B R O O K S M A R K E T I N T E L L I G E N C E R E P O R T S

TURKEY’S SHEET METALWORKING SECTOR A MARKET OVERVIEW

Istanbul by night – formerly Byzantium, then Constantinople - the largest city in Turkey is the economic heart of a country which blends secular Western and Islamic Middle Eastern culture

B R O O K S M A R K E T I N T E L L I G E N C E R E P O R T S

Brooks Events Ltd © 2015. All rights reserved. A Brooks Reports Publication

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TURKEY’S SHEET METALWORKING SECTOR A MARKET OVERVIEW

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CONTENTS

1. INTRODUCTION 4Turkey in the 21st Century 4 Geography and climate 6

The economy: agriculture, services & manufacturing 7

2. INFRASTRUCTURE 9Transport 9

Energy 11 Telecommunications 11

3. MANUFACTURING 12 Machine Tools & Metalworking 12

Trading overview 12

Trade associations 13

Trade fairs and equipment suppliers 13

Automotive Sector 15Overview 15

Industry news 16

White Goods 18 Aerospace & Defence 19 Electrical Engineering & Electronics 21 Shipbuilding 22

4. USEFUL LINKS/WEBSITES 23

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INFRASTRUCTURE2

Turkey’s growing economy is driving investment in construction, transportation, energy and telecommunications. The construction and contracting sector, the world’s second largest, is responsible for 7% of all employment, and there is a strong emphasis on Public Private Partnership (PPP) projects. In 2013 the government set a number of challenging ten year targets for infrastructure development.

TRANSPORT Turkey’s strategic geographical position, providing access to Eastern Europe, Central Asia, the Middle East and North Africa, means that developing transportation links has a high profile, and this accounts for around 30% of the budget for infrastructure improvements. Over the period in which EU accession has been discussed new airports have been built; seaport capacity has been increased; dual carriageways have been constructed; and building of a high-speed rail network has commenced.

In February 2015 Fraunhofer Institute for Material Flow and Logistics (Fraunhofer IML) and Istanbul University, supported by the Investment Support and Promotion Agency of Turkey (ISPAT), signed a strategic cooperation agreement to work jointly on improving Turkey’s logistics industry through research and development on applied logistics. The signature took place at Istanbul University’s Avcilar campus, at a conference bringing together industry and academia. ISPAT Advisor Kemal Kafadar spoke of the crucial importance of logistics costs for any industry and the increased use of technology in Turkey’s logistics sector. Prof. Michael Henke, Director of Fraunhofer IML, said that Turkey’s logistics sector carried the potential for creating added value for other sectors.

Road Turkey has over 350,000 km of paved roadways including 2,000 km of expressways (plus unpaved roads totalling over 30,000 km). Nearly 80% of freight and 90% of passengers are transported by road. Planned investment in modernising and constructing the road network up to 2023 is estimated at around €60 billion. This includes an additional 15,000 km of dual carriageways and highways. Major projects include the ‘Silk Road’ which incorporates the 7,000 km long Black Sea Ring Highway; a third Bosphorus Bridge to ease traffic jams in Istanbul; and the Eurasia tunnel under the Bosphorus, due for completion in 2016.

Air Turkey has 91 airports with paved runways and 20 heliports. The busiest airports on passenger numbers (2013 figures) are:

Istanbul Ataturk 51 million

Antalya 27 million

Istanbul/Pendik Sabiha Gokcen 19 million

Ankara Esenboga 11 million

Izmir Adnan Menderes 10 million

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The government aims to increase the passenger capacity of Turkey’s airports from 165 million to 400 million by 2023. A major part of this is replacing Ataturk with Istanbul New Airport, planned to be one of the world’s largest. The first phase is expected to be operational in 2019, with capacity of 90 million passengers a year; on full completion of the project this will rise to 150 million. Overall cost of the project is €10 billion. Logistics services provider DHL Express is planning to invest €60 million in the new airport. Meanwhile Turkish Cargo, a subsidiary of Turkish Airlines (THY), has commissioned a new cargo terminal at Ataturk which will significantly increase freight handling capacity until the new airport is completed.

Rail Total length of track is 12,000 km (3,200km is electrified) making Turkey number 20 in the world. €21 billion has been allocated for investment in railways by 2023; plans include doubling the overall length of the network; increasing the length of high-speed railway lines from less than 1,000 km to 10,000 km; and increasing the railways’ share of transportation to 10% of passengers and 15% of freight. Bombardier has announced plans to invest in a local manufacturing plant to support expansion of the high-speed network; the company plans to manufacture rail systems as a joint venture with a local partner, investing up to €100 million if it is successful in the tendering process.

The country’s geographic location is important as it aims to become a strategic centre for railway freight through Europe, Central Asia and the Middle East. The Marmaray Project, incorporating a 14km tunnel under the Bosphorus, opened in 2013, connecting Turkey to the trans-European network. Turkey is also a leading player in the 180km Kars-Tbilisi-Baku Railway Project (the ‘Iron Silk Road’) passing through Turkey, Georgia and Azerbaijan.

Water Total length of waterways is 1,200 km. Over 70% of Turkey’s boundaries are coastal, with the Black Sea in the north, Marmara in the northwest, Aegean in the west, Mediterranean in the south-southwest. Major seaports are Aliaga, Ambarli, Diliskelesi, Eregli, Izmir, Kocaeli (Izmit), Mersin (Icel), Limani, Yarimca;

Container ports are Ambarli and Mersin (Icel). Istanbul, Izmit, Izmir, Adana-Mersin and Samsun are the major ports for domestic and international freight and passenger transportation. The aim is to increase the share of freight by sea to 10% by 2023.