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PL A S T İK S A N AYİ C İ L ERİ F ED ERASYONU DER G İSİ

ARALIK 2012 - ŞUBAT 2013 / 1. SAYI

Plastik sektörünün Türkiye'nin gelişmesine katkısı artıyor

PLASTİK SANAYİİNE “BÜYÜME” CEZASI

1 PL YA A ŞI SF N ED D A

ME”


PLASFEDDERGİ

FROM THE INDUSTRY

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 petrochemical 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 reflect the developments of the first six months of 2012 in plastics raw material, plastics products, and plastics treatment machinery sectors of Turkey show the real dynamism of the sector.

While a growth of 9 per cent is expected in finished 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 materials 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.

90


FROM THE INDUSTRY

PLASFEDDERGİ

DEVELOPMENTS OF THE FIRST 6 MONTHS OF 2012 IN TURKISH INDUSTRIES OF PLASTICS RAW MATERIAL, PLASTICS FINISHED PRODUCTS AND PLASTICS PROCESSING MACHINERIES Barbaros Demirci Secretary General PLASFED - PAGDER

1. PLASTICS FINISHED PRODUCTS With its plastics finished product treatment, Turkey is one of the most significant 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.

1.1. PRODUCTION OF PLASTICS FINISHED PRODUCTS: Total production of plastics finished 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 capacity, after Germany and Italy among EU countries. Production of plastics finished products is known to be 3,68 million tons in the first 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.

Production of Plastics Sector 7.336 6.764 5.256 5.425

5.251

1000 Tons

4.808 4.108 3.052

2.684

6.155

4.458 3.668

3.482

2.433

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011 2012 / 6 2012 / T

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

91


PLASFEDDERGİ

FROM THE INDUSTRY

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 first 6 months of 2012. If this trend continues, import of plastics finished 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 first 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 finished products hold a small place in terms of both amount and value in Turkey’s total import of plastics Foreign trade deficit 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 first 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 first 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 finished products from.

Top 10 Countries in Turkish plastics Product Imports 2011 COUNTRIES Germany

2012 (6 Months)

x1000 Tons

x Million USD

COUNTRIES

x1000 Tons

x Million USD

83

554

Germany

41

264

135

528

China

65

259

Italy

42

261

Italy

20

116

France

22

172

France

11

80

South Korea

28

149

South Korea

13

77

England

13

107

England

6

48

U.S.A.

10

89

U.S.A.

5

43

Belgium

18

81

Belgium

8

36

9

69

Spain

4

29

Japan

China

Spain

3

47

Top 10 Country Total

362

2.058

Others

121

589

Total

483

2.646

Japan

Top 10 Country Total Others Total

5

21

178

974

65

310

243

1.284

6RXUFH78ú.

1.3. EXPORT OF PLASTICS PRODUCTS: 21,16 million tons in 2011, export of plastics products was 656 million tons in the first 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 first 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 finished 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 first 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 first 6 months of 2012. This shows that exporters of plastics are head towards different markets. For the last two years, Iraq, Germany, and Russia have made up the top 3 countries of Turkey’s plastics export.

92


FROM THE INDUSTRY

PLASFEDDERGİ

Top 10 Countries of Turkey’s plastics Products Exports 2011 COUNTRIES

2012 (6 Months)

x 1000 Tons

x Million USD

COUNTRIES

x 1000 Tons

x Million USD

179

415

Iraq

113

250

Germany

64

233

Germany

32

111

Russia

56

202

Russia

32

108

Iran

62

193

Azerbaijan

36

94

France

42

167

England

27

88

Romania

58

167

France

24

87

England

49

165

Iran

24

86

Azerbaijan

56

165

Romania

24

68

Georgia

48

130

Georgia

25

63

Bulgaria

28

95

Libya

21

55

Top 10 Countries

643

1.931

Top 10 Countries

357

1.011

Rest of the world

551

1.756

Rest of the world

300

931

1.158

3.485

Total

656

1.942

Iraq

Total 6RXUFH78ú.

In the first 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 first 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.

Total and Per Capita Consumption of Plastic Products 6.000 5.000 4.000 3.000 2.000 1.000 0 Consumption (x1000 Tons) Consumption Per Capita

2007

2008

2009

2010

2011

2012 / T

4.069

3.668

3.657

4.322

4.815

5.066

57,6

51,3

50,4

58,6

64,5

66,9

80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0

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.

93


PLASFEDDERGİ

FROM THE INDUSTRY

1.5. SUPPLY AND DEMAND EQUILIBRIUM IN PLASTICS PRODUCTS AND EXPECTATIONS FOR 2012: Predictions based on the data of first 6 months of 2012 show that plastics products production will increase by 9 % in tonnage and 5 % in value 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

x 1000 TONS Production Import Export Domestic Consumption Use in Indirect Export Direct Distribution to Consumers Foreign Trade Surplus Export / Production ( % ) Import / Domestic Consumption ( % ) Export / Import ( % )

2011 6.709 483 1.158 6.034 1.273 4.761 675 17 8 240

2012 T 7.336 487 1.313 6.510 1.400 5.110 826 18 7 270

MILLION USD % Increase 8,5 0,7 13,3 6,9 7,6 7,3 22,3

2011 28.459 2.646 3.485 27.620

839 12 10 132

2012 T 31.064 2.406 3.535 29.935

% Increase 5,3 -3,0 11,4 3,7

1.129 11 8 147

56,9

2. PLASTICS RAW MATERIAL:

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 first 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.

2.1. PRODUCTION OF PLASTICS RAW MATERIALS: In the first 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 first 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 first 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 imports may increase by 10 % in value compared to 2011.

94


FROM THE INDUSTRY

PLASFEDDERGİ

In the first 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 first 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 first 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 first 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 first 6 months of 2012. As it was the case in 2011, the first 3 place in total plastics raw material import was Saudi Arabia, Germany, and Belgium in the first 6 months of 2012. These 3 countries have a share of 32 % in our total plastics raw material import.

Top 10 Countries of Turkey’s plastics Raw Material Imports

2011

2012 (6 Months)

COUNTRIES

x1000 Tons

x Million USD

COUNTRIES

x1000 Tons

x Million USD

Saudi Arabia

845

1.398

Saudi Arabia

512

796

Germany

387

1.041

Germany

180

463

Belgium

350

728

Belgium

179

360

Netherlands

217

492

South Korea

130

269

South Korea

214

490

Iran

165

260

Iran

241

474

Netherlands

112

250

France

199

464

Italy

107

240

Spain

270

450

Spain

120

226

Italy

221

417

France

126

222

U.S.A.

235

380

140

204

TOP 10 COUNTRIES

3.179

6.335

TOP 10 COUNTRIES

1.772

3.290

REST OF THE WORLD

2.039

3.597

REST OF THE WORLD

1.094

1.834

TOTAL

5.218

9.932

TOTAL

2.866

5.124

U.S.A.

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 first 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 first 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 first 6 months of 2012, share of the top 10 countries increased to 58 % in amount and value. In the first 6 months of 2012, Germany, Italy, and Russian Fed. took the first 3 places in Turkish plastics raw material export.

95


PLASFEDDERGİ

FROM THE INDUSTRY

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

2011 COUNTRIES

2012 (6 Months)

x1000 Tons

x Million USD

COUNTRIES

x1000 Tons

x Million USD

Germany

34

88

Germany

20

50

Russia

28

72

Italy

24

41

Italy

36

65

Russia

13

34

Greece

34

45

Iran

16

34

Egypt

33

42

Greece

25

31

Ukraine

17

40

Egypt

24

29

Bulgaria

26

39

Bulgaria

19

23

Azerbaijan

22

38

Azerbaijan

11

19

Iran

12

32

Romania

10

17

Israel

18

28

Belgium

10

15

TOP 10 COUNTRIES

260

489

TOP 10 COUNTRIES

172

293

REST OF THE WORLD

232

405

REST OF THE WORLD

125

211

TOTAL

492

894

TOTAL

297

504

Plastics raw materials average import unit price is observed to be $1788 / Ton in the first 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 first 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 first 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 first 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 deficit 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.

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

2011

2012 (6 Months)

2012 (T)

% Increase (2012 / 2011)

870

435

870

0

Import

5.218

2.866

5.732

10

Export

492

297

595

21

5.596

3.004

6.008

7

-4.726

-2.569

-5.138

9

Export / Production ( % )

57

68

68

Import / Domestic Consumption ( % )

93

95

95

9

10

10

Production

Domestic Product Foreign Trade Deficit/ Surplus

Export / Import ( % )

96


FROM THE INDUSTRY

PLASFEDDERGİ

3. PLASTICS PROCESSING MACHINES: Countries manufacturing cheaper plastics processing machines which make the plastics industry foreign-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 decrease 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 increase by 5 percent.

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 effects 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.

Production of Plastic and Rubber Processing Machinery 350 296

300

274 243

Million USD

250 200 164

150 100 50 0

180

179

167

141

137

83 53

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012/6

2012/T

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.

Production of Plastics Processing Machines (Million $

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

97


FROM THE INDUSTRY

PLASFEDDERGİ

In the first 6 months of 2012, injection machines had a 7 % share, extrusion machines had a 15 % share, cutting-splitting and forming machines 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 reached 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 effects of global crisis. Import of plastics processing machines has reached its peak level in 2011.

Imports of Plastic Processing Machineries 800 692

700

627

Million USD

600 500 408

400 300

459

421

486

507 452 314

312 257

200 100 0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012/6

2012/T

First 6 months’ data of 2012 shows that by the end of the year, there will be a significant 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.

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

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

847730

Blasting Machines

20,4

5,1

10,3

-49,7

847740

Machine for Molding of Outer Tire

27,2

10,7

21,5

-21,0

847751

Back coating and forming machine

31,9

15,6

31,2

-2,4

847759

Presses

34,4

11,4

22,8

-33,6

847780

Cutting, splitting, and forming machines

192,3

94,7

189,4

-1,5

847790

Accessories and parts

43,3

20,6

41,2

-4,8

Total

691,6

313,6

627,2

-9,3

Source: TUİK

In the first 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 first 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 first 3 countries of plastics processing machineries imports. China, which was in the second place in total imports in 2011 took the first place in the first 6 months of 2012.

98


FROM THE INDUSTRY

PLASFEDDERGİ

Plastik İşleme Makineleri ve Aksam ve Parçaları İthalatı (Milyon $) 2011 COUNTRIES

Million $

2012 / 6 Months 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

South tKorea

Canadat

15

32

TOP 10 COUNTRIES

624

9.801

REST OF THE WORLD

67

771

TOTAL

692

10.572

TOP 10 COUNTRIES

5

113

286

2.736

REST OF THE WORLD

28

237

TOTAL

314

2.973

Source : TUİK

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 effects 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.

Production of Plastics and Rubber Processing Machinery 120,0 107,4

102,6

100,0 Million USD

94,6

80,0 65,5

60,0

0

72,3

64,9

56,9

40,0 20,0

71,6

53,7

32,9 21,6

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012/6

2012/T

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

GTİP NO 847710

2011 Injection Machines

2012 / 6

2012 / T

% Increase (T)

2012/2011

9,6

5,1

10,2

6,8

847720

Extrusion Machines

2,8

10,2

20,5

633,2

847730

Blasting Machines

27,1

1,0

2,0

-92,5

847740

Machine for Molding of Outer Tire

11,6

4,2

8,5

-26,8

847751

Back coating and forming machine

7,1

0,3

0,6

-91,0

847759

Presses

5,7

1,4

2,9

-49,8

847780

Cutting, splitting, and forming machines

8,0

24,3

48,7

507,2

847790

Accessories and parts

30,6

7,0

14,0

-54,3

Total

102,6

53,7

107,4

4,7

99


FROM THE INDUSTRY

PLASFEDDERGİ

In the first 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 first 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 first 3 places in exports

Top 10 Countries of Our Plastics Processing Machine Export 2011 COUNTRIES

2012 / 6 Months

Million $

x pcs

Million $

x pcs

Iran

17,2

507

Russia

COUNTRIES

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

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 first 6 months of 2012 from 13,25 dollars / kg in 2011. In this period, average import prices declined by 9 %.

Import Unit Prices of Plastics Processing Machines ( $ / Kg ) GTİP NO

2011

2012 / 6

% Increase (T)

2012/2011

847710

Injection Machines

6,97

5,99

847720

Extrusion Machines

22,15

21,07

-14,0 -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

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 first 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 imported 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 deficit in foreign trade of plastics processing machines. In 2011, foreign trade deficit peaked with 589 USD million. Foreign trade deficit is expected to decline to 520 USD million with a 12% decrease. In 2012, foreign trade deficit is expected to decline significantly 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 deficit of plastics processing machines. 100


FROM THE INDUSTRY

PLASFEDDERGİ

3.6 DOMESTIC SALES OF PLASTICS PROCESSING MACHINES ( MACHINERY AND EQUIPMENT INVESTMENTS 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 equipment is expected to decline to 794 USD million with a 10,3 % decrease in 2012.

Domestic Sales of Plastics and Rubber Processing Machinery 900 800 700 Million USD

600 500 400 300 200 100 0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012/6

2012/T

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

Domestic Sales Of Plastics Processing Machines (Million $ GTİP NO

2011

2012 / 6

% Increase (T)

2012/2011

847710

Injection Machines

212,9

188,8

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

-11,3

Accessories and parts

135,1

83,1

-38,5

Total

885,2

793,8

-10,3

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 first 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.

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

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.

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FROM THE INDUSTRY

4. CONCLUSION: Our country has the highest plastics processing capacity in Eurasia territory and exports the highest amount of PLASTİCS products. 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 first 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 materials, domestic appliances, automotive, and agriculture, which reaches the extent that technical labor force is transferred from Turkey while new investments are being made in surrounding countries. However, fluctuations in raw material prices and extreme value of Turkish Lira have affected the profitability 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 processing 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 profitability 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 technology. Turkey is a country which meets 70% to 80 % of its demand of plastics processing machines, accessories and parts through imports as a net importer in these products, and cannot provide sufficient added value with very low export price figures even though unit export prices have exceeded import prices in 2012. While the plastics sector grows rapidly, production 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 government strategy for plastics processing machines industry, lack of protection for domestic manufacturers, and domestic manufacturer’s preference of cheaper and second-hand machine import 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 government policy is the duty of non-governmental organizations that manufacturers of plastics processing machines are affiliated with. Strategic targets that may be adopted by plastics processing machines, accessories and parts industry can be summed up as follows: Using cheap and qualified labor and experience in advantage of machinery manufacture, Turkey can establish the incentive infrastructure 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 manufacturing and export base for at least certain models of plastics processing machines through an incentive infrastructure implemented this way. If this is achieved, other models of machines 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 relationship 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 investing 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 provide added value requires large-scale R&D expenditures. Due to the insufficiency of their financial power, it is difficult 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, introduction of Turkish plastics processing industry 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 accessories and parts of desired level of quality, in-

102

stead of main machines, in Turkey, could be the a second strategy that can be followed. In accordance with the Article 84, machinery 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 export 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 five exporters of machinery 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 export 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 Republic, 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 (European plastics and Rubber Machinery), which PAGDER is a member of, in Europe, 992 com-

panies operating in PLASTİCS and rubber processing 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 Germany 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 manufacturers 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


FROM THE INDUSTRY

%, 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 industry has no chance of competition, and transform this factor into industry’s force by combining with a concept of flexible production. With technological advantage and stable industrial culture compared to neighboring countries, Turkey’s plastics processing machinery 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 supported 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 Organized Industrial Zones to benefit from extra discounts before the end of the term defined 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 incentive law, will open up new horizons for our plastics processing machinery sector. Combining our outstanding traits of flexibility and entrepreneurship 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 opportunities that the new incentive law provides to well-known foreign manufacturers of machinery with globally-accepted quality should be communicated well by relevant manufacturers, 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 Ministry 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 benefit of the entire sector and trying to be fair. It has been tried to create new opportunities for the manufacturers 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 sector made an investment of 886 USD million in 2011, and 194 millions of this investment was from the domestic manufacturer, and 692-million-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 sufficient level. Trying to do its part of second-hand machines in the best way, PAGDER helps the sector members with the machines imported from Far East before Protection Office of the General Directorate of Import, and puts its staff in the service of sector members at the point of information and coordination. As well as the information meetings held recently on this subject,

applications of “implementation of supervision” 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 consecutive years. In order to facilitate this aggressive growth, the sector has to gain confidence of Turkish plastics sector, which keeps growing and has taken the third place in processing capacity in Europe. If manufacturers of plastics processing machines manage to gain this momentum, it will not have much difficulty 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 machin103

PLASFEDDERGİ

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 countries 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 measures implemented in domestic market and escalating financial 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 significant market share to first 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 technological innovations and find instruments to finance the customer. They are in a more competitive status in production of auxiliary equipment, accessories, 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 engineering 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 efficient assembly lines that consume lower energy and depend less on human force. Considering the presence of companies 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 technology, it is impossible for them to sell their goods in global markets without a strong financial support. In order for Turkish domestic machinery manufacturers to keep growing, they should be supported with special financial instruments.


PLASFEDDERGİ

BREAKING NEWS

PLASFED Greets Thee We are currently feeling proud of ourselves for bringing in a new publication to the sector as PLASFED. Our journal, initially, aims to increase the communication within the sector. The information exchange and sharing of the problems amongst Selçuk Aksoy both the members of PLASFED (Plastic Indusfounding associations trialists Federation) Chairman of Board of Directors and other members of the sector and the opportunity for our colleagues to have more knowledge 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 five associations to prosper 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 first 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 indispensable 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 aforementioned contributions to mankind of plastic materials in every platform they attend to.

Message from PLASFED Member Associations Plastic industrialists deserve a sector assembly We are jointly working for the development of our sector which has the 3. biggest production capacity within Europe with its investments, exports and high-powered structure. We must be ready to take new steps, leap forward in order to strengthen and develop Hüseyin SEMERCİ President of Plastic In- this union even more. The dustrialist Association establishment of PLAS(PAGDER) FED (Plastic Industrialists Federation) has been the first fruitful outcome of this roborant collocation. Now, we have initiated 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 officially made the first request for the establishment of

“TOBB Plastic Sector Assembly”. I believe wholeheartedly that we will overcome the difficulties with the power of entrepreneurship as plastic industrialists throughout Turkey.

Cooperation/Coalition for our Sector We have begun our exercises to quickly institutionalize beginning from the date 11 January 2011 on which we were established as Ankara Plastic Industrialists Association up to today. Within this scope, we provide showroom Necmi ATALAY service for plastic inPresident of Ankara Plastic Industrialists Associa- dustrialists that opertion ate within Ankara. Our preparations for a guide and catalogue which will contain our product and companies have now reached its final stage. Also, our aggregation operations are in their final 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 efforts 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 important deficiencies 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 effort to it.

Contribution to National Economy We can categorize the plastic sector manufacturers in Bursa as heading, injection, package, automotive part manufacturers. According to Bursa Chamber of Commerce and Industry, the number of package manufacturers is 34 and around 1500 individuals İlker BİLİKTÜ President of Bursa are employed and also Plastic and Packaging their export is about 1 Industrialists Associapercent of the average tion 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 exportation 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.

104

Global crisis intensified the competition Our sector is currently taking the steps to be more powerful with PLASFED (Plastic Industrialists Federation), a federation that tries to make the voice of our sector heard in the best manner there is in the national and international arena. In order Erol PAKSU President of Aegean Plas- to meet the need of an tic Industrialists Solidarity international fair in İzmir Association where many company with different scales are operative and an important facility such as Petkim is situated, we arranged 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 first fair. Our sector, currently, is within an intense 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 sector is the 9th biggest plastic sector in Turkey with its approximately two hundred companies and around four thousand employees. While the need for plastic materials is on the increase, if we do not respond to the unrighteous attacks Yusuf ÖZKAN President of Kayseri made to our products Plastic Managers As- and do not express our sociation 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 preserve the competitive environment. As an association, we arranged acquaintance meetings and gained acceptance. We successfully responded to the unjust campaigns against plastic products. Furthermore, we will strengthen our cooperations with PLASFED (Plastic Industrialists Federation) which is the umbrella organization for the profound representation of our sector.

BOARD/NEWS FROM THE SECTOR PLASFED Monitoring Report: Foreign Trade Surplus continuous for Plastic construction materials and packaging According to the results of PLASFED 2012 first half monitoring report, Turkey passed in foreign trade surplus in the first six months for plastic construction materials and plastic packaging products. It is envisaged that the foreign trade surplus will continue to the end of the year.


BREAKING NEWS

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 billion dollars. A c c o rd i n g to the estimations made within the PLASFED Plastic Construction 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 billion 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 Monitoring 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 first 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 figures 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 accruals in the first 6 months of 2012.

Murat Akyüz: The chemical industry took the first place in Turkish export in September with 1.6 billion Dollars The chemical industry 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 exporter by keeping itself President of the İKMİB in front of the automotive (Association of İstanbul industry, “the leader of Chemical Substances and export”, despite the long Product Exporters) official 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 brilliant 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 activities. In his remarks he declared, “Plastic is one of the most exported materials of the chemical industry which means that plastic products have a significant share in export of chemical materials. Plastics and plastic products had the second place among the most exported materials between January and September with a value of 3 billion 900 million Dollars. Rubber and rubber product export worth nearly 1 billion Dollars. Relevant export figures 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 industry keeps growing while our European competitors 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 University Students: Jobs on your front door On the other hand, plastic and rubber industrialists from Ankara participated to a promotional activity towards the students who continue their university education. A meeting was held to with the participation of President of APSD Ankara Plastic Industrialists Association 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 meeting, 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 first 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 develop in line with the needs of the sector”. It was reminded that the sector companies began to make job offers to qualified students during the meeting where the qualified 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 before global institutions are intensified. PLASFED became a member of Council of International Plastics Association Directors (CIPAD) within its first of establishment and PAGDER, on the other hand, became a member of European Plastics Converters (EUPC). CIPAD, which is a platform to which Direc-

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PLASFEDDERGİ

tors of World Plastic Industrialists Association which provides cooperation for information exchange and common matters of global plastic sector, gathers twice a year and discusses the problems of the sector, coordination and conducts information sharing. The council has 64 plastics non-governmental organizations members from 49 countries which are active in all regions of the world.

BURPAS’s president, İlker Biliktü, recommended to use plastic banknotes President of the Bursa Plastics and Packing Material Manufacturers Association (BURPAS), 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 together with the members of the BURPAS’ board of directors underlined that negative policies imposed on the industry did not make sense. Biliktü, reminding that level of plastic material 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, “Other central banks in the world start to utilize plastic banknotes . Turkey is still debating on benefits and harms of plastic bags while Canada and Australia are minting plastic banknotes . The advantage 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. Having a six-year useful life, these banknotes are recyclable.” Biliktü, declaring that there was no study toward minting plastic banknotes in Turkey, 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 stakeholders The EGEPLASTER, uniting plastics manufacturers in the Aegean Region, is developing cooperation models to involve organizations within the region to improve the sector. In this sense, it has been announced that relevant studies to establish “the Aegean Plastics Exporters’ Association” in partnership of the Aegean Exporters’ Association and PETKİM. The association declared its aim: to enhance foreign trade efficiency.

Investment in the Menemen Specialized Plastics Organized Industrial Zone to start Investment phase of the Menemen Plastics OIZ project executed with the support by the Aegean Region Chamber of Industry and the EGEPLASDER will start soon. Regarding the project which will provide plastic manufacturers with an investment and production environment with a


BREAKING NEWS

PLASFEDDERGİ

complete structuring, production and transportation infrastructure, relevant investments will be commenced at the end of 2012-beginning of 2013. It has been said that there were 45 building 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 development phase.

KAYPİDER A first in the Sector: Introducing the sector to the youth KAYPİDER blazed a trail in the plastic sector with the project that it has put into practice. With the participation of Kayseri Directorate of National Education and Kayseri and İstanbul theater 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-

for plastics of Turkey benefits the manufacturers with its close distance to the airports, ports and transportation network located in İstanbul and Marmara Region. The plants within the borders of the Zone which will benefit from the new Incentive Decree issued recently as it has structured 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 buildings within the scope of investment. The buildings and plants in the said zone will also be exempt from the building construction charge and the fee relating to the certificate of occupancy. Hüseyin Semerci, the chairman of the PAGDER’s board of directors said, regarding the project, that the OIZ would host about 100110 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.” Construction of PAOSB with its initial area of 60 hectares and 120 hectares of expansion area will commence in 2013.

İTO ends ‘fume hood’ trouble of plastic industrialist

tion and theatre play will be supplied to students which will correct the wrong information regarding the place of plastic within our lives and plastics 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 plastics 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 Industrial Zone investment to be accelerated The study commenced by the Plastics Industr Industry Association (PAGD (PAGDER) to provide the plastic plastics industry with İhtisas lastik si ÖzelrgP. San. Bölge an adequate infraO struc structure to enable it to ccarry out its activities and operations * esteği ha has been acceleratşvik D Te m rı Yatı ed ed. The PAGDER & A ASLAN OIZ with its in investment cost of about 6 600 million TL to be established in the Organized Industrial Zone for Plastics located in Vize, Kırklareli aims at being a model for structuring of the plastics industry. ’nin İlk

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

İstanbul Chamber of Commerce (İTO) Plastics and Rubber Profession Committee succeeded in its study to eliminate the obligation of using fume hood of plastic industrialists of İstanbul. The application of the committee for the elimination of this implementation made to the Ministry of Environment and Urbanization was approved. Thus, the obligation to use fume hood for extrusion and injection units of plastic industrialists which was initiated by İstanbul Provincial Environmental Directorate approximately 2.5 years ago is taken out of the picture.

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

oils which are used by the sector as input create difficulties.

Chemistry Sector Strategy Paper 2012-2016: Raw Material investments 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 being published in the Official Gazette. Its vision has been designated as “The transformation of Turkey as an investment base by producing products with high value-added” and its general 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 organizations supported by PAGDER, Turkish plastics sector is preparing for an intensive fair traffic in 2013 with national participation and delegations supported by KOSGEB. Germany K fair and Brazil fair stands out among these organizations 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 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 fo re i g n depend e n t importation for synthetic rubber and total sector raw material importation 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 administrative arrangements regarding the mineral 106

Agenda of Turkish plastics sector, which intends for export and investment has changed With the effect of global crisis, Turkey is expected 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 investment, consumption and export reflected on official 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 official data, with the effects 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 investment would be needed, Turkish plastics sector, the third most prominent manufacturer of its region with a volume of 30 billion dollars, is ex-


BREAKING NEWS

posed to a tax problem that will bring a 300-million-dollar additional burden. According to the Cabinet Decree published in Official Gazette on September 6, 2012, the 3

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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 Dollars on Turkish plastics sector was received with astonishment. Sectors of packaging, automotive, domestic appliances, textile, electronics, and agriculture are expected to be affected adversely by the decree which gives rise to an additional cost sufficient to allow establishment of a midsize petrochemical facility as they constitute the majority of plastics-related and plastics-derived manufacturing industry.

Raw material makes up the majority of the cost in plastics sector The fact that plastic products are manufactured in various standards and kinds prevents a detailed cost analysis but the research conducted in relation to the analyses of larger corporations 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 effect on costs. Sector’s dependence on outside for a product without a domestic substitute increases its sensitivity. Let alone the sudden changes in taxes and other items, international price fluctuations and of petrol and domestic fluctuations of exchange rate makes a difference in this respect.

The decree should be revoked in short term and investment 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 decided in discussions in which revocation of the decision is requested. The Ministry of Economy has made no justification 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 specialists who point out differences and difficulties 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 reflection 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 investments 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 strongest sector of Turkey within the world markets surpassed its one year milestone which began with the motto “As one and even stronger”. Plastic 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 regulations such as public incentives towards investments 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 something back to community” Muammer Yüceler, the leader of non-governmental organizations which played a significant role in the development of the plastics sector stated, “I am astonished by today’s dynamism of the sector. I could not even regard that we could carry out exportation 30-40 years ago as possible”. 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.

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SUCCESS STORY / Behruz Vatandost A story of innovation and courage: Behruz Vatandost Today’s fashionable terms “innovation” and “efficiency” have been two of main principles for Vatan Plastik since its establishment. Business life of Behruz Vatandost, who has stood out with his achievements since 1957, could be a lesson for young entrepreneurs. Effort of every entrepreneur to establish his business and the result he reaches is naturally a success story. However, 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 manufacturers 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, investment 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 attention with the importance it puts on R&D. Mehmet Aydın answered our questions regarding his professional life that began in the 1980s and reflects both his successes and failures. Turkey transcended to open economy system In the 80s and entrepreneurship, industrialism gained a new dimension with the aforementioned transition. Mehmet Aydın, who participated in the business world as an entrepreneur during this period, is honored to have executed one of the most profound enterprises of Turkey. On top of it, he also did not lose his faith in innovation and investment.


PLAS T İ K S AN AY İ Cİ LERİ F ED ERAS Y ON U D ERG İ S İ

ARALIK 2012 - ŞUBAT 2013 / 1. SAYI

Plastik sektörünün Türkiye'nin gelişmesine katkısı artıyor

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ARALIK 2012 - ŞUBAT 2013 / 1. SAYI

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PLASTİK SANAYİİNE “BÜYÜME” CEZASI

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