18.03.2024 - plastics news from Turkey

IKMIB to be a compass for those who want to invest in the chemical industry

IKMIB to be a compass for those who want to invest in the chemical industry
pn

As the world economy and global trade leave behind a difficult year in the shadow of the Covid-19 pandemic, the chemical industry completed 2020 with 18.3 billion dollars of exports and it performed Turkey’s second largest exports. The chemical industry, which continues to depend on imports at a rate of 70 percent in raw materials and intermediate products, imported 57.54 billion dollars in the January-November period of 2020. According to TURKSTAT data, total imports in the chemical industry in the January-November period of 2020 were 57.54 billion dollars, the ratio of exports to imports was 36.2 percent.

IKMIB, the umbrella platform of the sector, prepared the “Turkish Chemical Industry Investment Products Report” by signing a strategic study focusing on the raw materials and intermediate products most imported by the Turkish chemical industry in the light of all these data. Aiming for the chemical industry to gain a competitive advantage in international trade and analyzing that the foreign trade deficit in this field will be overcome with a new domestic production investment move, IKMIB has identified the most imported 157 product categories in the field of chemistry and 103 priority strategic product areas waiting for domestic production moves.

As 157 chemical product groups with an import value of over 50 million dollars in 2019 standing out in the Turkish Chemical Industry Investment Products Report, it is striking that the total export of these product groups in 2019 was 13.01 billion dollars, their total imports were 62.21 billion dollars and the foreign trade deficit was 49.2 billion dollars. In line with the evaluations made and the opinions received from the leading representatives of the sector, it is stated that priority should be given to 103 of these 157 product groups in investment, and it is pointed out that there are 53 product groups in the V list in the Import Regime.

İKMİB to Lead Investors in the Chemical Industry

The umbrella organization of chemistry industry, Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB) performed an important sectoral report that will curb imports in chemistry and play an active role in reducing the current account deficit. With the “Turkish Chemical Industry Investment Products Report”, IKMIB focused on the 157 product categories that were imported most in the field of chemistry and set 103 strategic product areas that await domestic production moves.

IKMIB, which offers a new investment projection that will significantly reduce the external dependency of 70 percent in raw materials and intermediate products in the chemical field, predicts that a total of 20.7 billion dollars of imports will be prevented by local production of priority products that will strengthen the Turkish chemical industry. The chemistry sector, which performs Turkey’s second highest export, aims to increase the export price per kilogram and reduce the current account deficit with high value-added products.

With the new strategic production investments to be made in this 103 product group, which brings a significant import burden in terms of both the sector and the current account deficit, it is aimed to prevent imports of 20.7 billion dollars in total.

When the general import figure for the sector in the first 11 months of 2020 is separated from the product group related to mineral oils and fuels, it is stated that the import is 31.37 billion dollars, while the ratio of exports to imports increased to 53 percent. Therefore, it is vital to prioritize new and rational investments that will support the closing of the current account deficit by reducing imports in the sector. Increasing incentives in the field of chemistry will also be a driving force for the development and growth of the industry.

Pelister: “With domestic production, we can add about $ 21 billion to the economy”

Stating that they have prepareda comprehensive sectoral report dealing with the most imported raw materials and intermediate products for production in the chemical sector and the effects of exports in this field on foreign trade and economy, Chairman of IKMIB, said, “Raw materials will also brake imports in our chemical industry, which is dependent on foreign trade by 70 percent, We prepared a critical report that will contribute to the reduction of the current account deficit, which is the common problem of our country, by providing an added value of approximately 21 billion dollars. In our Turkish Chemical Sector Investment Products report, we examined chemical products imported over 50 million dollars in 2019. We examined 157 product categories and identified 103 strategic product areas that await domestic production moves. P tires and products are 41 in our sector, 22 in our organic chemicals sector, 20 in our mineral fuels, mineral oils and products sector, 14 in our pharmaceutical products sector, 11 in our various chemicals sector, 10 in our paint, varnish, ink and preparations sector, in our essential oils, cosmetics and soap sector. We have reached a total of 157 product groups, 10 in our rubber and rubber goods sector, 7 in our fertilizers sector, 5 in our inorganic chemicals sector, 5 in our washing preparations sector, 3 in adhesives, glues, enzymes and 1 in our photography and cinema industry. Based on the evaluations made by our Association and the opinions received from our Board of Directors, sub-committee members and prominent representatives of our industry, 103 of these 157 product groups were evaluated as suitable and necessary for investment. In addition, 53 products in this group are included in the V numbered list in the import regime by meeting certain conditions. So a customs tax of “up to 0 percent” is applied to this type of product with little or no production in both Turkey and 28 EU members countries. We think that with the investments of our Turkish chemical industry and our sector in these products, we will increase our competitiveness in exports.”

Pelister: “We aim to raise the bar in exports with qualified and high value-added production”

Noting that according to the data of 2019, the import value of 103 product groups is 20 billion 715 million dollars, the export value is 3 billion 29 million dollars and has a foreign trade deficit of 17 billion 685 million dollars, Pelister said, “The 103 product groups we recommend to invest in constitute 28.47 percent of the imports of our chemical industry and it would also constitute 9.85 percent of Turkey’s overall imports. A significant portion of these priority products, which we have scrutinized in our report, appear as raw materials and intermediate products input of our industry. Polypropylene, dosed-packaged medicines and immune products, terephthalic acid, urea, polyethylene, pvc polyvinyl chloride, light oils and preparations to be subjected to special processing, blood products and the types of these products in the first 10 product groups among these 103 product groups There are raw materials and intermediate products with high import costs. Therefore, these products are exported chemical dependency ratio of the industry in the production will decrease substantially in Turkey. With the strategic investments to be made in priority products suitable for industrial investments, the export of our chemical industry and the export price per kilogram will increase even more. Thus, our industry will increase its share of world chemical exports with high value-added chemical products.”

Pelister: “Pandemic period, we gave priority to the needs of Turkey”

Evaluating the 2020 year of the chemical industry, Adil Pelister, Chairman of IKMIB, said, “The Turkish chemical industry, together with its 16 sub-sectors, is a locomotive sector that provides raw materials or semi-finished products to all production areas that direct the country’s industry. We experienced an unexpected change when the Covid-19 pandemic, which affected the whole world, was seen in our country as of March 2020. The Covid-19 pandemic negatively affected the entire economic chain from production to consumption. In the first months of the pandemic, restrictions were imposed on the export of some medical, cosmetic and chemical substances in order to meet the urgent needs in our country. As IKMIB, we have made an important contribution to the removal of these restrictions. In addition, with the onset of the coronavirus in our country, there was a shortage of ethyl alcohol in the production of these products due to the intense demand for cologne and disinfectant products. Again, as IKMIB, as a result of the negotiations and initiatives we conducted with the relevant state institutions, we ensured that this problem was resolved in a short time. Turkey Exporters Assembly (TIM) mobilization within the scope of the production, we have delivered 100 thousand liters of disinfectant TIM behalf of our hospitals and our Ministry of Health. As IKMIB, we provided disinfectant support to Capa Hospital, Cerrahpasa Hospital and Turkish Red Crescent. In addition, in order to reduce the risk of exposure of our healthcare workers to the virus and to meet the need for face protective health shields, we delivered 100 thousand health shields to our Ministry of Health, 3 thousand health shields to Gebze State Hospital and 10 thousand health shields to the Turkish Red Crescent in cooperation with the Turkish Plastic Industrialists’ Association (PAGDER).”

Pelister: “We broke grounds in chemistry with digital transformation”

Expressing that as IKMIB, they performed many firsts in the industry by leading the digital transformation, Pelister said, “We managed Turkey’s first virtual trade mission in the digital sector exports and the first digital award ceremony in exports. While there was a serious decline in exports in April, we ranked first as the sector with the highest export among all sectors. While the demand in some of our sub-sectors in our chemical industry decreased, there was an increase in demand in some of our sectors that contain products such as medical, pharmaceutical, disinfectant, cologne, soap. Our sub-sectors that produce products such as hygiene and cleaning, medical products, disposable plastics and packaging did not interrupt their production.

Therefore, this situation made our industry less affected. We got hopeful early summer. Cases were reduced. But with the autumn, the cases started to increase again. Despite all the challenging conditions, it has made our industry in 2020, 18.3 billion dollars with exports performing Turkey’s top export sector has managed to maintain its second position.

Compared to 2019, there was a loss of 11.32 percent in our exports. However, considering the contraction in the global economy and trade due to the pandemic, we normally meet this loss. According to the data of the first three quarters of 2020, while the chemical industry exports in the world decreased by 23.1 percent, the Turkish chemical industry exports decreased by only 4.6 percent.

The share of our industry in world exports increased and became 0.7 percent. Although our industry experienced a decrease in exports due to the decrease in global energy need in the field of petrochemicals, other sub-sectors, especially plastic, cosmetics, pharmaceuticals, medical and cleaning materials, recorded a relative increase. Plastics and its products were the sub-sector to which we export the most. Our sector with the highest increase was our various chemicals sector with an increased rate of 46.61 percent. The top ten countries to which we export the most were listed as Iraq, Germany, Netherlands, USA, Italy, England, Spain, Israel, Romania and Belgium. Despite the pandemic, our chemical exports to the USA increased by 12.73 percent, our exports to the UK and Belgium by over 20 percent, to Germany 5.50 percent, and to Israel and Romania by over 14 percent.”

“Our chemical industry export target for 2021 is 20,6 billion dollars”

Stating that they expect the economies to recover gradually with vaccination in 2021, Pelister said, “However, the pandemic remains uncertain. The struggle of other countries, especially EU countries, in terms of exports, will also affect the course of our exports. Here, it is necessary to increase market diversity in order to minimize the risk. Our chemical industry, on the other hand, comes first among 27 sectors with the most exports to countries and regions every month. In 2021, we will give priority to 17 target countries determined by our Ministry of Commerce, including the USA, China, Russia, India and Mexico. On the other hand, it is very important for both domestic and foreign investors to improve the investment environment with the reforms that our government will make in the fields of economy and law. We believe that new investments will increase in our chemical industry, which is also given priority in the Technology Focused Industry Move program. In addition, our Association’s efforts to establish a “Chemical Technology Center” (KTM) are continuing in order to support the R&D studies that our technology, capital and resource intensive sector needs to switch to a value-added production structure. We will start feasibility studies of KTM in the upcoming period, for which we have completed the needs analysis. We are planning to take the installation steps of the center at the end of the year. As IKMIB, in addition to the national participation organizations in 2021, virtual trade delegation and purchasing delegation activities and competitions, we have some important topics such as Chemical Industry Council, European Green Consensus project, Registration of chemicals within the framework of the Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (KKDIK Regulation) applied in our country within the scope of compliance with EU REACH, compliance with UK-REACH as a result of BREXIT and the project of the Turkish cosmetics industry to enter the Chinese e-commerce market. In this context, we will continue to work with all our efforts to exceed 20.6 billion dollars in exports.”

Source: Made In Turkey

 

Editor Note:

If you want detailed information or for contact to corporate write to us with news headline; contact@pnturkey.com or WhatsApp; api.whatsapp.com/send?phone=905544041381

Follow this link to join pnTurkey WhatsApp group: https://chat.whatsapp.com/2FxIhOrSXyl6Va17rr5skG

Reklam
SHARE ON SOCIAL MEDIA ACCOUNTS
VISITOR COMMENTS

There are no comments yet. You can do the first comment via the form below.

WRITE A COMMENT