TURKISH TRADE NEWSLETTER
November 2009 - Issue 5
Roundtable discussion on investment opportunities in Turkey held at the ACG in Chicago
November 21, 2009
CHICAGO - More than 30 executives gathered at a roundtable event co-organized by Turkish Trade Mission in Chicago and the Chicago Chapter of the Association for Corporate Growth (ACG). The keynote speaker for the event was the pioneering President of Investment Support and Promotion Agency of Turkey (ISPAT), Mr. Alpaslan Korkmaz, who conducted a presentation to the audience.
The topic of ACG Roundtable; "Investment Climate of Turkey in the Aftermath of the Global Economic Downturn" was in scope of Mr. Korkmaz's presentation, which showcased the investment opportunities Turkey offers and how, in a down world economy, Turkey managed to grow and expand its role and influence in the Afro-Eurasia region and beyond.
During his presentation, Mr. Korkmaz noted that Turkey had made significant strides in recent years. Pointing to a recent study conducted by Goldman Sachs, which foresaw the Turkish economy becoming the ninth largest economy in the world by 2050, Korkmaz said, "Turkey is now the world's 15th and the European Union's sixth largest economy. According to the projection done by Goldman Sachs, by 2050, Turkey will grow into becoming a 5.9 trillion dollar economy, moving ahead of countries like Japan, Germany and France and ranking 9th in the World. While Turkey had attracted $17 billion in foreign direct investment (FDI) by 2003, this number has risen to $78 billion over the last five years. “We are among top 5 most attractive emerging countries for FDI inflows, which will be attracting investment until 2010. It is crucial to attach T to the BRIC countries. We should not forget to add Turkey to this list. It is one of a few countries that have managed to overcome the global financial crisis” said Mr. Korkmaz.
Following his presentation, Mr. Korkmaz addressed the questions directed from the audience regarding Turkey's economic outlook, investment trends and global competitiveness. Later in the event, participants delved into networking opportunities and discussed prospective business plans in Turkey. Accordingly, Turkish Trade Mission and ISPAT officials jointly provided information to participants, who are interested in pursuing business endeavors in Turkey.
The event concluded with high remarks from the participants stressing that the strategic position of Turkey, serving as a bridge between Europe and the Middle East retains tremendous opportunities for U.S. businesses.
Turkey’s Investment Climate discussed at the Northern Illinois University
November 20, 2009
DEKALB - Alpaslan Korkmaz, President of Investment Support and Promotion Agency of Turkey (ISPAT), served as the keynote presenter during the Northern Illinois University’s College of Business International Week (November 16-20). Mr. Korkmaz's presentation at the event was entitled "Investment Climate in Turkey with Discussions on Cross-Cultural Negotiation and Dispute Resolution."
In his presentation, which took place on November 19 at 6:00 p.m. in Barsema Auditorium of NIU College of Business, Mr. Korkmaz provided insights to more than 150 graduate and undergraduate students along with NIU business alumni, faculty, and staff on the recent state of the global investment environment and Turkey’s strategic positioning as an investment location in the global economy.
The Associate Dean of NIU College of Business, Prof. Paul Prabhaker, made the opening remarks for the event. In his speech, Prof. Prabhaker stressed the importance of Turkey as a key business partner to U.S. and shared several anecdotes derived from his trips to Turkey. Subsequently, he left the floor to Mr. Korkmaz, who delivered his presentation touching upon topics regarding the current investment climate in Turkey, the latest developments in Turkish economy, as well as, how cross-cultural aspects of business, which affected Turkey along the path to become a regional economic powerhouse in the region. He also underscored the importance of structural reforms implemented in Turkey and cordial relations with neighboring countries as main drivers of surge in FDI inflow in Turkey.
Following his presentation, Mr. Korkmaz responded the questions directed from the audience. The event concluded with a reception where the participants had the opportunity to discuss with Turkish Trade Mission and ISPAT officials, whom provided information about Turkish economy and business outlook.
Turkish Machine Tools Industry presented at FABTECH 2009 Welding Show
November 20, 2009
CHICAGO – Five major Turkish companies, Ajan Elektronik, Baykal, Elmaksan, Ermaksan and Hidroliksan took part in the FABTECH 2009, International Welding Show on November 15-18, 2009. The Turkish machinery and tools industry is renowned for its state-of–the–art technology and novel designs at cost effective prices. There are over 5,000 dynamic companies in the industry in Turkey able to provide short lead times and manufacture customized premium products responsive to client needs.
Ajan Elektronik, Baykal, Elmaksan, Ermaksan and Hidroliksan traveled to Chicago to represent Turkish Machine Tools Industry by introducing new product lines. Turkey's machine tools exports have an upward trend reaching to $539 million in 2008. Machines tools that are exported are mainly metal-forming types, which take a 62% share of total machinery exports. Turkish manufacturers closely follow international quality, safety and environmental standards. Among 150 countries Turkish machineries exported, Germany, Russian Federation, Bulgaria, Spain, Romania, Poland, Italy and U.S.A. are the main destinations.
Ajan Elektronik manufactures Plasma and Oxy Fuel CNC Cutting Machines, CNC Milling and Drilling Machines as well as CNC/Manual Erosion Machines. The company's state-of-the-art sheet metal processing technology provides significant improvement in the industrial application with its innovative drilling and pipe cutting models.
Baykal today stands as a leading manufacturer and global supplier of sheet metalworking machinery. The company specializes in the production of hydraulic press brakes, hydraulic shears, CNC punching machines, CNC plasma cutting systems, mechanical guillotines, sheet folders, notching machines, and a range of spot and arc welding equipment.
Elmaksan is one the leading companies in Turkey for the production of initial pipes lines, profile lines, slitting lines, cut-to-length lines along with a wide range of other metal reforming equipment and spare parts. The company has recently expanded its production base by opening a new facility with a combined area of over 380.000 square feet. With this extra capacity, Elmaksan focuses on high quality production to meet the precise requirements of its customers worldwide.
Ermaksan is one of the fastest growing companies in the rapidly changing market of sheet metal working industry. With 40 years of experience in the field, the company excels in manufacturing the highest quality press brakes and shears in Turkey, which are also recognized worldwide within the industry. The company also offers flexible solutions by its new plasma and laser-cutting machines, which has high and accuracy-cutting quality resulting with decreased labor and investment cost.
Hidroliksan is a global player in the hydraulics machinery industry manufacturing all kinds of hydraulic presses. Founded in 1980, the company now exports to many countries including Germany, Netherland, Belgium, England, Saudi Arabia, Tunisia, and Morocco. Hidroliksan's main product lines are listed as; forming presses, ironing presses, multipurpose cold presses, cauchchouc presses, hydraulic presses, coif-forming presses and workshop presses.
"Negotiating Business Contracts: The Future of the Organization" Seminar held at the Turkish Center
November 20, 2009
NEW YORK – "Negotiating Business Contracts: The Future of the Organization" seminar was held on November 19 2009 at the Turkish Center. The event, which was organized by Turkish American Chamber of Commerce and Industry (TACCI) kicked off at 6:00 PM with approximately 40 guests in attendance, along with the Commercial Attaches of Turkey in New York Mr. Yavuz Ozutku, and Mr. Ahmet Canli. During the opening of the program, participants enjoyed the opportunity to network with each other.
After the networking session, the President of TACCI, Ms. Sevil Ozisik, introduced speakers of the night Dr. Domenico Lepore and Mark Meirowitz.
Dr. Domenico Lepore, author of "Deming and Goldratt: The Decalogue with Oded Cohen", delivered a speech with a topic: "Translating Knowledge Into Action: the constraint to growth". In his speech, Dr. Lepore touched upon the three faculties of the intellect: intuition, development and execution. He also shared his experiences in business world stressing the importance of sustainability and interactivity in reaching the goals set by all kinds of business entities. Mr. Lepore's speech ended following a Q & A session.
After Mr. Lepore, it was time for Mr. Mark Meirowitz, an attorney at law and a Premium TACCI Member, who is also a "celebrity" for the Turkish community. Mr. Meirowitz began his speech providing insights regarding the legal issues in today's business world. Supported by the handouts and his frequent interaction with the attendees, he informed the audience about the essentials in business contracts and negotiations. In his speech, Mr. Meirowitz also exemplified the common mistakes made in business contracts and gave tips on avoiding the risk. The event concluded following the speech and the subsequent Q & A session.
"Doing Business in the Middle East" was presented at the EDA Seminar
November 20, 2009
NEW YORK – Commercial Attache of Turkey in New York, Mr. Yavuz Ozutku delivered a presentation titling "Turkey: A Gateway to the Middle East" at a seminar held by The New Jersey Economic Development Authority (EDA) on November 20, 2009 at the New Jersey State House of Annex. Invited by EDA was a selected group of 60 participants, whom were briefed by the Turkish Commercial Attache, the U.S.-Saudi Arabian Business Council representatives and the U.S. Department of Commerce along with several other representatives of business entities with ongoing operations in the Middle East.
Mr. Ozutku highlighted Turkey's position in the Middle East, which can provide business opportunities for the American investors. In his presentation, Ozutku said: "Turkey has a stable and remarkable economic growth, a strategic geographical location, a very young population and energy investments having a rich and long history in the region." Mr. Ozutku, provided information about Turkey's 40 billion dollars trading with the region. Following his presentation was the one-on-one meetings, where he answered the questions of company representatives in attendances that have prospective plans to pursue business endeavors in the Middle East.
During 2008, New Jersey companies exported over $3.2 billion in goods to the Middle East, an increase of 28% from 2007. The region is actively looking for suppliers in industries where New Jersey excels: Aircraft and Parts; Industrial and Electric Machinery; Information Technology; Education; Specialty Chemicals; Steel; Pharmaceutical Products and Medical Devices.
Tourism sector grows in Turkey, competing countries see decline
November 16, 2009
TURKEY, Turk.Net – Turkey’s tourism sector grew 1.47 percent, while the sector shrank around seven percent in the world during January-July 2009, according to the World Tourism Organization.
Turkey’s Ministry of Culture and Tourism said in a statement that the tourism sector saw a drop of seven percent on a global scale and 8.4 percent in Europe during January-July 2009 on the back of the negative effects of the global financial crisis.
"Tourism grew 1.47 percent in Turkey during the same period with the number of tourists rising to 21.8 million. Among the ten most popular tourist destinations in the world, only Turkey had an increase in the number of tourists", according to the statement.
Bank revenues boom in Turkey despite the global slump
November 13, 2009TURKEY, Houston Chronicle - In Turkey, bank profits have risen more than 40 percent this year, though at first glance that might not seem exceptional. After all, profits have surged at US banks too, spurring a stock market rally that has wiped clean most of the losses from last year's economic meltdown. But there's a difference: Turkey's banks posted those profit gains without any government assistance.
Profits for the entire Turkish banking industry totaled USD 10.5 billion for the first nine months of the year, according to government data. At a time when the recession has hammered many European banks, Turkey's financial institutions have weathered the crisis remarkably well.
The Turkish government restructured the financial system, boosting the banks' capital requirements and raising the mandated ratio of capital to risky assets to 12 percent from 8 percent.
Another difference: Turkish banks had almost no exposure to subprime loans or derivatives. The result is that Turkish banks now have some of the world's strongest capital structures. Those capital reserves, and the absence of risky lending practices, helped shield them when the recession hit. For example, Garanti Bankasi, one of the country's largest lenders partially owned by General Electric, maintains a capital ratio of almost 18 percent, according to the bank's financial filings, far higher than most US banks.
David Rocks appeared at Turkish Cultural Center
November 12, 2009
NEW YORK - David Rocks, who has been the Senior Editor for Global News at Business Week magazine since 2006 visit Turkish Cultural Center (TCC) in New York for an interview on November 12, 2009. Several distinguished guests accompanied by the Commercial Attaches of New York Yavuz Ozutku and Ahmet Canli attended the event held at TCC quarters.
Mr. Rocks, one of the most remarkable journalists in American newsroom has been the Senior Editor for Global News at Business Week magazine since 2006, passed information about the sales transaction of Business Week to Bloomberg L.P. In his interview, he said that he had a very pessimistic vision about the future of the magazine even though it is not known if Bloomberg senior team plans any major changes to its design or editorial staff at this time. The session also provided insight regarding the challenges of news media and new media strategies at Business Week during the economic downturn.
Turkish Automotive Part Industry showcased at AAPEX 2009
November 7, 2009LAS VEGAS - Leading Turkish automotive spare parts manufacturers attended the AAPEX 2009 expo in Las Vegas, which took place on November 3-5, 2009 in pursuit of building strategic alliance possibilities with their American counterparts. The recent progress made by automotive OEM industry paved the way for a massive supplier industry in Turkey. Read more.
More than 15 leading Turkish automotive spare parts manufacturers attended the AAPEX 2009 exhibition in Las Vegas, which took place on November 3-5, 2009 in pursuit of building connections with international buyers. Istanbul Chamber of Commerce organized the national participation to the show. Commercial Attache Suleyman Sozeri at the Consulate General of Turkey in Chicago accompanied the Turkish firms during the show.
Over 130,000 attendees from around the world explored the information stands of more than 2,000 companies from 124 countries, also participating in educational seminars, workshops and networking opportunities. The Turkish exhibitors ran a national pavilion to highlight their wide range of products from mechanical parts such as suspensions, struts and engines to automotive aftermarket items. Turkish pavilion became a center for attraction in the show with innovative product line and state of art technologies.
Software provider Sage chooses Turkey
November 6, 2009TURKEY, Hurriyet Daily News - Sage, the business management software provider has agreed to cooperate with Turkish business software company Verimax to provide customer relationship management (CRM) solutions in Turkey.
The office of the joint venture in Istanbul will be Sage’s second in its Middle East division, in addition to the company’s Dubai office. It will offer pre-sales, sales and support services.
Sage is currently the third largest independent provider of CRM software in the world, with a market share of seven percent. Its revenue stood at GBP 1.3 billion in 2008.
Vikram Suri, Managing Director of Sage Middle East, said Sage chose to expand in Turkey because of the attractive growth opportunities in the business software market.
"Turkey is a very unique country that has experienced tremendous growth in the past five years. The gross domestic product’s growth rate from 2002 to 2008 is estimated to stand at 7.4 percent, which makes Turkey one of the fastest growing economies in the world during that period", he said. "With upcoming privatizations and stability boosted by the ongoing negotiations for membership to the European Union, there is more foreign direct investment coming into Turkey", he stated.