Ömer Karadeniz: “Our Oil is Our Industry and Our Production”
Emphasizing that petrochemical investments must be accelerated, access to finance must be facilitated, and production must be supported in order for Turkey to increase its competitive power in industry, PLASFED President Ömer Karadeniz pointed out that high costs and exchange rate pressures are challenging exporters, stating, “Our oil is our industry and our production.”
Being a guest on the program "Yönetim Katı" hosted by Zeliha Saraç on EKOTÜRK, PLASFED Chairman of the Board Ömer Karadeniz stated that petrochemical investments must be accelerated, access to finance must be facilitated, and production must be supported in order to increase the competitive power of Turkish industry. Karadeniz said, "We do not have oil. Our oil is our production, our industry."
Evaluating the effects of the war in the Middle East on petrochemical products and plastic raw materials, Karadeniz pointed out that Turkey is foreign-dependent for many plastic raw materials. Stating that plastics play a critical role in many sectors ranging from automotive to the defense industry, Karadeniz expressed that the current production capacity remains insufficient to meet the needs.
30 months of contraction signals in industry
Stating that the current outlook in industry is closely related to access to finance and cost pressures, Karadeniz said that the Istanbul Chamber of Industry Turkey Manufacturing PMI data reveals the difficulties in the sector. Pointing out that the index has remained below the threshold value of 50 for 30 months, Karadeniz expressed that high financing costs cause industrialists to postpone their investment decisions.
Stating that the profit margins of industrialists have narrowed and many investment projects have been put on hold, Karadeniz emphasized that production and value-added investments must be supported.
Exchange rate costs make competition difficult for exporters
Karadeniz stated that the increase in the exchange rate, which does not occur above inflation, raises the costs of exporters. Expressing that while production costs increase, foreign exchange revenues do not rise to the same extent, which weakens the price competitiveness of Turkish exporters in international markets, Karadeniz said this situation creates a disadvantage against competitor countries, especially in European markets.
Stating that industry must be kept in a priority position for Turkey's sustainable growth, Karadeniz called for increasing raw material production, facilitating access to finance, and implementing policies that support competitive power.
This content has been translated using artificial intelligence technology.