TURKISH TRADE NEWSLETTER
October 2009 - Issue 5
Change of helm at the Turkish Trade Mission in U.S.
October 30, 2009
The new Chief Commercial Councellor to the Turkish Embassy in Washington DC and Commercial Attaché to the Turkish Consulate in New York were assigned in replacement of their colleagues who completed their three-year terms in the US.
Correspondingly, the new Chief Commercial Councellor, Abdullah Koten, acquired the helm in the Turkish Trade Mission, while Ahmet Canli, the incoming Commercial Attaché to New York office, took up his new assignment. Their predecessors Aysegul Barkcin and Mehmet Ali Erdem returned to Ankara to take new responsibilities in the Headquarters.
Prior to this assignment, Mr. Koten served as the Deputy Undersecretary, ”third in command” for the Undersecretariat of the Prime Ministry for Foreign Trade of Turkey. Considering his previous experience in the Undersecretariat, Mr. Koten’s appointment to the Mission reflects the emphasis Turkey puts on further developing foreign trade relations with the U.S.
The change in the New York office of the Turkish Trade Mission was also carried out with the appointment of Mr. Canli as the Commercial Attaché replacing Mr. Erdem. Having more than 13 years of experience in public service, Mr. Canli served in various levels in the Undersecretariat and has extensive knowledge in agricultural products and food industry.
Mr. Koten and Mr. Canli began their shift in the early October after bidding farewell to their predecessors, who returned to the Headquarters in Ankara.
Turkey to become regional base for Fujitsu
October 30, 2009
ISTANBUL - Fujitsu, a Japan information technologies-based business solutions provider, has added Turkey to the countries where it makes production, with an investment of $2 million.
Fujitsu, which produces computers in Japan and European countries, has positioned Turkey as the production base in the region. The company has been making trial productions in Turkey since 2008. Having produced 30,000 desktop computers last year in Turkey, the firm is planning to produce 70,000 to 100,000 units in 2010 and to export to near countries.
The company attaches importance to Turkey, the only country, apart from Germany, where the company has PC production, said Fujitsu Vice Chairman Satoru Hayashi, who came to the country to restructure the company and make an announcement on PC production.
Commenting on the strategic importance of Turkey Hayashi said: "Turkey is a candidate to become one of the most important economies of the future with its rich potential and dynamics. Considering this, we produce PCs only in Turkey except our own centers. We keep seeking opportunities in the region to expand our production line."
Noting that Fujitsu Turkey is attached to Fujitsu Europe in business operations Hayashi said: "Apart from our own production centers in Japan and Europe, we do not produce in any other country. However, we began to produce our desktop computers in Turkey last year. Turkey has accommodated rapidly to technology and Internet with its developing economy and dynamic population. We appreciate that Turkey strives to catch the standards of the information age."
Halit Zaim, managing director of Fujitsu Turkey, said PC production has begun with $2 million investment in the facilities of Informatik, an engineering company of Informa Group in Turkey.
"Some 50 people are employed in the production. We have the capacity to produce 1,000 PCs per day. The goal is to produce 70,000 to 100,000 PCs in 2010. The PCs currently produced address the domestic market. It is possible to export countries nearby in the upcoming years. The Balkan countries and Turkic Republics are our targets," Zaim said.
The idea to make Turkey the production base of the region is because it has a growing market and offers a chance to open to the region’s countries" Zaim said.
Turkey to play a crucial role in energy politics
October 26, 2009
Today’s Zaman - Merger and acquisition experts from both sides of the equation gathered in Istanbul last Friday for the IMAP Global Mergers and Acquisitions Symposium, where advisors and corporation managers, sellers and buyers all agreed that the global financial crisis has introduced a new world of corporate deal making.
Husnu Ozyegin, Chairman of Fiba Holding, spoke about the recent improvements in relations between Turkey and the neighboring countries, underlying the importance of Turkey’s growing energy market.
Ozyegin emphasized the shift in investment flow and said that developing economies with high growth rates will have the upper hand in the post-crisis period. "The dynamics of investing have changed, for it's no longer straight from developed markets to developing economies but so-called sideways deals, with China investing and India investing", said Ozyegin. He cited an example of a Russian company investing in Turkey, when last year Lukoil paid USD 500 million for Turkish fuel retailer Akpet.
Ozyegin noted the strides Turkey has made in improving relations with its neighboring countries, a program that Ankara has been following for years now but one that has shown big developments in recent weeks. The businessman pointed out that Turkey recently signed an agreement whereby Syrians will no longer need visas to enter Turkey, that the government also signed 40 separate trade agreements with Iraq and that Turkey also signed an agreement to establish diplomatic relations with Armenia. The upshot of all this active foreign diplomacy is that European investors have to look at Turkey in a larger context than that of a country with a population of 73 million, said Ozyegin.
The energy sector is particularly ripe for deal making, he stressed. "Turkey is one of the few countries where energy consumption has been rising eight percent per year for nearly 30 years", said Ozyegin. "In Europe, Turkey ranks second in wind energy potential, behind only Scotland, and ranks second in solar energy potential, behind Spain."
Delivering the keynote speech at the symposium earlier on Friday morning, former Spanish Prime Minister Jose Maria Aznar also highlighted energy as an area where Turkey enjoyed special opportunities. "Turkey's geography makes it an important player in supplying Europe's energy needs", said Aznar, "but this opportunity also involves great responsibility. That's because Turkey, in catching this flood of globalization, employs the principles of a free society, the principles of free trade, and their success on this subject is an important demonstration for the region, for Europe and Asia."
Turkey attracts 6 billion USD investments in eight months
October 20, 2009
Anatolia News Agency -
The Turkish premier announced on Friday that Turkey attracted investments around 6 billion USD in the first eight months of 2009. Turkey's Prime Minister Recep Tayyip Erdoğan said that Turkey drew that much investment in the first eight months of 2009 as global crisis had affected direct international investments.
"Turkey will continue to attract more direct investments as global crisis is overcome," Erdoğan said during a meeting at the Investment Support and Promotion Agency of Turkey. The amount of investments Turkey drew was 2.5 billion USD in 2004, 10 billion USD in 2005, 20 billion USD in 2006, 22 billion USD in 2007, and 18.3 billion USD in 2008.
Erdoğan said Turkey had become a center of attraction for investments, thanks to its radical reforms, stability and strong economy. There were 22,821 international companies in Turkey, including 12,463 from European countries and 3,888 from Near and Middle Eastern countries, Erdoğan also said.
City of Kütahya to host Europe's largest solar panel factory
October 20, 2009
KUTAHYA -AYT Group energy division General Manager Ahmet Arslan has announced that a 300 million euro solar panel manufacturing plant in Kütahya's Tavşanlı district will be fully operational by June 2010. Once completed, the plant will be the largest solar panel-producing facility in Europe.Speaking to the Anatolia news agency yesterday, Arslan also noted that the factory, which is being established in a 50-50 partnership between AYT and the German Sitizn Group Holding AG, will be the first solar panel-producing plant in Turkey.
He said his company convinced Sitizn to construct the plant in Turkey after six months of lobbying. Sitizn had first planned to invest in Poland and later turned its sights on Greece, but eventually decided to enter Turkey, Arslan noted.
"The factory will not produce for the Turkish domestic market alone but is eying consumers all around the world. At present, Europe has a large portion of its solar energy needs produced in China; however, products arrive late from China to Europe owing to the long distance, usually between eight to 10 weeks later at the earliest. So our facilities will provide an advantage in that sense," Arslan argued.
The German company has all required patents and licenses in solar technology, the general manager underlined. He further added that the partners are planning to combine three different high technology procedures of solar energy panel manufacturing -- monocrystal, policrystal and thin-film -- under a single roof at their Tavşanlı manufacturing plant.
The factory will initially employ 250 people, and the number of workers will increase to 750 by 2013.
European bank revises Turkey’s growth outlook
October 19, 2009The European Bank for Reconstruction and Development, or EBRD, which has been withdrawing gradually from Central European countries, plans to prioritize Turkey. EBRD is the first international finance corporation, among many others, to revise Turkey’s economic growth in a positive direction.
The bank had published a report estimating Turkey’s 2010 growth to be 1 percent. The bank has revised that outlook to 3 percent. The economies of eastern and southern
Europe including Turkey, will experience an economic contraction this year, however, signs of recovery will begin next year, said the EBRD.
Turkey’s economy will contract nearly 6 percent in 2009; however, that contraction rate is still well above contraction expected in other countries in the region. According to the EBRD, while southeastern European countries are experiencing a recession of 6.2 percent this year, the mean contraction will be 8.7 percent for eastern European countries.
Turkey will have the fastest growing economy in its region in 2010, said EBRD; with the average economic growth expected from the region is 0.7 percent. Turkey’s economic growth for that period was revised to 3 percent growth, which marks four-fold growth over the average.
Turkey’s robust banking industry will play a major role in the fast recovery, according to EBRD. The increase in the European Union’s demand and foreign trade with those countries will be a major motivator of 2010 recovery, according to the bank. Other factors will include increasing demand from EU member countries and increasing foreign trade figures. Meanwhile, unemployment will continue to be the top concern for Turkey and other countries in its region.
The EBRD also revealed plans to prioritize Turkey in regards to investments, with specific support aimed at the banking industry, the tourism sector, small- and medium-sized enterprises, media, infrastructure investments, energy, real estate, health, information technologies, agriculture and food.Hisarciklioglu becomes deputy chairman of Eurochambres
October 17, 2009The president of the Turkish Union of Chambers and Commodity Exchanges (TOBB), Rifat Hisarciklioglu, has been elected deputy chairman of the Association of European Chambers of Commerce and Industry (Eurochambres).
The TOBB president secured the votes of 35 countries out of a total of 40 -- including Germany and France, both of which oppose Turkey's membership in the European Union, along with Greece, Greek Cyprus and Israel -- on Wednesday.
Hisarcıklıoğlu will be the first deputy chairman of Eurochambres from a country that is not a member of the EU. Founded in 1958, Eurochambres represents 2,000 local chambers and a total of 19 million members. The firms that make up the association, which comprises 37 percent of the world economy, employ some 120 million workers.
Turkey’s increasing influence in the Afro-Eurasian Region was discussed at Northwestern University
October 15, 2009CHICAGO - Turkey’s increasing economic role in the Afro-Eurasian Region along with Turkish-American economic ties discussed at Northwestern University’s Kellogg School of Business during a presentation made by Suleyman Sozeri, the Commercial Attache at the Consulate General of Turkey in Chicago on October 15, 2009. The program was part of a speaker series for the International Marketing lecture for Kellogg MBA students, which was co-organized by Prof. Phillip Corse.
Turkey’s exponentially growing economic leverage in the region, increasing importance in the global energy market as a terminal and hub, and its enhancing economic ties with the U.S were among some of the topics addressed by Mr. Sozeri. Potential business opportunities and partnership possibilities with industry specific emphasis between Turkish and American firms were also discussed in the lecture.
During his speech, Mr. Sozeri noted: "At the crossroad of continents and trade routes, Turkey has emerged as a manufacturing-power house in the region. With its strategic locations, liberal business climate, well-educated human capital and technological as well as regional expertise, Turkey offers tremendous opportunities for American firms in pursuit of penetrating in lucrative markets of the Afro-Eurasian Region. Turkish and U.S. firms should exert more effort to forge strategic alliances that will mutually benefit both countries in the long run."
Turkey expected to see strong growth in 2010
October 15, 2009
Following the economic recovery period set to start next year, the Turkish economy can begin to display strong growth, according to a managing director of the International Monetary Fund, adding that the growth potential was due to Turkey’s dynamic economy.
Similar to other economies around the globe, Turkey’s economy was also negatively affected by the global economic crisis, said John Lipsky, first deputy managing director of the IMF. Its exports also declined due to the dropping international demand, he said, adding that the negative impact of the global turmoil will continue to throttle the economy this year.
However, parallel to the recovery in the global economy, Turkey’s economy will also start to pick up starting next year, Lipsky said.
Just like all other developing countries, Turkey will also have to deal with a significant unemployment problem, he said, and added that establishing short- and medium-term economic measures would help fight against unemployment. In order to overcome the unemployment trouble, Turkey needs to return to growth in its economy, Lipsky said.
In the short term, Turkey’s economy can achieve growth with an effective finance industry, good economic policies, general equilibrium, low inflation and sustainable public finance, he said. In the long term, Turkey needs better a education system, and labor force training that would help the country increase its competitive power to the global level, Lipsky added.
Based on the IMF’s macro-economic expectations, Turkey will contract 6.5 percent this year. Next year, the contraction is expected to reverse and the country is foreseen to achieve 3.7 percent growth. Inflation in the country is expected to be 6.2 percent this year. That figure is expected to rise to 6.8 percent next year. In order to achieve that 3.7 percent growth next year, Turkey will have to achieve an economic growth of at least 10 percent. The ratio of the current account deficit in the country to its gross domestic product is foreseen to be 1.9 percent this year. Next year, that figure is expected to rise to 3.7 percent.
Meanwhile, IMF and World Bank economists said that Turkey could reach 5 percent economic growth next year if global conditions improve and its foreign trade volume rises. That would make it "emerging Europe’s fastest-growing country."
Turkey is 8th biggest agricultural economy of world
October 12, 2009Turkish Agriculture & Rural Affairs Minister Mehmet Mehdi Eker said on Monday that Turkey was the 8th biggest agricultural economy of the world.
"Turkey has 58 billion USD agricultural gross national product (GSMH) and 24 billion USD agricultural trade volume," Eker said while addressing the Turkish-German Economy Congress in Cologne.
"Turkish agriculture sector has shown a positive growth in the recent years despite drought and global economic crisis in the past two years," he said.
Releasing a statement the Ministry of Agriculture said that Eker, who attended the opening ceremony of "Anuga 2009 Food Fair", said Turkey attended the fair with 190 companies as a partner country.
Eker said, "Turkey has important political, economic and cultural partnerships with Germany. More than 3 million Turkish citizens live in this country. Number of German citizens residing in Turkey gradually rises, creating a bridge of friendship between the two countries."
Eker also said Turkey abided by its commitments in the EU process.
ANUGA, one of the most important trade shows for the trade and food service/catering market, is attended by 6,522 firms.
The fair will stay open between October 10 and 14.
Bloomberg TV Plans Turkey Channel Launch
October 6, 2009Chris Roush of Talking Biz News reports that Bloomberg Television is planning to launch a Turkish Language financial news and business channel across Turkey and the Turkish Republics. Partnering with Ciner Media, BloombergHT will launch later this year with studio's based in the country, and replicating the facilities in New York, London and Hong Kong.
Roush wrote; Bloomberg will retain editorial control over the channel’s business content and will provide Ciner Media with access to the global Bloomberg News service, including its 145 bureaus across the globe. An associated Web site will follow the channel launch.