TURKISH TRADE NEWSLETTER
September 2009 - Issue 5
Istanbul to host IMF and World Bank meetings in October
ISTANBUL, AA - Turkey's financial capital, Istanbul, will host the International Monetary Fund (IMF) and World Bank's Annual Meetings in October 2009. Officials from the two institutions said that more than 13,000 people would attend the meetings in Istanbul.
Among the attendees will be finance ministers, central bank experts, executives, academics, scholars and representatives of various non-governmental organizations from 186 countries. The meetings will focus primarily on the world economic outlook, eradication of poverty, economic development and financial assistance.
Istanbul first hosted the IMF and World Bank's Annual Meetings in 1955.
Turkey Promoted at Motivation Show in McCormick Place Chicago
September 29 – October 1, 2009
CHICAGO - Five Turkish organizations showcased the booming tourism prospects of Turkey at the 2009 Motivation Show, on September 29-October 1, 2009 in McCormick Place Chicago. Having received 26.5 million international arrivals, in 2008, Turkey was among the top 10 global tourism destinations. The show, recognized as a promotion of the world’s largest collection of ideas and solutions to engage, motivate, inspire, connect and thank is the world’s premier event for tourism, incentives, recognition awards, and motivational meetings featuring 1,000 suppliers of merchandise and travel from around the world.
More than 10,000 buyers visited the show, which also featured a “Turkey Booth” organized by Istanbul Convention and Visitors Bureau and the Ministry of Culture and Tourism. Additionally, three private entities representing the Turkish tourism and incentive industry exhibited at the show namely: The Marmara Hotels and Residences, Turkish Airlines, and Oyak Tourism Meeting and Incentive Services. The Turkish participation to the event is coordinated by Hasan Zongur, the Tourism Attaché of Turkey in New York.
The exhibitor companies from Turkey told reportedly that they were impressed with the attention they have received from the visitors and tourism professionals and added that the rise of advertisement campaigns targeting the US market in recent years, which features Turkey as a prime tourism destination have significantly increased awareness about Turkey in the U.S. Accordingly, all the attendee companies indicated that they received numerous partnership offers from U.S. leisure and tourism agencies, which had never considered Turkey as a destination. Consul General of Turkey in Chicago; Ugur Kenan Ipek and the Commercial Attaché Suleyman Sozeri also visited the Turkish exhibitors’ booths welcoming the attendees, as well as getting information about their activities. Throughout the meeting, tourism and incentive professionals talked to find ways to attract American tourists to Turkey.
Favorable news at international media for Turkish destinations; Istanbul, Izmir and Antalya draw interest of American buyers. Also, large-scale international events such as UEFA Champions League Final, Formula 1 Race and World Congress of the International Union of Architects have been some of the noteworthy references for those destinations subsequently increasing the overall popularity of Turkey. All five Turkish exhibits have received top marks from American buyers.
3rd Turkey Investment Conference held in New York City
September 29, 2009
NEW YORK - The 3rd Turkey Investment Conference organized by Turkish-American Business Council (TAIK) of Foreign Economic Relations Board (DEIK) of Turkey in cooperation with The American Turkish Society (ATS) and Bloomberg, LP took place on September 29, 2009 in New York with the participation of around 300 senior executives as well as fund managers and investors from the U.S. and Turkey.
The Conference featured Turkey’s economy and investment environment as well as presentations of recent strategic, private equity, and real estate investments in Turkey with a keynote address by H.E. Ali Babacan, State Minister and Deputy Prime Minister of Turkey.
At the third Turkey Investment Conference. State Minister and Deputy Prime Minister H.E. Ali Babacan emphasized that this year’s Investment Conference happened at a crucial time: “The G-20 summit in Pittsburgh has just completed and Turkey will be hosting IMF and World Bank meetings in October in Istanbul. Global economy is going through a crucial period.” Said Minister H.E. Ali Babacan and emphasized Turkey’s membership to the G-20 and the importance of Turkey’s active role in global crisis.
This years’ Turkey Investment Conference was composed of two panels titled “Turkey: Opportunities and Objectives” and “Business Environment in Turkey”. The conference assessed the latest economic and political trends in Turkey and addressed the EU membership process and reforms, local effects of global slowdown, proposed IMF agreement, fiscal and monetary policies, value of the Turkish Lira, the state of financial and capital markets, economic growth, production and foreign investment trends, and latest developments in venture capital and real estate investments.
Turkey's attack helicopter to make first test flight
September 28, 2009
TURKEY, Turk.net - A prototype of an attack helicopter, which will be produced jointly by Turkey and Italy, is set to make a test flight on Monday in Milan, Italy. The combat and reconnaissance helicopter, an enhanced version of the Italian AgustaWestland's A-129s, will be named T-129 ATAK. Turkey's Tusas Aerospace Industries (TAI) -- the prime contractor -- and Italy's AgustaWestland -- a subcontractor -- will co-produce the aircraft under a 2007 agreement signed for the purchase of 51 (plus 40 optional) helicopters for the Turkish Land Forces.
The helicopter will be equipped with avionic and weapon systems designed and produced indigenously, and the mission computer and targeting, navigation, communication and electronic warfare systems will be developed and produced by ASELSAN, a leading defense company in Turkey.
TAI will have the right to use and administer the intellectual property of the T129 ATAK Helicopter, and it will be the sole source for its work share under the ATAK program for all potential future worldwide sales of the T129 ATAK Helicopter.
The program agreement also provides TAI with the right to sell and market the T129 ATAK Helicopter worldwide. The first T-129 is scheduled to be delivered to the Turkish Land Forces in 2013.
Global M&A companies to meet in Istanbul
September 27, 2009
ISTANBUL - Istanbul will host executives of the world’s top 50 merger and acquisition companies organized by M&A advisory firm IMAP on October 23, 2009 at the Ciragan Palace. ‘Turkey, as well as the surrounding region, represents an emerging global M&A market in which IMAP recognizes tremendous potential,’ says Mark Esbeck, IMAP president. The chief executive officers from about 50 of the world’s leading merger and acquisition companies, managing funds totaling $40 billion, will meet in Istanbul on Oct. 23. In addition to IMAP advisers, the organization will cater to private equity groups, corporate development personnel and global M&A attorneys. The agenda will focus on closing M&A transactions in the current economic climate, while providing an opportunity to develop relationships with industry professionals.
With access to IMAP's more than 500 advisers, the organization offers attendees a prime opportunity to gain perspectives on the M&A market, generate new leads and develop relationships with industry professionals on an international level. The symposium will feature presentations from a keynote speaker, as well as panelists from well-known organizations, including key private equity firm executives from the Middle East and Southeast Europe, a major industrialist in Turkey and a representative of a global multinational corporation.
"IMAP is excited to host its Global M&A Symposium at the Çiragan Palace Kempinski Istanbul," said Mark Esbeck, IMAP president. "Over the last 12 months, IMAP completed a record number of transactions in Turkey, ranging from textile manufacturing and branded retail apparel to shipment terminal operations. Turkey, as well as the surrounding region, represents an emerging global M&A market in which IMAP recognizes tremendous potential."
"The combination of the city's location, hotel selection, rapidly emerging business opportunities, the high-level personal networking interaction and top-notch speakers will make for an extremely worthwhile and insightful experience," said Sevket Basev, managing director of IMAP's Turkey office and host of the symposium.
Officials from China and Poland have also been trying to convince IMAP to hold this meeting in their own respective countries, business daily Referans cited Basev, who is also the CEO of 3 Seas Capital Partners. The world’s leading fund representatives will be attending and it will be a major step in luring in investors to Turkey, he said.
The global M&A Symposium’s theme will be “Intercontinental Collaboration.” Former Spanish Prime Minister Jose Maria Aznar will deliver the opening speech. Also, Russian petroleum giant Lukoil’s CEO Gati Al-Jebouri will share his experiences with Turkish companies.
Turkish PM held talks at G20 summit
September 26, 2009
NEW YORK - Turkish Prime Minister Tayyip Erdogan held bilateral talks with leaders of several countries and heads of financial organizations on the sidelines of the G-20 summit. Mr. Erdogan, who was in the United States for a series of high-level diplomatic events, delivered a speech on the reforms carried out in the Turkish financial sector.
Commenting on the global economic crisis and developments in the Turkish finance system, Erdogan said that the harmonization of international accounting standards on financial tools and the implementation of these standards by all countries in the world was critical to prevent a new financial crisis. Erdogan also noted more power should be given to global auditing institutions. In this regard, he praised the Financial Stability Board, which was established after the Washington and London summits, and called on G-20 members to join, saying it would provide further cooperation among countries.
Later, the Turkish Prime Minister met Dutch Prime Minister Jan Peter Balkenende, Swedish Prime Minister Fredrick Reinfeldt, Indian Prime Minister Manmohan Singh, South African President Jacob Zuma, South Korean President Lee Myung-bak, Australian Prime Minister Kevin Rudd, World Bank President Robert B. Zoellick, and International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn in Pittsburgh, the United States. PM Erdogan and IMF Managing Director Kahn said mutual talks would be held soon.
Erdogan also met with Russian President Dmitriy Medvedev to discuss bilateral relations, regional issues and cooperation in energy. Medvedev and Erdogan underlined importance of implementing the agreements signed in Ankara some time ago, and said it was important to boost strategic cooperation.
TACCI-Midwest 2009 Golf Outing Event brought together Turkish and American business people
September 26, 2009
CHICAGO - A golf outing event organized by the Turkish American Chamber of Commerce and Industry – Midwest was held in Lincolnshire, IL on September 26, 2009. The event, which aimed to increase networking opportunities with the Turkish American business community, the Chicagoland business leaders, entrepreneurs, and professionals, was a memorable one.
Having organized the second one, the Golf Outing Event of TACCI-Midwest is now set to become a highly sought after networking opportunity for Chicago area business professionals while creating an enjoyable atmosphere. The kick-off for the event was at 9:30am, which included a welcome note and a breakfast gathering. Following the arrival of all the guests, a panel discussion was held featuring two prominent Chicagoland business leaders.
The first panel speaker was Tom Bartkoski, the Director of International Business Development at World Business Chicago, a not-for-profit economic development corporation that fosters the Chicago region’s global position as a thriving business location. In his speech, Mr. Bartkoski touched upon how public and private sector partnership works to achieve economic growth to maintain Chicago as a prime business location. He also passed substantive information about how the City assists entrepreneurs who consider investing in Chicago area by providing economic and industry data, site location assistance, state and local incentive information, and by bringing together key parties. Mr. Bartkoski concluded his remarks by indicating that the increase of Turkish-American business endeavors is crucial for Chicago, a city that is self-proclaimed as an internationally recognized business hub. Following Mr. Bartkoski was the founder of BNC Venture Capital Group and Business Network Chicago, David Carman. The BNC Group, which introduces exciting investment opportunities to professional investors, fosters the growth of entrepreneurial activity by creating a platform for professionals offering extensive offline and online networking opportunities to the Chicago business community. In his speech, Mr. Carman made a point on how to raise equity capital from Venture Capital firms and talked about the services, which might be of assistance for Turkish-American businesses. Mr. Suleyman Sozeri, the Turkish Commercial Attache in Chicago, also attended the event and answered questions regarding Turkish-American business relations.
Following the panel program and the subsequent lunch break, the tee-off for the golf outing was performed opening the day’s proceedings including golf, tennis and other sportive and recreational activities.
GE invests in Turkish plant for future technologies
September 25, 2009
ESKISEHIR, Sabah - General Electric (GE) has begun to invest in future technologies at its engine-parts division in Turkey’s northwestern city of Eskisehir, according to a GE executive. GE Turkey Managing Director Ozkan said the new compressor wing technology will be produced exclusively in Turkey and that the investment is worth USD 50 million. Ozkan stated that despite the crisis, “GE’s R&D investments in Turkey have not halted and in fact have increased.”
Ozkan also commented on GE’s engineering center in Gebze, the largest district in the northwestern industrial city of Kocaeli. “This is also a long-term project. We will eventually employ 240 engineers there. Training these people requires long-term work. We will not make cuts there due to the crisis, since we have to continue our investments by training our staff.”
First Turkish-made satellite settles into orbit
September 25, 2009
ISTANBUL, Dunya - The first satellite manufactured in Turkey, designed by Istanbul Technical University's (ITU) Space Engineering Department, has settled into orbit around the earth. According to reports, the Turkish satellite ITUpSAT1, launched from Satish Dhawan Space Centre in Sriharikota, India by the Indian Space Research Organization (ISRO) on a PSLV C-14 rocket, settled into its orbital path, 720 kilometers above the surface of the earth.
The cube-shaped satellite travels at a speed of nearly 7.5 kilometers per second, orbiting the Earth once every 90 minutes. It will take photographs of the Earth's continents and is expected to remain in orbit for six months.
ITU's Flight and Space Sciences Faculty Dean Fevzi Unal, speaking to reporters from the university's observation lounge where the satellite's launch was broadcast live, said the launch is the fruit of several years' work that cost around EUR 1 million.
The satellite is to orbit the Earth continually, transmitting data when it passes over Turkey. Unal said they plan to establish contact with the satellite three to four times a day.
Turkish Textile firm defies turmoil, creates jobs
September 24, 2009
EDIRNE - A textile facility supplying products for global brands based in Edirne, a city in western Turkey, has increased the number of its staff by 300 to 1,400 in three months due to a rise in the orders of its US clients. The capacity increase has come as its clients, such as Zara, s.Oliver, Marc O’Polo, More & More and Banana Republic, have increased their orders, said Turgut Bakir, managing director of Modavizyon Tekstil Edirne Factory, which belongs to Sahinler Holding.
Noting that the firm has increased its staff, Bakir said it would continue to grow through creating opportunities out of the global crisis.
“The decline in total orders is ongoing in the textile market, which is greatly affected by the global financial crisis. However, as Modavizyon Edirne, we are pleased to maintain our growth by seeing a rise in our orders,” he said. “In the upcoming months, we will continue increasing our staff because of the customers we will add to our portfolio as well as the increase in the orders of our customers. We will continue to contribute to the revival of the economy in Thrace, particularly in Edirne, and to create new employment opportunities.”
Orders from the US:
Bakir said despite the crisis the firm has received significant orders from the United States via sales made from its offices in Jordan. The firm has overcome tough times through cooperation among executives and employees, he said.
“Despite the demand contraction in domestic and foreign markets as well as the overall contraction in global markets, we are securing customer satisfaction with our highly-motivated, educated and qualified staff. This way, we get ahead of our rivals in customers’ preferences and manage to receive more orders. This stems from our staff’s quality awareness.”
The Modavizyon Edirne Factory, which launched production in 1994 and has an indoor space of 16,000 square meters on a total land of 30,000 square meters, produces women and men’s outerwear. The plant, equipped with automated machinery, produces approximately 10,000 units of woven apparel products daily and provides for customers in Europe and the United States, he said.
Sahinler Group is a fully integrated group of companies that operates actively in all phases of textile and apparel production, including spinning, knitting, dying, printing, embroidery, cut, make and trim. The group's core business is in the field of textile and apparel manufacturing. Additionally, it enjoys a robust import and export business throughout Turkey, Jordan, Bulgaria, China, Egypt, India and Bangladesh as a result of its marketing efforts in Europe and the United States. The group manages its facilities through 27 companies established in 15 countries. The group also owns 350 retail stores in Europe.
Mehter Ensemble Concert captivates Chicagoans in Millenium Park 11th Annual World Music Festival
September 21, 2009
The renowned historic Ottoman Turks military band, Mehter Ensemble delivered a breathtaking performance in the Millennium Park on September 21, 2009 as part of the 11th Annual World Music Festival of Chicago. The ensemble presented examples of Turkish art and folk music along with several compositions from Mozart and Beethoven featuring its authentic instruments and unique costumes. Consulate General of Turkey at Chicago organized the event with the generous contributions of Turkish Airlines and the Turkish Cultural Foundation. The performance of the Mehter Ensemble attracted more than 3000 people to the Millennium Park.
Ottoman military ensemble is thought to be the oldest variety of military marching band in the world. The Mehter music was a symbol of sovereignty and independence, and its ardent sounds instilled the soldiers with strength and courage. The rousing songs and crashing sound of the great kös drums were at the same time capable of unnerving the enemy on the brink of battle, and the mehter music composers took pains to create works that produced this effect. The standard instruments employed by a “mehterân” are the kös (a large bass drum resembling the timpani), the nakare (a small kettledrum), the davul (a frame drum), the zil (cymbals), the kaba zurna (a bass variety of the zurna), the boru (a kind of trumpet), and the cevgen (a kind of stick bearing small concealed bells). It is believed that the first "mehter" was sent to Osman Gazi, the founder of the Ottoman Empire by the Seljuk Sultan Alaeddin III as a present along with a letter that salutes the newly formed state. The notion of a military marching band, such as those in use even today, began to be borrowed from the Ottoman Empire in the 16th century. Later Mozart and Haydn composed music inspired by mehter music, and Beethoven’s Ninth Symphony’s use of the kös, bass drum and zurna in the last movement is another striking example. Mozart, Bizet and many other composers produced ‘alla Turca’ pieces.
Today the band performs at the museums, and at certain official ceremonies. The military Mehter bands’ powerful stirring music has a spirit, which we can still appreciate today when listening to a Mehter ensemble playing with a sound out of the past. The concert, which took place at the 11th Annual World Music Festival of Chicago, was certainly a memorable one.
The 1st Annual Turkish American Chambers of Commerce Conference held in Washington DC
September 14, 2009
WASHINGTON DC - The 1st Annual Turkish American Chambers of Commerce Conference, entitled, “Turkish American Biz Power” was organized by the Turkish Union of Chambers & Commodity Exchanges (TOBB) and the Foreign Economic Relations Board of Turkey (DEIK) on September 14th, 2009 in Washington, D.C. Read more The 1st Annual Turkish American Chambers of Commerce Conference, entitled, “Turkish American Biz Power” was organized by the Turkish Union of Chambers & Commodity Exchanges (TOBB) and the Foreign Economic Relations Board of Turkey (DEIK) on September 14th, 2009 in Washington, D.C. The event’s program included a joint CSIS & TOBB meeting, a panel discussion, and a traditional Turkish Iftar dinner. Members of several Turkish-American Chambers of Commerce from various parts of the country, including California, Texas, Delaware, Maryland, Florida, New York, Georgia, Illinois and many Turkish businessmen from all around the US and even Barbados, Canada, Azerbaijan and Turkey were among the participants.
At the CSIS-TOBB joint event CEO & Chairman of the Board of The Coca-Cola Company Muhtar Kent stressed that “the United States needs a strong Turkey, and Turkey needs a strong United States.” Following Kent’s brief introduction, President of TOBB & DEIK, M. Rifat Hisarciklioglu talked about the current dynamics of the world economy and the impacts of the Global Crisis on Turkey. Hisarciklioglu warned that countries need to make sure that there is no drift towards protectionism, as countries need to work together to find a collaborative solution to this global crisis. During the traditional Turkish Iftar dinner, Ambassador of the Republic of Turkey to the United States of America, Ambassador Nabi Sensoy also gave a speech about Turkey and US-Turkey relations and how effective Turkish businessmen would be in lobbying for the betterment of US-Turkey trade and economic relations.
Turkey’s rising economic performance discussed at the Harvard University
September 11, 2009
BOSTON - Turkish graduate students at the Harvard University John F. Kennedy School of Government showcased Turkish economic prospect and trade potential at the Student Activity Fair Panel discussion on September 11, 2009. The panel allowed the student body as well as faculty to gain a rigorous outlook of Turkey’s new geo-economic role as the “emerging global power” put eloquently by the Secretary of State Hilary Clinton at the recent Council on Foreign Relations meeting.
Straddling from Asia to Europe and at the crossroad of trade routes, Turkey has been playing a pivotal economic role in the Afro-Eurasia region. Rising tourism revenues, the ease in setting up business, liberal business climate, cost effective state of the art manufacturing facilities and infrastructure, large consumer base and skilled human capital were some of the topics that were presented by the HKS students. Turkey’s strategic role and proximity to energy resources and consumer countries were also among the topics delved at the panel.
More than 90 student groups, caucuses, clubs, Professional Interest Councils, journals and volunteer organizations attended the event. The event was successfully concluded with a decision to be held again next year.