Page 1

Turkey Business & A Investment Newsletter

FOR MORE POWER INVEST IN TURKEY

Investment Supoort And Promotion Agency of Turkey (ISPAT)

TO YOUR GLOBAL BUSINESS

France, Belgium, Luxemburg, Moncao office

PUSH THE BUTTON

For any contact :

n°21 January 2011

François BERNARD Permanent Representative fbernard@invest.gov.tr DR

GSM : +33 (0) 6 31 27 25 72

NEW TURKISH COMMERCIAL CODE AIMS TO BOOST INVESTMENT

ROYAL ACADEMY OF BRUSSELS

10/27

The Turkish parliament will vote on a new commercial code on January 11 to replace the current half-century-old version*. The new code would incorporate internationally accepted accounting standards into domestic legislation, says Unal Tekinalp, the author of the 1,535-article code. The new code aims to increase the transparency of enterprises and to bring Turkish legislation in line with corresponding EU legislation. The new code is expected to improve Turkey’s business environment, and allow the country to rank higher in the next World Bank’s “Doing Business” report. 14.12.2010 Hurriyet Daily News ABOVE THE TURKISH PARLIAMENT LEFT PRESIDENT OF THE COMMISSION PROF. DR. ÜNAL TEKINALP (RETIRED PROFESSOR OF THE DEPARTMENT OF COMMERCIAL LAW AT ISTANBUL UNIVERSITY)

TURKEY, BRAZIL SIGN AGREEMENT TO PREVENT DOUBLE TAXATION Turkish State Minister and Chief Negotiator for EU talks Egemen Bagis signed an agreement on prevention of double taxation between Turkey and Brazil on Thursday. Bagis is currently in Brazil within the scope of Southern Common Market (MERCOSUR) meeting in Foz Do Iguacu. MERCOSUR is a union between Argentina, Brazil, Paraguay and Uruguay. Its purpose is to promote free trade and the fluid movement of goods, people, and currency. Speaking after signing the agreement with Brazil's Foreign Minister Celso Amorim, Bagis said the agreement will boost bilateral trade between Turkey and Brazil. 17.12.2010 Today’s Zaman INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)

* : The new code has been voted and is going to enter in 2012

NUMBER OF THE MONTH

2,500

The number of foreign companies established in Turkey surpassed 2,500 in the first 10 months of this year, while in October alone more than 150 foreign companies were started up. 20.12.2010 Today's Zaman

« INVEST IN TURKIJE » IS DE TURKSE OFFICIËLE INSTANTIE DIE DE LEIDING VAN DE STEUN EN VAN DE BEVORDERING VAN DE INTERNATIONALE INVESTERINGEN WE KUNNEN JULLIE HELPEN TER WERELD, MET NAME IN FRANKRIJK, IN BELGIË EN IN HET LUXEMBURGSE OM TE INFORMEREN. ALS JULLIE WILLEN ONS KENNISMAKEN, KUNNEN JULLIE ONS BEREIKEN MET VERSCHILLENDE WIJZE. VOOR EEN PERSOONLIJK EN VERTROUWELIJK BIJEENKOMST, KUNNEN JULLIE BEREIKEN DE PERMANENTE VERTEGENWOORDIGER VOOR FRANKRIJK, BELGIË,LUXEMBURG. MOBIELE : 00 33 631 272 572 (AFGEROEPEN EERST EN VOORAL) ADRES : 55 AVENUE MARCEAU 755116 PARIJS FAX: 00 33 170 248 761 FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

NEWSLETTER NO.21 JANUARY 2011 P.01


Automotiv Tofas to produce Opel’s light commercial vehicle in Turkey Turkish-Italian joint venture Tofas will produce GM brand Opel/Vauxhall’s light commercial vehicle model Combo in Tofas’ Bursa plant in Turkey. According to an agreement signed between the Fiat Group and Opel, a new commercial vehicle model to be built on Fiat’s successful Doblo platform will be produced in Turkey. The vehicle, which will carry the Opel and Vauxhall brand names, will enter the European and other world markets, excluding North America, in early 2012. The Opel/Vauxhall design team, along with Fiat’s own team in Turin and Tofas’ engineering and design teams in Bursa, will work in cooperation to design the vehicle. The deal to manufacture 250,000 vehicles will increase the number of brands produced by Tofas to five, including Fiat, Peugeot, Citroen, Opel and Vauxhall. 01.12.2010 Haberturk

Turkey's automotive industry expects all-time record The automotive industry is close to breaking a sector record for all-times sales this year, with an expected 735,000 passenger cars, said Ali Haydar Bozkurt, Chief Executive of Toyota Turkey. A total of 729,000 passenger cars were sold in Turkey in 2005, the previous record-setting year. The sector started the year 2010 with low expectations due to the economic crisis, Bozkurt told Anatolia news agency on Sunday in the southern Anatolian province of Adana. “We did not even set a target for 2009,” he said. “Low interest rates in car loans helped the industry recover from the effects of the financial crisis and the markets started doing well without government support” added Bozkurt. As 70 percent of passenger car sales in Turkey are made with bank loans, interest rates are vital for the industry, said the Toyota CEO. The low rates made automobiles much more accessible, he said. 06.12.2010 Hurriyet Daily News

Engine manufacturer Cummins invests in Turkey Cummins, the US-based designer and manufacturer of diesel and natural gas engines, has announced an investment plan to establish a production base in Izmir, Turkey. The USD 70 million greenfield investment involves the production of filters and generators for motor vehicles. Cummins Vice President Ignacio Garcia said the company will set up the factory in the Aegean Free Zone in Izmir. The investment will start in the first quarter of 2011, while production is scheduled to start in 2012, said Garcia. Turkey was selected among 25 countries for this investment, Garcia told journalists. Dr. Huseyin Aslan, President of the Investment Support and Promotion Agency of Turkey (ISPAT), said the agency had been working for the past 18 months to bring Cummins to Turkey. “We were in a race with North Africa and Eastern Europe,” he said. “This project is crucial, as it will support the strategically important auto subindustry,” he added. Cummins’ establishment of a production plant in Turkey will create 800 jobs, while 85 percent of the manufactured goods will be exported. The company aims to utilize Turkey’s favorable geographical location for easy access to markets in surrounding countries. 09.12.2010 Hurriyet Daily News

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

P.02 NEWSLETTER NO.21 JANUARY 2010

INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR


Banking & finance Garanti deal opens new page in Turkey-Spain ties Spanish Banco Bilbao Vizcaya Argentaria’s (BBVA) partnering with Turkish Garanti Bank has taken the relationship between Turkey and Spain to a higher level. Gathering on Tuesday in Istanbul at a meeting organized by the Foreign Economic Relations Board (DEIK), businessmen from both sides discussed how to develop bilateral trade relations. A total of 214 companies, 208 Turkish and 23 Spanish, attended the meeting. “Turkey is a strategic partner for Spain,” said Aurelio Pérez Giralda, Spain’s Consul General in Istanbul, voicing his contentment that bilateral relations have reached a new level. “Banco Bilbao Vizcaya Argentaria’s acquisition of 25 percent of Turkish lender Garanti Bank for EUR 4.2 billion has been an important turning point in developing close relations between the two countries,” said Giralda. “The cooperation between these two Mediterranean countries is very important,” said Zeynel Abidin Erdem, Head of DEIK’s Turkey-Spain Business Council. Talks with Spain in wind and solar energy are ongoing, said Erdem, addressing journalists. “We want to benefit from Spain’s experience, especially in wind power.” The bilateral trade volume has increased 5.5-fold in the last year, reaching USD 7.8 billion, said Erdem. “This figure is expected to reach USD 9.2 billion by the end of this year.” Goods and services from Spain constituted 2.5 percent of Turkey’s imports, while 4.2 percent of Turkey’s total exports were destined for Spain, he added. “The volume of Spanish investments in Turkey has reached USD 395 million,” said Erdem, adding that companies from Spain have invested in many sectors such as infrastructure, transportation, construction, energy, automotives and fashion. 15.12.2010 Hurriyet Daily News

Turkish bank Yapi Kredi gets EIB loan for clean energy projects Turkish bank Yapi Kredi has secured a EUR 200 million loan from the European Investment Bank (EIB) to be used for clean energy and energy efficiency projects. The 15-year loan is the longest term EIB loan given to a private Turkish bank. Turkey is increasingly turning to renewable sources to meet the growing demand for energy, as the country’s Energy Market Regulatory Authority (EMRA) recently approved 16 wind energy projects, worth USD 2.5 billion. 24.12.2010 Cumhuriyet

INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

NEWSLETTER NO.21 JANUARY 2011 P.03


Industry POSCO to invest USD 350 million in Kocaeli, creating 1,000 jobs Pohang Iron and Steel Company (POSCO), the world’s third largest steelmaker, has decided to expand its investments in Turkey. Having commissioned its USD 24 million production plant in the western Turkish province of Bursa last October, the South Korean company has now announced another steel plant to be built in the neighboring Kocaeli province at an investment cost of USD 350 million. “POSCO’s greenfield investment will satisfy Turkey’s annual demand for stainless steel, which amounts to 210,000 mt, and will turn Turkey into a center for the strategically important steel industry in Eastern Europe, the Middle East and the CIS countries,” said Dr. Huseyin Aslan, President of the Investment Support and Promotion Agency of Turkey (ISPAT), during the press event. “This investment decision has once again brought Turkey under the global investors’ spotlight,” added Aslan. Once completed in 2013, the cold-rolled stainless steel plant will employ 1,000 people and will have an annual production capacity of 200,000 mt. POSCO’s global production amounts to some 30 million mt, while the company employs more than 17,000 people in 36 plants in 22 different countries. 20.12.2010 Hurriyet

BSH to expand its investments in Turkey Vatan - German white goods maker BSH will expand its presence in the home appliances segment, which is expected to grow by 16 percent in the next 5 years, according to BSH Board Chairman Norbert Klein. Beginning from the second half of 2011, the company will use its facilities in Cerkezkoy, Tekirdag in northwestern Turkey, to address the growing market need for home appliances. “Turkey is among the top three countries BSH has prioritized for investments,” said Klein in a press briefing about the company’s yearly performance and its plans for 2011. Expressing the company’s confidence in Turkey, Klein said that the company will continue investing in its facilities in Turkey. “Our investments in Turkey grew by 181 percent in the last two years, making the country an important part of BSH’s global R&D network,” he added. BSH’s four production lines in its Cerkeskoy plant manufacture several types of white goods for the domestic and world markets. The company has invested nearly half a billion euros in Turkey in the past decade. 31.12.2010 Vatan

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

P.04 NEWSLETTER NO.21 JANUARY 2010

INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR


Service French firm acquires Turkey's Multinet for USD 90 million French Cheque Dejeuner, a top provider of meal cards worldwide, announced the acquisition of Turkish company Multinet. The transaction, announced at a press conference in Istanbul, is worth USD 90 million. Multinet ranks 201st among the top 500 Turkish companies, according to a list by the monthly Capital magazine. Speaking to journalists on Thursday, Yvon Legrand, the general manager of Groupe Cheque Dejeuner, said Turkey has an “extremely suitable” structure for growth and investment. “I believe we will be the market leader in a short time,” said Legrand. Sevket Basev, the Chief Executive of 3 Seas Capital Partners, who arranged the deal, said Turkey has “once again proved its institutional infrastructure and stability” with this acquisition. 10.12.2010 Hurriyet Daily News

Eureko B.V.: Turkey central to our future plans International insurance services group Eureko B.V. has made Turkey central to its future plans. The Dutch company’s focus remains on Turkey, and the country will be like a “second home” to Eureko, according to David Sanderse, Eureko’s Regional Director for Europe. “Unlike the uncertainties we face in Greece and Russia, the Turkish market is ripe with opportunities for growth. We are intensifying our operations in Turkey with long-term plans for the country,” said Sanders in an interview given to De Volkskrant daily. “Turkey remains an insurance agent’s dream,” said Sanders, adding that Eureko’s Turkish division doubled its sales in 2009. Further praising Turkey, Sanders stated, “Turkey also provides new lessons to Eureko with its dynamism and creativity”, in reference to Garanti Bank’s innovative sales channels comprising ATM machines and telephone marketing. Eureko B.V. entered the Turkish market in 2007 by acquiring an 80 percent stake in Garanti Sigorta and has been in service since then under its own brand, Eureko Sigorta. 24.12.2010 Star

Microsoft: Turkey leads the way in MEA region Turkey's business practices and development serve as a good example for other countries in the region, according to a Microsoft regional manager. Microsoft operations in the Middle East and Africa (MEA), over 70 countries with a vast and diverse consumer base, are headquartered in the company’s Turkey office. "Turkey is one of the biggest and more mature Microsoft subsidiaries in the region, and we have the opportunity to transfer our know-how and accumulations and best-practices to other countries who are now at a stage that we have experienced a couple of years back, " Microsoft's Original Equipment Manufacturer (OEM), regional General Manager Selim Zafer Ellialti said in a press interview. "We are trying to match-make our partners who would need expertise or joint ventures or investments in between, so Turkey is also one of the strong examples in the market" because of its size, its capabilities and the corporate development of the channel, he said. 16.12.2010 Hurriyet Daily News

INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

NEWSLETTER NO.21 JANUARY 2011 P.05


Investment Strategy Turkey and Canada explore possibility of a FTA Speaking during a visit by a Canadian trade mission to Istanbul, Yilmaz Arguden, Head of the Turkish-Canadian Business Forum, said Canada and Turkey are considering signing a free trade deal (FTA) after Canada signs a FTA with the EU. Peter van Loan, Canada’s Minister of International Trade, said that Turkey, with its strong economy and dynamic market of 72 million, has a key place in the global economy and that the question of a FTA between Turkey and Canada would be considered after Canada signs a FTA with EU. “Canada has great expertise in environmental technologies and energy industry, particularly in nuclear power plants,” said van Loan, noting that Canadian firms are interested in energy investments in Turkey. Turkey’s State Minister for Foreign Trade Zafer Caglayan called for stronger trade relations between the two countries and invited Canadian energy companies to invest in Turkey, saying “Canadian firms are welcome to bid on Turkey’s nuclear energy projects.” 08.12.2010 Hurriyet Daily News

Dutch firms eye new investments in Turkey The rapid expansion of the Turkish economy in recent years is attracting Dutch firms to investment opportunities in the country, according to the chairman of JAMAO Consulting. Chairman Ali Sarac said representatives of Dutch companies will launch a business trip to Istanbul and Ankara this week. The visit will include delegations from companies such as Deems, CLB, Iseco, Lamboo, Linido, Nucletron and Skytron from the healthcare and construction sectors. Company executives will hold bilateral meetings with the Turkish Ministry of Health and the Ministry of Defense and also Turkish firms. “We are aiming to increase the trade volume between Turkey and the Netherlands by organizing such business trips at least four times a year,” said Sarac, speaking to the Anatolia news agency. The Netherlands ranks among the top foreign investors in Turkey in recent years, said Sarac. “The reason behind this is the shining performance of the Turkish economy,” he said. 13.12.2010 Hurriyet Daily News

German companies bent on new investments in Turkey The surging growth of the Turkish economy, backed by stellar statistics, has led two major German companies operating in Turkey to expand their investments. Aunde Group, a manufacturer of technical textiles for the automotive industry, has decided to enter the Turkish tourism and energy markets, according to its Chairman Rolf Königs. The group already has a plant in Bursa, Turkey that manufactures seats and seat components for vehicles. “Additionally, we have invested in a cement production plant and two hotels in Turkey, employing over 2,000 people in total. More projects will follow in the energy sector, which we plan to enter with greenfield investment to produce electricity,” said Königs in a meeting held by the Turkish-German Chamber of Commerce and Industry (TATSO). Dusseldorf-based Metro Group, the parent company of Real, Media Markt and Metro chain stores in Turkey, will also continue its investments in the country. Rainhardt Freiherr Von Leoprechting, a Metro Group executive attending the TATSO meeting, said the number of Real markets in Turkey will increase and that the group will continue its growth in the country. 21.12.2010 Aksam

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

P.06 NEWSLETTER NO.21 JANUARY 2010

INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR


Energy Koc-AES partnership to invest USD 5 billion in Turkish energy industry Turkey’s Koc Holding has signed a partnership deal with the US-based energy company AES, in a bid to extend its operations in Turkey’s booming energy industry. Already active in the energy market with Tupras and Aygaz, Koc Holding’s partnership deal with AES covers up to USD 5 billion worth of investments in electricity generation. Under the terms of the deal, AES acquired a 49 percent stake in Entek, a subsidiary of Aygaz, at a cost of USD 136.46 million. The partnership aims to become one of the top five electricity producers in Turkey over the next five years, by achieving an installed capacity of 3,000 MW, utilizing Turkey’s various renewable and non-renewable energy sources. 02.12.2010 Aksam

OMV: Turkey to become an important energy hub Austrian energy company OMV, recent purchaser of the majority stake in Turkish oil distributor Petrol Ofisi and an important partner of the Nabucco pipeline, sees Turkey becoming an important energy hub in its region, according to company CEO Wolfgang Ruttenstorfer. Rottenstorfer, speaking about OMV’s future plans regarding Turkey, highlighted the importance of securing supplies for the Nabucco pipeline. Natural gas from Azeri and Iraqi fields is most likely to be used to operate the pipeline infrastructure, while Turkmenistan remains as an alternative gas source. Ruttenstorfer highlighted that Turkey is becoming a very important energy hub. “The Nabucco pipeline project is like a very long highway. From the Caspian region to the Middle East, from Turkey to Eastern and Central Europe, Nabucco is going to be used very intensively. Turkey is going to be a crucial player and a bridge in the energy sector,” he said. Ruttenstorfer also affirmed previous reports regarding OMV’s intention to turn oil retailer Petrol Ofisi into an energy company, importing natural gas and operating power plants. 07.12.2010 Today’s Zaman

Rosneft, Transneft to join Turkish pipeline project Russian energy companies Rosneft and Transneft are seeking 25 percent stakes in a planned Turkish oil pipeline, Russian Deputy Prime Minister Igor Sechin said on Wednesday. The pipeline, to be built by Turkey's Calik Holding and Eni of Italy, will link the Turkish ports of Samsun and Ceyhan and has strong backing from the Turkish government. "It is anticipated that two Russian companies, Rosneft and Transneft, will join the project. They are now in negotiations, which are focusing on the size of the stakes, and at this point it looks like the stakes will be 25 percent," Sechin said. Ahmet Calik, chairman of Calik Holding, told reporters an agreement on the stake sizes was expected soon and a final agreement would be completed early next year. 16.12.2010 Reuters

INVEST.GOV.TR INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT)

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

NEWSLETTER NO.21 JANUARY 2011 P.07


Recently released November data of the Purchasing Managers Index (PMI) show that the Turkish economy is still on its strong growth track, a Goldman Sachs analysis indicates. The 3-month average of PMI data reaching an average point of 53.6 shows that industrial production has increased by 2 percent in the last quarter, exceeding the previous quarter’s 1.2 percent. The report supports Goldman Sachs’ early suggestion that the country will achieve 8.5 percent of GDP growth in 2010. QUOTE OF THE MONTH 02.12.2010 Aksam

Photo credits : ISPAT and Murat ÜLKER

CONTACT For any information or request for an appointment in France, Belgium, Luxemburg ; or if you are in charge of an investment project in Turkey, do not hesitate to contact me :

France, Belgium, Luxemburg, and Monaco Office

Dr. François BERNARD Permanent Representative

FOR ANY CONTACT : DR. François BERNARD Permanent Representative fbernard@invest.gov.tr

P.08 NEWSLETTER NO.21 JANUARY 2010

55, Avenue Marceau 75016 PARIS; Fax : +33 170 248 761 @ fbernard@invest.gov.tr Gsm : +33 (0) 6 31 27 25 72

INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY (ISPAT) INVEST.GOV.TR

ISPAT Newsletter No.21 January 2011 EN  

Latest updates about investments and business in Turkey.

Read more
Read more
Similar to
Popular now
Just for you