JORDAN MARKET UPDATE - MFC · percent against the previous year (Table 1). In addition, wood...

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1 TURKEY MARKET UPDATE EXECUTIVE SUMMARY Construction remains a positive note for the Turkish economy as there is high demand for investments in residential properties. The ongoing urban transformation projects are important leverage for the sector. In urban areas, 178 zones where almost 1.5 million people live covering 8,000 hectares have been declared “risk zones.” Nearly 90,000 buildings, including residential buildings and offices, have been deemed risky. The fact that all of them will be renewed is an important business opening for the sector and the financial support of official authorities is a significant opportunity. According to Central Bank data, housing prices in Turkey in January 2016 went up 17.5 % compared to January 2015. And the increase in Istanbul prices is about 22%, making Turkey the leader in the global list of housing prices. According to Knight Frank’s Global House Price Index 2015 report that compares 55 countries, Turkey has the fastest rate of housing price increases with 18.4%. In 2015, Malaysian exports of major timber and timber based products to Turkey increased by 1.69 percent against the previous year (Table 1). In addition, wood charcoal (236 percent), sawntimber (83.3 percent), Mouldings, MDF (492 percent) and Furniture (27.8 percent) exports increased over the previous year, indicating an increased demand for timber raw materials used by the construction sector, interior décor and the furniture industry in Turkey. However, plywood and BCJ products imports from Malaysia in 2015 declined by 42.8 percent and 7.2 percent respectively over 2014 partly due to increase in plywood imports from other countries and rise in local production of finished products such as doors & doorframes, interior décor products in Turkey.. Turkey’s total imports of timber and timber based products declined in 2015 due to slower demand from wooden joineries and factories producing furniture, interior decorations and fit-outs as reported by importers based in Istanbul. However, there was a small increase in sawntimber (0.5 percent) imports in the year 2015 due to demand for doors, doorframes, wood profiles, pergolas for log houses and other interior furnishings in Turkey. Veneer imports also increased by 2.5 percent in 2015 over the previous year due to increased intake by lamination units and MDF, particleboard producers in Turkey. Particleboard also witnessed an increase (2 percent) in imports volumes due to demand for higher grade panel which was consumed by furniture manufacturers and non-availability of certain sizes and colours in Turkey. On the contrary, logs imports decreased by 14.4 percent in 2015 over the previous year as saw mills used more of local logs. Moulding imports declined by 22.5 percent and MDF by 15.9 percent in 2015 over the year 2014 as local production of both products increased in Turkey. Furthermore, plywood imports saw a decline of 7 percent in 2015 over the year 2014 due to decreased consumption by construction industry in Turkey due to low demand for premium housing in Turkey. BCJ also decreased by 8.6 percent in 2015 over the previous year due to decline in lower demand from high-end apartments in Turkey. Although, BCJ sector is stable due to imports of wooden doors, wooden skirting, cornice and engineered wooden flooring in Turkey. Furniture imports declined by 6.1 percent in 2015 as some importers and big retailers mentioned sourcing furniture from several local producers based in Kayseri, Ankara, Bursa besides workshops located in industrial areas of Istanbul. The higher importation cost of furniture due to raised custom duties and VAT in Turkey has also reduced the demand for furniture.

Transcript of JORDAN MARKET UPDATE - MFC · percent against the previous year (Table 1). In addition, wood...

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TURKEY MARKET UPDATE

EXECUTIVE SUMMARY Construction remains a positive note for the Turkish economy as there is high demand for investments in residential properties. The ongoing urban transformation projects are important leverage for the sector. In urban areas, 178 zones where almost 1.5 million people live covering 8,000 hectares have been declared “risk zones.” Nearly 90,000 buildings, including residential buildings and offices, have been deemed risky. The fact that all of them will be renewed is an important business opening for the sector and the financial support of official authorities is a significant opportunity. According to Central Bank data, housing prices in Turkey in January 2016 went up 17.5 % compared to January 2015. And the increase in Istanbul prices is about 22%, making Turkey the leader in the global list of housing prices. According to Knight Frank’s Global House Price Index 2015 report that compares 55 countries, Turkey has the fastest rate of housing price increases with 18.4%. In 2015, Malaysian exports of major timber and timber based products to Turkey increased by 1.69 percent against the previous year (Table 1). In addition, wood charcoal (236 percent), sawntimber (83.3 percent), Mouldings, MDF (492 percent) and Furniture (27.8 percent) exports increased over the previous year, indicating an increased demand for timber raw materials used by the construction sector, interior décor and the furniture industry in Turkey. However, plywood and BCJ products imports from Malaysia in 2015 declined by 42.8 percent and 7.2 percent respectively over 2014 partly due to increase in plywood imports from other countries and rise in local production of finished products such as doors & doorframes, interior décor products in Turkey.. Turkey’s total imports of timber and timber based products declined in 2015 due to slower demand from wooden joineries and factories producing furniture, interior decorations and fit-outs as reported by importers based in Istanbul. However, there was a small increase in sawntimber (0.5 percent) imports in the year 2015 due to demand for doors, doorframes, wood profiles, pergolas for log houses and other interior furnishings in Turkey. Veneer imports also increased by 2.5 percent in 2015 over the previous year due to increased intake by lamination units and MDF, particleboard producers in Turkey. Particleboard also witnessed an increase (2 percent) in imports volumes due to demand for higher grade panel which was consumed by furniture manufacturers and non-availability of certain sizes and colours in Turkey. On the contrary, logs imports decreased by 14.4 percent in 2015 over the previous year as saw mills used more of local logs. Moulding imports declined by 22.5 percent and MDF by 15.9 percent in 2015 over the year 2014 as local production of both products increased in Turkey. Furthermore, plywood imports saw a decline of 7 percent in 2015 over the year 2014 due to decreased consumption by construction industry in Turkey due to low demand for premium housing in Turkey. BCJ also decreased by 8.6 percent in 2015 over the previous year due to decline in lower demand from high-end apartments in Turkey. Although, BCJ sector is stable due to imports of wooden doors, wooden skirting, cornice and engineered wooden flooring in Turkey. Furniture imports declined by 6.1 percent in 2015 as some importers and big retailers mentioned sourcing furniture from several local producers based in Kayseri, Ankara, Bursa besides workshops located in industrial areas of Istanbul. The higher importation cost of furniture due to raised custom duties and VAT in Turkey has also reduced the demand for furniture.

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HOUSING AND CONSTRUCTION MARKET

Turkish real estate market involving housing sub-market has shown remarkable growth in the last decade. Foreign institutional and individual investments have also been growing in this period in addition to traditional domestic investments. The critical components, which made contributions to the real estate sector are mostly related to macro-economic stability and relatively stable growth in GDP and the income/ financial wealth of households. Lower mortgage rates and other positive market conditions (i.e. a long period of political/ economic stability, growth and rising income levels, industry friendly government policies etc.) helped to improve the access to mortgage/ construction finance. Despite, negative impacts of the global financial crisis, one may also observe that Turkish housing markets still show strength in many respects. Reliance on mortgages is low in Turkey as home owners reliably repay their loans, helped by house prices that rose faster than in any other country last year. The risk, at a time when construction has grown to make up a bigger share of the country’s investments. The share of Turkey’s borrowing represented by developers is higher than at any time in the last decade, and represents almost a fifth of all corporate loans, according to the nation’s banking association. An increasing portion of those debts is going bad, with the industry’s portion of non-performing loans nearly doubling in the past five years. According to Central Bank data, housing prices in Turkey in January 2016 went up 17.5 % compared to January 2015. And the increase in Istanbul prices is about 22%, making Turkey the leader in the global list of housing prices. According to Knight Frank’s Global House Price Index 2015 report that compares 55 countries, Turkey has the fastest rate of housing price increases with 18.4%. The Knight Frank report notes Turkey has a strong population base that links East and West and is increasingly recognized as a safe place by Middle East investors. The leading factor that contributes to the price increase is the interest shown by foreign investors, especially those from the Middle East. Some of that interest can be attributed to the migration from Syria, the rest from investments. About 3 million Syrian refugees who have entered Turkey are the leading factor of the boom in housing demand and rent. The demand created by Syrian refugees in cities naturally increases rent, therefore, it increases the price of residences. According to the Turkish Statistical Institute (TUIK), it is estimated that nearly 4 percent growth was achieved in 2015. The growth rate forecasted for 2016 is 4.5 percent but this has been considered an optimistic target. According to TUIK data, in 2014, 1.165 million houses were sold; in 2015 this figure increased 11 percent to nearly 1.24 million. House sales to foreigners increased 20.4 percent in 2015 compared to the previous year. In sales to foreigners in 2015, Istanbul topped the list with 7,493 houses, while southern Antalya came next with 6,072 houses. The north-western provinces of Bursa and Yalova followed, with 1,501 and 1,425 houses, respectively. In 2016, while the world economy is struggling with a series of uncertainties, Turkey has taken its share from this negative climate. Turkey experienced low foreign capital inflow in 2015; the country does not have the luxury to repeat this in 2016. Alongside economic fragilities, domestic political tension and most importantly the high geopolitical risk in the region do not portray a positive year for Turkey. This also means that the targeted 4.5 percent growth is highly optimistic.

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Construction remains a positive note for the Turkish economy as there is high demand for investments in residential properties. The ongoing urban transformation projects are important leverage for the sector. In urban areas, 178 zones where almost 1.5 million people live covering 8,000 hectares have been declared “risk zones.” Nearly 90,000 buildings, including residential buildings and offices, have been deemed risky. The fact that all of them will be renewed is an important business opening for the sector and the financial support of official authorities is a significant opportunity. Source: Al Monitor, Hurriyet Daily News

TIMBER MARKET

Table No. 1: Malaysia’s Export of Major Timber Products to Turkey from the year 2012 to 2015 Volume (m3), Value (RM million)

Product 2012 2013 2014 2015

Volume Value Volume Value Volume Value Volume Value

Fuel Wood 10,992,894 15.26 - - 13,593,509 23.58 10,474,282 20.61

Wood Charcoal

1,439,583 1.97 - - 522,300 0.63 1,240,590 2.12

Sawntimber 192 0.61 - - 126 0.24 210 0.44

Veneer - - - - - - 39 0.11

Mouldings 357 1.39 - - 285 0.09 350 1.08

Fibreboard 277 0.44 - - 74 0.14 322 0.83

Plywood 4,122 7.17 - - 841 1.75 172 0.40

BCJ 3,363,365 8.58 - - 574,969 3.33 545,892 3.09

Other Articles of Wood

3,620 0.06 - - 27,765 0.58 23,419 0.42

Furniture* - 5.60 - 0.42 - 6.72 - 8.59

Total - 41.08 - 0.42 - 37.06 - 37.69 Source: Malaysian Timber Industry Board ** Wooden and Rattan Furniture Note: BCJ is in KG

In 2015, Malaysian exports of major timber and timber based products to Turkey increased by 1.69 percent against the previous year (Table 1). In addition, wood charcoal (236 percent), sawntimber (83.3 percent), Mouldings, MDF (492 percent) and Furniture (27.8 percent) exports increased over the previous year, indicating an increased demand for timber raw materials used by the construction sector, interior décor and the furniture industry in Turkey. However, plywood and BCJ products imports from Malaysia in 2015 declined by 42.8 percent and 7.2 percent respectively over 2014 partly due to increase in plywood imports from other countries and rise in local production of finished products such as doors & doorframes, interior décor products in Turkey. Moreover, Turkish wood working joinery workshops require melamine face particleboards which are either produced locally or imported in from neighbouring European suppliers. Overall, the demand for timber products from Malaysia in the year 2015 displayed positive trends although the volume is small. Veneer, Moulding and Furniture rise in import values signified increasing interest for various wood based products from Malaysia. It is important to note that Turkey and Malaysia signed a Free Trade Agreement (FTA) which came into effect on 1st August 2015 allowing zero duties on import of goods from Malaysia and vice versa. The treaty gives preferential treatment on goods produced and bearing Certificate of Origin (CO) of Malaysia.

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Furthermore, the products most enquired from Malaysia are charcoal, film-faced plywood and engineered/ laminated flooring in Turkey. Importers in Turkey can also receive assistance though ‘KOSGEB’ which is a government initiative to provide support to business entities in Turkey such as fair participation and financial grants. Table No. 2: Import of Major Timber Products in Turkey from 2012 – 2015 Volume (m3), Value (USD, million)

Products

2012 2013 2014 2015

Volume Value Volume Value Volume Value Volume Value

Logs 837,787 146.78 573,020 107.56 519,278 104.87 475,929 89.70

Sawntimber 619,973 222.30 633,028 238.44 737,096 279.87 871,529 281.42

Veneer 37,566 38.45 41,564 41.11 53,140 47.67 62,373 48.65

Moulding 10,298 14.46 11,726 17.82 14,541 20.28 15,061 15.71

Particleboard 298,250 111.76 266,169 110.40 172,535 78.54 223,047 80.18

Fibreboard 553,090 323.34 492,547 312.72 354,634 195.29 325,606 164.08

Plywood 170,981 298.86 170,981 298.86 195,466 335.49 185,332 311.83

BCJ n.a 60.94 n.a 97.50 n.a 90.32 n.a 82.49

Furniture n.a 107.23 n.a 120.92 n.a 120.64 n.a 113.17

Total n.a 1324.12 n.a 1345.33 n.a 1,272.97 n.a 1,187.23 Source: Turkish Statistical Institute * Wooden Mouldings, Wooden Frames, BCJ and Wooden Furniture are in Weight ('000 kg)

Turkey’s total imports of timber and timber based products declined in 2015 due to slower demand from wooden joineries and factories producing furniture, interior decorations and fit-outs as reported by importers based in Istanbul. However, there was a small increase in sawntimber (0.5 percent) imports in the year 2015 due to demand for doors, doorframes, wood profiles, pergolas for log houses and other interior furnishings in Turkey. Veneer imports also increased by 2.5 percent in 2015 over the previous year due to increased intake by lamination units and MDF, particleboard producers in Turkey. Particleboard also witnessed an increase (2 percent) in imports volumes due to demand for higher grade panel which was consumed by furniture manufacturers and non-availability of certain sizes and colours in Turkey. On the contrary, logs imports decreased by 14.4 percent in 2015 over the previous year as saw mills used more of local logs. Moulding imports declined by 22.5 percent and MDF by 15.9 percent in 2015 over the year 2014 as local production of both products increased in Turkey. Furthermore, plywood imports saw a decline of 7 percent in 2015 over the year 2014 due to decreased consumption by construction industry in Turkey due to low demand for premium housing in Turkey. BCJ also decreased by 8.6 percent in 2015 over the previous year due to decline in lower demand from high-end apartments in Turkey. Although, BCJ sector is stable due to imports of wooden doors, wooden skirting, cornice and engineered wooden flooring in Turkey. Furniture imports declined by 6.1 percent in 2015 as some importers and big retailers mentioned sourcing furniture from several local producers based in Kayseri, Ankara, Bursa besides workshops located in industrial areas of Istanbul. The higher importation cost of furniture due to raised custom duties and VAT in Turkey has also reduced the demand for furniture. In addition, the market for outdoor furniture and decking is steady in Turkey despite the slowdown in tourism. Table No. 3: Import of Logs in Turkey from 2012 – 2015 Volume (m3), Value (USD, million)

Countries 2012 2013 2014 2015

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Volume Value Volume Value Volume Value Volume Value

Ukraine 620,459 94.39 422,088 63.94 373,489 59.95 330,199 45.92

USA 41,562 11.60 9,557 6.81 10,810 9.24 12,546 10.93

Cameroon 10,402 4.04 13,625 5.77 10,083 4.30 16,294 5.86

Romania 60,345 8.50 33,350 5.51 23,312 4.09 25,098 4.12

France 7,109 3.46 5,804 2.79 6,522 3.05 7,708 2.74

Bulgaria 39,049 4.82 39,887 5.16 38,952 5.05 18,036 2.30

Georgia 5,471 0.88 8,019 1.03 9,641 1.31 16,596 2.23

Russia 10,295 2.14 6,642 1.20 2,858 0.53 12,729 1.69

Dominican Republic 2,170 1.27 796 0.59 2,814 0.55 5,862 1.03

Greece 9,137 1.39 6,972 0.88 10,225 1.16 6,010 0.80

Others 31,788 14.32 26,281 13.86 30,571 15.63 2,484,9 12.03

Total 837,787 146.78 573,020 107.56 519,278 104.87 475,928 89.70 Source: Turkish Statistical Institute

Importation of logs (round logs) saw a decrease in 2015 over the previous year for Red Pine, Beech, Red Oak, African Mahogany to be used for log houses on hill tops, pergolas, construction industry and also manufacturers of wood composite materials in industrial areas in Istanbul, Gebze, Bursa, Kayseri, Antalya and Ankara of Turkey. The sawmills sell the saw dust and also the timber scrap to factories producing wood plastic composite, wood pallet manufacturers and also packaging factories which utilise the wood waste and residues. However, the demand for logs has considerably reduced as the importers find it rather expensive to bring logs to Turkey and arrange saw mills for sawntimber and other raw timber inputs. Most of the timber logs are for local consumption in Turkey as the re-exports to Syria has been severely affected due to political & economic turmoil.

SAWNTIMBER Table No. 4: Import of Sawntimber in Turkey from 2012 – 2015 Volume (m3), Value (USD, million)

Countries

2012 2013 2014 2015

Volume Value Volume Value Volume Value Volume Value

Ukraine 194,588 54.38 205,063 60.31 283,327 85.42 412,948 108.67

Russia 101,208 42.50 91,155 41.90 100,732 47.09 122,501 46.42

Bulgaria 148,470 32.39 180,401 42.26 190,292 44.61 168,297 34.41

Romania 90,347 31.31 75,576 27.83 638,35 26.43 55,667 20.81

Cameroon 15,423 13.05 16,346 14.33 24,224 21.23 29,571 20.20

USA 14,010 13.74 11,902 11.78 13,053 14.06 11,805 13.82

Finland 97,003 6.54 15,154 9.99 18,857 11.54 24,744 11.15

Sweden 15,028 6.91 8,554 6.06 8,649 6.33 7,740 4.38

Estonia 8,288 5.42 5,689 4.27 9,350 5.06 9,952 4.13

Serbia 759 0.36 1,317 0.47 1,533 0.71 3,794 1.00

Others 22,148 15.67 21,871 19.23 2,3244 17.39 24,508 16.42

Total 619,973 222.30 633,028 238.44 737,096 279.87 871,529 281.42 Source: Turkish Statistical Institute

Sawntimber (‘Kereste’ in local parlance) imports increased marginally in Turkey over last year by 0.5 percent in 2015 indicating stable local consumption by producers of door sets, flooring, moulding and interior décor products. According to the statistics compiled for 2015, imported timber from Ukraine,

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Russia and Bulgaria is mostly whitewood which consists of 16.4 percent and 38.6 percent market share respectively. Most hardwoods were imported from Cameroon (7.1 percent) and USA (4.9 percent) in 2015 which comprise of species such as Iroko, Sapele, Red Oak, Maple, Ash, Walnut, Cedar and Cherry. The application for most whitewood (Spruce and Pine) is by the construction sector namely for scaffolding, beams, concrete shuttering, formwork, fencing at construction sites, ramps and roof trusses. These timbers are used for carpentry works, furniture production, packaging such as wooden crates & pallets. The common sizes whitewood from Ukraine. Russia, Bulgaria, Finland and Sweden are: 2.3, 2.4, 2.5 & 3.8cm x 15 – 30 cm x 4 / 6m. Lebanon imports large volumes of whitewood from Ukraine, Russia, Latvia and Finland. Furthermore, Red Pine from Sweden are used for making doors panels and interior finishes.

Whitewood from Ukraine and Russia measuring 25mm x 100mm – 3 & 4metres length comprises of 20 percent of the market while 47mm x 100mm of 3 & 4m about 8 percent market share in Turkey. It normally takes about 10-12 days for break-bulk shipments from St. Petersburg Port and about 15 days from Constantza Port (Romania) to Ambarli Port (Turkey). Ankara, Kayseri, Antalya and Istanbul are the major cities where wood based manufacturers are based in Turkey. Turkey species include Spruce, Pine, Oak, Beech, Ash, Maple, Walnut in the north and south part of Turkey. Bulgarian Pine imported at EUR150 per cbm CNF Istanbul. The devaluation of Russian currency and lower price of Romanian timber products besides low transportation cost has helped increase imports of timber and panel products. Market sources informed that Turkish customers generally do not like Pine because of the knots in the wood. Brazilian sawntimber is not preferred in Turkey as it has many knots and the wood warps due to non humid climate and cold weather of Turkey. There is a growing trend and increasing demand for European Oak and Radiata Pine products in Turkey. Finger-jointed scantlings in sizes: 2.5cm x 4.5cm and length of 2.0 – 2.5metres are used for internal doorframes in Turkey. Finger-jointed sawntimber was also sourced in the following sizes: 33mm x 90mm, 38mm x 90mm, 44mm x 90mm, 44mm x 125mm and length of 3-6metres while the planks should be kiln dried with moisture content of 9-12 percent. Ash, Oak and Iroko sawntimber was used for flooring, decking, wall cladding and other interior décor products fabrication in Turkey. Pine and Tulip wood was used for producing Oriented Strand Board (OSB) in Turkey by factories located in Bursa, Kayseri and Gebze. Cameroon and Ivory Coast are major suppliers of African hardwood species to Turkey. Ukraine and Russia supply large quantities of softwoods such as Pine, Birch and Spruce. USA supplies steady volumes of hardwood species such as Red Oak, Walnut, Ash and Maple together with softwood species such as Douglas Fir, Hemlock and Cedar to Turkey. Other popular African species are Ayous, Teak, Limba, Sapele, Iroko, Acajou, Frakke and Okoume.

Redwood (Red Pine) from Sweden is mainly used for manufacturing furniture (bedroom, living & dining sets and sofa frames), kitchen cabinets, joinery products (doors & doorframes and window frames) and mouldings. Red Pine much sought after by the carpentry shops due to its cheaper prices and also good nailing properties, compared to other sawntimber species. Common sizes of Swedish Red Pine are: 2.5, 3.8, 5, 6, 7cm x 15, 17.5, 20, 22.5 & 25cm x 4 – 6m.

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Oak and Beech are used by furniture factories for manufacturing various products due to its better wood-grain properties and ease of workmanship through wood carving machines. Common sizes are: 2.5, 4, 5, 6, 7 & 8 cm x 10cm & up (15cm & up most preferred) x 1.8m up to 3m. Beech with its good shock resistance and easy carving and staining, was preferred in furniture manufacturing. The common sizes for this specie are: 2.5, 4, 5, 6, 7 & 8 cm x 10cm & up (5cm is most preferred while 10cm is the least preferred) x 1.8m up to 3m. Kiln-dried timber (moisture content of 10-12 percent) is much preferred because it needs a shorter time for drying and carpenters can immediately start to work on the timber.

Iroko from Cameroon, Gabon and Ivory Coast are popular for manufacturing doors & doorframes, mouldings, indoor & outdoor furniture. Turkish importers mentioned that this specie is popular due to its good working properties, easy to stain and does not absorb much paint while paint finished. Common sizes of Iroko in Turkey are: 2” x 6” & wider and length 8’ & up (Standard & Better grade). Iroko is used for carpentry works producing decking, flooring, doors and door frames and interior décor for restaurants and hotels in Turkey. African hardwoods are imported by many Turkish businessmen who have invested in countries like Cameroon, Gabon and Ivory Coast to source and export African species such as Iroko, Sapele, Acajou, Dabema into their home country. The main applications of Iroko are in the manufacture of doors, pergolas and some outdoor furniture. Importers market Iroko as stable timber once it is dry and suitable for joinery workshops including outdoor use. The following compositions are identified: 2” x 6”, 8”, 9”, 10” & 12” (of which 2” x 9”, 10” comprise 80%) and length 8’ & longer (prefer 70% in length 15’) standard & better grade as well as Kiln-dried. The popular timber species that are brought into Turkey joinery & interior décor purposes are Padouk, Samba, Wenge, Tiama, Acajou, Sapele, Wawa, Mahogany Zebrano, Koto, Iroko (Cameroon, Gabon, Congo, Ivory Coast & Nigeria) and Red Oak, Walnut, Cedar, Maple & Ash (USA & Canada), Burma Teak (from Indonesia and India suppliers) and Marupa, Jatoba & Ipe (Brazil). Ambarli is the main port for break-bulk/ container shipment that enters Turkey. Major importers have warehouses / timber yard in Istanbul. For containerised cargoes, Istanbul is the preferred choice as most consumer items are received in Port of Istanbul. Major Turkish importers choose container consignments for sawntimber, plywood & MDF due to faster delivery and clearance at the port. Table No. 5: Average Indicative Booking Prices of Sawn Timber in Turkey

African/ Asian Species (Kiln Dried)

Average Indicative Prices; Per Cubic Metres, C&F Ambarli Port – Turkey

Okoume – 2” x 6” and wider EUR750

Kossipo – 2” x 6” and wider EUR800

Sapele – 2” x 6” and wider EUR870

Iroko – 2” x 6” and wider EUR900

Burmese Teak – 2” x 6” and up EUR4,000

European/ American Species Beech – 2” x 6” and wider

EUR540

Pine – 2” x 6” and wider EUR150

Southern Yellow Pine – 2” x 6” and wider EUR430

Spruce – 2” x 6” and wider EUR500

Chestnut – 2” x 6” and up EUR1,000

White Oak – 2” x 6” and up US$870

Red Oak – 2” x 6” and up US$1,100

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Cherry – 2” x 6” and up US$1,400

Hard Maple – 2” x 6” and up US$1,500

Cedar – 2” x 6” and up US$1,350

Red Oak – 2” x 6” and up US$950

Walnut – 2” x 6” and up US$2,500 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 6: Average Indicative Wholesale Prices of Sawn Timber in Turkey

Species (Kiln-Dried)

Prices per cu. ft in TRY (US$1= TRY2.96)

African/ Asian species Tiama – 2” x 6” and wider Kossipo – 2” x 8” and wider

70 80

Sapele – 2” x 6” and wider 90

Iroko – 2” x 6” and wider 100

Burmese Teak – 2” x 6” and wider 380

European/ American Species Beech – 2” x 6” and wider

95

White Oak – 2” x 6” and wider 100

Red Oak – 2” x 6” and wider 120

Ash – 2” x 6” and up 130

Maple – 2” x 6” and up 145

Cherry – 2” x 6” and up 170

Red Pine – 2” x 6” and wider 140

Turkish Walnut – 2” x 6” and wider 180

European Walnut – 2” x 6” and wider 190 Note: The range of prices is wide and varies according to the composition of timber sizes & lengths and its quality, payment terms as well as the volume of each order placed. The timber is sold in bundles in the local market. Price surveyed on 24-29 April 2016

PROSPECTS IN THE SHORT TERM

Construction industry in Turkey is affected due to delay in payment by the government for tendered and completed projects and also the slow down in sale of high-end residential units in Istanbul. Many projects are delayed by real estate developers due to fall in demand of residential and commercial properties by investors. However, considering the demand for housing by locals, it is imperative that building contractors will continue to undertake further residential and commercial projects in outskirts of Istanbul. There is still a very healthy demand for sawn timber and laminated scantlings from Turkish timber products producers. The sawn timber and scantlings are used in decking, flooring, and window production. Importers in Turkey use species such as Iroko, Sapele, Kossipo, Acajou and Beech which are considered for door and doorframes besides other interior furnishings. As such, Red Pine and Beech from Romania, Germany and Russia while Iroko, Sapele and Kossipo from Cameroon, Ivory Coast and Gabon are being brought in Turkey by sawntimber importers based in Istanbul, Ankara, Kayceri, Bursa and other cities of Turkey.

PLYWOOD

Table No. 7: Import of Plywood in Turkey from 2012 – 2015

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Volume (m3), Value (USD, million)

Countries

2012 2013 2014 2015

Vol Value Vol Value Vol Value Vol Value

Russia 86,916 140.13 86,916 140.13 74,191 119.22 87,996 141.37

Ukraine 14,046 22.17 14,046 22.17 20,031 31.75 23,194 36.66

Bulgaria 7,722 16.72 7,722 16.72 11,318 21.73 10,859 23.06

Vietnam 2,960 5.50 2,960 5.50 15,285 26.80 12,234 20.75

Latvia 9,635 15.34 9,635 15.34 11,265 18.00 10,546 16.59

India 9,482 17.86 9,482 17.86 14,206 23.40 8,510 14.24

Finland 4,924 9.66 9,424 9.66 6,261 11.34 6,611 12.19

Romania 9,688 17.78 9,688 17.78 8,134 14.74 5,418 10.14

Brazil 15,278 30.96 1,5278 30.96 15,384 30.09 4,413 8.81

Spain 1,044 2.32 1,044 2.32 2,067 3.60 3,038 4.87

Others 9,287 20.43 9,287 20.43 17,324 34.77 1,2511 23.18

Total 17,098 298.86 170,981 298.86 195,466 355.49 185,332 311.83 Source: Turkish Statistical Institute

In 2015, the import of plywood decreased 12.2 percent (Table 7) over the previous year due to lower construction activity in Turkey. For the same year, Russia remained the main plywood supplier with a market share of 45.3 percent (increased its exports by 18.5 percent in 2015 over the previous year) followed by Ukraine (11.7 percent), Bulgaria (7.3 percent), Vietnam (6.6 percent), Latvia (5.3 percent) and India (4.5 percent) respectively. Turkey imports large volumes of Phenolic Film Faced plywood from Russia and Ukraine in 2015 as these are considered cheaper compared to other plywood producers from Germany and Italy. Russian and Ukrainian Birch core phenolic film-faced plywood is imported in large volumes into Turkey. According the importers, the most common usage for the 18/ 21mm plywood panels of WBP/ MR DBB/CC grade are used in construction. Popular film-faced plywood size: 1.25cm x 2.50cm x 18mm / 21mm of Birch core and 11-13ply is rather sold in large volumes in Turkey. Birch core film-faced plywood is preferred for construction purposes such as shuttering and formwork. The supply of Russian plywood was about 1 week by truck until November 2015 but since the tussle between Russia and Turkey the containers now come from St. Petersburg port to Ambarli port in Istanbul via Black Sea and it takes about 45 days for delivery after order confirmation. Similarly, from Malaysia it takes about 45 days from order to delivery to Istanbul. A reputed brand from Russia is selling at the same retail price for the last six months in Turkey. In addition, the Ambarli port in Istanbul allows 14 days free clearance. Imports of popular Indonesian plywood brand stopped 4-5 years ago due to high prices and inconsistency of supplies Table No. 8: Plywood Tax Structure in Turkey

China European Union

Malaysia Vietnam/ India Indonesia/ Chile/ Brazil

Import Duty US$1,100 x 7% = US$77 per

cbm

- - US$1,100 x 3.5% = US$35

per cbm

US$1,100 x 7% = US$77 per

cbm

Value Added Tax

US$1,100 x 18 = US$198 per

cbm

US$1,100 x 18 = US$198

per cbm

US$1,100 x 18 =

US$198 per cbm

US$1,100 x 18 = US$198 per

cbm

US$1,100 x 18 = US$198 per

cbm

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Anti-Dumping Duty

15% or US$240 per cbm

- - - -

Logistics/ Forwarding

6 - 7% of the total value

6 - 7% of the total value

6 - 7% of the total

value

6 - 7% of the total value

6 - 7% of the total value

Malaysian film-faced plywood (6’ x 12’) of thickness 18mm & 21mm was booked by some large importers based in Istanbul. About 75 percent of imported film-faced plywood is used for the formwork, shuttering and support applications for the high rise construction. The Turkish market also buys plywood panels of door sizes, e.g., 2135mm x 700mm & 800mm of thickness 3.6mm. Moreover, one large importer in Istanbul mentioned to have imported certified (FSC) film-faced plywood (1.25cm x 2.50cm and 18/ 21mm) from Latvia normally through L/C at sight, the cargo delivery in 12 days from Riga Port in Latvia to Port Istanbul. Importers informed that film-faced plywood from Chile is better grade due to finer quality of Pine. Phenolic Film-Faced plywood for panel size: 1.25cm x 2.50cm, 18 / 21mm, WBP (11/13 ply) / MR (11 ply) glue with core such as hardwood, combi-core, Poplar and Birch. The major suppliers of film-faced plywood to Turkey are from Russia, Ukraine and Vietnam. However, the quality of Vietnamese plywood is not similar to higher grade plywood of Russia, Finland and Spain as informed by big importers in Istanbul due to old machinery of mills in Vietnam. The freight charges are now US$200 per 40’ container from Vietnam to Turkey from an earlier of US$3,200 per container about two years ago. Several plywood importers stated to have bought plywood from Malaysia in the past, but have now switched to mainly Russian and Ukrainian plywood. Prices for Malaysian plywood are reportedly too high, and even Indonesian plywood prices can currently not compete with Russian and Ukrainian prices. Some plywood from France and Germany were offered FSC certified, but there is no demand for such certification in Turkey as yet. Prominent importers in Istanbul procured competitively priced film-faced panels from Russia and Latvia. Turkish importers do not buy any Chinese plywood because the import tax is very high. Many Turkish importers previously started to import Chinese Phenolic Film-Faced plywood due to its very competitive price compared to other sources. Some of the factors that carpenters look for are; number of plies, hardwood core good quality phenolic film coating and also edges sealing. The better quality will produce more smooth and easy application of wall papers. Table No. 9: Average Indicative Booking Prices of Phenolic Film-Faced Plywood in Turkey

Phenolic Film-Faced Plywood; 4’ x 8’, thickness 18mm (WBP, 13ply)

Country of Origin Price in USD per m3, C&F Ambarli Port – Turkey

Finland 750

Russia 700

Ukraine 670

Vietnam 500

Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 10: Average Wholesale Prices of Phenolic Film-Faced Plywood in Turkey

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4’ x 8’, DBB/CC

Thickness Price Per Sheet in Turkish Lira (TRY) (US$1 = TRY2.96)

15mm 100

18mm 110

21mm 130

Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

PROSPECTS IN SHORT TERM Turkey registered stable imports of plywood despite the ongoing civil war in Syria suggesting a good demand from the domestic market. Film-faced plywood supplies from Russia, Ukraine and Bulgaria have risen in Turkey due to the huge price difference compared with other European and Asian suppliers. Importers and end-users are well aware of the poor quality of plywood from China. Malaysian manufacturers/ suppliers of phenolic film-faced plywood should take advantage of free trade agreement between Turkey and Malaysia to send large volumes of marine/ shuttering plywood for high-end projects in Turkey and also re-exports to traders in neighbouring countries.

BLOCK BOARD

Romania, Spain and Bulgaria are the largest suppliers of block board into Turkey, which is mainly used in the production of furniture. Plain and laminated block board (4’ x 8’) are imported into Turkey as the common sizes of plain block board imported are 6’ x 12’ and 4’ x 8’panels of thickness 15/ 18/ 21mm. It mostly used for manufacturing shelves, doors, tables, panelling and partitions. Block boards are widely used in manufacturing kitchen tops and tables as it ensures that the core runs lengthways to attain maximum strength for indoor use. Polyester paper overlaid block board and Red Oak veneered block board from Bulgaria are popular in Turkey. Polyester paper overlaid block board (4’ x 8’, 18mm) from Bulgaria was booked at EUR27.00 per sheet, C&F Istanbul. In addition, Oriented Strand Board (OSB) of size: 1220mm x 2440mm of 11mm, 15mm & 18mm is used by manufacturers of furniture, interior décor products in Turkey. OSB of size: 4’x 8’ – 18mm was imported at EUR270 per cbm CNF Istanbul from Latvia. Table No. 11: Average Indicative Booking Prices of Block board in Turkey

Dimension(4’ x 8’) Thickness (mm) Price in EUR per m3, C&F Ambarli Port – Turkey

Romania 12mm 330

Spain 12mm 340

Romania 15mm 325

Spain 15mm 320

Belgium 18mm 310

Romania 18mm 310 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 12: Average Indicative Wholesale Prices of Block board in Turkey

Dimension(4” x 8”)

Thickness (mm) Price in Turkish Lira per sheet (US$1= TRY2.96)

12

Romania 12mm 34

Spain 12mm 32

Romania 15mm 35

Spain 15mm 34

Romania 18mm 37

Spain 18mm 38 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

PROSPECTS IN SHORT TERM Demand for block board in Turkey is consistent due to its application for making furniture and flush doors. Woodworking factories and joinery workshops consider it a cheaper option when compared with other processed sheets such as plywood and MDF. Block board from Spain and Romania made of Pine and Birch wood core are quite popular with the end-users and are found in timber warehouses located in industrial zones of Istanbul. ______________________________________________________________________________________

PARTICLEBOARD Table No. 13: Import of Particleboard in Turkey from 2012 – 2015 Volume (m3), Value (USD, million)

Countries

2012 2013 2014 2015

Vol Value Vol Value Vol Value Vol Value

Romania 119,748 43.29 139,175 52.44 76,137 36.17 106,758 40.85

Bulgaria 121,105 46.62 99,251 43.59 68,058 29.08 93,432 29.42

Ireland 4,286 1.68 1,343 0.69 8,810 3.67 10,690 3.41

Italy 5,043 3.03 6,003 4.23 4,700 2.85 3,716 2.42

Germany 2,018 1.62 6,491 4.24 5,274 2.65 4,547 2.22

Netherlands 3 0 60 0.04 57 0.05 569 0.40

United Kingdom 8,743 3.87 2,836 1.47 3,109 1.58 614 0.36

Greece 16,365 5.34 6,674 2.17 2,464 0.88 1,064 0.29

Belgium 153 0.11 424 0.23 629 0.27 687 0.29

Ukraine 42 0.01 0 0 0 0 313 0.13

Others 20,745 6.19 3,913 1.31 3,297 1.34 658 0.37

Total 298,250 111.76 266,169 110.40 172,535 78.54 223,047 80.18 Source: Turkish Statistical Institute (USD1=TRY2.96)

The market of particleboard in Turkey has been reducing since the year 2014 (Table 13). Market sources mentioned more consumption of block board and MDF for making furniture and for door cores. Moreover, the end users perceive particleboard to be lacking the tensile strength when compared with block board and plywood. Romania made particleboard (4’ x 8’) and 18mm thickness was used for manufacturing partitions and other indoor applications as informed by one importer. Small quantities of plain and laminated particleboard are imported into Turkey, which are used mainly in the manufacture of furniture and core for doors. Particleboard is utilised to produce some furniture parts where a large surface is laminated and for door core. Although the price of particleboard is cheaper than plywood, block board and MDF but it is not very popular as a raw material for furniture manufacturing where more machine work is required. The main usages of Particleboard (plain & laminated) which are imported into Turkey are mainly in the furniture

13

manufacturing as well as to be used as core for doors. Particleboard is used in furniture especially kitchens due to its light weight compared to other wooden panels. Chipboard is used as substitutes as the quality and strength are less important in certain wooden kitchen application. Importers and end users commented that about 80 percent of melamine face particleboard is imported from Romania and Bulgaria while about 15 percent from Ireland, Italy and Germany. Joinery workshops in industrial areas of Istanbul are on the look out for melamine face chipboard for applications such as kitchen furniture, office table tops, partitions and others. Moreover, plain, laminated & veneer overlaid Chipboards are required in panels of 4’ x 8’ & 6’ x 12’ and thickness: 8/ 10/ 12/18mm. Popular finishes for laminated & veneer particleboard are Oak, Ash, Wenge and Sapele trees. Meanwhile, Grey & White finished laminated Chipboard is used for kitchen cabinet due to its smooth surface. An offer was received by a Turkish importer of Plain chipboard at 4’ X 8’ and thickness 8 – 18 mm (glue E0, sanding face & back face) at EUR170 per m3 C&F Istanbul from Romania and Bulgaria. Meanwhile, melamine chipboard 6’ X 12’ and thickness 16, 20, 22 mm from Belgium and Spain are offering between EUR230-240 per m3 C&F Ambarli Port. Also, Particleboard measuring of size 4’ x 8’ and 18mm thickness was offered from Greece at EUR250 per m3 C&F Istanbul. Popular particleboard sizes are 2.10cm x 2.80cm and 1.83 cm x 3.66cm in 16 & 18mm thickness Some importers mentioned that tubular / hollow core chipboard of size: 209cm x 70/80/90mm and thickness 33mm are popular in Turkey which is imported via Spain and Italy. Local door manufacturers consume this product for application as door core. There is also a growing interest of particleboards with fire resistance properties for the fire-rated doors. Table No. 14: Average Indicative Wholesale Prices of Particleboard in Turkey (Dimensions: 4’ x 8’)

Countries Thickness Price per sheet in Turkish Lira (TRY) (US$1= TRY2.96)

Bulgaria 18mm 70

Bulgaria 24mm 80

Greece 18mm 65

Greece 24mm 80

Romania 18mm 80

Turkey 18mm 75

Italy 18mm 85

Germany 18mm 90 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

PROSPECTS IN SHORT TERM Demand for particleboard is not much in Turkey due to higher usage of MDF which is considered a better option by the end-users. As such, it is mainly used for door cores and also some demand for fire-rated particleboard where it is mandatory to have light-weight doors which are fire retardant. Finsa brand from Spain besides Greece, Italy and Romania are major suppliers of particleboard to Turkey where the contractors apply them for multi-storeyed apartments and for office complexes in Istanbul. In addition, several mills are located in Turkey which supply various grades and sizes to suit the requirements of local joinery workshops. ______________________________________________________________________________________

14

MDF

Table No. 15: Import of Fibreboard in Turkey from 2012 – 2015 Volume (m3), Value (USD, million)

Countries

2012 2013 2014 2015

Vol Value Vol Value Vol Value Vol Value

Romania 186,240 86.17 186,059 82.32 190,227 77.81 135,083 50.64

Germany 169,131 133.09 169,281 140.50 79,404 65.52 68,948 49.13

Russia 325 0.24 883 0.73 15,081 6.53 43,801 16.47

Poland 20,796 14.51 13,503 11.74 7,250 6.12 14,098 10.33

Italy 57,054 22.77 64,608 24.95 27,734 10.72 15,441 5.94

Belgium 7,489 6.66 6,551 6.38 4,416 4.67 6,641 5.20

Austria 127 0.11 7,020 7.10 6,409 6.00 5,750 4.81

Luxembourg 185 0.09 6,144 2.46 1,186 0.91 5,905 3.96

Switzerland 14,537 11.68 11,498 10.84 6,612 6.10 5,765 3.94

Hungary 1,770 0.79 7,434 2.74 0 0 4,294 1.35

Others 95,435 47.2 19,566 33.79 16,316 10.90 19882 12.30

Total 553,090 323.34 492,547 312.72 354,634 195.29 325606 164.08 Source: Turkish Statistical Institute

Turkey’s import of fibreboard (MDF) reduced sharply by 15.9 percent over 2014 (Table 15). For the same year, Romanian MDF exports reduced by 34.9 percent , Germany by 25 percent, Italy by 44.5 percent Austria by 19.8 percent and Switzerland by 35.4 percent respectively over the year 2014. Moreover, the price difference of EUR15-20 per cbm greatly reduced the market share of abovementioned countries MDF supplies to Turkey Russian MDF suppliers increased their exports by 152 percent, Poland by 68.7 percent, Belgium by 11.3 percent and Luxembourg by 335 percent in 2015 as compared to the year 2014 as manufacturers took advantage of lower currency and labour costs in Russia and Poland and lower offers from suppliers in Belgium and Luxembourg. MDF imports from European MDF mills are applied for fabricating office and home, doors, partitions and interior décor. Romania and Germany exported mainly Melamine laminated MDF, paper overlaid MDF, plain MDF, High Moisture Resistant MDF and veneer overlaid MDF to Turkey.

Romania and Germany’s market share of MDF declined sharply in 2015 despite its higher grade and competitive prices. However, the price adjustment has benefited increase intake from Russia and Poland in 2015 as informed by several large importers and end-users in Istanbul. Italy lost significant market share due to its higher price as compared to Russia and Poland in the year 2015 while joinery workshops lost interest in plain MDF from Austria due to its inconsistent supplies. Turkish end users are diverting to MDF over block board due to higher prices of plywood and MDF considered a cheaper alternative and homogenous product, suitable for interior furnishings. MDF is produced using local wood and wood chips imported from USA, Russia, Finland, Bulgaria and several other countries. MDF sizes are 1.83cm x 3.66cm x 18mm and 2.10cm x 2.80cm x 18mm imported from Bulgaria and Romania for furniture applications in Turkey. The most common sizes of plain MDF in Turkey market are dimension: 1830mm x 2440mm, 1220mm x 2440mm and 1830mm x 3660mm and thickness: 2.5 – 2.7mm, 5mm, 6mm, 8mm , 12mm, 14.5mm, 15mm, 17mm, 17.5mm, 22mm, 25mm & 30mm. About 60% of the orders for plain MDF are for thickness 18/ 25mm which is sought after in Turkey followed by preferred sizes of 18mm, 15mm, 12mm, 8mm & 22mm. MDF door skins of size: 220cm x 70/80/90cm are also imported into Turkey.

15

Turkish MDF lost much of its market share due to no direct trucking from Ankara through Syria. As such, much of the shipments are now brought through sea to Port of Ambarli. Market sources informed that 6’ x 12’ boards in thicknesses of 18 – 24mm are popular from Turkey though there have been very few shipments recently. Melamine laminated MDF (4’ x 8’ & 6’ x 12’, MR / HMR) is generally required in thickness: 12/18/22/25/30 mm while paper overlaid MDF is required in thickness of 3mm. The overlays are classified as whites, solid colours & wood-grain designs. Belgium, Italy and Romania are large suppliers of melamine face MDF due to attractive shades and good quality of boards from Italy and Romania.

HMR grade MDF (4’ x 8’ & 6’ x 12’) are imported in thickness 2.5mm – 30mm with most requirements for 12/15 & 18mm. HMR grade MDF is perceived to have a higher level of strength retention and less swelling for applications in extreme interior conditions affected by humidity, suitable for kitchen cabinets, sink unit, oven unit, bathroom wardrobes etc. Decorative MDF from Romania 6’ X 8’ for panels 18mm with Red Oak or Sapele 2-face was quoted at EUR22.00 per sheet, while Beech is EUR20.00 per sheet. Switzerland’s decorative MDF was offered around EUR25 per sheet. MDF from Romania and Spain continues to be popular due to its high quality and the advantages of Euro currency, including the shorter time of shipment. Furthermore, European suppliers can export larger boards (6’ x 12’) for carpentry solutions. Table No. 16: Average Indicative Booking Prices of MDF in Turkey

Country of Origin Sizes 4” x 8” and 18mm thickness

Prices per cubic metres, C&F Ambarli Port - Turkey

Italy EUR260

Switzerland EUR270

Germany EUR270

Spain EUR250

Romania EUR240

Bulgaria EUR230 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 17: Average Indicative Wholesale Prices of Plain MDF in Turkey

Plain MDF 4’ x 8’

Thickness Price per sheet in Turkish Lira (US$1= TRY2.96)

18mm 60

15mm 55

12mm 50

9mm 40

6mm 30

3.6mm 20 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

PROSPECTS IN SHORT TERM MDF is in high demand in Turkey due to major requirements from wood working joineries who consume them for making kitchen cabinets, drawers, wardrobes, cupboards and other furniture parts. Malaysian MDF is not accepted by the market as the size variation loses its appeal to joinery workshops which are

16

looking for cheaper variants available in the market. Turkey MDF is preferred by joinery workshops due to its lower price and lighter shade compared to Malaysia. Large importers of MDF in Turkey are optimistic due to interior contracting companies are undertaking projects for clients based in Qatar, Kuwait and Saudi Arabia besides certain European buyers due to their lower pricing and quality product. As such, MDF will continue to be demanded by end users and importers in Turkey. ______________________________________________________________________________________

BUILDERS, CARPENTRY AND JOINERY (BCJ)

Table No. 18: Import of BCJ in Turkey from 2012 – 2015 Weight (kg), Value (USD, million)

Countries

2012 2013 2014 2015

Weight Value Weight Value Weight Value Weight Value

China 9,437,184 10.42 13,797,522 25.74 12,083,657 25.33 5,849,751 15.59

Austria 4,443,235 7.76 7,919,493 16.49 75,77,718 12.98 7,781,051 10.84

Germany 4,319,074 9.40 4,420,789 10.56 3,359,979 5.66 5,009,983 8.00

Norway 990 0.02 64 0 204,080 0.38 2,727,857 4.76

Poland 741,134 2.49 704,565 2.50 428,611 2.36 1,534,208 3.50

Slovakia 3,083,848 4.53 2,751,598 4.2 2,627,234 3.95 2,269,835 2.86

Ukraine 402,052 0.80 581,982 1.10 445,023 1.13 1,537,216 2.47

Romania 899,226 0.68 2,718,710 1.80 1,314,241 1.23 2,022,347 1.80

Slovenia 188,700 0.25 609,778 0.90 1,211,104 1.62 1,424,103 1.62

Sweden 31,361 0.07 54,322 0.20 340,367 1.14 1,506,012 1.42

Others 7,964,953 24.51 11,473,189 34.20 10,788,560 34.54 10,839,276 29.61

Total 31,511,757 60.94 44,631,948 97.50 40,680,576 90.32 42,501,639 82.49 Source: Turkish Statistical Institute

BCJ products imports into Turkey in 2015 decreased by 8.6 percent over the previous year as joinery workshops increased production in Turkey such as doors, doorframes and flooring. China reported a market share of 18.8 percent in the year 2015 which was closely followed by Austria (13.1 percent) and Germany (19.6 percent). Wood working joinery workshops and factories producing furniture and interior applications required scantlings, cornice, beddings, balustrades and architraves fittings and refurbishments. Like most Middle Eastern countries, the import of mouldings and joinery products into Turkey such as doors & windows was generally low as most of these products were manufactured locally from imported timbers. Another factor contributing to the low volumes of imports was product customisation to suit the many different specifications of building projects. End users stated good demand for cornice, skirting and other interior decoration products in Turkey. Interior décor products requiring intricate designs and floral patterns on wood carvings are much sought after by owners of villas and apartments in Istanbul. DOORS The door manufacturing industry is well established in Turkey. Doors are produced by small and medium-sized workshops. Due to the wide range of sizes and designs required in the market, most doors are produced locally in accordance with customised designs and specifications. About 38% of the C&F value of the wooden doors would be incurred as import duty (20%), other taxes including VAT (18%). The import duty includes interior door and the door component.

17

Door manufacturers export o African countries such as Libya, Ghana, Nigeria, Saudi Arabia, Kazakhstan, Turkmenistan and Azerbaijan. Doors are produced with veneered MDF for kitchen and also for furniture. In addition, door manufacturers in Turkey also export finished doors to Morocco and Egypt besides neighbouring countries of Armenia, Azerbaijan and Georgia. Finger-jointed Pine is imported from mills in Siberia and Latvia for the doors and doorframes while PVC door skins are sourced from Korea. The most common timber species for doors, window frames, and flooring is Iroko, sourced locally and also imported from European suppliers in Italy and Germany. Tropical species usually come from Africa (Iroko, Sapele and Kossipo) and South America (Pine and Cedar). Turkish companies are also increasingly looking for alternatives to tropical timber, such as thermo-treated timber and composite wood products. Most low-end doors are made from Redwood (Red Pine) from Russia and Ukraine, finished by lacquer or paint. For mid and high-end residential, commercial buildings and villas, solid wooden doors installed in these buildings are produced from Beech, Oak, Iroko, panel products and veneers. Moulded door skins are imported from China, Turkey and the U.A.E. to cater for the manufacture of interior doors for installation in low-end residential buildings. Some large factories producing door and doorframes in industrial areas of Turkey are exporting to Gulf countries such as Qatar and Saudi Arabia to optimise their production cycle as the local demand for expensive solid wood doors and panel doors is limited. Many such factories are producing Red Oak doors with Walnut and Teak veneers for the Saudi Arabian market. Turkish importers will bring in plywood & MDF doors with honeycomb core / wood filling, as well as engineered wooden doors with glass panel, from the Chinese manufacturers. Most of the specifications of imported doors are: 2000mm x 900/ 800/ 700mm x 40mm. As for solid wooden doors, it is mostly produced using Beech of size: 2080mm x 1000mm x 40mm are among occasional import of wooden doors. Table No. 19: Retail Prices of Locally Made Engineered Doors in Turkey

Species

Skeleton Size: 100cm x 210cm x 4cm

Finish Retail Prices in TRY/ unit US$1 = TRY2.96

Pine/Beech African Mahogany 150

Iroko 170

Pine/Beech German Beech 220

Red Oak 250

Pine/Beech Walnut 275 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 20: Prices of Solid Wooden Doors in Turkey

Species Size: 100cm x 210cm x 4cm

Price in US$/ Unit

CIF Price Retail Price

German Beech 180 220-250

Red Oak 250 280-310

Hard Maple 275 300-320

Walnut 350 375-425 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

FLOORING

18

The wooden flooring sector, especially laminated and 3-ply floorings, is a promising market in Turkey as Turkish nationals are influenced by the European culture and appreciate their aesthetic design. These consumers will spend slightly higher in order to ensure good interior designing in their newly purchased apartments. Some commercial buildings in Istanbul are also taking initiative to install wooden floorings rather than carpets and ceramic tiles. Engineered flooring of 2-ply parquet with a layer of plywood topped by a 4 or 6mm layer of solid wood. Dimensions on display were 15 × 90 × 500-1200mm and 15 × 140 × 700-1800mm. Oak parquet flooring was on offer in a wide range of colours and styles. Some tropical species included Afromosia, Bubinga, Wenge, Iroko, Sapele, Burmese Teak, Zebrano, Doussie and Merbau. 3.5mm top layer while 14mm is the total thickness of engineered flooring. 90 percent of the engineered flooring now use Oak in brown, antique, white and American Walnut stain. An importer stated that Pine is not strong a wood as compared to Rubberwood while Merbau loses colour when installed in open spaces due to rain and sunshine. In Turkey, about 38 percent of the C&F value of the wood-based flooring would be incurred as import duty (basic import duty is 20 percent for 2 / 3 ply wooden flooring and HDF laminated flooring) including value added tax of 18 percent. Solid wooden floorings are rather expensive in Turkey; these floorings are usually used in high profile projects such as 5-star hotels, prominent VIP residential villas and apartments. As the economic condition limits consumer spending, most Turkish family will pick HDF laminated flooring as an alternative to 2 or 3 ply-laminated wooden floorings. It also offers a wide range of wood-grain patterns that suits to many different taste of the buyers. Engineered wooden floorings are available in top layer veneers (4 / 5mm) such as Oak, Walnut, Maple Zebrano, Teak, Wenge and Iroko. Laminated HDF and wooden 2 or 3 ply-laminated floorings are popular and used as alternative for solid wooden flooring due to its affordable retail prices and wide range of wood-grain patterns available. Laminated HDF floorings & engineered wooden floorings from China are popular in Turkey due to its cheaper prices. Laminated HDF floorings (8mm x 190mm x 1.2m) from China are installed at EUR$20-22 per m2 and Engineered wooden floorings (10 / 14mm x 70 / 100mm x 500 / 900mm) imported from Spain and Italy are installed at EUR85 per m2 & upwards. Retailers mentioned preference for white and ash colour instead of red and dark red for the floorings installed in apartments, villas and commercial spaces in Turkey. Moreover, Walnut, Oak, Iroko and Wenge were the fast moving laminated floorings including the engineered wooden floorings. Table No. 21: Retail Prices of Engineered Wooden Flooring in Turkey

Species Price in TRY/ m3 US$1 = TRY2.96

Thickness (mm): 3.0 Thickness (mm): 8.0

Red Oak 80 90

Maple 100 120

Wenge 85 100

Jatoba 110 125

Teak 170 200

Walnut 180 230 Note: Inclusive of installation. Price surveyed on 24-29 April 2016

PROSPECTS IN THE SHORT TERM

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Retailers informed on growing demand for solid wood flooring for the drawing room and laminate flooring for the bedrooms for certain high rise and upscale residential units in Istanbul. Some popular finishes are Red Oak, Walnut, Wenge and Zebrano. Some commercial complexes such as offices and cafés are also installing laminated flooring due to their rich appeal. Major importers and interior contractors in Istanbul re-affirmed that red colour hardwood flooring is no longer preferred by end users and at present the colours in vogue are white, antique brown and ash. Moreover, the demand for solid wood flooring is low due to the higher import duties and installation charges in Turkey. The demand for premium engineered and HDF laminated flooring is on the rise for residential and commercial complexes in Turkey. As such, Malaysian flooring companies should try and explore the market.

FURNITURE

Table No. 22: Import of Wooden Furniture in Turkey from 2012 – 2015 Value (USD, million)

Countries 2012 2013 2014 2015

China 26.04 24.11 27.19 26.33

Romania 20.56 22.49 21.98 22.65

Italy 18.71 42.69 24.01 18.79

Vietnam 10.47 9.38 10.99 10.71

Poland 6.64 11.20 9.51 8.89

Indonesia 4.52 5.44 4.93 3.88

Germany 1.66 1.93 3.90 3.63

USA 1.78 2.38 3.28 2.39

Malaysia 2.32 2.03 1.08 1.27

Others 14.52 17.27 13.77 14.63

Total 107.23 120.92 120.64 113.17 Source: Turkish Statistical Institute

Import of furniture decreased in the year 2015 by 6.4 percent over the previous year as retailers procured from local factories located in several industrial areas in Turkey such as Bursa, Kayseri, Ankara and Istanbul. Import of wooden & rattan furniture from Malaysia into Turkey reported a market share of 1.1 percent in the year 2015 (Table 21). China reported a market share 23.2 percent, Romania (20 percent), Italy (16.6 percent), Vietnam (9.4 percent) and Poland (7.8 percent) respectively. Turkish market prefers European designs, judging by huge import of Romanian, Italian and Poland made furniture. Turkish nationals prefer contemporary furniture with European designs, which are regarded as high-end products. At the same time, Chinese furniture has made major inroads into the market and become a major competitor to European furniture. Meanwhile, Malaysian furniture is generally perceived as mid-end products. Malaysian dining table sets and bedroom sets were visible in prominent showrooms in Istanbul. Malaysia supplied the full range of household furniture and office furniture including office tables, chairs & file cabinets, which are viewed as good quality items and value for money by consumers in Turkey. Chinese furniture such as bedroom, sofa sets, dining sets, entertainment units, computer table and executive desks are popular in the Turkish market, especially in the lower income group. Many customers choose Chinese furniture due to the wide range of design options.

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Turkey has a well-established furniture manufacturing industry that produces furniture for office, bedroom, living, dining, garden as well as customised furniture for hotels & villas. The locally manufactured furniture competes in the local retail market as well as caters to end-users customised requirements. Turkish manufacturers utilize the German technology (machines and equipment) to produce high quality and trendy designs which are popular in Europe to produce office and home furniture. Some of these products are exported to neighbouring countries and the Gulf markets as price competition over the Italian & Spanish products. High tariff on furniture has withheld competition from lower cost imports. About 38% of the C&F value of the furniture would be incurred as import duty (20%), other taxes including value added tax (18%). Home furniture consisting of bedroom sets, dining sets, kitchen and lounge furniture is imported mainly from China besides Malaysia. Outdoor furniture is imported from Indonesia, Vietnam, China and Malaysia. For imports, the normal practice is 30 percent advance and 70 percent remittance though letter of credit (L/C). Furniture manufactured locally is made of MDF, block board, particleboard and OSB. Wood used in the production process is Beech, Pine, Oak and other hardwoods from Africa. Currently, furniture is produced both in workshops and in large industrial-scale manufacturing operations. Importers shared that they prefer to travel to China for CIFF (China International Furniture Fair), SIFE (Shenzen International Furniture Fair) and Canton Fair which are considered good source for innovative and modern design with attractive colour schemes and several model options. Table No. 23: Retail Prices of Office Furniture in Turkey

Source Description Price in USD/Unit

Italy Office sofa set (3+1+1+1) upholstered in fabric/ PVC with glass centre table

Beech with sofa set and two single chairs and rectangular table with two side tables

1,500

1,700

Turkey Executive leather upholstered arm chair with desk 2.2m in length

800

Computer desk and 2 drawers and cabinet with glass door and an executive chair

750

Office shelves made of MDF and Pine wood together with conference table with 12 chairs

2,500

China Pine sofa set (2+2+1+1) with table

Executive desk with three meeting chairs and two side tables

1,800 2,200

Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 24: Retail Prices of Sofa Sets in Turkey

Source Description Price in US$/ Unit

Italy Beechwood sofa set in modern design, fabric upholstered in size configuration of 3+2+1+1 including the central glass table top.

3,950

USA Oak sofa set in modern design, fabric upholstered in size configuration of 3+2+1+1 including the central glass table top.

4,300

China Fabric upholstered sofa sets in modern transitional (design mixed with modern & classic) designs. Common configurations

3,100

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of sofa sets are 3+2+1+1, 3+2+2 & 3+1+1+1 for homes and 3+1+1 for offices (fabric/ PVC/ leather upholstered – beige, brown & black) with matching centre table & 1 side table.

Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 25: Retail Prices of Bedroom Sets in Turkey

Source Description Price in US$/ Unit

Turkey Complete set comprising a 5’ bed, a four-door wardrobe (247cm x 208cm x 57cm) with mirrors in two of the doors, a chest of six drawers and two bedside tables.

All in Melamine.

2,300

2,500

China Bedroom sets made in a combination of panel products included bed: 180cm x 210cm, 2 side tables, dressing table with mirror (5/6 door wardrobe).

Similar set with bed size: 155cm x 205cm is retailed at US$1,400 per set.

Bed of size: 120cm x 200cm

2,800

2,950

1,100

Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 26: Retail Prices of Dining Tables in Turkey

Source Description Price in US$/ Unit

Turkey Eight-seater table in Beechwood with chairs 1,500

Eight-seat in Beechwood, eight chairs woven-covered 1,750

Six-seat round table in Beechwood, six chairs in metal 1,900

Four-seat table in Beechwood (top) and metal (legs), four chairs in metal

1,700

Malaysia Six-seat table and six chairs in Rubberwood

Eight-seat table in Rubberwood, eight chairs woven-covered

1,750 1,900

China Six-seat table in Melamine Wenge, six chairs covered with imitation-leather. Part of the tabletop is in glass.

1,200

Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 27: Retail Prices of Wardrobes in Turkey

Source Description Price in US$/ Unit

Turkey Three-door in MDF (150cm x 205cm x 60cm) 950

Four-door in Melamine with Beech finish (250cm x 190cm x 65cm)

1,200

Six-door in Red Melamine 2,250

Four-door in Melamine (190cm x 210cm x 60cm) 1,200

Five-door with four drawers in Melamine with Teak finish (275cm x 210cm x 65cm)

1,370

China Four-door in Melamine (190cm x 190cm x 60cm) 1,400

Four-door in Beechwood (221cm x 201cm x 58cm) 2,200

Six-door in Melamine (250cm x 200cm x 65cm) 2,600 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 28: Retail Prices of Chests in Turkey

Source Description Price in US$/

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Unit

China Three-drawer in Melamine 400

Four-drawer in MDF with a mirror 450

Five-drawer in Melamine with Wenge finish 1,100

Turkey Four-drawer in Melamine 750

Four-drawer in Beech 1,400

Six- drawer in MDF 1,250

Six-drawer in Red Pine 1,700 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 29: Retail Prices of Kitchen Furniture in Turkey

Source Description Price in US$/ Unit

China Kitchen furniture in Melamine, three-door 120cm x 90cm x 50cm)

450

Kitchen furniture in Melamine, nine-door, five-drawers (150cm x 210cm x 45cm)

850

Dresser in Red Oak veneer, three-door (128cm x 196cm x 48cm)

1,500

Turkey Dresser in Pine wood thee-door (195cm x 220cm x 20cm) 1,250 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

Table No. 30: Retail Prices of Outdoor Furniture in Turkey

Source Species Price in US$/ Set

Indonesia Rattan 2,200

Indonesia Treated Teak 2,600

Turkey Pine 2,400

China Synthetic Rattan 1,500

Vietnam Treated Acacia 2,300

Vietnam Treated Teak 2,400 Note: The range of prices is wide and varies according to the payment terms as well as the volume of each order placed. Price surveyed on 24-29 April 2016

PROSPECTS IN THE SHORT TERM Sales of home and office furniture are expected to remain stable as new residential apartments come up on stream. Home furniture from China is popular amongst Turkish nationals as the prices are much lower for sofa sets, bedroom sets and dining table sets. Furniture from Italy, U.S.A. and Spain are available in a few retail stores which are considered to be expensive, meant for the high-end market. Malaysian furniture was visible in some up-market shopping outlets in Istanbul which included the dining and outdoor furniture. Malaysian furniture is admired for its high quality, durability and value for money. Retailers in Istanbul informed that customers are now buying more of Chinese furniture instead of furniture from Malaysia due to latter favoured for their much lower prices, attractive designs and colour combinations with alternative usage of raw materials which appealed to youngsters/ newly married couples because of their lower purchasing capacity. Outdoor furniture from Vietnam, Indonesia and China was visible in a few retail outlets in Istanbul which includes the sofa sets of 3+2+1+1, dining table set of 6 chairs made of treated wood species such as Iroko, Sapele, Teak and Acacia. Importers claimed to have approached manufacturers in South East Asia for new designs at competitive prices as they want to refurbish their stocks with new offerings.

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As such, Malaysian suppliers should offer the option of more designs per container shipment to their buyers to ward off competition from other suppliers based in South East Asia besides offering innovative products with new colour schemes. Demand for furniture will remain strong as Turkey continues to construct housing for its residents which require furniture to be placed inside their homes CONCLUSION Construction of small and medium houses, apartments (ground + 8-10 floors) and villas through private projects instead of government led initiatives is continuing in Istanbul due to requirement for residential properties which are earthquake prone. Furthermore, several old buildings are being demolished in urban areas of Istanbul which will gradually replace with high rise apartments. The demand for sawntimber, plywood, particleboard, MDF, block board, BCJ products and furniture is steady in Turkey. Large and medium sized joinery workshops in Turkey are currently working on prestigious interior fit-out and décor projects for their clients based in Qatar, Saudi Arabia, Kuwait and the UAE which require ingredients of higher grade timber and timber panel products. In conclusion, the import of Malaysian timber products such as plywood, BCJ products and furniture would continue to meet the requirement of Turkey and their re-export to neighbouring CIS and GCC countries.

LIST OF COMPANIES INTERVIEWED

1. Nova Orman Urunleri San. Tic. A.S. Kucukcamlica Mh. Bulgurlu Cd. No: 32, 34696 Uskudar Istanbul – Turkey Tel: +90 216 5456682 Fax: +90 216 3259663 Mobile: +90 537 8538374 Email: [email protected] URL: www.novawood.com Contact: Mr. Huseyin Unlucay (Foreign Trade Manager) Interests: Hardwood sawntimber, Plywood, decking 2. Yetkin & Pala Orman Urunleri Ltd. Dilovasi Organize Sanayi 4. Kisim, E- 5 Karayolu Uzeri, Sakarya Cad. No: 20, Gebze Kocaeli – Turkey Tel: +90 262 7249595 Fax: +90 262 7249575 Mobile: +90 532 4954939 Email: [email protected] URL: www.yetkinpala.com Contact: Mr. Gokhan Yetkin (Chairman & President of Turkish Forestry Products Importers Association) Interests: Softwood Sawntimber, Plywood, OSB

3. Arin Orman Urunleri Nato Yolu No: 186/ A, Yukan Dudullu, Urmaniye Istanbul – Turkey Tel: +90 216 4203939 Fax: +90 216 3130968

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Mobile: +90 536 2812208 Email: [email protected] URL: www.arin.com.tr Contact: Mr. C. Cenap Arin Interests: Hardwood Sawntimber, Plywood

4. Inter Orman Urunleri Keresteciler Sit. 19. Blok No: 18- 20, Ikitelli, Basaksehir Istanbul – Turkey Tel: +90 212 6705355 Fax: +90 212 6705360 Mobile: +90 533 3846296 Email: [email protected]/ [email protected] URL: www.interorman.com.tr Contact: Mr. Ziya Atasoy Interests: Tropical and Temperate Hardwood Sawntimber 5. Feyziaksoy Timber Product Ind. & Tra. Ltd. Inc. Ikitelli Organize Sanayi Bolgesi, Keresteciler Sitesi Blk 17 No: 1-3 34306, Ikitelli, Istanbul – Turkey Tel: +90 212 6700511 Fax: +90 212 6700515 Mobile: +90 5323559994 Email: [email protected] URL: www.feyziaksoy.com Contact: Mr. Halit Aksoy Interests: Hardwood Sawntimber 6. Cavusoglu Kerestecilik Orman Urunleri Insaat Sanayi ve Ticaret Ltd. Sti. Ikitelli Keresteciler Sitesi 27, Blok 26, Sk. No. 26-28, Kucukcekmece Istanbul – Turkey Tel: +90 212 6700343/ 6702424 Fax: +90 212 6702503 Mobile: +90 5356322292 Contact: Mr. Ahmet Interests: Softwood Sawntimber, OSB 7. Ustaoglu Orman Urunleri Keresteciler Sitesi 21. Sok. No. 26- 28, 34306, Ikitelli Istanbul – Turkey Tel: +90 212 6702876/ 6702796 Fax: +90 212 6702207 Email: [email protected] Contact: (i). Mr. Yusuf Usta (ii). Mr. Ahmet Usta Interests: Softwood Sawntimber, Plywood, OSB, Particleboard 8. Camcioglu Orman Urunleri San. Ve Tic. A.S. Ikitelli Org. San. Bol., Keresteciler Sit. Blok No. 2-4, Ikitelli Istanbul – Turkey Tel: +90 212 6700192 Fax: +90 212 6700196 Mobile: +90 532 2150393

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Email: [email protected] Contact: Mr. Atilla Camcioglu Interests: Sawntimber, Plywood, Chipboard, Decking 9. Hidirlar Orman Urunleri Emprenye San. Ve Tic. Ikitelli, Keresteciler Sit. 18 Sk. No: 9-11-13-15-17 17. Sk. No: 14-16, Ikitelli Istanbul – Turkey Tel: +90 212 67040/ 41/ 42 Fax: +90 212 6700339 Mobile: +90 533 9246346 Email: [email protected] URL: www.hidirlar.com Contact: Mr. Hayati Altikulac Interests: Film Faced Plywood 10. Balcioglu Ikitelli Osb. Keresteciler San. Sit. 4-B Blok, Balcioglu Plaza 34306 Ikitelli Basaksehir Istanbul – Turkey Tel: +90 212 6704951/ 55 Fax: +90 212 6705151 Mobile: +90 533 4740600 Email: [email protected] URL: www.balcioglu.com.tr Contact: Mr. Engin Dogen (Foreign Trade Manager) Interests: Film-Faced Plywood 11. Tarakciogullari Insaat Ticaret Ltd. Sti. Y Dudullu, Nato Yolu Cad., No: 180 34775, Urmaniye Istanbul – Turkey Tel: +90 216 5278759/ 60 Fax: +90 216 5278362 Mobile: +90 5302370906 Email: [email protected] URL: www.tarakciogullari.com.tr Contact: Mr. Ufuk Erdem (Foreign Trade Manager) Interests: Sawntimber, Film-Faced Plywood, OSB 12. Adim Orman Urn. Ic. Ve Dis. Tic. San. Ltd. Sti. IOSB Keresteciler Sit. 4. Sok. 5. Bl. No: 31 Ikitelli, 34490, Basaksehir, Istanbul – Turkey Tel: +90 212 4850904 Fax: +90 212 4853391 Email: [email protected] URL: www.adimplywood.com Contact: Mr. Huseyin Kara (foreign Trade Manager) Interests: Film-faced Plywood 13. Yaprak Yapi Plywood & Kalip Sistemleri Keresteciler Sitesi 21, Sokak, No. 16/3, Ikitelli Istanbul – Turkey Tel: +90 212 6701919

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Fax: +90 212 6702700 Mobile: +90 531 3887990 Email: [email protected] URL: www.yaprakyapi.com Contact: Mr. Mustafa Tanrikulu (Foreign Trade Manager) Interests: Film-Faced Plywood

14. Tuna Ahsap Pazarlama Ikitelli Keresteciler Sitesi 21, Sokak, No. 27, K. Cekmece Istanbul – Turkey Tel: +90 212 6702703 Fax: +90 212 6702704 Mobile: +90 532 3351931 Email: [email protected] Contact: Mr. Muammer Tuna Interests: Film-Faced Plywood, OSB 15. Starwood Orman Urunleri Sanayi A.S. Ikitelli Keresteciler Sitesi, 688. Ada 1, Parsel Merkez Cami Karsisi, Ikitelli, Istanbul – Turkey Tel: +90 212 6705304 Fax: +90 212 6705318 Email: [email protected]/ [email protected] URL: www.starwood.com.tr Contact: Mr. Selcuk Akbiyik (Export Representative) Interests: MDF and Particleboard 16. Kuris Entegre Agac. San. Ve. Tic. A. S. Ikitelli Keresteciler Sitesi 4, Blok No: 30-32, Basaksehir Istanbul – Turkey Tel: +90 212 6704405 Fax: +90 212 6704406 Email: [email protected]/ [email protected] Contact: Mr. Neslibey Turan Interests: MDF, OSB, Particleboard 17. Doruk Agac Urun Imalat Ins. Nak. San. Ve Tic. A. S. Necip Fazil Bulvari Mest Sk. No: 1, Doruk Agac Plaza Y. Dudullu Urmaniye, Istanbul – Turkey Tel: +90 216 4668181 Mobile: +90 532 3367547 Email: [email protected] Contact: Mr. Yusuf Buyuk (Foreign Trade Manager) Interests: Finger-jointed scantlings

18. Bilenor Orman Urunler San. Ve Dis. Tic. Ltd. Sti. Natoyolu Cad. No: 108, Yukari Dudullu – Umraniye Istanbul, Turkey Tel: + 90 216 415 8733 Fax: +90 216 415 2745 Mobile: + 90 544 596 0143 / +90 532 421 9293 URL: www.bilenor.com.tr Contact: (i). Mr. Sezer Demir

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(ii). Mr. Yasin Bilgin Interests: Sawntimber, Finger-jointed Boards, Decking. 19. Kastamonu Entegre Altunizade, Mahir Iz Cad. No: 25, 34662 Uskudar – Istanbul, Turkey Tel: +90 216 554 3000 Fax: +90 216 474 0064 Email: [email protected] / [email protected] URL: www.keas.com.tr Contact: (i). Mr. Haluk Baybek (Group Export Manager) (ii). Mr. Ramzan Keskin (Export Area Manager) Interests: laminated flooring, door skin, wood panels, work stations 20. Arsanoglu Orman Urunleri San. Ve. Tic. Ltd. Sti Natoyolu Cad. No: 121/C, Y.Dudullu Umraniye Istanbul – Turkey Tel: +90 216 420 2020 Fax: +90 216 420 1919 Mobile: +90 536 375 5558 Email: [email protected] URL: www.arslanogluormanurunleri.com Contact: Mr. Mert Arslanoglu Interests: Sawntimber, OSB 21. Orman Urunleri San. Ve. Tic. Ltd. Stl. Ikitelli Keresteciler Sitesi 17. Sok., No. 2-4 Basaksehir Istanbul – Turkey Tel: +90 212 670 0252 Fax: +90 212 670 0253 Email: [email protected] / [email protected] Contact: (i). Mr. Mehmer Ugut (CEO) (ii). Mr. Alpaslan Basaran (Foreign Trade Manager) Interests: MDF, OSB and Particleboard 22. Mobipan Ikitelli Keresteciler Sitesi 21. Blk. No. 39/41 Istanbul – Turkey Tel: +90 212 670 0000 Fax: +90 212 670 0004 Email: [email protected] URL: www.mobipan.com Contact: Mr. Necati Otgen Interests: OSB and Particleboard 23. Sedoor Ahsap Urunleri San. Tic. Ltd. Sti. Altunsehir Mah. Natoyolu Cad. No: 112/ A, Urmaniye Istanbul – Turkey Tel: +90 216 313 6165/ 66 Fax: +90 216 313 6167 Mob: +90 532 6520889 Email: [email protected] URL: www.sedoor.com.tr

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Contact: Mr. Huseyin Cihan Interests: manufacturer of engineered and flush doors 24. Mimka Door San. Ikitelli, Keresteciler Sit., 22. Blok 21. Sk. No: 36 Istanbul - Turkey Tel: +90 212 7060290 Email: [email protected] URL: www.memisoglukapi.com.tr Contact: Mr. Ahmet Memisoglu Interests: manufacturer of wooden doors 25. Sefa Modeka Besyol Mh. E-5 Yanyol Uzeri, Besyol Mevkii Birlik Is Hani No: 25 Kat: 1 Dukkan No: 3, Kucukcekmece Istanbul - Turkey Tel: +90 212 5987766 Fax: +90 212 5988954 Mob: +90 549 7215796 Email: [email protected] URL: www.sefamodeka.com Contact: Mr. Diren Interests: manufacturer of wooden doors 26. Ligno Parquet Nato Yolu Cad. No: 131/A Istanbul - Turkey Tel: +90 216 471 9304 / 420 0300 Mob: +90 533 5569373 Email: [email protected] / [email protected] URL: www.lignoparke.com Contact: Mr. Hakan Kasapoglu Interests: hardwood and engineered flooring 27. Parke & Home Urguplu Yapi Insaat Malz. San. Ve. Tic. Ltd. Sti Kucukbakkalkoy Dudullu Cad. Brandium Residence R2 Blok K, 19 D. 187 Atasehir, Istanbul – Turkey Tel: +90 216 418 7873 Fax: +90 216 418 7026 Email: [email protected] / [email protected] URL: www.parkehome.com Contact: (i). Mr. Engin Urguplu (ii). Ms. Nalan Urguplu Interests: engineered flooring

28. Fatih Kiral Mobilya & Dekorasyon Cemil Topuzlu Cad. No: 16-18, Selamicesme Istanbul – Turkey Tel: +90 216 3603443 Fax: +90 216 3025319 Email: [email protected] URL: www.fatihkiral.com

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Contact: Ms. Ahu Sozuguzel Aksahin (Import Manager) Interests: Home Furniture

29. Castamo Istanbul Masko Mobilyacilar Carsisi 11/ A Blok No.: 33, Ikitelli Istanbul – Turkey Tel: +90 212 6752301 Mobile: +90 507 7897153 Email: [email protected] Contact: Mr. Egemen Uyar Interests: Panel products, manufacturer of home furniture 30. Gaysan Mobilya Masko Mobilyacilar Sitesi 5B, Blok 22-24, Numara Basaksehir Istanbul – Turkey Tel: +90 212 6750607 Email: [email protected] Contact: Mr. Cihhan Ekinci Interests: MDF (manufacturer of interior décor products) 31. Tamplas Turizm Ins. Ve Dis. Tic. Ltd. Sti. Serifali Mah. Necip Fazil Bulvan, No: 90, Rivelli Plaza, Urmaniye Istanbul – Turkey Tel: +90 212 5270400 Fax: +90 212 5270428 Mobile: +90 533 9352638 Email: [email protected] URL: www.tamplas.com Interests: Garden furmiture (manufacturer of furniture) 32. Luva Concepts Necip Fazil Bulvan No: 84, A Y. Dudullu, Urmaniye Istanbul – Turkey Tel: +90 216 4202828 Fax: +90 216 4202829 Mobile: +90 544 2183412 Email: [email protected] URL: www.luvaconcept.com Contact: Mr. Cagatay Ertugrul (Corporate Sales) Interests: Outdoor Furniture 33. Snoc Home & Garden Necip Fazil Bulvan No: 46/A, Dudullu, Urmaniye Istanbul – Turkey Tel: +90 216 5275735 Fax: +90 216 5275730 Mobile: +90 5322878227 Email: [email protected] URL: www.snoc.com.tr Contact: Mr. M. Selim Ozkara Interests: Home and Garden furniture 34. Yazicioglu Bambu Mobilya

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Yukari Dudullu District, Necip Fazil Blvd. No: 54/ A, Urmaniye Istanbul – Turkey Tel: +90 216 3537236 Fax: +90 216 3536207 Email: [email protected] URL: www.yazicioglubambu.com Contact: Mr. Mehmet Yazicioglu (General Manager) Interests: Rattan and Bamboo furniture

USEFUL CONTACTS

1. MATRADE Buyukdere Cad. Maya Akar Center Plaza, No: 100-102, Kat: 20, D.76, Esentepe Istanbul – Turkey Tel: +90 212 2178003 Fax: +90 212 2178005 E-mail: [email protected]

Working days: Monday – Friday (8.00am – 3.00pm)

2. Turkish Statistical Institute Necatibey Cad. No. 114 06100, Yucetepe Ankara – Turkey Tel: +90 312 410 02 10 Fax: +90 312 417 04 32 E-mail: [email protected]