Chemical Industry Company Turkey
Sub Categories Turkish Chemical Industry |
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Chemicals Industry Turkey
The chemicals industry is the essential partner for other industries such as automotive, construction, energy, pharmaceuticals, health & nutrition, communications, agriculture, and consumer goods. The chemical industry helps to develop products for today’s resource-conscious environment.
There are five main sectors clustered in the chemicals industry: home and personal care, paints and coatings, fertilizer and pesticides, plastics and rubber and inorganic chemicals.
Turkey’s main value propositions for all these sub-sectors are the sustainability of growth in customer industries and a much more favorable business environment offered to foreign companies compared to other large investment destinations. Among others, the following factors make Turkey a more attractive investment destination for the chemicals sector:
Carbon regulations may increase feedstock cost of European players by 7 percent. Emission requirements in Turkey are expected to be less restrictive.
The advanced transportation infrastructure and network provides manufacturers with flexibility, convenience and further cost competences.
The paints and coatings, plastics and rubber and inorganic chemicals sectors are significant suppliers to the construction, automotive and textile industries, which are already growing sectors in Turkey and the region, while demand for these industries is expected to grow by 4 percent and 5 percent respectively by 2018.
Turkey’s plastics sector is the 3rd largest in Europe after Germany and Italy, producing USD
30 billion/7.2 million tons of plastics per year. Turkey aims to be the top producer in the European plastic sector in 2016.
Home and personal care giants have been active in Turkey for decades thanks to the rising middle-class and a population of 76 million.
Turkey’s demand for fertilizer is the 10th highest in the world.
Turkey is the 6th largest paint producer in Europe.
Turkey is one of the biggest European consumers of several textile and construction chemicals such as acrylic fiber (60 percent of EU demand), PES-fiber (29 percent) and PVC (14 percent)
Being the 16th largest global automotive manufacturer and having 20 GW of untapped wind power potential, Turkey is well-positioned to become a manufacturing hub in light-weight composite materials.
Recent trends of textile production shifting back to Europe, the Middle East and Africa may provide new opportunities for textile chemicals manufacturers in Turkey.
USD 2.7 billion worth of greenfield projects and USD 3.4 billion worth of M&A deals were signed during the last five years in Turkey.
Located close to large and growing trade markets, Turkey has significant export potential. Turkey’s export volume in the chemicals industry reached USD 17.5 billion in 2013, with Egypt, Iraq and Germany being the major chemical export markets.
Turkey’s goal for 2023 with regard to chemicals exports is USD 50 billion. The sector aims to account for a 9.17 percent share in Turkey’s total exports. Quantitative targets for 2023 as regards exports in some of the sub-sectors of the industry include the following:
Organic and inorganic chemicals: USD 5.9 billion
Paints and raw materials: USD 2.5 billion
Soaps, detergents, cosmetics: USD 3.3 billion
Plastics and rubber products: USD 23.3 billion
