Turkish Plastic Federation Magazine

December 2012 - February 2013 / Issue 1Turkish Plastics Industrialists' Federation Magazine

PLASFED

celebrates its 1st y

ear

GROWTH PENALTY FOR TURKISH PLASTICS

INDUSTRY

Plastics sector's contribution to development of Turkey is on the rise

DUST

Turkish

Pla

stics In

dustria

lists' Federa

tion M

agazin

eD

ecember 2

012

- February 201

3 /

Issue 1

PLASFEDDERGİ

90

First Half Performance in Plastics Gives Hope for the End of 2012

Turkey has a strategic position in high-value-added plastics Serving as a bridge between the new pet-

rochemical facilities of gigantic scale in Middle East region and large-scale markets of the West, Turkey

aims to become an energy terminal with both existing and planned natural gas and crude oil pipelines. Also,

proximity of Turkey to European markets provides an advantage to plastics manufacturers in terms of JIT

delivery and service.

Plastics industry keeps its growth and dynamism despite the Turkish economy which has slowed down

in relation with the global economy. The reports published by PLASFED and PAGDER which refl ect the de-

velopments of the fi rst six months of 2012 in plastics raw material, plastics products, and plastics treat-

ment machinery sectors of Turkey show the real dynamism of the sector.

While a growth of 9 per cent is expected in fi nished product sector, a 5-per-cent increase is predicted in

the export of plastics treatment machinery. Even though the projections made for production of raw mate-

rials of plastics point to a 3-per-cent increase in the value of imported raw material although the production

keeps at the same level as in 2011.

FROM THE INDUSTRY

PLASFEDDERGİ

91

Total production of plastics fi nished products increased to 6,7 million in 2011 with a 10 % increase from 2010. Based on lower annual growth

estimations in the PLASTİCS industries of EU countries, Turkish PLASTİCS industry is known to be in the third place in 2011, with its process capac-

ity, after Germany and Italy among EU countries. Production of plastics fi nished products is known to be 3,68 million tons in the fi rst 6 months of

2012 and with the same trend, the production is predicted to increase to 7,34 million by a 9 % increase in 2011.

In 2012, plastics packaging materials are expected to lead production with 2,93 million tons, followed by the production of plastics construc-

tion materials with 1,6 million tons. 10 leading provinces of production in plastics sector hold a share of 87 % within the total plastics production,

and the total production of plastics goods is expected to be 6,3 million tons by the end of the year.

Production in provinces where the founding associations of PLASFED are established (İstanbul, İzmir, Ankara, Bursa, and Kayseri) is expected

to reach 5,3 million tons by the end of 2012 and account for 72 % of the total production.

With its plastics fi nished product treatment, Turkey is one of the most signifi cant economies of Europe. Total production of goods, which grew by 10 per cent last year, is expected to keep its momentum this year. Turkey has established its true potential in 2011 by standing in the third place after Germany and Italy among EU countries. The provinces where the founding associations of PLASFED are established (İstanbul, İzmir, Ankara, Bursa, and Kayseri) are estimated to have a 72 per-cent share from the total production.

DEVELOPMENTS OF THE FIRST 6 MONTHS OF 2012 IN TURKISH INDUSTRIES OF PLASTICS RAW MATERIAL, PLASTICS FINISHED PRODUCTS AND PLASTICS PROCESSING MACHINERIES

FROM THE INDUSTRY

1. PLASTICS FINISHED PRODUCTS

1.1. PRODUCTION OF PLASTICS FINISHED PRODUCTS:

1000

To

ns

2006200520042003200220012000 2007 2008 2009 2010 2011 2012 / 6 2012 / T

2.684

2.433

3.0523.482

4.1084.458

4.8085.425

5.256

5.251

6.155

3.668

6.7647.336

Production of Plastics Sector

Barbaros DemirciSecretary GeneralPLASFED - PAGDER

PLASFEDDERGİ

92

Germany

China

Italy

France

South Korea

England

U.S.A.

Belgium

Spain

Japan

Top 10 Country Total

Others

Total

83

135

42

22

28

13

10

18

9

3

362

121

483

554

528

261

172

149

107

89

81

69

47

2.058

589

2.646

2011

COUNTRIES x1000 Tons x Million USD COUNTRIES x1000 Tons x Million USD

Germany

China

Italy

France

South Korea

England

U.S.A.

Belgium

Spain

Japan

Top 10 Country Total

Others

Total

41

65

20

11

13

6

5

8

4

5

178

65

243

264

259

116

80

77

48

43

36

29

21

974

310

1.284

2012 (6 Months)

1.3. EXPORT OF PLASTICS PRODUCTS:

21,16 million tons in 2011, export of plastics products was 656 million tons in the fi rst 6 months of 2012. If this trend continues, the exports are predicted to increase to 1,31 million tons by the end of the year with a 13% increase compared to 2011.

3,5 USD billion in 2011, exports of plastics products were 1,94 USD billion in the fi rst 6 months of 2012. If this trend continues, the export is predicted to increase to 3,88 USD billion by the end of the year with an 11 % increase compared to 2011.

Exports of fi nished products make up the majority of total plastics export of Turkey in terms of both amount and value. According to İMMİB (İstanbul Mineral and Metal Exporters’ Association) data, exports records of plastics and plastics products (including raw material) have reached $2,31 billion in the fi rst 6 months of 2012 with an increase of 9,8 % compared to the same period of 2011.

Turkey exports plastics products to approximately 200 countries. In 2011, 10 countries held 56 % of total, and 55 % of total value of export. Share of top 10 countries fell down to 54 % in amount and 52 % in value in the fi rst 6 months of 2012. This shows that exporters of plastics are head towards diff erent markets. For the last two years, Iraq, Germany, and Russia have made up the top 3 countries of Turkey’s plastics export.

Top 10 Countries in Turkish plastics Product Imports

1.2. IMPORT OF PLASTICS PRODUCTS:

Having been 483.000 tons in 2011, import of plastics products was at the level of 243.000 tons in the fi rst 6 months of 2012. If this trend continues, import of plastics fi nished products is expected to increase to 487.000 tons by the end of the year with a 1% increase compared to 2011.

2,7 USD billion in 2011, the import of plastics products was 1,3 USD billion in the fi rst six months of 2012. If this trend continues, import is predicted to increase to 2,6 USD billion by the end of the year, decreasing by 3 % compared to 2011 values.

Imports of plastics fi nished products hold a small place in terms of both amount and value in Turkey’s total import of plastics Foreign trade defi cit of the sector arises from the ongoing dependency on import.

For the last 2 years, plastics products have been imported from more than 100 countries. Imports made from the top 10 countries in the fi rst 6 months of 2012 make up the 73 % of the amount, and 76 % of the value of total import. Germany, China, and Italy have retained their status of the fi rst 3 countries Turkey has been importing plastics products from, for the last 2 years. China is the country we have imported the highest amount of plastics fi nished products from.

FROM THE INDUSTRY

PLASFEDDERGİ

93

Iraq

Germany

Russia

Iran

France

Romania

England

Azerbaijan

Georgia

Bulgaria

Top 10 Countries

Rest of the world

Total

179

64

56

62

42

58

49

56

48

28

643

551

1.158

415

233

202

193

167

167

165

165

130

95

1.931

1.756

3.485

2011

COUNTRIES x 1000 Tons x Million USD COUNTRIES x 1000 Tons x Million USD

Iraq

Germany

Russia

Azerbaijan

England

France

Iran

Romania

Georgia

Libya

Top 10 Countries

Rest of the world

Total

113

32

32

36

27

24

24

24

25

21

357

300

656

250

111

108

94

88

87

86

68

63

55

1.011

931

1.942

2012 (6 Months)

6.000

5.000

4.000

3.000

2.000

1.000

0

80,070,060,050,040,030,020,010,00,0

2007

4.069

57,6

3.668

51,3

3.657

50,4

4.322

58,6

4.815

64,5

5.066

66,9

Consumption (x1000 Tons)

Consumption Per Capita

2008 2009 2010 2011 2012 / T

In the fi rst 6 months of 2012, average unit price of plastics products was USD 5.276 / ton for imports, and USD 2.958 / ton for exports, which means that the average unit price for exports amounts to 56 % of the average unit price for imports. In the same period, average unit price fell by 4 % for imports, and by 2 % for exports. In plastics products, unit import prices have always been higher than unit export prices since 2000. These prices were equalized in 2006 but the gap has been widened with the increase in import prices since then.

1.4. DOMESTIC CONSUMPTION OF PLASTICS PRODUCTS:

Having been 2,7 million tons in 2000, domestic consumption of plastics products increased to the level of 6,1 million tons in 2011, followed by 3,25 million tons in the fi rst 6 months of 2012. If this trend continues, domestic consumption is predicted to reach 6,5 million tons at the end of 2012 with 7% of domestic consumption being met by imports. However, 1.300 tons of 6.500 ton plastics product that is predicted to be sold in domestic market is exported indirectly through exporting industries such as automotive, packaging, construction, and electronics. The remaining 5.200 tons, on the other hand, will be used directly by consumers. Direct consumption of plastics products by consumers in Turkey fell down to 51 and 50 kg per capita in 2008 and 2009 respectively, while 58 Kg in 2007. Consumption per capita which started to increase by 2009 is predicted to reach 67 Kg by the end of 2012. This level of consumption per capita is at the level of 60 % of developed western societies. This shows that the domestic market is far below the saturation point and that potential demand for consumption of plastics in Turkey is very high.

Consumption of plastics in top 10 provinces of production of plastics is at the level of 45 % of total consumption in Turkey. Total consumption of plastics in 5 provinces where founding associations of PLASFED are located (İstanbul, Ankara, İzmir, Bursa, and Kayseri) makes up 35 % of total consumption in Turkey.

Top 10 Countries of Turkey’s plastics Products Exports

Total and Per Capita Consumption of Plastic Products

FROM THE INDUSTRY

PLASFEDDERGİ

94

2.1. PRODUCTION OF PLASTICS RAW MATERIALS:

In the fi rst 6 months of 2012, PETKİM produced 335.000-ton PE, PP and PVC, and other manufacturers produced about 75.000-ton PET and

25.000-ton PS, and in the end of 2012, it is expected to follow a pattern similar to the level of composition in 2011. On the other hand, percentage

of LDPE, HDPE, PVC, PP, PS, and PET in total production of raw materials in the fi rst 6 months of 2012 is known to keep the same level as 2011.

2.2. PLASTICS RAW MATERIAL IMPORTS:

Total plastics raw material imports, which were 5,2 million tons in 2011, reached the level of 2,87 million tons in the fi rst 6 months of 2012,

which is expected to increase to reach 5,73 million tons by the end of 2012 if this trend continues. This means, the total plastics raw material im-

ports may increase by 10 % in value compared to 2011.

Production

Import

Export

Domestic Consumption

Use in Indirect Export

Direct Distribution to Consumers

Foreign Trade Surplus

Export / Production ( % )

Import / Domestic Consumption ( % )

Export / Import ( % )

6.709

483

1.158

6.034

1.273

4.761

675

178

240

7.336

487

1.313

6.510

1.400

5.110

826

18

7

270

8,5

0,7

13,3

6,9

7,6

7,3

22,3

28.459

2.646

3.485

27.620

839

1210

132

31.064

2.406

3.535

29.935

1.129

118

147

5,3

-3,0

11,4

3,7

56,9

2011 2012 T 2012 T% Increase % Increase2011

x 1000 TONS MILLION USD

1.5. SUPPLY AND DEMAND EQUILIBRIUM IN PLASTICS PRODUCTS AND EXPECTATIONS FOR 2012:

Predictions based on the data of fi rst 6 months of 2012 show that plastics products production will increase by 9 % in tonnage and 5 % in va-

lue while import will increase by 1 % in tonnage and decrease by 3 % in value; export will increase by 13 % in tonnage and 11 % in value; domestic

consumption including the indirect export will increase by 7 % in tonnage and 4% in value, foreign trade surplus will increase by 22 % in tonnage

and 57 % in value, 18 % of domestic production in tonnage and 11 % in value will be exported; 7 % of domestic consumption in tonnage and 8 %

in value will be met by import, the amount of goods distributed directly to consumers will increase by 7,2 %; and the import coverage to exports

will be 270 % in tonnage and 147 % in value by the end of 2012.

Plastics Products Supply and Demand Equilibrium and Expectations For 2012

According to our estimations, total plastics raw material imports will have increased by 10 per cent in tonnage, and 3 per cent in value by the end of this year. In 2012, Import coverage ratio of export is expected to be double-digit for the fi rst time this year. While the top three countries we import materials from – Saudi Arabia, Germany, and Belgium – receive a total share of 32 per cent from total plastics raw material imports, Turkey uses its competitive advantage by importing from more than 100 countries.

2. PLASTICS RAW MATERIAL:

FROM THE INDUSTRY

PLASFEDDERGİ

95

In the fi rst 6 months of 2012, total amount of plastics raw material imports was made up of PP by 29 %, PE by 25 %, PVC by 15 %, PS by 10 %,

and PA by 10 %. Share of all other plastics raw materials in total amount of imports is about 11%.

Having been 9,9 USD billion in 2011, plastics raw material import was 5,13 USD billion in the fi rst 6 years of 2012, and is expected to reach

10,25 USD billion if this trend continues. This means, compared to 2011, total PLASTİCS raw material imports are expected to increase by 3 % in

value in 2012.

In the fi rst 6 months of 2012, total value of plastics raw material import was made up of PP by 28%, PE by 23%, polyacetals by 13%, PS by 11

%, and PVC by 9 %. Share of all other plastics raw materials in total value of import is about 16 %.

In 2011 and the fi rst 6 months of 2012, Turkey imported plastics raw material from more than 100 countries with 10 countries accounting for

approximately 62 % in amount and 64 % in value of total import in the fi rst 6 months of 2012. As it was the case in 2011, the fi rst 3 place in total

plastics raw material import was Saudi Arabia, Germany, and Belgium in the fi rst 6 months of 2012. These 3 countries have a share of 32 % in our

total plastics raw material import.

Saudi Arabia

Germany

Belgium

Netherlands

South Korea

Iran

France

Spain

Italy

U.S.A.

TOP 10 COUNTRIES

REST OF THE WORLD

TOTAL

845

387

350

217

214

241

199

270

221

235

3.179

2.039

5.218

1.398

1.041

728

492

490

474

464

450

417

380

6.335

3.597

9.932

2011

Saudi Arabia

Germany

Belgium

South Korea

Iran

Netherlands

Italy

Spain

France

U.S.A.

TOP 10 COUNTRIES

REST OF THE WORLD

TOTAL

512

180

179

130

165

112

107

120

126

140

1.772

1.094

2.866

796

463

360

269

260

250

240

226

222

204

3.290

1.834

5.124

2012 (6 Months)


Top 10 Countries of Turkey’s plastics Raw Material Imports

FROM THE INDUSTRY

2.3. PLASTICS RAW MATERIAL EXPORT:

According to the evaluations based on amounts, plastics raw material exports, which were 492.000 tons in 2011 reached 297.000 tons in the

fi rst 6 months of 2012, which is expected to reach 595.000 tons by the end of the year with a 21 % increase compared to 2011 data, if this trend

continues.

According to the evaluations based on values, plastics raw material exports, which were 894 USD million in 2011 reached 504 USD million

in the fi rst 6 months of 2012, which is expected to reach 1 USD billion by the end of the year with a 13 % increase compared to 2011 data, if this

trend continues.

For the last 2 years, plastics raw material has been exported to more than 100 countries. However, top 10 countries of Turkey’s exports had

52% share in amount and 45% share in value of total imports in 2011. In the fi rst 6 months of 2012, share of the top 10 countries increased to 58

% in amount and value. In the fi rst 6 months of 2012, Germany, Italy, and Russian Fed. took the fi rst 3 places in Turkish plastics raw material export.

PLASFEDDERGİ

96

Plastics raw materials average import unit price is observed to be $1788 / Ton in the fi rst 6 months of 2012 with a 6 % decrease in comparison

to 2011 average.

plastics raw materials average export unit price is observed to be $1696 / Ton in the fi rst 6 months of 2012 with a 7 % decrease in comparison

to 2011 average.

2.4. SUPPLY AND DEMAND EQUILIBRIUM IN PLASTICS RAW MATERIAL, AND 2012 EXPECTATIONS:

While 68 % of domestic raw materials was exported in the fi rst 6 months of 2012, 95 % of domestic consumption of plastics raw material was

met by import. As a result of the increase in exports, import coverage ratio of export increased to 10 %.

Estimations based on the data of the fi rst 6 months of 2012 show that, in plastics raw material, production will remain at the same level of

870.000 tons, imports will increase by 10 %, exports will increase by 21 %, domestic consumption will increase by 7 %, foreign trade defi cit will

increase by 9 %, 68 % of domestic products will be exported, 95 % of domestic consumption will be met by imports, and import coverage ratio of

export will increase to 10 % by the end of 2012.

Germany

Russia

Italy

Greece

Egypt

Ukraine

Bulgaria

Azerbaijan

Iran

Israel

TOP 10 COUNTRIES

REST OF THE WORLD

TOTAL

34

28

36

34

33

17

26

22

12

18

260

232

492

88

72

65

45

42

40

39

38

32

28

489

405

894

2011

Germany

Italy

Russia

Iran

Greece

Egypt

Bulgaria

Azerbaijan

Romania

Belgium

TOP 10 COUNTRIES

REST OF THE WORLD

TOTAL

20

24

13

16

25

24

19

11

10

10

172

125

297

50

41

34

34

31

29

23

19

17

15

293

211

504

2012 (6 Months)


Production

Import

Export

Domestic Product

Foreign Trade Deficit/ Surplus

Export / Production ( % )

Import / Domestic Consumption ( % )

Export / Import ( % )

870

5.218

492

5.596

-4.726

57

93

9

435

2.866

297

3.004

-2.569

68

95

10

2011 2012 (6 Months)

870

5.732

595

6.008

-5.138

68

95

10

0

10

21

7

9

2012 (T) % Increase (2012 / 2011)

Top 10 Countries of plastics Raw Material Export in 2011 and (First 6 Months of) 2012

Supply and Demand Equilibrium in plastics Raw Materials (x 1.000 Tons)

FROM THE INDUSTRY

PLASFEDDERGİ

97

FROM THE INDUSTRY

Countries manufacturing cheaper plastics processing machines which make the plastics industry for-eign-dependent threatens the domestic manufacturers of machinery. According to the estimations of a survey conducted by PLASFED, in 2012, there will be a 7 percent decrease in production and 9 percent de-crease in imports of plastics processing machinery in comparison to previous year. Also, domestic sales of plastics processing machinery are predicted to decrease by 10 percent while exports are predicted to in-crease by 5 percent.

3. PLASTICS PROCESSING MACHINES:

3.1. PRODUCTION OF PLASTICS PROCESSING MACHINES:

Having been 53 USD million in 2003, production of plastics processing machinery increased to 243 USD million in 2008, and 296 USD million in 2011 after a decline in 2009 and 2010 which was due to the negative eff ects of global crisis. Production is expected to decline to 274 USD million by the end of 2012 with a 7,4 % decrease in value in comparison to 2011 data.

First 6 months’ data of 2012 show that production will increase by 6,8 % in injection machines and 633 % in extrusion machines, and that production of accessories and parts will decrease by 54 % in comparison to 2011 data.

350

300

250

200

150

100

50

0

Mill

ion

US

D

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/6 2012/T

53

83

141164

180

243

167179

296

137

274

GTİP NO 2011 2012 / 6 2012 / T% Increase (T)

2012/2011

847710 Injection Machines 19,1 10,2 20,4 6,8

847720 Extrusion Machines 5,6 20,5 41,0 633,2

847730 Blasting Machines 67,9 2,5 5,1 -92,5

847740 Machine for Molding of Outer Tire 29,0 10,6 21,2 -26,8

847751 Back coating and forming machine 17,8 0,8 1,6 -91,0

847759 Presses 14,4 9,9 19,7 36,8

847780 Cutting, splitting, and forming machines 20,0 54,6 109,2 446,7

847790 Accessories and parts 122,3 27,9 55,8 -54,3

Total 296,1 137,0 274,0 -7,4

Production of Plastic and Rubber Processing Machinery

Production of Plastics Processing Machines (Million $

PLASFEDDERGİ

98

In the fi rst 6 months of 2012, injection machines had a 7 % share, extrusion machines had a 15 % share, cutting-splitting and forming machi-

nes had a 40 % share, accessories and parts had a 20 % share in total production of plastics processing machines.

3.2. PLASTİCS PROCESSING MACHINERY IMPORTS:

Having been USD 257 million in 2003, import of plastics processing machines and their accessories and parts increased constantly and reac-

hed 507 USD million in 2008, and then 692 USD million in 2011 after a decline to 312 USD million in 2009 due to the negative eff ects of global crisis.

Import of plastics processing machines has reached its peak level in 2011.

First 6 months’ data of 2012 shows that by the end of the year, there will be a signifi cant decline in the imports of all machines, accessories

and parts in comparison to 2011. Imports in total plastics processing machines are expected to decline by % 9,3 compared to 2011 data.

In the fi rst 6 months of 2012, cutting, splitting, and forming machines had a 30 % share, injection machines had a 28 % share, and extrusion

machines had a 21% share in total import.

In the fi rst 6 months of 2012, 10 countries had a 91 % share in value, and 92 % in piece of total imports. China, Germany, and Italy are the fi rst

3 countries of plastics processing machineries imports. China, which was in the second place in total imports in 2011 took the fi rst place in the fi rst

6 months of 2012.

800

700

600

500

400

300

200

100

0

Mill

ion

US

D

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/6 2012/T

257

408 421459

486 507

312

452

692

314

627

Source: TUİK

GTİP NO 2011 2012/6 2012/T% Increase (T)

2012/2011

847710 Injection Machines 203,3 89,3 178,6 -12,2

847720 Extrusion Machines 138,7 66,1 132,2 -4,7




847759 Presses 34,4 11,4 22,8 -33,6

847780 Cutting, splitting, and forming machines 192,3 94,7 189,4 -1,5


Total 691,6 313,6 627,2 -9,3

Imports of Plastic Processing Machineries

Import of Plastics Processing Machines, Accessories and Parts (Million $)

FROM THE INDUSTRY

PLASFEDDERGİ

99

3.3. EXPORT OF PLASTICS PROCESSING MACHINES:

Having been 21,6 USD million in 2003, exports of plastics processing machines, and their accessories and parts, increased constantly and reached 94,6 USD million 2008, and then 102,6 USD million in 2011 after a decline in 2009 and 2010 due to the negative eff ects of global crisis. By the end of 2012, exports are estimated to increase to 107,4 USD million with a 4,7 % increase in comparison to 2011.

120,0

100,0

80,0

60,0

40,0

20,0

0

Mill

ion

US

D

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/6 2012/T

21,6

32,9

56,965,5

71,6

94,6

64,972,3

102,6

53,7

107,4

Production of Plastics and Rubber Processing Machinery

Export of Plastics Processing Machines, Accessories And Parts ( Million ABD $ )

GTİP NO 2011 2012 / 6 2012 / T% Increase (T)

2012/2011

847710 Injection Machines 9,6 5,1 10,2 6,8

847720 Extrusion Machines 2,8 10,2 20,5 633,2




847759 Presses 5,7 1,4 2,9 -49,8

847780 Cutting, splitting, and forming machines 8,0 24,3 48,7 507,2


Total 102,6 53,7 107,4 4,7

Source : TUİK

2011 2012 / 6 Months

COUNTRIES Million $ x pcs COUNTRIES Million $ x pcs

Germany 210 1.068 China 86 1.575

China 130 5.459 Germany 68 405

Italy 104 2.422 Italy 41 286

Austria 44 143 Japan 22 21

Taiwan 35 383 Taiwan 19 174

France 27 88 Austria 19 89

Switzerland 24 70 U.S.A. 14 45

Netherlands 21 104 Netherlands 5 7

Japan 16 32 India 5 21

Canadat 15 32 South tKorea 5 113

TOP 10 COUNTRIES 624 9.801 TOP 10 COUNTRIES 286 2.736

REST OF THE WORLD 67 771 REST OF THE WORLD 28 237

TOTAL 692 10.572 TOTAL 314 2.973

Plastik İşleme Makineleri ve Aksam ve Parçaları İthalatı (Milyon $)

FROM THE INDUSTRY

PLASFEDDERGİ

100

In the fi rst 6 months of 2012, cutting-splitting machines had a 44 % share, accessories and parts had a 13 % share, extrusion machines had a 19 % share, and injection machines had a 10 % share in total exports of plastics processing machines. In the fi rst 6 months of 2012, plastics processing machines exported to 10 countries accounted for 55 % of total exports in value, and 45 % in pieces. Russia, Iran, and Bulgaria took the fi rst 3 places in exports

2011 2012 / 6 Months

COUNTRIES Million $ x pcs COUNTRIES Million $ x pcs

Iran 17,2 507 Russia 6,1 148

Russia 14,5 271 Iran 4,8 162

Azerbaijan 5,2 141 Bulgaria 3,8 71

Bulgaria 4,8 146 Azerbaijan 3,0 48

Romania 4,2 59 South Africa 2,5 15

Germany 3,8 52 Germany 2,5 16

South Africa 3,4 14 Iraq 2,1 102

Kazakhstan 3,1 155 Kazakhstan 1,9 146

Uzbekistan 2,4 75 Morocco 1,5 9

Iraq 2,2 149 Libya 1,5 25

TOP 10 COUNTRIES 60,8 1.569 TOP 10 COUNTRIES 29,8 742

REST OF THE WORLD 41,7 1.444 REST OF THE WORLD 23,9 900

TOTAL 102,6 3.013 TOTAL 53,7 1.642

Top 10 Countries of Our Plastics Processing Machine Export

3.4. FOREIGN TRADE PRICES OF PLASTİCS PROCESSING MACHINES:

Average unit import price of plastics processing machines and their accessories and parts decreased to 12,06 dollars / kg in the fi rst 6 months of 2012 from 13,25 dollars / kg in 2011. In this period, average import prices declined by 9 %.

GTİP NO 2011 2012 / 6% Increase (T)

2012/2011

847710 Injection Machines 6,97 5,99 -14,0

847720 Extrusion Machines 22,15 21,07 -4,9

847730 Blasting Machines 27,79 18,45 -33,6

847740 Machine for Molding of Outer Tire 18,48 12,70 -31,3

847751 Back coating and forming machine 13,79 9,13 -33,8

847759 Presses 23,64 15,83 -33,0

847780 Cutting, splitting, and forming machines 20,13 23,82 18,4

847790 Accessories and parts 35,72 47,76 33,7

Total 13,25 12,06 -9,0

Import Unit Prices of Plastics Processing Machines ( $ / Kg )

It is seen that average unit import price of plastics processing machines and their accessories and parts increased to 12,24 dollars / kg by a 9,4 increase in the fi rst 6 months of 2012 while 11,2 dollars / kg in 2011. In 2012, import unit price is observed to increase in all items except injection, press, cutting, splitting, and forming machines.

Unit import price of plastics processing machines have always been higher than unit export prices since 2003. This shows that Turkey impor-ted higher-value-added machines while producing and exporting lower-value-added machines over past years.

3.5 FOREIGN TRADE DEFICIT IN PLASTICS PROCESSING MACHINES:

Turkey always has a foreign trade defi cit in foreign trade of plastics processing machines. In 2011, foreign trade defi cit peaked with 589 USD mil-lion. Foreign trade defi cit is expected to decline to 520 USD million with a 12% decrease.

In 2012, foreign trade defi cit is expected to decline signifi cantly in all items except back coating machines, and accessories and parts.

Injection machines have a 33 % share, cutting, splitting and forming machines have a 27 % share, and extrusion machines have a 21 % share in total foreign trade defi cit of plastics processing machines.

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Domestic sales are expected to decline signifi cantly in all machines except extrusion machines in 2012.

Between 2003 and 2012, plastics sector invested 5,7 USD billion in machinery and equipment, which was made up of injection machines by 25 %, extrusion machines by 19 %, cutting, splitting and forming machines by 28 %. Within the machinery investment made in the fi rst half of 2012, injection machines had a 24 % share, extrusion machines had a 19 % share, and cutting, splitting and forming machines had a 10 % share.

3.7. ESTIMATION OF SUPPY & DEMAND EQUILIBRIUM FOR PLASTICS PROCESSING MACHINES IN 2012:

In PLASTİCS processing machines, accessories and parts sector, 274-million-dollar production, 627-million-dollar imports, 107-million-dollar exports, and 794-million-dollar domestic sales (plastics sector’s investment on machinery and equipment) are expected in 2012.

It is estimated that 79 % of domestic sales in plastics processing machines, accessories and parts sector (sector’s investment on machinery and equipment) will be met by imports, 39% of total production will be exported, and import coverage ratio of export will be 17 % in 2012.

GTİP NO 2011 2012 / 6% Increase (T)

2012/2011

847710 Injection Machines 212,9 188,8 -11,3

847720 Extrusion Machines 141,5 152,7 7,9

847730 Blasting Machines 61,1 13,3 -78,2

847740 Machine for Molding of Outer Tire 44,6 34,2 -23,3

847751 Back coating and forming machine 42,6 32,1 -24,6

847759 Presses 43,1 39,6 -7,9

847780 Cutting, splitting, and forming machines 204,2 249,9 22,4

847790 Accessories and parts 135,1 83,1 -38,5

Total 885,2 793,8 -10,3

2011 2012 / 6 2012 / T% Increase (T)

2012/2011

Production 296 137 274 -7,4

Import 692 314 627 -9,3

Export 103 54 107 4,7

Domestic Sales 885 397 794 -10,3

Export / Production ( % ) 35 39 39

Import / Domestic Sales ( % ) 78 79 79

Export / Import ( % ) 15 17 17

Domestic Sales Of Plastics Processing Machines (Million $

Supply & Demand Equilibrium For Plastics Processing Machines (Million $)

3.6 DOMESTIC SALES OF PLASTICS PROCESSING MACHINES ( MACHINERY AND EQUIPMENT INVEST-MENTS OF PLASTİCS SECTOR):

In parallel with the increase in processing capacity, plastics sector makes investments on machinery and equipment increasingly. 288 USD million in 2003, sector’s investment on machinery and equipment peaked with 885 USD million in 2011. Total investment on machinery and equ-ipment is expected to decline to 794 USD million with a 10,3 % decrease in 2012.

900

800

700

600

500

400

300

200

100

0

Mill

ion

US

D

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/6 2012/T

Domestic Sales of Plastics and Rubber Processing Machinery

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4. CONCLUSION:Our country has the highest plastics pro-

cessing capacity in Eurasia territory and ex-ports the highest amount of PLASTİCS prod-ucts. In spite of the crisis and recession in EU countries, which make up our most important market, and cooling-down easures taken in Turkey for a “soft landing”, the industry both managed to grow and increase its export in the fi rst six months. Turkish plastics sector keeps its role as the leading light of its territory. We have a serious technological experience in the production of packaging, construction materi-als, domestic appliances, automotive, and agri-culture, which reaches the extent that techni-cal labor force is transferred from Turkey while new investments are being made in surround-ing countries.

However, fl uctuations in raw material prices and extreme value of Turkish Lira have aff ected the profi tability and capital power of our companies negatively. The gap between the prices of our export and import products does not narrow down for years. Incentives

granted to investments made on plastics pro-cessing in Middle East pose future risks. It would be good for our companies to pay more attention to R&D work intended for increasing the added value and profi tability in products they manufacture, as well as giving importance to manufacturing products for sectors such as electronics, communication, defense industry, and health, which operate on advanced tech-nology.

Turkey is a country which meets 70% to 80 % of its demand of plastics processing ma-chines, accessories and parts through imports as a net importer in these products, and cannot provide suffi cient added value with very low export price fi gures even though unit export prices have exceeded import prices in 2012. While the plastics sector grows rapidly, produc-tion of PLASTİCS processing machines does not develop in parallel with the speed of this growth, thus melting down rapidly in the face

of the import from manufacturers of cheaper machinery, particularly China. Lack of a govern-ment strategy for plastics processing machines industry, lack of protection for domestic manu-facturers, and domestic manufacturer’s prefer-ence of cheaper and second-hand machine im-port together cause Turkish plastics processing machine industry to shrink down rapidly.

Adoption of a new vision and roadmap for the sector, and acceptance of this as a govern-ment policy is the duty of non-governmental organizations that manufacturers of plastics processing machines are affi liated with. Stra-tegic targets that may be adopted by plastics processing machines, accessories and parts industry can be summed up as follows:

Using cheap and qualifi ed labor and expe-rience in advantage of machinery manufacture, Turkey can establish the incentive infrastruc-ture to attract global machinery manufacturers to investment in Turkey, and special incentives can be provided for investments on plastics processing machines to be made in Turkey by global players. Turkey can be made a manufac-turing and export base for at least certain mod-els of plastics processing machines through an incentive infrastructure implemented this way. If this is achieved, other models of ma-chines can be manufactured in Turkey to meet the machinery need of the Western world. In order to achieve this goal, a “Precompetitive Cooperation” should be established between the manufacturers of such machines and manufacturers of parts for these machines. For sustainability of global competition, the rela-tionship between manufacturers of machinery and parts should be considered a long-term “Business Alliance” based on mutual trust and common design. Otherwise, it is possible that the global players mentioned meet their need for accessories and parts from abroad after in-vesting in Turkey, transferring the added value to abroad. Turkey’s status as a global player in machine manufacture will make it possible for accessories and parts intended for the industry to be manufactured rapidly and exported with a greater added value.

Today, production of machines that pro-vide added value requires large-scale R&D expenditures. Due to the insuffi ciency of their fi nancial power, it is diffi cult for domestic manufacturers of machinery, all of which are SMEs, to make R&D spending of such scale to reach a technological level of the machines manufactured in the West. For this reason, in-troduction of Turkish plastics processing indus-try into parts supply system of global players, and turning Turkey into a manufacturing and export base of accessories and parts of plastics processing machines by manufacturing acces-sories and parts of desired level of quality, in-

stead of main machines, in Turkey, could be the a second strategy that can be followed.

In accordance with the Article 84, machin-ery export, which was 1.7 USD billion in 2001, reached the level of 11.4 USD billion with a 22 % increase in 10 years. Germany raised its ex-port of machinery, which was 80 USD billion in 1991, to 221 dollars in 2010; and China raised its export of 3.2 USD billion in 1992 to 309 USD billion in 2010.

Turkish Machinery Industry aims to be one of world’s top 5 fi ve exporters of machin-ery with an export value of 100 USD billion by 100-billion-dollar machinery export in our country’s aimed 500-billion-dollar total export in 2023, and increase its share in total export to 20 %, which is the level prevalent in developed countries. The rate of machinery export in total export is 20 % in China, 18 % in Germany, 14 % in the USA, 19 % in Japan, and 9 % in Turkey. When the global rates of increase in the ex-port of Machinery and Accessories and the rate of 10-year increase among top 30 exporting countries between the years 2001 and 2010 are analyzed, Turkey is in the 4th place with a 22 % increase. While China leads these growth rates with 29 %, it is followed by Czech Repub-lic, Poland, and our country. Nevertheless, in spite of a global machinery export of 1.766 USD billion in 2012, the export of Turkey in the same year was 9.42 USD billion, which amounts to a very small share of 0,53 % in global export of machinery.

According to 2011 data of EUROMAP (Eu-ropean plastics and Rubber Machinery), which PAGDER is a member of, in Europe, 992 com-

panies operating in PLASTİCS and rubber pro-cessing machinery sector made a production of 9.779 billion Euros, and exported 7.032 billion of this production. While Germany leads this production with 50,2 %, and is followed by Italy with 23 %, Turkey received a 1,3 % share from total production. Exports are also led by Germa-ny with 47 %, which is followed again by Italy with 19,2 %, while Turkey had a 0,7 % share in total export. One of the leading manufac-turers and exporters of the world, China made 28,4 % of its total export of plastics Processing Machinery to Germany, 27,9 % to Japan, and 12 % to Taiwan in this term. Germany, Italy, and France led EUROMAP members by 67,8 %, 12,5

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%, and 10,5 % respectively.

As indicated by these values, China is not a trouble for only Turkish plastics processing machinery sector, but for the entire world. We should not overlook this fact while forming the future projections. Instead of a total price and piecewise competition with China, we should act in coordination with the Chinese factor for accessories and parts with lower added value, for which the Turkish plastics processing indus-try has no chance of competition, and trans-form this factor into industry’s force by combin-ing with a concept of fl exible production.

With technological advantage and stable industrial culture compared to neighboring countries, Turkey’s plastics processing machin-ery sector should contribute to attaining our 2023 goals and raising Turkey’s share in global trade of machinery

With the new incentive law, machinery sector stands out as one of the sectors sup-ported in all provinces and incentive territories except İstanbul. Undoubtedly, the reason for this privilege is that machinery sector stands out as one of the locomotives for attaining 2023 goals by undertaking 20 % of these goals. Members of the sector in investment planning should make investments in Orga-nized Industrial Zones to benefi t from extra discounts before the end of the term defi ned as the promotional term.

Making mutual investments in Turkey with colleagues of Western European (Germany, Austria, Italy) and Far Eastern (China, Taiwan) origin to take the opportunity of the new in-centive law, will open up new horizons for our plastics processing machinery sector. Combin-ing our outstanding traits of fl exibility and en-trepreneurship with their traits of innovative production and powerful capital force, which we lack, we can turn Turkey into a window that opens to Europe for Far East, and a base that can provide competitive quality and price advantages with Far East for Europe. The op-portunities that the new incentive law provides to well-known foreign manufacturers of ma-chinery with globally-accepted quality should be communicated well by relevant manufactur-ers, and these manufacturers should be invited to Turkey.

PAGDER has been sharing her opinions on second-hand plastics processing machines with General Directorate of Export of the Minis-try of Economy since the last quarter of 2009. While forming these opinions, PAGDER tried to consider plastics sector of the country as a whole, looking out for the benefi t of the entire sector and trying to be fair. It has been tried to create new opportunities for the manufactur-ers of plastics Processing Machines. PAGDER’s

recorded second-hand import requests in this period were 344 injection, 30 extrusion, 31 blow molding, and 161 other kinds of machines, and PAGDER approved the import of 392 of these machines, and disapproved 1174 of them.

Considering that 2696 new injection machines, 607 extrusion machines, 96 blow molding machines were imported to Turkey in 2011, the actual threat turns out to be new machines, rather than used ones. plastics sec-tor made an investment of 886 USD million in 2011, and 194 millions of this investment was from the domestic manufacturer, and 692-mil-lion-dollar part was met by imports. While the sector meets the 16 % of investment made in country in 2003 and about 33 % in 2011, it is still far from the suffi cient level.

Trying to do its part of second-hand ma-chines in the best way, PAGDER helps the sec-tor members with the machines imported from Far East before Protection Offi ce of the General Directorate of Import, and puts its staff in the service of sector members at the point of infor-mation and coordination. As well as the infor-mation meetings held recently on this subject,

applications of “implementation of supervi-sion” by the sector members are accompanied.

In order to attain the 500-billion-dollars goal in 2023, the sector should do its part and keep an import growth of 25% for consecu-tive years. In order to facilitate this aggressive growth, the sector has to gain confi dence of Turkish plastics sector, which keeps growing and has taken the third place in processing ca-pacity in Europe. If manufacturers of plastics processing machines manage to gain this mo-mentum, it will not have much diffi culty with making itself accepted in export markets.

One of the locomotives of Turkish national economic growth, plastics industry is predicted to make a USD 5.7 billion investment in machin-

ery and equipment between the years 2003 and 2012. However, the fact that 80 % of this investment was met by imports, as it is the case in raw material, is a quite sad occasion. When the import volume of the sector is analyzed, sixty per cent of import is made from the coun-tries such as Europe, USA, and Japan, which make production with advanced technology. The forty-percent share, on the other hand, is made up of countries with cost advantage, such as China, Taiwan, and Korea.

The market which showed a record growth in 2011 is expected to shrink down by 10 percent in 2012. Both cooling-down mea-sures implemented in domestic market and es-calating fi nancial crisis in Europe have caused investment decisions to be suspended.

Having been able to meet the need up till the last two decades, Turkish manufacturers of PLASTİCS processing machinery lost signifi -cant market share to fi rst Europe, and then to Far Eastern machinery manufacturers spread rapidly to the world. After 80s, Turkish plastics sector attained a trend of rapid growth both in domestic market and in export. However, they could not follow this trend due to the failure domestic manufacturers to adopt technologi-cal innovations and fi nd instruments to fi nance the customer. They are in a more competitive status in production of auxiliary equipment, ac-cessories, and molds, which require relatively less capital. It is also obvious that our small number of machinery manufacturers keep competing successfully both inside and outside the country.

Today, large machinery manufacturers manufacture only the most critical parts in their facilities, rather focusing on the engi-neering part, and trying to develop processing technology. To this end, they cooperate with world’s leading plastics processing companies. In this way, they increase their market share by developing more effi cient assembly lines that consume lower energy and depend less on hu-man force. Considering the presence of compa-nies with large scale production in our country, it will be good for both parties to attempt such cooperative activities in medium term.

It is seen that the shares of many large groups that have a say in the market belong to private investment corporations. Even though such companies incorporate advanced tech-nology, it is impossible for them to sell their goods in global markets without a strong fi -nancial support. In order for Turkish domestic machinery manufacturers to keep growing, they should be supported with special fi nancial instruments.

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PLASFED Greets Thee We are currently

feeling proud of our-selves for bringing in a new publication to the sector as PLASFED. Our journal, initially, aims to increase the com-munication within the sector. The information exchange and sharing of the problems amongst both the members of founding associations and other members of the sector and the op-

portunity for our colleagues to have more knowl-edge on their associations and federations are our most important purposes. On the other hand, we want to make the public hear our voice that will even get stronger when we are together. We desire for this publication, which is currently the common voice of fi ve associations to pros-per and develop with the participation of other associations to our federation. We would like to extend our deepest gratitude to PAGDER Press and Advertisement Media Committee, especially to the President of PAGDER (Plastic Industrialist Association) Hüseyin Semerci, who has been a cornerstone in bringing the fi rst issue into life, all association presidents and members of board of directors, press team and our esteemed sector members who supported our publication with their advertisements. ‘Plastic’, which derives from the Ancient Greek word ‘Plasticos’ which means easily shapeable, is one of the indispens-able materials for humanity and technologies which increase the quality of life of mankind. The one common duty of our sector members must be to contribute in providing the sector to receive the due respect and attention by continuously expressing the advantages and the aforemen-tioned contributions to mankind of plastic mate-rials in every platform they attend to.

Message from PLASFED Member Associations

Plastic industrialists deserve a sector assembly

We are jointly work-ing for the development of our sector which has the 3. biggest production capacity within Europe with its investments, ex-ports and high-powered structure. We must be ready to take new steps, leap forward in order to strengthen and develop

this union even more. The establishment of PLAS-FED (Plastic Industrialists

Federation) has been the fi rst fruitful outcome of this roborant collocation. Now, we have initi-ated a new initiative for the establishment of our sector assembly within the body of TOBB (Union of Chamber and Commodity Exchanges) in order for our sector to receive the mostly deserved worth and to be defended, we have offi cially made the fi rst request for the establishment of

“TOBB Plastic Sector Assembly”. I believe whole-heartedly that we will overcome the diffi culties with the power of entrepreneurship as plastic industrialists throughout Turkey.

Cooperation/Coalition for our Sector

We have begun our exercises to quickly institutionalize begin-ning from the date 11 January 2011 on which we were established as Ankara Plastic Industri-alists Association up to today. Within this scope, we provide showroom service for plastic in-

dustrialists that oper-ate within Ankara. Our preparations for a guide

and catalogue which will contain our product and companies have now reached its fi nal stage. Also, our aggregation operations are in their fi nal stage. We are deeply grateful to be a founding member of PLASFED with our colleagues from other provinces and regions. We continue our cooperation/coalition eff orts within our sector. Thus, we believe and know that our sector will get even stronger. We must give importance to cooperation – coalition which is the most impor-tant defi ciencies for our industry-trade potential which has risen tenfold in the last 10 years in Ankara to gain more speed so that it would be a win-win situation for our sector, for us and for our country. However, we must be the ones that put eff ort to it.

Contribution to National Eco-nomy

We can categorize the plastic sector manu-facturers in Bursa as heading, injection, pack-age, automotive part manufacturers. Accord-ing to Bursa Chamber of Commerce and Industry, the number of package manufacturers is 34 and around 1500 individuals

are employed and also their export is about 1 percent of the average of Turkey. However, it

seems that if we take into account that their investments will increase between the years 2013 – 2015, we presume that they will reach a level of 2 percent throughout Turkey. The other groups hold an essential rank in Turkey’s expor-tation as they are comprised from a total of 400 companies with around 30 thousand employees. There is 1 company (B PLAST) from Bursa which is amongst the top 500 companies in Turkey. I would like to extend my gratitude to everyone who played a role in the publishing of PLASFED Journal which began its publication life and hope that this journal will open up the horizon of all plastic community.

Global crisis intensifi ed the competition

Our sector is cur-rently taking the steps to be more powerful with PLASFED (Plastic Industrialists Federa-tion), a federation that tries to make the voice of our sector heard in the best manner there is in the national and inter-national arena. In order to meet the need of an international fair in İzmir where many company

with diff erent scales are operative and an im-portant facility such as Petkim is situated, we ar-ranged the PLASTECH fair together with İZFAŞ. We wish for the continuation of the support of PLASFED and PAGDER that we are truly glad for our fi rst fair. Our sector, currently, is within an in-tense competitive environment due to the crisis in EU Member States. I would like to congratulate PLASFED which was established with 5 active association of our sector and I believe to be the key for the development of our sector and wish our colleagues a prosperous business.

We must defend our sector Kayseri plastic sec-

tor is the 9th biggest plastic sector in Turkey with its approximately two hundred companies and around four thou-sand employees. While the need for plastic ma-terials is on the increase, if we do not respond to the unrighteous attacks

made to our products and do not express our problems, it is obvious

that our sector will lose ground. We established KAYPİDER-Kayseri Plastic Managers Association together with the plastic industrialists in Kayseri in 2008 with the 45 founding members in order to strengthen the communication and to pre-serve the competitive environment. As an asso-ciation, we arranged acquaintance meetings and gained acceptance. We successfully responded to the unjust campaigns against plastic products. Furthermore, we will strengthen our coopera-tions with PLASFED (Plastic Industrialists Feder-ation) which is the umbrella organization for the profound representation of our sector.

BOARD/NEWS FROM THE SECTOR

PLASFED Monitoring Report: Foreign Trade Surplus continu-ous for Plastic construction ma-terials and packaging

According to the results of PLASFED 2012 fi rst half monitoring report, Turkey passed in for-eign trade surplus in the fi rst six months for plas-tic construction materials and plastic packaging products. It is envisaged that the foreign trade surplus will continue to the end of the year.

Selçuk AksoyPLASFED (Plastic Indus-trialists Federation) Chair-man of Board of Directors

Necmi ATALAY President of Ankara Plas-tic Industrialists Associa-tion

Yusuf ÖZKANPresident of Kayseri Plastic Managers As-sociation

İlker BİLİKTÜPresident of Bursa Plastic and Packaging Industrialists Associa-tion

Hüseyin SEMERCİPresident of Plastic In-dustrialist Association (PAGDER)

Erol PAKSUPresident of Aegean Plas-tic Industrialists Solidarity Association

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The 2012 foreign trade surplus of Turkey, which is a net exporter for “Plastic Construction Materials” as from the end of 2012 has gone up

to 563 thousand tons and 1.2 bil-lion dollars.

A c c o rd i n g to the estima-tions made with-in the PLASFED Plastic Construc-tion Materials

2012 First Half Monitoring Report, the foreign trade surplus of 1.01 billion dollars at the end of 2011 for plastic construction materials sector which has a 22 percent share in the total plastic goods production of Turkey will go up to 1.2 bil-lion dollars at the end of this year.

The foreign trade surplus also in the total plastic packaging goods of Turkey to continue

According to PLASFED “Turkish Plastic Packaging Goods Sector 2012 First Half Monitor-ing Report, plastic packaging goods was another sector which gave away foreign trade surplus. It was reported in the report that the sector reached a scale of 11.2 billion dollars in the fi rst 6 months of 2012 with a production of 2.9 tons. By the end of the year, it is expected the rate for export to meet the import to be 161 percent on the basis of amount and 118 percent on the basis of value.

It is estimated within the report that the total production of plastic packaging materials for which the fi gures were 2.7 million tons on the basis amount and 10.8 billion dollars on the basis of value in 2011 will experience an increase of 8 percent (2.93 million tons) on the basis of amount and 3,6 percent (11.2 billion dollars) on the basis of value in accordance with the accru-als in the fi rst 6 months of 2012.

Murat Akyüz: The chemical in-dustry took the fi rst place in Tur-kish export in September with 1.6 billion Dollars

The chemical in-dustry has been ranked 1st in Turkish export in September, too. The industry which left the textile-apparel industry behind in recent months became the leading ex-porter by keeping itself

in front of the automotive industry, “the leader of export”, despite the long offi cial holiday.

The chemical industry, increasing its export values by 23.35 percent in September, reached an export value of 1 billion 659 million Dollars. Chemical substance and product export, with its value of 14 billion 625 million Dollars between January and September, achieved one of its bril-liant successes in the recent years.

Murat Akyüz, the president of the İKMİB, said that products which played the key role in

the industry were plastics and rubber materials which also constituted one of the sub-sectors making the greatest contribution to export ac-tivities. In his remarks he declared, “Plastic is one of the most exported materials of the chemical industry which means that plastic products have a signifi cant share in export of chemical materi-als. Plastics and plastic products had the second place among the most exported materials be-tween January and September with a value of 3 billion 900 million Dollars. Rubber and rubber product export worth nearly 1 billion Dollars. Relevant export fi gures per kilogram relating to the chemical substance industry are far above the Turkish average which also summarizes our success. Outstanding groups include: rubber and rubber products with 5.02 Dollar, and plastic products with 2.59 Dollar. Turkish plastic indus-try keeps growing while our European competi-tors downsizing due to the economic crisis. It will be a satisfactory development that Turkish plastic industry which has the third place among the European manufacturer for now to ascend to the second place by getting ahead of Italy.”

Message from APSD to Univer-sity Students: Jobs on your front door

On the other hand, plastic and rubber in-

dustrialists from Ankara participated to a promo-

tional activity towards the students who continue their

university education. A meeting was held to with the participation of President of APSD Ankara Plastic Industrialists Asso-ciation Necmi Atalay, President of ASO plastic and rubber Committee Mustafa Korkmaz, ASO Council Members Akman Karakülah and Turan Değirmenci, Gazi University OSTİM Vocational School of Higher Education and industrialists from İvedik Organized Industry. Within this meet-ing, information regarding the sector was shared with students and also an exchange of ideas regarding the quality of labor force requested in the sector with the students was made. The youth was requested to take their fi rst step into the sector with the internship programs at the meeting within which the students were told that “Their jobs were ready if they were to de-velop in line with the needs of the sector”. It was reminded that the sector companies began to make job off ers to qualifi ed students during the meeting where the qualifi ed labor force demand of the sector is higher than of the individuals who are currently continuing their education.

Sectoral cooperation under the leadership of PLASFED is taken to global institutions

Aside from the organizing of plastic sector in Turkey, the activities for its representation be-fore global institutions are intensifi ed. PLASFED became a member of Council of International Plastics Association Directors (CIPAD) within its fi rst of establishment and PAGDER, on the other hand, became a member of European Plastics Converters (EUPC).

CIPAD, which is a platform to which Direc-

tors of World Plastic Industrialists Association which provides cooperation for information ex-change and common matters of global plastic sector, gathers twice a year and discusses the problems of the sector, coordination and con-ducts information sharing. The council has 64 plastics non-governmental organizations mem-bers from 49 countries which are active in all re-gions of the world.

BURPAS’s president, İlker Bi-liktü, recommended to use plastic banknotes

President of the Bursa Plastics and Pack-ing Material Manufactur-ers Association (BUR-PAS), İlker Biliktü, said, “Utilization of plastic banknotes are getting widespread all across the globe. I recommend replacing our banknotes with the plastic ones.”

İlker Biliktü, in the press conference held to-gether with the members of the BURPAS’ board of directors underlined that negative policies im-posed on the industry did not make sense.

Biliktü, reminding that level of plastic ma-terial utilization was getting larger in the world and that there were lots of new products made of plastics, said that plastic coin was a prominent example of those applications. Biliktü said, “Oth-er central banks in the world start to utilize plas-tic banknotes . Turkey is still debating on benefi ts and harms of plastic bags while Canada and Aus-tralia are minting plastic banknotes . The advan-tage of these banknotes which are preferred as they are eco-friendly is that they are resistant to wear and tear. They are made of polymers. Hav-ing a six-year useful life, these banknotes are recyclable.” Biliktü, declaring that there was no study toward minting plastic banknotes in Tur-key, announced a new study to putting the issue in the Turkey’s agenda with the contribution of PLASFED.

EGEPLASDER to develop joint studies with the region’s stakehol-ders

The EGEPLASTER, uniting plastics manu-facturers in the Aegean Region, is d e v e l o p -

ing cooperation models to involve organiza-tions within the region to improve the sector. In this sense, it has been announced that relevant studies to establish “the Aegean Plastics Export-ers’ Association” in partnership of the Aegean Exporters’ Association and PETKİM. The asso-ciation declared its aim: to enhance foreign trade effi ciency.

Investment in the Menemen Specialized Plastics Organized In-dustrial Zone to start

Investment phase of the Menemen Plastics OIZ project executed with the support by the Ae-gean Region Chamber of Industry and the EGE-PLASDER will start soon. Regarding the project which will provide plastic manufacturers with an investment and production environment with a

President of the İKMİB (Association of İstanbul Chemical Substances and Product Exporters)

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complete structuring, production and transpor-tation infrastructure, relevant investments will be commenced at the end of 2012-beginning of 2013. It has been said that there were 45 build-ing plots in the industrial zone that will create an opportunity to employ 15 thousand people, and 34 of these 45 plots had already been sold. It has been declared that more than 8 million TL had been invested in the zone during the develop-ment phase.

KAYPİDER A fi rst in the Sector: Introducing the sector to the youth

KAYPİDER blazed a trail in the plastic sec-tor with the project that it has put into practice. With the participation of Kayseri Directorate of National Education and Kayseri and İstanbul the-ater groups, a game and a CD which includes the game is being prepared in order to increase the knowledge of students regarding plastics and their environmental consciousness. The anima-

tion and theatre play will be supplied to students which will correct the wrong information regard-ing the place of plastic within our lives and plas-tics with the CD which will be distributed to all of the students in Kayseri. KAYPİDER President Yusuf Özkan, who gave information concerning the project stated, “We will distribute the CDs which will be prepared under the sponsorship of PLASFED. The consciousness of bringing in the plastics to the economy with recycling and plas-tics will be imposed with the games and movies within the CD. The distribution of this CD does not have to be limited with Kayseri; it could be distributed throughout Turkey”.

PAGDER & ASLAN Organized In-dustrial Zone investment to be ac-celerated

The study com-menced by the Plastics Industry Association (PAGDER) to provide the plastics industry with an adequate infra-structure to enable it to carry out its activi-ties and operations has been accelerat-ed. The PAGDER & ASLAN OIZ with its investment cost of

about 600 million TL to be established in the Organized Indus-

trial Zone for Plastics located in Vize, Kırklareli aims at being a model for structuring of the plas-tics industry.

The PAGDER & ASLAN OIZ (PAOSB) to be the fi rst specialized organized industrial zone

for plastics of Turkey benefi ts the manufactur-ers with its close distance to the airports, ports and transportation network located in İstanbul and Marmara Region. The plants within the bor-ders of the Zone which will benefi t from the new Incentive Decree issued recently as it has struc-tured as a specialized OIZ will be exempt from property tax, and those that will be within the regions having a central waste water treatment facility will be exempt from the waste water charges for 5 years from the completion of build-ings within the scope of investment.

The buildings and plants in the said zone will also be exempt from the building construc-tion charge and the fee relating to the certifi cate of occupancy. Hüseyin Semerci, the chairman of the PAGDER’s board of directors said, regarding the project, that the OIZ would host about 100-110 plastics plants when expansion areas were included, and would create an opportunity to employ more than ten thousand people. Semerci added: “The project’s estimated total investment cost will be 600 million Turkish Liras.” Construc-tion of PAOSB with its initial area of 60 hectares and 120 hectares of expansion area will com-mence in 2013.

İTO ends ‘fume hood’ trouble of

plastic industrialist

İstanbul Chamber of Commerce (İTO) Plas-tics and Rubber Profession Committee succeed-ed in its study to eliminate the obligation of us-ing fume hood of plastic industrialists of İstanbul. The application of the committee for the elimina-tion of this implementation made to the Ministry of Environment and Urbanization was approved. Thus, the obligation to use fume hood for extru-sion and injection units of plastic industrialists which was initiated by İstanbul Provincial Envi-ronmental Directorate approximately 2.5 years ago is taken out of the picture.

President of Rubber Associati-on Nurhan Kaya: The foreign trade of the sector could be equalized if the raw material problem is solved

Nurhan Kaya pointed out that the rubber industry is faced with additional loads due to its mineral oil taxing and importation system and

that the f o r e i g n -d e p e n -d e n t i m p o r t a -tion for synthetic r u b b e r and total sector raw m a t e r i a l i m p o r t a -tion is up

to 95 percent. On the contrary, Nurhan Kaya, who pointed out that the export coverage ratio of import is around 80 percent, said that they could pass on to foreign trade surplus in short time if the imported raw material dependency is to be reduced. Kaya emphasized that the ad-ministrative arrangements regarding the mineral

oils which are used by the sector as input create diffi culties.

Chemistry Sector Strategy Pa-per 2012-2016: Raw Material in-vestments must be increased

The Chemistry Sector Strategy Paper and Action Plan, which is an important phase for the development of chemistry sector, came into

force after be-ing published in the Offi cial Ga-zette. Its vision has been des-ignated as “The transformation of Turkey as an investment base by producing products with high value-add-ed” and its gen-eral purpose as

“To have a corner in the world for the chemistry sector by improving the foreign trade balance to the favor of the country with high value-added, environment and human health friendly process and products”.

Turkish Plastics Sector PAGDER participates in important fairs to be held in Brazil, UAE, and China in 2013.

Through the organi-zations supported by PAG-DER, Turkish plastics sector is preparing for an intensive fair traffi c in 2013 with na-tional participation and del-

egations supported by KOSGEB. Germany K fair and Brazil fair stands out among these organiza-tions as the world’s and South America’s greatest respectively. Being prominent fairs of the sector and the region, Arabplast Dubai and ChinaPlas are two fairs that Turkish plastics manufacturers will participate in 2013.

COVER/AGENDA

Agenda of Turkish plastics sec-tor, which intends for export and investment has changed

With the eff ect of global crisis, Turkey is ex-pected to go through with a growth rate below potential. Unlike this year, net export in 2013 is not assumed to contribute to growth, which is expected to depend on domestic investment and consumption. When Turkey’s need for in-vestment, consumption and export refl ected on offi cial programs, a tax regulation that brought a 300-million-dollar additional burden to plastics sector, one of the key actors of consumption and export, was made.

According to offi cial data, with the eff ects of global crisis, Turkey is expected to keep below its potential growth. At a time when even one Dollar made by export and one Lira spared for invest-ment would be needed, Turkish plastics sector, the third most prominent manufacturer of its region with a volume of 30 billion dollars, is ex-

ThemencedIndustr(PAGDplastican structo ctieshaedAin

about 6be established in the

PAGDER & ASLAN OSB, Plastik İhtisas OSB olarak yapılandırıldığı için yeni

teşvik yasası 2 B ekinde yer alan 1 no.’lu dipnota göre bölgesel destekler

kapsamında değerlendirilecektir. Referans değer olarak verilen % 50 yatırım

teşvik destek miktarı, yeni istihdam edilecek personel sayısı ve yatırım

finansmanı olarak kullanılacak kredi miktarına göre değişiklik gösterir.

*PAGDER & ASLAN OSB, Plastik İhtisas OSB olarak yapılandırıldığı için yeni

teşvik yasası 2 B ekinde yer alan 1 no ’lu dipnota göre bölgesel destekler

*

%50Yatırım Teşvik Desteği*

Türkiye’nin İlk

Özel Plastik İhtisas

Org. San. Bölgesi

Kırklareli - Vize’de Kuruluyor.

www.pagder.org

[email protected]

Tel: 0212 438 26 19

www.paosb.org

[email protected]

Tel: 0212 438 58 41

BREAKING NEWS

PLASFEDDERGİ

107

posed to a tax problem that will bring a 300-mil-lion-dollar additional burden.

According to the Cabinet Decree published in Offi cial Gazette on September 6, 2012, the 3

percent Tax Duty for low-density polyethylene was increased to 6,5 percent, which is more than two times its original rate, 3 percent Tax Duty for high-density polyethylene and polypropylene was increased to 4,8 percent until the end of this year, and to 6,5 percent by 2013.

The decree which has the potential to bring an additional burden of 260 to 300 million Dol-lars on Turkish plastics sector was received with astonishment. Sectors of packaging, automotive, domestic appliances, textile, electronics, and ag-riculture are expected to be aff ected adversely by the decree which gives rise to an additional cost suffi cient to allow establishment of a mid-size petrochemical facility as they constitute the majority of plastics-related and plastics-derived manufacturing industry.

Raw material makes up the ma-jority of the cost in plastics sector

The fact that plastic products are manufac-tured in various standards and kinds prevents a detailed cost analysis but the research con-ducted in relation to the analyses of larger cor-porations reveals that industrial cost item in the sector was about 80 per cent of total costs. Raw material makes up 70 per cent of total industrial costs. This factor is also important as it shows the decision’s eff ect on costs. Sector’s depen-dence on outside for a product without a domes-tic substitute increases its sensitivity. Let alone the sudden changes in taxes and other items, international price fl uctuations and of petrol and domestic fl uctuations of exchange rate makes a diff erence in this respect.

The decree should be revo-ked in short term and invest-ment on petrochemistry should be made desirable in mid-term

After the decision, steps have been taken before the Ministry of Science, Industry and Technology. A short-term reporting is also de-cided in discussions in which revocation of the decision is requested. The Ministry of Economy has made no justifi cation is for the additional taxes. The sector has suggested revocation of tax increase in short term, and encouragement of investments on petrochemistry in mid-term. To this end, support for energy costs, one of the main inputs, and acquisition of other inputs with cost advantage was requested. Sector’s special-ists who point out diff erences and diffi culties for the investments of petrochemical facilities due to the properties of their initial and growth

terms, noted the importance of establishing a mechanism which would prevent refl ection of product prices on the sector. Associations of the sector has pointed out that there is an attempt for production in PP and PE apart from the in-vestments of PETKİM with an emphasis on the sector’s need for an assurance for sustainable investment.

PLASFED is 1 year old, as one and even stronger

Plastics industry, which is one of the stron-gest sector of Turkey within the world markets surpassed its one year milestone which began with the motto “As one and even stronger”. Plas-tic Industrialists Federation which is comprised of the leading 5 Associations of the sector and a total of around 800 members is now 1 year old. Plastic industrialists who came together for a more profound representation and advocacy of

the sector carried out activities against regula-tions such as public incentives towards invest-ments and increase in the customs tax for raw material importation with PLASFED within the that one year. The federation also conducted studies for to strengthen the communication with public opinion.

EXPERIENCE / Muammer Yüceler

“Every winner must give so-mething back to community”

Muammer Yüceler, the leader of non-gov-ernmental organizations which played a signifi -cant role in the development of the plastics sec-

tor stated, “I am astonished by today’s dy-namism of the sector. I could not even re-gard that we could carry out e x p o r t a t i o n 30-40 years ago as pos-sible”.

Muammer Yüceler is one of the leading

actors in the development of the Turkish plastics sector which turned into a 30 billion TL industry from just a few workshops. Yüceler, who is the founder of Plastic Industrialists Association and Honorary President and a living proof of the term “Cognoscenti”, after starting his professional life in 1955, believed that the industrialists needed to co-work within a market based on equity through non-governmental organizations and became one of the individuals to establish the identity of the sector.

SUCCESS STORY / Behruz Vatan-dost

A story of innovation and coura-ge: Behruz Vatandost

Today’s fashionable terms “innovation” and “effi ciency” have been two of main principles for Vatan Plastik since its establishment. Business

life of Behruz Vatandost, who has stood out with his achieve-ments since 1957, could be a lesson for young entrepreneurs.

Eff ort of every entrepre-neur to estab-lish his business and the result

he reaches is naturally a success story. How-ever, there are such entrepreneurs that their life makes a success story. Turning a life struggle that started in Persian Azerbaijan into one of the top 6 plastics companies in Turkey in 50 years, on the other hand, is a success story in the full sense. Vatan Plastik is one of the largest manu-facturers today, and its export to more than 40 countries, it deserves to be a model for everyone.

PROFILE/MEHMET AYDIN

Mehmet Aydın, the industrialist passionate about research, invest-ment and education

Aydınlar Plastik and Gema which are the leading manufacturers of Turkey, provides a summary regarding the Turkish industrialist

who underwent a change within the last years. Gema, which continues the two most important investments of the last few years, draws atten-tion with the importance it puts on R&D. Mehmet Aydın answered our questions regarding his professional life that began in the 1980s and re-fl ects both his successes and failures.

Turkey transcended to open economy system In the 80s and entrepreneurship, in-dustrialism gained a new dimension with the aforementioned transition. Mehmet Aydın, who participated in the business world as an entre-preneur during this period, is honored to have ex-ecuted one of the most profound enterprises of Turkey. On top of it, he also did not lose his faith in innovation and investment.

“BÜYÜME” ME”

BREAKING NEWS

Turkish Plastic Federation Magazine

Documents

Transcript of Turkish Plastic Federation Magazine