Plastic processing machine production grew 9% in 2013

Turkey's plastic processing machinery, components and parts production grew by 9%, high foreign trade deficit continues!

PLASFED published the Turkey Plastic Processing Machinery Sector Monitoring Report. According to the report, the sector's production increased by 9% compared to the previous year, reaching 339 million dollars. Although there was a proportional decline in Turkey's plastic processing machinery sector, the weight of imports continued. Imports decreased by 12% compared to the previous year, falling to 527 million dollars.

PLASFED Chairman of the Board Selçuk Aksoy stated in his assessment that Turkey continues to grow in plastic products, and that they desire the machinery sector to develop at the same pace, and even for a large part of the sector's demand to be met by products of Turkish origin. Aksoy said, "We have developed several suggestions for this. It is necessary for foreign machinery manufacturers to produce in Turkey and to support domestic manufacturers to grow and develop new R&D-based products."

PLASFED, which produces the most comprehensive and regular data for the plastics sector, published its 2013 Turkey Plastic Processing Machinery Sector Monitoring Report. According to the report, the dominance of foreign-made machines in the sector continued. Although there was a relative increase in production and exports, there was no change in the problem of the high proportion of foreign-made products in the domestic market.

“We want to use machines produced in Turkey”

PLASFED President Selçuk Aksoy, in his evaluation of the report, reminded that a rapid increase in plastic product production has been observed in Turkey, and noted that investments in machinery and equipment that will enable efficient, new products are an important factor in maintaining competitiveness. Selçuk Aksoy emphasized the following: "The plastics sector naturally wants and desires to use machines produced in Turkey, of Turkish origin. We have developed several suggestions for this. It is necessary for foreign machinery manufacturers to produce in Turkey and to support domestic manufacturers to grow and develop new R&D-based products.”

Selçuk Aksoy stated that 70-80% of the demand for Turkey's plastic processing machinery and components is met by imported products, adding, "Currently, our machine manufacturers are under pressure from the import of cheap second-hand machines and also cheap Far Eastern machines. Generally, looking at our plastic machinery manufacturing sector, shrinkage continues. In our evaluations, we observed that the shares of our traditional export markets in the total world machine imports are very low. This means we need to initiate an effort towards countries and country groups that import high volumes of machinery. Furthermore, Turkey should develop a special incentive policy for global brands to invest in Turkey, utilizing its skilled workforce and central location, which are of great importance for the Turkish manufacturing industry. The majority of our sector consists of SMEs and cannot make sufficient R&D investments. Encouraging this is also important to increase their competitiveness. I believe gathering all these around a strategic approach for plastic processing machinery in Turkey will be the most important step," he said.

Production data:

In the plastic processing machinery report published by PLASFED, it was determined that 464 companies, corresponding to 78% of the 598 machinery and component manufacturers operating in Turkey, are located in Istanbul. İzmir follows Istanbul with 6 companies.

Turkey's plastic processing machinery production recovered after the decline experienced in 2009 and 2010 due to the global crisis and continued the growth that started in 2011 into 2013. The sector increased its production by 9% compared to the previous year, raising its 2012 production of 311 million dollars to 339 million dollars.

Export data:

Although the dominance of imported machinery continues in Turkey's domestic market, improvements have been observed recently in the production and exports of machinery, component, and parts manufacturers in Turkey. Exports, which were 22 million dollars in 2003, rose to 95 million dollars in 2008, then declined in 2009 and 2010 due to the negative impact of the global crisis, ending 2010 at 72 million dollars. Exports, which began to increase again, reached 103 million dollars by the end of 2011, concluded 2012 at 123 million dollars with a 19.4% increase, and 2013 at 134 million dollars with a 9% increase.

Turkey's top export countries were, respectively; Russia (25 million dollars), Iran (11 million dollars), Germany (8 million dollars), Bulgaria, Romania, Azerbaijan and United Arab Emirates, Uzbekistan, Ukraine and Iraq.

Import data:

Turkey's imports of plastic processing machinery, components, and parts decreased by 12% at the end of 2013 compared to the previous year, realizing at 527 million dollars. In the plastic processing machinery, components, and parts sector, where Turkey is a high-volume importer, imports varied depending on the economic situation and investments. Turkey's imports in this area steadily increased from 257 million dollars in 2003 to 507 million dollars in 2008. After declines in 2009 and 2010 due to the crisis, it reached its highest level in 2011, reaching 692 million dollars. Imports of machinery, components, and parts decreased by 14% in 2012 compared to the previous year, falling to 596 million dollars. Imports continued to decline in 2013, realizing at 527 million dollars.

Domestic market sales (Sector's machinery and equipment investment):

The sector's machinery and equipment investment (domestic market sales including imports), which peaked at 885 million dollars in 2011, continued its declining trend. Sales, which fell to 785 million dollars by the end of 2012, decreased by 7% compared to the previous year, reaching 732 million dollars by the end of 2013. The plastics sector's total machinery and equipment investment between 2003 and 2013 reached 6.4 billion dollars.

Foreign trade balance and unit prices:

As a result of these developments, as of the end of 2013, the sector's foreign trade deficit decreased by 17% compared to the previous year, falling to 393 million dollars. In 2013, the foreign trade deficit significantly decreased for all machines except blow molding machines. Turkey's - albeit slight - imbalance in export and import unit prices also continued. Accordingly, at the end of 2013, the unit import price was 12.4 dollars per kg, while the unit export price was 11.91 dollars per kg.

This content has been translated using artificial intelligence technology.