PLASFED published its 2013 Plastic Industry Monitoring Report.

PLASFED announced its 2013 plastics report: Turkey ranks second in Europe and seventh in the world in plastic production!

While growth continues, structural problems make themselves felt

• The Plastics Industrialists Federation (PLASFED) published the Turkey Plastics Sector Report 2013. In products, which constitute the majority of the Turkish plastics sector, which rose to the position of Europe's second largest after Germany by increasing plastic production to 8.1 million tons, a 17 percent increase in production value was reached in 2013, totaling 34.3 billion dollars.
   
• Evaluating the report, which also included Turkey and world plastics sector data, production, foreign trade data, economic developments, and assessments of economic developments-risks that could affect the plastics sector, PLASFED Chairman of the Board Selçuk Aksoy said, “We continue to grow. However, difficult days await our sector, which carries out significant foreign trade operations primarily due to exchange rate risk and structural reasons. We are aware of both short-term risks arising from new developments and long-term risks due to structural problems. We need to undertake new studies with decision-makers for our sector.”

The Plastics Industrialists Federation (PLASFED), which produces the most comprehensive and regular data for the plastics sector, published the Turkey Plastics Sector Report 2013. The report, which includes data and analyses on product and raw material production, foreign trade, and unit prices, also features data on the Turkish and global plastics sectors, as well as developments in the domestic and global economy for 2014, potential risks, and assessments of economic developments and risks that could affect the plastics sector.

A new title for Turkey from plastic industrialists: Europe's second largest plastic producer country

With the evaluation of 2013 data, it was confirmed that Turkey rose to the position of Europe's second largest plastic producer country with 8.1 million tons of production. PLASFED had previously announced its forecast to the public that Turkey would rise to second place with its 9-month data for 2013.

Turkey, which is the world's 7th largest plastic producer country with a 2.8 percent share in terms of production volume, on the other hand, also took a 2 percent share of world foreign trade with a foreign trade volume of 19.5 billion dollars. Its share in world plastic product exports realized at 1 percent. In contrast, its share in raw material imports realized at 3.4 percent. In plastic products, exports reached 4 billion 583 million dollars by the end of 2013, with a 13 percent increase compared to the previous year. Almost all domestic demand for plastic products was met; a foreign trade surplus of 1 billion 680 million dollars was achieved. Total exports of plastic products and raw materials reached 5.6 billion TL. In contrast, the sector necessarily imported 10.9 billion dollars worth of raw materials due to insufficient production in Turkey.

Developments in plastic products in 2013!

In plastic products, which constitute almost the entire plastics sector in Turkey, production in terms of quantity increased by 14 percent compared to the previous year, reaching 8.1 million tons. The value of this production was measured as 34 billion 364 million dollars. The sector met 91 percent of the total domestic demand for plastic products and exported 13 percent of its production. The sector's exports increased by 13 percent compared to the previous year, reaching 4 billion 583 million Dollars, imports were 2 billion 902 million dollars, and the foreign trade surplus was 1 billion 680 million dollars. Turkish plastic product manufacturers maintained their characteristic of being one of the few sectors with a foreign trade surplus in 2013.

Per capita plastic product consumption reached 74 kg!

The increase in per capita plastic product consumption, which is directly related to economic development, also continued. Domestic consumption of plastic products reached 7.1 million tons in quantity and 32 billion 684 million dollars in value. Per capita consumption fell from 58 kg in 2007 to 50 kg by the end of 2009 due to the crisis; however, with a steady and rapid increase from the end of that year, it reached 74 kg by the end of 2013. The PLASFED report also stated that per capita consumption is still at 60 percent of the level in developed Western countries.

Exporter Association leadership in the plastics sector!

According to IMMIB records, which include the plastics sector, plastics was once again the sector with the highest exports among the sectors included in this group in 2013. The plastics industry accounted for 30 percent of total exports within the total chemicals sector group.

Decline in investments!

The PLASFED report also drew attention to the decline in the sector's machinery and equipment investments. According to the report, the sector's machinery and equipment investments decreased by 7 percent compared to the previous year, falling to 732 million dollars.

We are aware of both praiseworthy achievements and risks!

Selçuk Aksoy, Chairman of the PLASFED Board of Directors, made an evaluation regarding the report, stating their satisfaction with the sector's growth but also their awareness of the risks: “Our plastics sector continues to grow. We are aware of this, but difficult days await our sector, which carries out significant foreign trade operations primarily due to exchange rate risk and structural reasons. We are aware of both short-term risks arising from new developments and long-term risks due to structural problems. We need to undertake new studies with decision-makers for our sector. Firstly, although the depreciation of the Turkish Lira might seem to provide an advantage for exports, it should not be forgotten that our sector necessarily imports very large quantities of raw materials because there is no production in Turkey. Additionally, a large portion of production is consumed in the domestic market. Therefore, the plastics sector carries a two-way exchange rate risk. Furthermore, structural problems such as the perception issue regarding plastics and foreign dependency on raw materials continue. The decline in machinery and equipment investments is also a point that needs attention. We have previously shown that we do not have a habit of despairing or constantly complaining. We need to rapidly carry out studies with decision-makers for our short-term problems and serious work for our long-term problems. As PLASFED, we have accumulated knowledge and suggestions. I once again extend my congratulations to our sector members for earning Turkey the title of 'Second in Europe'."

Some important headlines from the PLASFED Turkey Plastics Sector Report-2013:

• As of the end of 2013, the number of foreign-capital companies operating in the plastics sector reached 252. 69 percent of these companies consisted of companies established in European countries. The highest weight by country was Germany with 17.1 percent.
• The sector's inevitable dependence on raw material imports continued. The sector's imports increased by 8 percent in quantity, reaching 6 million 56 thousand tons, and by 11 percent in value, reaching 10 billion 979 million dollars.
• According to TOBB records, the number of plastics sector companies operating in Turkey exceeded 14 thousand. 99 percent of these companies are in the SME class. It is estimated that 250 thousand people are employed in the sector.
• The total added value of the sector realized as 14 billion dollars.
• Despite the high production of the Turkish plastics sector, it could not reach a sufficient level in converting total production into exports. Germany can export 27 billion dollars worth of plastic products with 15.3 million tons of production, and Italy can export 10 billion dollars worth of plastic products with 8 million tons of production. Belgium, France, and the Netherlands, despite producing well below Turkey, can export plastic products worth between 5 and 6.2 billion dollars.
• While the Turkish plastics sector directly exports 5.6 billion dollars worth of raw materials and plastic products, it also makes indirect exports of at least over 6 billion dollars through exporting sectors. The total direct and indirect export contribution of the plastics sector is over 11 billion dollars. A separate analysis is needed to produce definitive data in this area.
• In the Investment Incentive Decree, the plastics sector is supported only in the 6th Region for investments outside Organized Industrial Zones (OIZ). Investments are crucial due to the sector's tough global competition conditions. In terms of incentive applications for investments, the competitiveness of the plastics sector is eroding.

To download the 2013 Turkey Plastics Sector Monitoring Report, click here.

This content has been translated using artificial intelligence technology.