Starting from January 1, 2025, the new regulation mandates the documentation of local raw material usage to obtain a "domestic goods certificate." Ömer Karadeniz, Chairman of the Plastic Industrialists Federation (PLASFED), stated that the implementation of this requirement in sectors dependent on imports for raw materials could hurt industrialists and lead to disruptions in public services, calling for a reconsideration of the regulation.
According to the new regulation, companies that wish to participate in public tenders will not only need to produce within Turkey but also must document that the raw materials used in their production are local. PLASFED President Karadeniz warned that this requirement could cause serious difficulties for local producers.
He emphasized that the plastic industry is highly dependent on imports for raw materials, with 85% reliance on foreign sources. In fact, in some engineering plastics, this dependency can reach up to 100%. Therefore, the condition of local production could severely challenge our industry.
Karadeniz highlighted that a significant portion of the raw materials used in the plastic industry is imported. He said, “The local production rate for engineering plastics is negligible. Even Petkim, which is the largest player in Turkey's petrochemical sector, can only meet 10-15% of the sector's needs. Moreover, large producers find it difficult to work with Petkim due to supply chain and delivery issues. In these conditions, requesting proof of local raw material usage from companies could severely restrict Turkish industrialists' access to many tenders, including public ones.”
“Policies Suitable for Industrialists' Realities are Essential”
Karadeniz stated that while the regulation was prepared in good faith, if it does not align with the realities of the sector in practice, it could harm industrialists. He expressed that the “principles” section of the regulation is not yet clarified and announced that discussions and consultations with the relevant ministries are ongoing.
Karadeniz drew attention to the potential negative impacts on production capacity and employment due to the difficulties in industrialists' participation in public procurements, saying, “Policies that promote local production are certainly important, but these incentives should be implemented considering real market conditions and production infrastructure. The requirement for local producers to prove that their raw materials are also local could exacerbate the challenges due to insufficient raw material production in our country.”
“Risk of Harm in Implementation”
Providing examples of the potential impacts of the new regulation, Karadeniz warned: “A municipality might open a public tender to purchase toys or puzzles for orphaned children. A company that produces locally may be unable to participate in this tender due to the origin of the raw materials used in their products. This could lead to disruptions in public services and harm to industrialists.”
PLASFED President, as an umbrella organization, stated that they will continue to draw attention to the issues faced by the industry, present solutions, and work in cooperation with relevant institutions.
Translated by Artificial Intelligence
