power used in drying decreased as low mould drying areas decreased.

- Synthetic resin moulds developed as alternative to plaster moulds have brought along the following advantages:

a) Drying problem and power used for it were eliminated.

b) It has become possible to cast under pressure, thus increasing daily number of casting.

c) Workmanship following shaping decreased.

d) Output per unit areas increased.

e) Casting process became automatic.

f) Shaping errors decreased, increasing productivity.

- Robot and automatic shaking techniques in glazing are the technological developments in recent years.

- Direct combustion kilns were developed in place of indirect combustion in firing, leading to savings in power, capacity and time.

- Products with reparable defects after firing are repaired, making it possible to recover such scrap products through second firing.

In conclusion, technological development and accumulation of knowledge have brought along productivity, profitability and quality. These new technologies are used in new establishments in our country and in modernization of plants.

b) Product Standards:

General standards for ceramic sanitary ware are given in Table 4.

Table 7: General Standards for Ceramic Sanitary Ware

TITLE TS NO Toilet Bowls Stand-Alone and in Sets with Flush TS EN 997

Basins-With Pedestal-Connection Dimensions TS EN 31

Wash basins TS 605

Western style WC pans TS 800

Sinks TS 698

Turkish Style WC pans TS 799

Tanks-for Turkish Style or Western Style WC pans TS 823

Urinals-Of Ceramic TS 2747

Bidets-Of Ceramic TS 2748

Shower Baths- Of Ceramic TS 2750

Source: Turkish Standards Institute

c) Production Quantity and Value:

Starting from 1999, ceramic sanitary ware production has grown continuously, save 2001. There is a continuous growth in the production of ceramic sanitary ware. The yearly average rate of increase in the output of the industry in years 1990-2005 is about 15.5 %.

Right after the November 2000 crisis, as exchange rates were left to fluctuate freely as a result of the February 2001 economic crisis, the sudden depreciation of the Turkish Lira against Dollar and price increases of fuel and energy have all affected

ceramic sanitary ware manufacturers significantly adversely in that period. Firm operating in the industry have to interrupt their production at times and as a result, the output of the industry has dropped by 4,3 % in 2001 compared to 2000. In parallel with the partial increase in domestic demand and the growth in exports as a result of the positive developments in the economy in general from 2002 to 2005, the output in this period has increased at rates specified in Table x by years.

Table 5. Production Volume

Years Output (m2) Change (%)

1999 7.450.000 4,1 2000 8.000.000 7,3 2001 7.650.000 - 4,3 2002 8.680.000 13,5 2003 9.840.000 13,3 2004 12.380.000 25,9

2005* 14.375.000 16,1 (*) Estimated

There was revitalization in the property industry which went through a serious contraction following economic crises and earthquakes starting from 2004 and a two to one growth took place starting from the first quarter of 2005. As housing under construction will be available in 2006 and mortgage system is launched, it is expected that the growth in the industry will continue to grow in folds.

d) Costs:

Data received from applicable firms on unit production inputs were consolidated and given in Table x. It does not represent the whole industry. When calculating production inputs, depreciation and overhead were not included. The production costs of firms vary greatly as the size of firms in the industry and their structures are very different. As automation has increased and firing durations have decreased in recent years, causing a relative reduction in energy costs, still energy has an important share among ceramic sanitary ware inputs. For commercial cost, marketing and non-production overhead is calculated as 50 % of the industrial cost

Table 6: Ceramic Sanitary Ware Production Inputs

Inputs TL/kg Percentage

Raw Materials 243.000 23 % Auxiliary Materials 108.000 10 % Electricity 67.500 6 % Natural Gas 129.600 12 %

Labor 310.500 29 % Operating Supplies 108.000 10 % Other 118.800 11 %

TOTAL 1.080.000

100%

2.1.3. Foreign Trade:

a) Imports:

(1) Product Imports:

The imports of ceramic sanitary ware in Turkey have a very small share of consumption. Imports of the industry in 2004 were 677 tons, constituting 1 % of domestic consumption (64.400 tons – 4.500.000 pieces).

EU Countries have the greatest share of Turkey’s ceramic sanitary ware imports. Turkey has made the highest ceramic sanitary ware imports in 2004 from Spain (188 tons), Germany (148 tons) and Italy (178 tons).

Table7. Ceramic Sanitary Ware Industry Product Imports (Volume: kg)

1999 2000 2001 2002 2003 2004 2005 Germany 51.536 34.382 21.651 70.850 146.177 148.713 146.273Spain 6.262 68.004 56.763 35.058 24.738 188.400 162.479Italy 26.486 28.361 16.678 17.220 23.599 178.955 24.222 P. Rep. of China

159 27.333 86.970 USA 6.347 11.769 3.946 2.252 3.987 7.268 5.646 Norway 693 256 1.220 328 6.205 2.977 England 2.531 22.803 2.438 2.392 8.269 7.995 24.233 Austria 726 43 3.811 190 195 103 1.762 France 1.582 414 10.202 737 1.126 2.106 2.553 Egypt 102 1 5.185 896 24.392 78.131 13.470 Others 34.811 27.038 61.454 40.416 62.453 32.507 25.008 Total 130.383 193.508 182.384 171.231 295.423 677.716 495.593

Source: DTM verileri

Note: Year 2005 data reflect January-September period.

Imported products are upscale products imported from Germany, Italy and Spain. The average import price for 2003 in our country is USD 5.98/kg, with this figure being 4,56 USD/kg in 2004.

Table 8. Breakdown of Ceramic Sanitary Ware Imports by Country

(Value : Thousand USD , Price : USD/kg)

1999

2000

2001

2002

2003

2004

2005 Value Price Value Price Value Price Value Price Value Price Value Price Value Price

Germany 475 9,22 319 9,28 199 9,19 413 5,83 778 5,32 880 5,92 1.088 7,44 Spain 16 2,59 253 3,71 147 2,59 99 2,82 126 5,08 627 3,33 537 3,31 Italy 242 9,13 270 9,51 130 7,82 189 10,97 381 16,15 678 3,79 477 19,71 China 0 0 0 0 1 9,21 73 2,67 217 2,49 USA 126 19,87 108 9,14 52 13,06 49 21,94 150 37,61 183 25,18 125 22,12 Norway 0 15 21,42 3 10,91 27 21,84 17 50,91 163 26,31 91 30,45 England 78 30,92 57 2,49 29 11,99 46 19,02 40 4,83 59 7,35 70 2,90 Austria 7 9,98 2 36,19 27 7,05 6 30,81 1 6,21 1 5,31 65 36,92 France 19 11,83 6 13,38 49 4,78 9 12,57 15 13,06 33 15,75 44 17,14 Egypt 0 1,93 0 11,00 8 1,56 1 1,29 64 2,62 208 2,67 39 2,86 Others 220 6,33 1

66,23 262 4,27 1

74,38 194 3,11 187 5,74 147 5,88

Total 1,184 9,08 1,196 6,18 906 4,97 1,016 5,93 1,767 5,98 3,092 4,56 2,900 5,85 Note: Year 2005 data reflect January-September period.

There has been an increase in imports of sanitary ware made from Republic of China despite the Surveillance Practice implemented as of July 2004.

3) Raw Material Imports: Clay is imported from Ukraine and UK from abroad, also corund, certain ceramic dyes, oxides and chemicals are imported from other countries as auxiliary raw materials.

3) Raw Material Imports: Clay is imported from abroad; also auxiliary material like zirconium, corund, certain ceramic dyes, oxides and chemicals are imported from other countries.

b) Exports:

The exports of ceramic sanitary ware have grown regularly since 1999. The exports of ceramic sanitary ware which were at the level 48.746 tons in 1999, have reached 112.542 square meters in 2004. The value of exports has risen from USD 59,4 million to USD 161,8 million. The export price has dropped from USD 1,22/kg in 1999 to USD 1,11/kg in 2002. The basic reason

for the rise in export prices in years 2003-2005 is the change in the Euro/USD parity in favor of Euro. Because approximately 60 % of the exports of the industry is to the Euro zone.

Appreciation of TL in 2004-2005 has affected the exports of the industry adversely. In the first nine months of 2005, exports of ceramic sanitary ware have declined by 12,7 % compared to the same period of the last year. It is expected that the exports of the industry are 121.260 tons as of end of 2005.

Table 9 : Ceramic Sanitary Ware Industry Exports

Years Exports

(Volume)

Exports

(Value)

Export Price

Change in Volume

Change

Value

Change

Price 1999 48.746 59.434 1,22 - - - 2000 53.576 59.656 1,11 9,91 0,37 -8,68 2001 60.848 77.718 1,28 13,57 30,28 14,71 2002 77.852 95.325 1,22 27,95 22,65 -4,13 2003 91.524 122.316 1,34 17,56 28,31 9,15 2004 112.542 161.826 1,44 22,96 32,30 7,59

2005* 90.948 134.252 1,48 Volume: Tons Value: Thousand USD Price :USD/kg

(*) Year 2005 data reflect January-September period.

The breakdown of ceramic sanitary ware exports by countries is given in Table 10. The highest destination countries in terms of volume as of 2004 are in order; UK, USA, Germany and France.

Table 10 : Breakdown of Ceramic Sanitary Ware Exports by Countries (Volume: Tons)

1999 2000 2001 2002 2003 2004 2005 England 8.171 10.159 12.048 17.026 20.446 25.838 18.432 USA 1.040 1.938 2.812 8.616 13.671 18.455 14.878 Germany 21.383 16.543 10.603 10.445 11.889 12.664 9.328

Spain 170 2.062 5.834 6.784 6.091 4.935 5.576 France 1.181 1.564 1.721 2.842 5.073 6.049 4.893 Bulgaria 107 44 6.151 5.933 4.944 4.293 4.222 Italy 1.229 5.385 2.272 3.362 3.490 3.810 3.565 Israel 2.131 2.923 3.218 3.733 4.418 5.052 3.702 Ist. Deri 2 0 1 829 2.144 2.163 1.561 Sweden 27 44 84 657 534 1.201 1.505 Others 13.306 12.913 16.105 17.623 18.823 28.081 23.286 Total 48.746 53.576 60.848 77.852 91.524 112.542 90.948

(*) Year 2005 data reflect January-September period.

Table 11 : Breakdown of Ceramic Sanitary Ware Exports by Countries

(Value : Thousand USD , Price : USD/kg)

1999 2000 2001 2002 2003 2004 2005 Countries Value Price Value Price Value Price Value Price Value Price Value Price Value Price UK 11.951 1,46 13.708 1,35 15.517 1,29 21.211 1,25 27.440 1,34 39.296 1,52 28.817 1,56 USA 1.353 1,30 2.044 1,05 2.996 1,07 9.239 1,07 14.630 1,07 19.585 1,06 17.204 1,16 Germany 24.599 1,15 15.698 0,95 13.532 1,28 14.935 1,43 19.964 1,68 22.307 1,76 17.113 1,83 Spain 265 1,56 1.796 0,87 5.070 0,87 6.283 0,93 6.914 1,14 6.886 1,40 7.803 1,40 France 1.284 1,09 1.713 1,09 2.032 1,18 3.459 1,22 6.484 1,28 8.664 1,43 7.440 1,52 Bulgaria 189 1,77 72 1,65 7.686 1,25 7.779 1,31 8.211 1,66 6.979 1,63 6.187 1,47 Italy 1.145 0,93 6.004 1,12 2.004 0,88 3.106 0,92 3.751 1,07 4.715 1,24 4.651 1,30 Israel 2.279 1,07 2.858 0,98 3.038 0,94 3.286 0,88 4.027 0,91 5.262 1,04 3.724 1,01 İst. Deri 1 0,49 2 4,58 1 0,84 1.419 1,71 3.652 1,70 4.286 1,98 3.334 2,14 Sweden 58 2,17 91 2,06 149 1,78 958 1,46 1.146 2,14 2.367 1,97 3.126 2,08 Others 16.311 1,23 15.670 1,21 25.691 1,60 23.651 1,34 26.096 1,39 41.479 1,48 34.851 1,50 Total 59.434 1,22 59.656 1,11 77.718 1,28 95.325 1,22 122.316 1,34 161.826 1,44 134.252 1,48

Year 2005 data reflect January-September period.

58,7 % of ceramic sanitary ware exports go to EU countries and 16,98 % to North American countries. The breakdown of exports by regions is given in Table X.

Table 12: Breakdown of Ceramic Sanitary Ware Exports by Regions

Regions Year 2003 Year 2004 EU 59,5% 58,7% North America 14,5% 16,9% Asia 13,2% 12,0%

Other Europe 7,8% 7,3% Others 2,9% 3,1% Oceania 1,4% 1,3% Africa 0,7% 0,8% Total 0% 0%

2.1.4. Domestic Consumption:

As the construction industry is at the top of industries most highly affected by the economic crises undergone in 2001, the domestic market contracted significantly in 2001-2002. In parallel with the revitalization experienced in the construction industry starting from 2003, increases were recorded in the domestic sales of the industry.

Table 13. Domestic Consumption in CSW Sector

Years 1999 2000 2001 2002 2003 2004 2005 Volume 4.035.500 4.285.750 3.393.60 3.367.00 3.440.500 4.508.000 5.545.000

In line with the stability in the economy, the movement which started in housing construction which had been quiet for a long time, benefited the construction industry most. As a result, the construction industry grew by 19,7 percent in the first six months of 2005. According to figures announced by the State Statistics Institute on the second quarter of the year, the highest growth among sectors was the construction industry with 22,2 percent. This growth has also triggered 380 industries producing approximately 4,000 items alongside of the auxiliary industry beside construction. The number of buildings for which building licences were issued has grown by 39 percent in January-June period. The fact that supply is adequate despite high housing demand gives rise the growth in the industry.

The housing projects undertaken both by the government and also the private sector in Turkey have played an important role in these growth figures experienced in the construction industry. While low interest and long-term housing loans extended by banks have caused the property industry to boom; this situation has also impacted all sub-sectors of the construction industry positively.

Rents’ bringing 4 times the income bank interest brings has turned real properties once again into most popular tools of investment. While the shift by citizens to purchasing homes following the drop in interest rates has raised property prices; use of home loans has grown by 140 % in the first six months of the year.

In addition to the built luxury homes, housing built by TOKI and KIPTAŞ have offered a great opportunity for low and medium income groups. Demand from abroad has also risen after the legislation on property purchases by aliens.

This invigoration experienced in the construction industry has also affected the ceramic Sanitary Ware industry positively. Domestic sales in 2004 were 4.508.000 pieces. It is expected that in 2005, domestic sales will grow by 23 %, becoming 5.545.000 pieces.

2.1.5. Employment

Employment data on the Ceramic Sanitary Ware industry is given in Table x.

Table 14. Employment Situation in the Ceramic Sanitary Ware Industry

(Unit : Person)

Manpower 1999 2005 High (Technical + 164 281 Medium (Technical + Clerks) 587 1.007 Worker (Plain + Qualified) 2707 4.645 Total 3458 5.934

2.1.6. Evaluation of Present Subsidy Measures

The ceramics industry is situated in different provinces like Eskişehir, Bilecik, Çorum, Kütahya, Uşak, Izmir, Manisa, Aydın, Çanakkale and Zonguldak. Inclusion of some of these provinces within subsidy programs by the most recent decree has created a cost difference between plants producing in these provinces and plants in other provinces and this has lead to unfair competition.

Subsidies should be on sector basis; not only in province or region basis. Whichever sector has the potential to bring added value to our country, that industry should be subsidized. The ceramics industry is one of those sectors with the highest added

value. The “Added Value” in production must be formed to a greater extent in the country so that our country can have a sustainable economic growth. Because development of the “Added Value” defined as “Domestic Production” within the country forms the basis of more production, employment and social welfare.

2.1.7. Competitive Power of the Industry

Ceramic sanitary ware industry is one of our sectors with high competitive power. A major portion of production inputs may be procured from within the country. The establishments in the industry apply the latest technologies continuing with their modernization investments. There is a move from copy designs to original ones in the field of design. Manufacturers employ designers in their organizations and also work with designers abroad.

In the previous plan period, it was stated that in the event there is a customs union with EU, our industry would be affected adversely by this and that necessary safeguards should be adopted. However, a delightful development was that the competitive power and market share of Turkish products in the domestic market has not gone down despite the Customs Union. Competition in international markets is also rather fierce. Still, despite this, the exports of Turkish sanitary ware are growing by volume.

The Turkish ceramic sanitary ware industry is continuously investing in new technologies, adopting measures to reduce costs so that it is able to maintain its competitiveness.

The most important elements decreasing the competitiveness of the industry are the following:

1) High energy costs in our country 2) Lack of transportation infrastructure and high transportation costs.

Acceleration of the energy and infrastructure investments in our country and developments to take place in these two principal industries will ensure that the competitiveness of the ceramics industry will also rise.

2.1.8. Relations Other Industries and Auxiliary Industry

The industry is in close relationship with mining in respect of raw material, chemicals in respect of auxiliary materials and certain chemicals and Housing and Construction, Contracting, Engineering and Consulting Services in respect of products. The entirety of products is used in the construction industry. There are many products used as side products among ceramic sanitary ware and accessories. These are tank inner sets, toilet bowl lids, spiral pipes and hoses, fixtures like valves and taps and toilet paper rolls, etc. These products are procured from the auxiliary industry offered to the consumer together with the product, usually the choice being left to the consumer. This leads to incompatibility especially between tank inner sets and the product and since the consumer opts for auxiliary products which are cheap and non-standard, the total product quality drops. The practice abroad is tanks being sold together with inner sets. Manufacturers in our country, too, are just starting to go with this practice.

2.1.9. Evaluation of Present Situation

Significant developments taking place in the industry in the Eight Plan period were the following:

While the number of firms operating in the industry from 1999 to 2005 has risen from 21 to 26, there was significant increase in terms of capacity and output. The output capacity of the industry has grown from 12.355.000 pieces to 18.950.000 pieces. Number of people employed by the industry has risen from 3.458 to 5.934. In this period, firms have continued with their modernization investments beside capacity increasing ones. The main objective in the firms’ carrying out modernization investment is to increase their competitiveness by reducing their production costs besides raising the quality of their products. Use of new technology allows significant declines in the costs of energy and labor. In this period, significant developments were recorded in terms of output and quality and product diversification. However, the real price level could not be maintained due to the growing competition in the domestic and international markets with both domestic and also international prices dropping, with a significant fall in the profitabilities of the firms.

2.2. Position of the Industry in the EU Countries

PRODUCTION

According to figures announced by European Ceramic Sanitary Ware Manufacturers Federation FECS, the ceramic sanitary ware industry has a stagnant year in 2003. In the European sanitary ware market in 2003, total output was 50,7 million pieces with a decline 0f 1 % compared to 2002.

Turkey is the country with the highest production of ceramic sanitary ware in Europe with an output of 9,8 million pieces. The greatest increase in production in 2003 was by Turkey. Turkey, increasing its output in 2003 by 13,4 % has reached the figure of 9,8 million pieces in 2003. Turkey has achieved 19,4 % of Europe’s production. Italy has ranked second in terms of output with 9,5 million pieces. Spain is the third country in production of sanitary ware with 7 million pieces.

UK has the largest decline percentage wise with 12,1 % lead in decline by 10,2 % by Austria and Switzerland (total of two countries). France’s output has dropped by 7,3 % compared to the previous year, with Spain’s output dropping by 6,8 % in 2003.

Table 15: European Ceramic Sanitary Ware Output (Thousand Pieces)

Countries Year 1999 Year 2000 Year 2001 Year 2002 Year 2003

Turkey 7.450 8.000 7.650 8.680 9.840 Italy 9.661 9.572 9.608 9.732 9.532 Spain 8.502 8.447 8.215 7.550 7.033 Portugal 5.860 6.400 7.992 6.594 6.788 France 5.970 5.912 5.829 5.080 4.709 UK 6.683 5.448 4.820 4.323 3.799 Germany 3.610 3.654 3.638 3.555 3.524 Scandinavia 1.837 1.775 2.675 2.747 2.635 Benelux 1.358 1.416 1.303 1.201 1.219 Austria+Switzerla 948 914 983 922 828 Greece 916 945 770 786 778 Total 52.795 52.483 53.483 51.170 50.685

CONSUMPTION

In 2003, total output has declined by 1 % compared to the previous year; yet, consumption has risen by 1,12 % in 2003, becoming 50,2 million pieces. Italy has ranked first with 8,1 million pieces in ceramic sanitary ware production, followed by France with 7,56 million pieces. UK has ranked third with 7,5 million pieces and Germany fourth with 7,2 million pieces.

The highest market price with 55,90 Euro/piece is Scandinavia among various countries. This is followed by Germany with 53,13 Euro/piece and Italy with 45,46 Euro/piece. The lowest prices were Spain with 29,17 Euro/piece, Portugal with 28,13 Euro/piece and Turkey with 20,10 Euro.

Table 21: European Ceramic Sanitary Ware Consumption (Piece)

COUNTRIES

Year 2002

Year 2003

Change (%) Average Price

Euro/Piece

Italy 7.890 8.170 3,55 45,4France 7.510 7.526 0,21 43,3UK 6.644 7.520 13,18 33,3Germany 7.179 7.220 0,57 53,1Spain 6.730 6.692 -0,57 29,1Turkey 3.367 3.440 2,17 20,1Portugal 2.900 2.475 -14,66 28,1Benelux 2.590 2.310 -10,81 42,6Scandinavia 2.054 2.007 -2,31 55,9Greece 1.492 1.702 14,08 30,0Austria+Switzerland

1.287 1.139 -11,48 73,0Total 49.644 50.201 1,12

EXPORTS

Turkey was first in exporting ceramic sanitary ware in 2003. She has increased her exports by 17,5 % in 2002, reaching 6,4 million pieces. Portugal has become the

second country with exports of 4,6 million pieces with a rise of 12,4% in 2003. The third country was Spain with 3,3 million pieces.

Table 22: European Ceramic Sanitary Ware Exports (pieces)

COUNTRIES Year 1999

Year 2000

Year 2001

Year 2002

Year 2003

Turkey 3.412 3.750 4.259 5.450 6.407 Portugal 3.223 4.540 5.311 4.131 4.644 Spain 3.720 3.798 3.828 3.713 3.350 Germany 1.638 1.775 1.833 3.030 3.121 Italy 3.372 3.086 2.846 2.828 2.867 France 2.928 2.897 2.704 2.340 2.164 UK 1.712 1.338 964 897 1.387 Scandinavia 952 952 1.365 1.067 1.027 Austria+Switzerla 297 282 428 485 563 Benelux 909 909 315 127 445 Greece 322 322 232 230 123 Total 22.485 23.649 24.085 24.298 26.098

IMPORTS

Ceramic sanitary ware import volume is growing every year in Europe. Since these have an important impact on statistics in countries like France and UK, the effect of inter-company sales (i.e. share of output by large groups produced in plants abroad and imported to other countries where the group is situated in) must be considered.

In 2003, Germany was the country with the highest imports with 6,8 million pieces, lead by UK with 5,1 million pieces of imports. France was third with 4,9 million pieces with Spain as the fourth largest importer with 3 million pieces. As stated before, a significant portion of these imports comprise inter-company sales.

Table 18: European Ceramic Sanitary Ware Imports (Pieces)

COUNTRIES Year 1999 Year 2000

Year 2001

Year 2002

Year 2003

Germany 7.96 7.259 6.398 6.104 6.817 UK 2.36 3.520 3.714 4.400 5.108 France 4.46 5.110 5.297 5.237 4.981

Spain 2.10 2.334 2.595 2.892 3.008 Benelux 2.10 2.104 1.672 1.637 1.536 Italy 1.12 1.275 1.296 1.351 1.505 Greece 74 749 700 970 1.047 Avustria+Switzerlan 93 910 947 972 874 Scandinavia 6 64 61 402 399 Portugal 8 651 558 438 332 Turkey 9 14 13 12 21 World Total 21.96 23.990 23.251 24.415 25.628

2.3. SWOT (Strong Points – Weak Points and Problems – Opportunities – Threats) Analysis

WEAK POINTS STRONG POINTS FINANCIN

G MARKETING

INFRASTRUCTURE

PRODUCTION

TECHNOLOGY

OTHER POLITICS

High Added Value

Inadequate Operating Capital

Negative Turkish Made Image

Insufficiency of Railway Network

High Production Input Costs

Dependency on Other Countries

Unfair Competition Caused by Small firms Operating in the Shadow Market

Bureaucratic Obstacles

High Production Capacity

Failure to Allocate Adequate Funds for R&D Activities

Difficulty in Accessing Effective Distribution Channels in Target Markets

Lack of Ports and Infrastructure Services

Idle Capacity

Lack of R&D Activities

Unfair Competition Among Turkish Firms in International Markets

Product Diversification

Lack of Promotional Funds

Rather Low Export Prices Compared to Competitors Despite High Quality Products

High Shipment and Transportation Costs

Dumping Imports from China

Cost Advantage

Failure of Promotional Activities to Meet Their Targets

High Quality Raw Material

Inadequacy in the Fields of Original Design and Fashion

High Quality Manpower

Having International Standards

Compliance with EU Standards

University-Industry Collaboration (SAM)

Production with Concern for Environment

No Accredited Organizations

Geographical Location

Newly Established Facilities

Unfair Competition Environment Created by Subsidies

3. DEVELOPMENTS EXPECTED IN THE INDUSTRY IN THE NINTH PLAN PERIOD (2007-2013)

3.1. Domestic Demand Projection

This invigoration experienced in the construction industry will affect the ceramic sanitary ware industry positively. Since the share of imports is very low on domestic demand and it is not expected to play a significant increase in the next plan period, it was assumed that the total domestic demand will be met by domestic production.

It has been assumed that the gross national product will increase by 5 % in the period under consideration, with the assumption that consumption will rise domestically in parallel with the increase in per capita national income. It is expected that the domestic demand for ceramic sanitary ware will rise by 12 % in 2005-2008 period, with an increase of 8 % in the years 2008-2013.

Table 19: Ceramic Sanitary Ware Industry Domestic Demand Projection

Years Domestic Consumption

(Pieces) 2005 5.445.000 2006 6.100.000 2007 6.830.000 2008 7.650.000

2009 8.260.000 2010 8.920.000 2011 9.630.000 2012 10.400.000 2013 11.230.000

The domestic demand projection for ceramic sanitary ware was given only in terms of volume. As there are no sectoral data for past years value-wise; it was not possible to provide a projection for 2006-2013 (Table 24) in terms of value.

3.2. Export Projection

It is expected that the expansion of the Turkish ceramic sanitary ware industry in international markets continues. Turkey will maintain its property of being one of the leading exporters in the world with her success, in each passing year, increasing her market share in the countries she exports to and by establishing permanent relationships with new markets.

The shift by firms in the last decade compellingly to exports as production capacity is way above domestic demand, the marketing activities performed in international markets and their sale/after-sale support investments, it is expected that the exports of the industry will grow.

Considering the macroeconomic conditions our country is in and the growth potential of the construction industry, it seems possible that an increase to be seen in ceramic consumption in the domestic market in the upcoming period may absorb the existing production capacity.

The consumption of ceramic sanitary ware in the world has been growing at the rate of 5-8 % per year. We anticipate that the world consumption will grow by 7-8 % a year due to the expectations on continuation of the demand for refurbishment increasingly in the upcoming period and also the housing demand to be created by the rural-urban population migration. This growth in the world markets will affect the imports of our country which is a significant producer, positively.

It is assumed that in the period under consideration, exports will grow by 12 percent per year. When determining this ratio, criteria like the overvalued Turkish currency in a period of low inflation and macroeconomic policies which will indicate that this will continue, high energy prices in medium term, inadequate transportation infrastructure of our country and the increase in producer countries in the world in the 2000s like China, Indonesia, Vietnam, India, Brazil, Mexico, UAE and Iran in contrast to 1990s, were taken into account.

Starting from this assumption, the volumes of export projected for the period 2006-2013 are given in Table X.

Table 20: Ceramic Sanitary Ware Industry Export Projection

Years International

Demand

(Pieces)

International

Demand

($) 2006 9.850.000

206.850.000 2007 11.030.00

0 231.630.000 2008 12.355.00

0 259.455.000 2009 13.840.00

0 290.640.000 2010 15.500.00

0 325.500.000 2011 17.360.00

0 364.560.000 2012 19.450.00

0 408.450.000 2013 21.780.00

0 458.000.000

3.3. Production Projection

It is expected that in line with the increase in domestic demand and exports, ceramic sanitary ware production will be as shown in Table x from 2006 to 2013.

Table 21. Ceramics Sanitary Ware Production Projection (Unit: Pieces)

Years Production (Pieces)

2006 15.950.000 2007 17.860.000 2008 20.005.000 2009 22.100.000 2010 24.420.000 2011 26.990.000 2012 29.850.000 2013 33.010.000

3.4. Import Projection

a) Product Imports:

The imports are expected to be as shown in Table x based on the domestic demand projection.

Table 22: CSW Industry Product Imports

Years Imports (Pieces)

2006 54.550 2007 62.740 2008 72.150 2009 82.970 2010 95.420 2011 109.730 2012 126.200 2013 145.120

b) Raw Material Imports:

The projection for imports of raw materials required for production is given in Table 23.

Table 23: CSW Raw Material Imports Projection

Years Value (USD)

2006 29.460.000 2007 32.436.000 2008 35.766.000 2009 38.562.000 2010 41.574.000 2011 44.820.000 2012 48.324.000 2013 52.104.000

3.5. Investment Projections

The investment subsidy certificates obtained in the past period are given in the List in the Schedule.

3.5.2. Potential Investment Fields and Locations

As it will be observed from investment subsidy certificates, the entirety of the new expansion and modernization investment made are concentrated in four major production areas. The first one is Bilecik-Eskişehir, the second is Uşak-Kütahya, the third is Izmir-Manisa and the fourth is Çanakkale regions. These are all areas where deposits of ceramic raw materials used by present manufacturers for production are located.

3.6. Potential Developments in Technology, R&D Activities, Employment Market, Input Markets, Environmental Practices, etc. and Their Impact o the Competitive Power of the Industry:

Raw material suppliers carry out the necessary cleaning processes on site and therefore, the solid waste problem has been mitigated. As a natural gas pipeline goes to the regions where the industry is concentrated, use of gas which is a clean and easily consumed material has had a positive impact on the decrease of air pollution. Efforts on making use of solid waste are in progress. Plants for cleaning waste water have been generally completed by firms. A significant portion of the firms have received ISO 14000 certificates.

3.7. Potential Developments in relation with Other Industries and Auxiliary Industries

The evaluation on the matter was detailed in Task Group for Collaboration with Other Sectors (Project 3) and Development of Ceramic Machinery and Auxiliary Industry (Project 1) in Schedule 3.

3.8. Role of Government in the Industry, Privatization Activities and Potential Impacts:

The most important role played by the government is to ensure that raw material and energy inputs in the production phase sit on a model which will not prevent competition but which will afford superiority. Especially the government, when pricing the raw material and energy inputs in its hand, must follow a policy encouraging production. It also has to create assurance that raw material and energy inputs will be subject to price increases within a specific system in the long term. Otherwise, both investments become idle and also employment is lost alongside of production and exports. The most significant implication of this would be the drop in tax revenue of the government.

Firms producing for international markets expect that their production inputs are lower than international markets. If labor cost, energy price, raw material prices, the tax load on production are cheaper than that of those engaged in the same production as they are or at least are cheaper in some areas and equal in others, then such firms can keep their production costs competitive. Because there aren’t many important obstacles in production quality in the world in many industries. Competitiveness is gained by creating difference in products and cost advantages in product inputs.

Firms engaged in production in the ceramic sanitary ware industry are all companies with private capital. Therefore, a privatization process is not possible.

4. IMPACT OF EU ACCESSION PROCESS ON THE INDUSTRY

Evaluation on the matter is given in 5.2.1. Objects and Policies for EU Accession Process, 5.2.2. Other Objects and Policies 5.3.1. Priorities, Measures and Legal – Institutional Arrangements for EU Accession Process sections.

5. STRATEGIES, OBJECT, POLICY, PRIORITIES AND MEASURES RECOMMENDED FOR THE NINTH PLAN PERIOD

5.1. Basic Sectoral Vision and Strategy – 5.2. Basic Objects and Policies

The common basic objects, main targets, values, strategic scenario which was part of the integrated future design set at the ARAMA Conference held with participation of sector officials June 18-19, 2005 on the basic vision on the future of the industry and strategies to be followed to achieve such vision are given below.

INTEGRATED FUTURE DESIGN FOR CERAMIC SANITARY WARE INDUSTRY

VISION

Common Basic Object

World Scale Becoming Transnational Image-Prestige Becoming Sought Increasing market share and increase sales Becoming 3rd in the world and maintaining first place in Europe in production

Main Targets

30 million pieces output Average unit price: USD 30/Piece Total exports 400 million $

Values

Traditional Turkish ceramic culture Reliability/honest trade Product and service quality Productivity Environmental friendly approach

STRATEGIC SCENARIO

Fields of operation

Increasing fine fire clay ratio Producing high value added fashionable products (in line with developing

trends) in place of classical sanitary ware (low value added)

Raw material

Finding and developing raw material resources to respond to the production capacity to be increased

In addition;

Development of machine spare part domestic manufacture/auxiliary industry Production of complementing products (e.g. furniture); also substitute

products in sanitary ware

Positioning

Markets to be emphasized:

USA Russia-Ukraine EU and Scandinavia Neighboring countries Middle East Turkic Republics

Rival Groups

Spain Italy Investment projects of competitors in other countries

Developing countries, Iran, UAE, China, Indonesia, Mexico, Brazil

USA

To maintain our market share in the growing market increasing our share by 100% in 5 years

To set up or purchase distribution channels Contact with Turkish lobby and ethnic marketing Direct trips , ship procurement Collaboration with Marble Industry (freight, marketing and dealer

organization) Placement of “Made in Turkey” legend on large DIYs

EU

Expansion in present locations Expanding our market inwards from ports Collaboration with manufacturers with sale networks Procuring purchases

from Turkey

Nearby Markets

Iraq, Syria, Turkic Republics, Greece, Russia, Ukraine Sale to market, partnership by purchasing plants and investing in Russia Western lifestyle products Showroom, showroom centers Decoration of touristic hotels Collaboration with Turkish contractors

Middle East

Competition with Far East countries in low end products Shift towards upward segment products (Italy and Spain) Utilization of zero customs advantage in Arabic countries Making use of re-export opportunities Investment and partnership in the said countries

Turkic Republics

Collaboration with Turkish Contractors Union in these countries Making use of ceramic widespread Setting up plants in free zones Low energy prices may strengthen investment decisions

North Africa

Being in investment countries (Sudan, Algeria, and other)

South African Republic is a big market There is Italian, French dominance in North Africa

China

Scale too large Joint investment in China for exports

Competitive Edge

Geographical Position

Geographical proximity to significant markets Proximity to raw material resources

Productivity

Existing plants new and technological return of new plants to be installed Progressive increasing of productivity (manpower, equipment, investment) Advantageous labor cost (compared to Italy and Spain)

Product

Maintaining product diversity Developing product quality

Industry

Institutionalization growing in the industry, promotion fund (common action capability)

Sectoral maturity

Macro Factors

Social structure (working with sacrifice) Heavy labor industry leaving EU Growing domestic market Improvements in bureaucracy, positive developments in the government’s

export strategy

Competition Formula

Marketing:

Setting of different marketing strategies for different markets (service, price, customer)

Maintaining product diversity (Diversification based on demands of different countries-Setting correct product range)

Formation of data bank Inclusion in product portfolios of original designs addressing high purchasing

power Exploration of new uses for ceramic Making UNICERA a world scale trade fair Concentration of promotional activities towards professional decision makers

in product selection (Offices-storerooms, showrooms and marketing investments abroad)

Establishing production plants in target markets

Setting up Turkish ceramic trade centers starting with Moscow and selected states in USA for display, promotion and merchandising)

Manufacturing

Increasing total turnover by producing products in different quality and cost addressing different income levels of end users (versioning)

With concerted action, procuring common use inputs at low levels Producing in growing strategic markets JV investments in target markets Improvement of product quality Giving support for development of machinery-spare part technologies,

contacting machine producers Common energy company (natural gas) Common frit and hard mineral grinding plants Encouraging ready mass preparation plants Selecting proper investment models to bring down cost and establish

technology flexibility. To maximize capacity utilization rates.

Freight

Rehabilitation of railways and ports required by mass transportation for domestic and international markets by bringing down transportation costs

Ensuring inter-unit coordination in sea, land, railways for achieving deliveries on time

Increasing collaboration for competitive purchasing (in imported products) (Zirconium, Zinc)

To bring Gemlik Port’s infrastructure in form suitable for ceramic shipments Alternative port to Izmir Port in the Aegean Çine-Aydın, Şile-Istanbul (raw materials, by railway) Solving problems relating to TCDD/DLH

Improvement of infrastructure Setting up of “regular direct lines” by sea to USA with priority, from Turkey

R&D

Increasing and continuing with the existing university-industry collaboration Improvement in R&D (better coordination between SAM and manufacturers) Investment in human resources Developing new R&D financing models Setting up EU funded (promotion, etc. fund supported) “Ceramic Design

Institute” Transferring funds to R&D investments from Common Promotion Fund More active and effective operation of research centers

Financing

Making existing financial resources attractive for exports (real) Reducing the current 14 % Eximbank lending interest (bringing down of

inflation level) Making funds procured from EU better known and usable Subsidies not by provinces but by sector Subsidies encouraging use of equity (public offering)

Collaboration/Relations

Procurement and Logistics Import collaboration – Joint purchasing Development of common logistic targets in international markets Collaboration with other sectors exporting to target markets (logistics) Holding periodical meetings spearheaded by railways and port authorities Raw materials Joint planned use of raw materials with restricted and high quality reserves Relations with government Carrying out increasing relations with government and government agencies

by associations, not individually

Marketing and Sales

Joint marketing and sales (especially for small scale firms) Achievement of effectiveness by firms and industry in international marketing

activities Provision of training to firms on international marketing Sanctions against those impairing the image of the country and ceramics

industry Making unused raw materials and auxiliary materials usable under an

exchange logic

Leasing of common lines from railways Collaboration with Turkish Contractors Association

Promotion

Making Istanbul a “Ceramics Trade Fair Center” for purchasers from neighboring and surrounding countries

International joint promotion and marketing projects Holding design contests first at national, then at international levels Setting up common auxiliary industries Making Euro-Pallet the standard for ceramics industry. Making joint production

possible.

5.2.1. Objects and Policies for EU Accession Process – 5.2.2. Other Objects and Policies

5.3.1. Priorities, Measures and Legal – Institutional Arrangements for EU Accession Process

As the decision for commencing accession negotiations with EU was adopted, Turkey’s membership process has gone into a new phase. As a result of efforts to be made under the framework of harmonization with EU acquis, a radical change will take place in all fields involving social life. This change, like in other industrial disciplines, will be felt in the ceramic sanitary ware industry as well. How Turkey will transfer EU acquis to its domestic jurisprudence, how she will put it into effect and implement it effectively concerns the ceramics industry closely as well. Based on the set acquis headings, in addition to the government agencies and institutions in Turkey; sectoral associations, too, must perform active duty in preparing the negotiation positions.

In the accession process to EU, to increase the competitiveness and productivity of the industry under the increasing global competition conditions, supporting and maintaining a sustainable progress a composition facing outside should be the basic targets of the Turkish industrial policy. If this target is met, the industry will gain a structure activating local resources as much as possible, carrying out production in line with environmental standards, furthering consumer health and preferences, employing high quality manpower, implementing a strategic management concept committed to R&D, producing technology, taking its place in international markets by creating original designs and brands.

In this context, the principles and policies to be adopted by the ceramics industry are the following:

Increasing Exports

Encouragement of Investments Development of Technological Capacity and R&D Increasing Quality and Productivity Development of Manpower Organized Industrial Zones, Special Industrial Zones Achieving Sustainable Development Preserving the Global Competitiveness of the Industry

Of great importance for our industry are conducting the necessary legislation relating to intellectual property rights which are part of applicable legal and administrative measures to be taken and the industry in line with harmonization with EU acquis, to implement effectively the rules in the field of intellectual property rights and to conduct all procedures relating to such rights.

On the other hand, the ceramics industry is a labor-intensive one, legislation to be effected during the process of harmonization with EU social policies and employment legislation concern our industry closely in the areas of labor law, occupational health and safety, and social security.

The new legislation to be imposed for protection of the consumer under the European Union Consumer Policy principles will allow the consumers to have a stronger voice, provision of high level health and security for the consumer and respect for the economic interests of the consumers, which developments will trigger competition regarding high quality production and service in the ceramics industry.

Yet another important point is harmonization with EU’s Competition Policies. Turkey has brought a significant portion of its legislation on competition law in harmony with EU acquis. However, she has not yet fully fulfilled her obligations on harmonization with EU acquis in connection with rules and competition imposed on undertakings with special and exclusive rights and government aid. Legislation to be imposed in the field of “Government Aid”, which is one of the basic elements of the competition policy of European Union, is of great importance for this industry. Article 87 of EU Treaty on government aid and supervision of government aid states that any aid which impairs competition or makes the threats of such impairing by providing benefits to certain establishments or production of certain goods using government funds by a member state would not be compatible with the common market to the extent it affects the trade between member states. In Turkey, there is no effective government aid control system based on EU criteria, nor there is an inventory of the existing aid programs based on different legislation.

The energy sector is one of the important ones in the European Union. Energy policies constitute part of the overall economic policy of the Union based on integration of markets, sustainable development, protection of the consumer and economic and social harmony. The basic objects of energy policies are;

Contributing to the competitiveness of European Union Securing energy supply security Contributing to protection of the environment

The structural and legal arrangements introduced under these objects on studies on energy productivity law, reforms to be carried out in the electrical energy sector, regulations relating to natural gas market by EMRA and transfer of natural gas, purchase and sale agreements of BOTAŞ under the Legislation Harmonization and institutional structuring activities, conservation and enhancement of competitiveness as the ceramics industry, conservation and enhancement of competitiveness as the ceramics industry is an energy intensive one.

Also, under EU’s transportation policies, the investments and legislation relating to transportation by highway, railways and sea are of vital importance for the ceramics industry where the transportation cost has an important share of trading costs.

Another important item for the ceramics industry is the matter of compliance with Environmental Legislation. There are regulations on quality standards and/or applicable procedures on air, waste water, conservation of nature and control of industrial pollution in EU environmental legislation. Modernization and filtering investments are required in establishments based on the descriptions given in the Directive on Air Pollution arising from industrial plants and emission limit figures.

5.3. Priorities, Measures and Legal – Institutional Arrangements for Realizing the Objects and Policies, 5.3.3. Other Priorities, Measures and Legal-Institutional Arrangements

The basic problems of the ceramic sanitary ware industry and recommendations for solutions and the list of applicable organizations are given in Schedule-2.

5.3.2. Measures on Subsidy System

The ceramics industry is situated in various provinces like Eskişehir, Bilecik, Çorum, Kütahya, Uşak, Izmir, Manisa, Aydın, Çanakkale and Zonguldak. Inclusion of some of these provinces in the subsidy program by the most recent decree has created a difference in cost between plants producing in these provinces and plants in other provinces and this has given rise to unfair competition.

Subsidies should be not only by province and region but also by sector. Whichever sector has the potential to bring added value to the country; then that sector should be subsidized.

5.4. Total Advantages and Disadvantages of Policies, Measures and Arrangements

The ceramic sanitary ware industry is one of those with the highest added value. For our country to attain a sustainable economic growth, the “Value Added” in production must be formed inside the country more. Because domestic development of the “Value Added” defined as “Domestic Production” forms the basic source of more production and employment and social welfare. It is believed that policies to be followed and legislation to be introduced for increasing the competitiveness of the ceramics sanitary ware industry will increase the export revenue of our country and will make a contribution to the economy which will eliminate in the short term the load which will be imposed on public financing at the beginning.

6. RESULT AND OVERALL EVALUATION

Turkey has gone through a rapid growth starting from early 1980s in terms of production, domestic demand, exports and capacity in the ceramic sanitary ware industry. As a result, Turkey has come to an important position within the ceramic sanitary ware industries in the world and Europe. Turkey accounts for 6 % of world output with 12.380.000 pieces in 2004.

This level of production has made Turkey the largest seventh producer country. The number of installed facilities is 64 as of 2005 with the output capacity rising to 26.950.000 pieces. The firms in the industry, while the firms in the industry have increased their capacities, the existing firms have refurbished their technologies through modernization investments. During the process, the Turkish ceramic sanitary ware industry has reached world standard, becoming capable of producing world scale high quality products. The most important factor in this rapid development, of the Turkish ceramics industry is the positive development experienced in the construction industry. The mass housing authority established in 1980s and the subsidized housing industry has developed the construction sector rapidly in parallel with the increase in demand for ceramic sanitary ware products. The invigorated domestic demand has allowed introduction of new firms to the industry and a

dynamic competition environment was formed as the number of firms increased in the industry. As a result, naturally, firms have refurbished their technologies to attain savings of cost, catching quality at international level.

Price compromises in exports, lack of the Turkish made image in international markets, dependency on abroad technology-wise are all overall problems faced in the industry. Besides, the fact that energy cost is high compared to other countries in our country, that sea and rail transport has not progressed adequately and the dependency on land transportation and high transportation costs affect the international competitiveness of the industry adversely.

Despite all these, the Turkish ceramic sanitary ware industry is continuing with its exports, increasing them each year. The achieved export figures and the fact that imports have not risen despite the import duties which were eliminated as a result of the customs union with EU indicate that the industry has attained a certain level of competitiveness internationally.

In conclusion, it can be said that the Turkish ceramic sanitary ware industry has an important world scale in terms of both output and also export performance and that this will continue in the period under consideration. The fact that our country is rich in terms of raw material resources, use of new technologies in the industry and the presence of a dynamic investment environment are elements to ensure that this trend will continue. Important givens in the name of the future of the industry are the continuous increase in the housing demand in our country, low per capita consumption and the trend once again, of increase in domestic demand which has taken an unstable course in recent years. It is expected that per capita ceramic sanitary ware consumption will grow and this will affect domestic demand positively.

6.1. Classification of Basic Objects and Policies and Priorities and Measures by Development Axes (Matrix form)

Basic Objects and Policies and Classification of Priorities and Measures by Development Axes are given in Schedule 3.

6.2. Basic Implications in terms of Ninth Development Plan

It is targeted that the ninth development plan becomes a reference for evaluation of the last five years and planning of the next seven years of the ceramic sanitary ware industry. The most basic implication of the plan would be determination of aspects impairing the competitiveness of the industry and elimination of weak points by government-private sector collaboration.

Schedule-1

Investment Subsidy Certificates Issued for Ceramic Sanitary Ware Industry

Certificate

No

Certificate Date

Name of Company

Place of Investment

Type of Investment Total Investment

(TRY)

Fixed Investment (TRY)

Use of Foreign Currency

Employment (person)

Goods and Services to be Produced at Full Capacity

80589 01.08.2005 SEREL SERAMİK SAN. VE TİC.

A.Ş. MANİSA MODERNIZATION 9.592.251 9.592.251 4.358 0 24.000 TONS/YEAR (Existing)

Ceramic Sanitary Ware

78905 23.03.2005 TURKUAZ SERAMİK SAN VE

TİC A.Ş. KAYSERİ EXPANSION 3.328.997 3.328.997 1.109 92 Addition to existing 295.000

PIECES/YEAR:

155.000 PIECES/YEAR WC pans

Addition to existing 350.000 PIECES/YEAR:

205.000 PIECES/YEAR Wash basin


78060 31.12.2004 SELAHATTİN TOKOĞLU AFYON COMPLETE NEW

INVESTMENT 1.800.000 1.800.000 0 71 400.000 PIECES/YEAR Ceramic

Sanitary Ware

76951 20.09.2004 USTA VİTRİFİYE TEKİRDAĞ COMPLETE NEW INVESTMENT

11.242.758 11.242.758 0 101 100.800 PIECES/YEAR Toilet bowl

61.200 PIECES/YEAR Reservoir tank

and lid

100.800 PIECES/YEAR Wash basin

10.080 PIECES/YEAR Wash basin pedestal

5.040 PIECES/YEAR Bidet and Types

75119 19.04.2004 TOPRAK SENİTERİ ESKİŞEHİR MODERNIZATION 17.750.000 17.750.000 9.263 30 8.100.000 M2/YEAR (Existing) Ceramic Wall Tiles

8.100.000 M2/YEAR (Existing) Ceramic Floor Tile

6.160 TONS/YEAR (Existing) Frit

2.083.700 M2/YEAR (Existing) Porcelain Tile

74481 26.02.2004 DOĞVİT SANİTERİ BİLECİK EXPANSION 8.400.000 8.400.000 2.151 134 Addition to existing 325.300 PIECES/YEAR

1.400.000 PIECES/YEAR Ceramic Sanitary Ware

74479 26.02.2004 ÇELEBİ YAPI MALZ. SAKARYA MODERNIZATION 526.000 526.000 270.000 PIECES/YEAR (EXISTING)

Ceramic Sanitary Ware

Certificate

No

Certificate Date Name of

Company Place of Investment Type of Investment Total Investment

(TRY) Fixed Investment (TRY)


Employment (person)


74415 19.02.2004 TOPRAK SERAMİK BİLECİK EXPANSION 4.416.095 4.416.095 476 3 Addition to existing 12.893 TONS/YEAR:

1.400 TONS/YEAR Vitreous Ware Sets

3.700 TONS/YEAR (Existing) Vitrified Plain Pieces

1.000 TONS/YEAR (existing) Chamot Pieces

71738 06.05.2003 ÇENESİZLER SERAMİK SAN.

VE TİC. A.Ş. ÇORUM EXPANSION 15.950.000 15.950.000 6.084 100 Addition to existing 963.600

PIECES/YEAR:

960.000 PIECES/YEAR Vitrified Ceramic Products

71325 11.04.2003 HERİŞ KÜTAHYA SERAM İK

VE TURİZM A.Ş. KÜTAHYA EXPANSION 18.245.546 18.245.546 4.051 100 Addition to existing 11.586

TONS/YEAR:

6.500 TONS/YEAR Bathroom Set Parts

71479 24.04.2003 EGE VİTRİFİYE İZM İR EXPANSION 16.600.000 16.600.000 8.659 90 Addition to existing 562.800 PIECES/YEAR:

562.800 PIECES/YEAR Ceramic Sanitary Ware

70611 19.02.2003 ESKİŞEH İR SERAM İK ESKİŞEHİR COMPLETE NEW INVESTMENT

1.480.751 1.480.751 0 100 330.000 PIECES/YEAR Ceramic Sanitary Ware

70465 31.01.2003 ÇANAKÇILAR SERAM İK ZONGULD

AK EXPANSION 8.730.000 8.730.000 953 40 44.212 PIECES/YEAR (Existing)

Bathroom Sets

99.200 PIECES/YEAR (Existing) WC pans


10.000 PIECES/YEAR Wash Basins


5.000 pieces/year Sinks


10.000 PIECES/YEAR toilet bowls

100.000 PIECES/YEAR (Existing)

Certificate

No

Certificate Date Name of

Company Place of Investment Type of Investment Total Investment

(TRY) Fixed Investment (TRY)


Employment (person)


69474 05.11.2002 MARTI SERAMİK KAYSERİ COMPLETE NEW INVESTMENT

5.419.250 5.419.250 1.475 100 400.000 PIECES/YEAR Ceramic Sanitary Ware

68986 16.09.2002 SEREL SERAM İK MANİSA EXPANSION 9.131.372 9.131.372 3.107 0 21.000 TONS/YEAR(Existing) Ceramic Sanitary Ware


19.200 PIECES/YEAR Toilet Bowl Lids

68051 14.05.2002 TURKUAZ SERAMİK KAYSERİ EXPANSION 1.211.008 1.211.008 0 79 Addition to existing 200.000 PIECES/YEAR:

75.000 PIECES/YEAR WC Pans


100.000 PIECES/YEAR Wash basins


51.000 PIECES/YEAR Toilet Bowls

66885 16.11.2001 ÇAMAŞ SERAMİK ORDU COMPLETE NEW INVESTMENT

235.000 235.000 0 20 497 TONS/YEAR Vitreous Ware Production

Total 134.059.028 134.059.028 41.686 1.060

SCHEDULE-2

Basic Problems of Sanitary Ware Industry and Solution Proposals

PROBLEM

DESCRIPTION SOLUTION AGENCY IN CHARGE

Unfair Competition - Adequate supervision cannot be done as TSE does not take on the control of firms which do not apply and Ministry of Industry and Trade lacks the capacity to control the whole system.

- Product copying leads to unfair

competition against firms which make big investments in the industry committed to R&D activities.

- Employing uninsured workers leads to unfair competition as tax on employment is high.

- It is mandatory that firms producing low quality products are supervised and it is ensured that they adhere to existing standards.

- Turkish Standards Institute (TSE)

must increase its inspections or authorization must be given to SAM (Ceramics Research Center) in this regard.

- Sanctions against firms found to be faulty must be strengthened. Practices on registration and protection of industrial rights must be improved.

- Firms which employ uninsured workers must be supervised by Ministry of Finance and Ministry of Employment. To prevent employment of uninsured workers, tax on employment and SSK premium load for the employer

- TSE - TÜRKAK - Turkish Patent

Institute

must be mitigated. The weight of this charge triggers off-the-books economy, encouraging employing uninsured workers.

High Energy Cost The Ceramic Sanitary Ware industry is one consuming intense energy. The price of natural gas used in the industry in Turkey is on the average 26 % more expensive and electricity prices 40 % on the average more expensive than those used in the industry in OECD crisis.

- Main inputs like natural gas and electricity must be provided to the industrialist at world prices.

- Many countries do not tax natural

gas used in the industry. No tax should be collected from natural gas and electricity consumed in production for exports.

Ministry of Energy and Natural Resources

Financing Measures which may increase the export volume of the industry further and to improve competition conditions must be developed.

Export loans for the ceramics industry operating oriented to exports must be increased to 50 % of the export volume, loan terms must be extended and interest rates must be kept lower.

- Türk Eximbank

Inadequate Transportation Infrastructure

Transportation costs in the ceramics industry have a many important place among total costs due to the nature of ceramic products. The predominantly land based transportation network in Turkey, high land transportation costs, lack of sea and railway links affect the costs of the industry adversely, reducing its competitiveness.

Railway links must be established between raw material reserve regions and production areas.

Ministry of Transportation

Problems Faced in Producers operating in the ceramics It is important for conservation and - Undersecretariat

Exports industry are able to maintain their competitiveness, calculating all elements of cost well within fierce competition conditions in its efforts for more work and employment. In this context, if additional costs demanded at various ports under different names are reflected onto costs, then the competitiveness of the Turkish exporter will be weakened and purchases may shift to other countries.

increasing of the market share of the Industry that necessary measures are taken for bringing down the cost of services in our ports.

of Maritimes

Allocation of Ceramic Raw Materials to other Purposes

The raw materials needed by the ceramics industry are usually procured from existing domestic raw material fields. Added value up to 95 % may be attained by this. However, the attempts by central or local administrations to use the lands in which raw material resources are situated in the field of ceramic raw materials for other purposes are a threat for the industry.

It is of vital importance for the industry that this situation is prevented and the existing raw material sites are conserved.

- Ministry of Finance

- Ministry of Interior Affairs

Difficulties relating to Trade Fair and Promotion Activities

There are difficulties in participation in the CERSAIE Trade Fair organized in the city of Bologna in Italy recognized as the most important ceramic and bathroom products trade fair in the world.

The difficulties faced in the trade fair and promotion activities in foreign countries like this one and others must be eliminated on the basis of reciprocity. Furthermore, encouragement and supporting of these types of promotional activities is an important subject not only for the ceramics industry but also for promoting the country and tourism.

- Ministry of Industry and Trade

- UFT

Schedule-3. COLLABORATION PROJECTS GROUP EFFORTS

Project-1: Ceramics Machinery and Auxiliary Industry Development

Purpose of Project

Saving the industry from external dependency by achieving local machinery production in place of usage of imported machinery

How?

An inventory of machinery use of the ceramics industry will be taken. Ceramics industry and machine industry will be brought together. Common action will be taken.

With Whom?

Team: Mahmut Akıllı, Ahmet Ulukuş, Atilla Ayva, Mete Çankaya

Until When? (Next date and place)

Until September 2005; Istanbul, Ankara

Project-2: Ceramic Design Institute

Purpose of Project

Introducing new designs into ceramics industry

How

Preliminary brain storming group – 3rd Week of September

With Whom?

Team: Ahmet Yamaner, Beril Anılanmert, Nazmiye Vural, Hasan Sazcı, Mahmut Akıllı, AU, MU and MSU.FFA 4 staff members

Relations with SERAM-Ceramic Products Research Development Center set up in MSU.FFA

Tile Competition (to be organized under Turkish Ceramics Association)

Purpose of Project

Steering new designs and creativity towards the industry

How?

Preliminary study group (Brainstorming) – 3rd week of September

With Whom?

3 Serkap members Ahmet Yamaner, Nazmiye Vural, Hasan Sazcı University members of faculty 5 individuals Turkish Ceramics Association 1 person


First meeting in first week of July Meeting to prepare competition regulation in September

SERKAP’s financial support will be requested.

Project-3: Task Group for Collaboration with Other Industries

Purpose of Project

Creation of synergy between sectors in exports

How?

Marble, Tourism-Hotel Management (with investors), Wood, Construction Materials, Transportation

Articles of import from countries which are our markets Contact with associations, unions, etc. in countries where our contractors operate Contact with major retail firms To set up a mail group Contact with freight forwarders (UND and Ship Owners Association) Contact with TOBB Results of contractor’s survey conducted by OAIB will be sent to members and

evaluated How much are projects assumed by Turkish contractors? What is the potential

exports in this context?

With Whom?

Team: Serdar Afşat, Kaan Sürmeli, Kadir A. Yıldırım, Tülin Murathanoğlu, Mehmet Yücel, Murat Tekin, Edip Kefli, Bülent Atamer (Deputy Secretary General of Contractors Association)


First week of July

Project-4: Raw Material Resources Development

Purpose of Project

Preparation of an inventory of raw material resources suitable for the Ceramics Turkey in Turkey at large

How?

Project will be formed through discussions with MTA /Ankara applicable units.

With Whom?

Team: Ali Türkistanlı, Mehmet Özgürler, Recep Akdeniz, Selami Tek, Gürsel Erul


2nd week of July – At MTA / Ankara

Project-5: Joint Transportation – Collaboration

Purpose of Project

Dropping the transportation costs of the industry, elimination of problems, unearthing the joint action opportunities to achieve the object

How?

Situation will be assessed for domestic, foreign raw materials, products, transportation and storage for the whole industry

Sub-project groups will be formed

With Whom?

With manufacturers and tranporters Team: Project Leader Ahmet Ulukuş, Köksal Çınar, Necmettin Arman, Ertuğrul

Uysal, Nihat Yıldırım, Hayati Ulukaya, Yusuf Güney


6 months (meeting first week of August)

Project-6: EURO Pallet

Purpose of Project

Shift to EURO Pallet in the market (single type)

How?

A pool will be formed starting from Ankara and this will be disseminated - Standardization of pallets used in the country - Gathering of pallets sold by manufacturers to Ankara at TCDD

Behiçbey Station and starting of operations - Proper utilization study for collected pallets

With Whom?

TCDD and ceramics manufacturers Team: Süleyman Caner, Nizamettin Arslan, Ismail Tülek, Ahmet Oğuz Berkol,

Ömer Çelik

Project-7: R&D Finance Facilities

Purpose of Project

Investigation of R&D Financing facilities

How?

An inventory of public resources will be prepared and introduced Identification of article 630, diffusion to firms, feedback of existing situations an

determination of R&D expenditures of ceramics industry Preparation of 10 year R&D expenditure projection in line with targets, views of

firms (2015, 2 %) Addition of 630 to company budgets starting from 2006

With Whom?

Ferhat Kara: Government resources and sector information Group: What is 630? Nazmiye Vural – Hasan Pekin: Diffusion to senior level executives


September: project deadline Next meeting: July 15-20, 2005

Project-8: Turkish Ceramic Trade Centers

Purpose of Project

Active promotion in targeted countries

How?

Creation of trade centers for active promotion in targeted countries first in Moscow and depending on the success of Moscow model, in various states of USA (Illinois, Texas, California, etc.) and other selected target countries with the below alternatives;

- Convincing Ramstores to collaborate - Using TOBTIM Trade Center or this models (investigation of

collaboration opportunities or examination of model) - Coordination with Trade Consultant Offices - Cooperation with Turkish Trade Centers Project at UFT

After the center is operational, staff will be assigned for 15 days from each ceramic manufacturer to train staff working there

With Whom?

UFT-Center/Trade Consultant Offices OAIB TIM (?) Sector Ceramic Promotion Committee Team: Bülent Tuncer, Mustafa Karakuşçu, Kemal Öncül, Berrin Kızartıcı, Şöhret

Ufuk, Kerem Erdem


Project deadline: March-April 2006 Meeting date: no physical meeting unless necessary, continuous contact in

electronic medium Preliminary study for Moscow to be completed by July 15, 2005

Project-9: Boosting of Turkish Ceramics Image

Purpose of Project

Boosting of the image of Turkish ceramics starting from target markets (serving the image of the country) indirectly

How?

A draft business plan will be created at the preliminary meeting with participation of those attending from interested and capable companies, UFT,

academicians, Advertisers Association, brand consultant, Iznik China Foundation, Promotion Committee and desiring members.

This business plan will be briefed to PR agencies. Business Plan is finalized after proposals and opinions are received.

Explaining the significance of the industry in the country simultaneously is important (lobbying).

With Whom?

International PR companies and Promotion Committee Team: Bahadır Kayan, Fatih Kekeç, Necla Zarakol, Nagihan Ünüvar


Meeting with specified group on August 15 Presentation to Promotion Committee and discussion in September Promotion in Dialogue Conference (October) Business plan for 2-3 years conveyed to Promotion Committee and follow-up Briefing of the industry on this plan and course of events

Ensuring flow to achieve long-term functionality and continuity (duty of committee)

Project-10: Istanbul Unused Machinery Exchange (IUME)

Purpose of Project

Bringing together the supply and demand for auxiliary materials, raw materials and machinery

- Idle machine park will be made functional - Foreign currency loss prevented - Investment cost comes down - Federation will receive commission, Association revenue will grow

How?

WEB Portal: An interactive infrastructure will be set up on the web. Firms will enter supply and demand into portal. Admin panel of the website will be with the Federation.

With Whom?

Mustafa Ayaydın


Setting up of infrastructure 20 days Test broadcast and announcement of project 10 days

Gripin-11: Port Railways Transportation Development

Purpose of Project

A survey of present state of;

Aydın-Çine Railway Turgutlu-Kemalpaşa Railway Şile-Istanbul Railway

lines will be carried out contacting TCDD and DLH, ensuring that these projects are accelerated and completed as soon as possible

How?

With Whom?

Team: Soner Özer, Ömer Yeşilkaya, Özgür Can Aydın, Birgi Çekci, Erhan Polat


To be determined as a result of discussions, meeting on the first week of July

Project-12: International Marketing Training

Purpose of Project

Training of sales and marketing experts to represent the Turkish ceramics industry successfully abroad/in international markets

How?

Personnel to be elected by manufacturers which are members of Ceramics Federation will be subjected to theoretical and practical training by professionals specialized in their fields under supervision of Kuthan Günay in this field at a place to be determined subsequently in previously set periods. As a result of this training course, the participants will receive certificates prepared by Central Asia Exporters’ Union and Ceramics Federation.

With Whom?

Kuthan Günay, Sevgin Utlulığ


Groups to be divided according to experience of participants will go through a training process between minimum 3 months and maximum 9 months for minimum 2 hours each every fifteen days.

Sabancı University’s support on matters like space and equipment in this field is expected with contribution of Oğuz Babüroğlu. It is believed that any expenses required for such training will be met out of Ceramic Joint Promotion Fund.

Experienced professionals to attend or contribute to this training course will serve on voluntary basis.

Training should start in October 2005 and the first three month training period will end in December 2005. This certificate program will be repeated depending on the results of the initial course.

The number of participants in the training course will be minimum 6 and maximum 12 people.

Project-13: Strategic Research, Planning and Intelligence

Purpose of Project

Ensuring that information on market composition, players, trends and distribution channels are set forth regarding specific markets and such information is shared with members.

How?

Data will be procured from OAIB, Ceramics Federation, UFT, Turkish Businessmen and professional firms.

A section with password will be formed at Turkishceramics.org website. Two specialists from OAIB and Ceramics Federation will moderate the applicable section.

With Whom?

Information: A professional report will be obtained from OAIB, Ceramics Federation and firms with the aid of Promotion Fund as necessary and will be made available for common use

o Market review fund o From members o Black list

Team: Ismet Yalçın, Yakup Fırat


Action plan will be completed until September 2005. Next meeting early July in Ankara OAIB.

Project-14: Human Resources Planning and Training

Purpose of Project

Training of personnel who are effective and contributing in exports of products in manufacturers for increasing of exports

Determination of priorities of manpower at the export process of firms Meeting of qualities through workplace requirements to be set Determination of training topic headings It is envisioned that the financing need will be met out of the Support Fund

With Whom?

With Human Resources Department support from firms and organizations providing professional training and consulting services

Germiyan Saatçioğlu Nurhan Tanyeli


Will be determined based on task groups and participation. The entirety may last one year. The first meeting 3rd week of July.

Project-15: Bringing UNICERA Trade Fair to International Level

Project Purpose

Bringing the existing UNICERA Trade Fair to international level Increasing international participant and visitor number

How?

Taking the examples of the industry and international trade fair sector as model, there is an answer to the question ‘How is a trade fair organized?’

We will invite guests determining addresses from target countries Purchase missions Editor invitations Covering of expenses of international association members like CTDA Preparation and submission of a detailed budget to Promotion Fund

With Whom?

Trade fair organizer firm Ceramics Federation TIMDER OAIB UFT Trade Fairs Department Private sector representatives Team: Sevgin Utlulığ, Bircan Şahin, Germiyan Saatçioğlu


February. Next meeting on July 7 or 1st week of July at Istanbul Ceramics Federation.

Project-16: Determination and Elimination of Tariff and Non-Tariff Obstacles Implemented in Target Markets

Purpose of Project

Making endeavors for determination and elimination of tariff and non-tariff obstacles implemented at target markets. Expected target: As a result of eliminations of such measures, increase in exports, drop in costs (extra) and being advised in entry to the new market.

How

Priority target markets to be selected Reports prepared by international organizations (WTO, UNCTAD, OECD) on

these countries o Reports prepared by various countries (USA, EU) o Information to be received from international representation offices

and trade consultant offices (UFT) o Information from exporters and other representatives will be evaluated

Incoming data will be classified and checked Attempts will be made with those determined.

With Whom?

UFT Exporters Unions Firm representatives Ceramics Federation


First stage: Ensuring coordination with applicable organizations and individuals (3 months)

Second stage: Data collection and evaluation (1 year) Publishing of report (3 months)

CERAMIC SANITARY WARE SUB-COMMISSION MEMBERS

Name, Last Name

Position in Commission

Establishment

Hasan Sazcı Chairman Çanakkale Seramik Fab. A.Ş. Germiyan Saatçioğlu Deputy Chairman Ceramics Federation Fatih Kekeç Member Çanakcılar Seramik A.Ş. Savaş Beyazıt Coordinator Member Undersecretariat of SPO Asaf Erdoğan Coordinator Member Undersecretariat of SPO Mustafa Ersin Ayaydın Reporter Ceramics Federation

01 Ceramic Sanitary Ware Ninth Development Plan · CERAMIC SANITARY WARE INDUSTRY NINTH DEVELOPMENT...

Documents

Transcript of 01 Ceramic Sanitary Ware Ninth Development Plan · CERAMIC SANITARY WARE INDUSTRY NINTH DEVELOPMENT...