FROM RAW MATERIAL TO EXPORT: THE COMPETITIVE CHAIN OF TURKISH INDUSTRY
Turkey’s sustainability in production and export depends not only on production capacity, but also on raw material security, strong petrochemical investments, and an uninterrupted logistics infrastructure. In the new era where global competition is increasingly fierce, increasing domestic production capacity in strategic raw materials and strengthening supply chains are of critical importance for the future of Turkish industry.
Kemal DARCAN
Composite Industrialists Association (KSD)
Chairman of the Board
Although the production and export figures reached by Turkey in strategic sectors such as composites in recent years are considered a significant success, the most critical and often overlooked aspect of this success is that the sector is built largely on dependence on imported raw materials. Today, a significant portion of the basic raw materials used particularly in the composite industry is procured from abroad. This situation causes the sector to become extremely sensitive to global crises, geopolitical developments, and logistical disruptions.
In fact, one of the biggest strategic risks for the sector today is the issue of "raw material security." Many industrial enterprises producing in Turkey are in a position where they cannot sustain their production in the event of any disruption in the supply chain due to external dependence on raw materials. A possible import cut or long-term logistics crisis does not only mean a slowdown in exports; it also poses a risk that could lead to much larger economic consequences such as the inability to meet the needs of the domestic market, the shutdown of production lines, and the loss of employment for thousands of people. Therefore, at the forefront of proposed solutions should be the strong and sustainable development of the petrochemical sector in Turkey. In the current structure, Petkim is insufficient in terms of capacity to meet the rapidly growing needs of the sector. Due to the failure to implement the necessary large-scale investments for many years; many critical raw materials needed by the composite and advanced materials industries are currently met through imports.
In order for Turkey to strengthen its production independence, there is a need for a long-term and strategic investment vision in the field of petrochemicals. Increasing and supporting domestic production capacity, especially in strategic raw materials, and establishing high-capacity production infrastructures are of critical importance. It is necessary for Petkim to put forward a stronger roadmap regarding capacity increase and strategic raw material production within the framework of a new investment and transformation plan.
STRATEGIC OPPORTUNITY IN YUMURTALIK
The petrochemical investments recently brought to the agenda in the Yumurtalık region are positive and strategic developments for the sector. It is critical that such investments are planned in accordance with economies of scale. High-capacity production structures are required to achieve competitive production costs in the petrochemical sector. As capacity shrinks, production costs rise and global competitiveness weakens. Therefore, it is of great importance not only to make investments, but also to plan investments "with a capacity that can create global competition." Otherwise, the risk arises that domestic producers will need protection due to competitive pressure and the solution will be sought in import tariffs or customs protection walls. Although this approach seems to protect the domestic producer in the short term, in the long term it increases the costs of all domestic industrialists in the supply chain, reflects on final product prices, and increases inflationary pressure.
The second major area of vulnerability the sector faces after the raw material crisis is the "logistics and transportation infrastructure." The logistical problems recently experienced by industrial enterprises engaged in exports, in particular, have turned into a strategic risk area for Turkey's foreign trade competitiveness. Disruptions in global maritime transport lines, capacity reductions or route changes made by international transport companies in operations originating from Turkey cause Turkish exporters to experience serious disadvantages in terms of cost, time, and delivery reliability.
Today, being strong in global competition is possible not only by producing; but by managing your raw materials, controlling your logistics, and making supply security sustainable. It is of great importance for Turkey to form a strong industrial vision in the new era—one that does not only produce, but can also produce its strategic raw materials, manage its logistics infrastructure, and protect its industry against crises.
This content has been translated using artificial intelligence technology.