NONELECTRICAL MACHINERY
Prepared by Sinan YÜZAL Oğuz KUYUMCU 2007
IGEME Export Promotion Center of Turkey
NONELECTRICAL MACHINERY NONELECTRICAL MACHINERY PRODUCTION OF TURKEY Turkey has achieved remarkable success in industrialization and this is considered to be the fundamental factor in Turkey’s development. The initiation of the Turkish machinery industry dates back to the 1950’s. In 1950 the first largescale industrial investment in the Turkish Republic came through MKEK (Machinery, Chemical Industry Institution), a completely governmental institution.
NonElectrical Machinery Production of Turkey Value: (1000 USD)
2001 Machinery Production* Change, %
2003
2004
2005 (Expected)
14,300,000 21.40
17,500,000 22.38
17,675,000 1
2002
9,663,000 11,779,000 21.90
* Estimated Source: SPO (State Planning Organisation)
Development of the machinery industry accelerated especially in late 1960s with the establishment of both state and private enterprises of manufacturing plants for sugar processing machinery, pumps and diesel motors, boilers, ovens, hoisting and conveying machinery, storage tanks, pressurized tanks and machine tools. Although the machinery industry was initiated and established by state enterprises, currently private enterprises dominate the industry. Only a small number of firms operating in defense and sugar machinery industries are public companies. Today, share of the machinery manufacturing industry production is 4.7 % within overall manufacturing industry. The product range of the Turkish machinery industry consists of internal combustion engines and turbines, boilers and burners, building machinery, heavy industrial machinery, machine tools, milling machines, drilling machines, cutting and bending machines, woodworking machinery, pumps and compressors, hand tools, air conditioning units, textile machinery, food processing machinery, hoisting and conveying machinery, sewing machines, refrigerators and washing machines (both domestic and industrial), valves, gears and bearings. The Turkish machinery industry is able to produce almost all of the parts and accessories for the above named items with competitive prices and of high quality. The average local input content in the production stage is around 80 85 %. There are 22 machinery producers in the list of Turkey’s top 500 Industrial Enterprises prepared by Istanbul Chamber of Industry. Firms are listed below. RANK 5 8
COMPANY NAME ARÇELİK A.Ş. VESTEL ELEKTRONİK SAN. VE TİC. A.Ş.
© IGEME – Export Promotion Center of Turkey, 2007
NET SALES (TL) 3,052,451,806 2,558,017,552
12 24 27 30 33 47 58 62 116 151 204 229 245 287 306 313 317 382 413 473
BEKO ELEKTRONİK A.Ş. 1,737,166,298 BSH EV ALETLERİ SAN. VE TİC. A.Ş. 919,397,715 VESTEL BEYAZ EŞYA SANAYİ VE TİCARET A.Ş. 755,693,849 BOSCH SANAYİ VE TİCARET A.Ş. 723,647,452 PROFİLO TELRA ELEKTRONİK SANAYİ VE TİCARET 663,989,006 ANONİM ŞİRKETİ. SIEMENS SANAYİ VE TİCARET A.Ş. 521,165,397 TEMSA SANAYİ VE TİCARET A.Ş. 473,265,524 UZEL MAKİNA SANAYİ A.Ş. 443,522,997 HEMA ENDÜSTRİ A.Ş. 272,146,137 ARÇELİKLG KLİMA SAN. VE TİC. A.Ş. 221,042,343 İNDESİT COMPANY BEYAZ EŞYA SANAYİ VE TİCARET 169,992,599 A.Ş. BAYMAK MAKİNA SANAYİ VE TİCARET A.Ş 150,426,724 ÇEMTAŞ ÇELİK MAKİNA SAN.VE TİC.A.Ş. 139,918,392 HİDROMEK HİDROLİK VE MEKANİK MAKİNA İMALAT SAN. 124,296,754 VE TİC. LTD. ŞTİ. ALARKO CARRIER SANAYİ VE TİCARET ANONİM ŞİRKETİ 118,277,612 COŞKUNÖZ METAL FORM MAKİNA END. VE TİC. A.Ş. 116,910,696 DURMAZLAR MAKİNA SANAYİ VE TİCARET A.Ş. 114,956,221 ŞAHİNLER METAL SANAYİ VE TİCARET A.Ş. 91,571,528 ÇUKUROVA İNŞAAT MAK. SAN. VE TİC. A.Ş. 84,510,880 PARSAN MAKİNA PARÇALARI SANAYİİ A.Ş. 74,224,106
The machinery manufacturing industry has particular importance for Turkey due to its promising export potential. Manufacturing firms in this field made production mainly for the domestic market until 1990. After 1990 the sector has directed its attention to foreign markets. The rapid increase in the population and living standards in Turkey have resulted in the need to produce more and better quality white goods. The sector has been rapidly adapting itself parallel to the consumer preferences by modern production technology. Turkey has about 11 million households which indicate a huge market for white goods. According to the data provided by White Goods Manufacturers’ Association, the number of refrigerators, washing machines and dish washing machines produced were 6,740 million units, 5,277 million units and 1,180 million units respectively in 2006. Most of the production was for exports, mainly to EU Countries. The exports of the sector are mainly directed to Germany, the United Kingdom, France, Spain, Italy, Iraq, Russian Federation, Romania and Algeria. The major export products in households sector are industrial and home type refrigerators. The exports of refrigerators reached to 4,796 million units and totaled to US$ 771.1 million in 2006. The other promising export products in the sector are washing machines and export of washing machines reached US$ 579.6 million in 2006. The export value of dish washing machines is US$ 109.3 million in 2006. Strong automotive and autoparts sector of Turkey resulted in a high production capacity for engine and spare parts. This capacity has been directed to exports and the sector has shown a significant export performance in last year. The engine and spare parts exports was US$ 875.5 million in 2005 and increased to US$ 1.03 billion in 2006. © IGEME – Export Promotion Center of Turkey, 2007
Turkish construction sector is one of the major sectors, which contributes to GNP. At present, construction and mining machinery industry exports comprise 8.2% of the exports of the Turkish machinery sector and have an increasing trend. Total exports of the sector rose to US$ 530 million in 2006. Main export products are machinery spare parts, lifting, handling, loading and unloading machinery, special purpose motor vehicles for persons and goods, self propelled bulldozers, graders and excavators and derricks and cranes. Among product groups, construction and mining machinery spare parts are the most traded items. Turkishmade construction and mining machinery are exported to almost 130 countries in the world. Major export markets are Germany, the United Kingdom, Italy, Iraq, Algeria, the USA, the Russian Federation, Belgium, France, Iran, Bulgaria, Kazakhstan, Kuwait and Azerbaijan. Machine tools (metal and wood processing machinery), which are called “machines that produce machines” are another wellestablished sector in Turkish industry. Today Turkish machine tools manufacturers are capable of meeting the demand of export markets as well as local market. Turkish machine tools subsector has high technology and innovation capability to supply ondemand engineered machine tools to its foreign customers. The export value of metal and wood working machinery reached US$ 365 million in 2006. In the year 2006, Turkish machine tools industry exports its products to nearly 125 countries worldwide. Main export destinations are Italy, Germany, Russian Federation, Spain, Iran, Bulgaria, Romania, the USA, the United Kingdom, Ukraine, Iraq and Israel. Pumps and compressors which are vital for industrial and agricultural production constitute another important sector of Turkish nonelectrical machinery industry. Necessities of industrialization process and huge agricultural production of Turkey have helped the emergence of a strong pumps and compressors industry in Turkey. Turkish manufacturing industry and agricultural irrigation rely on mostly Turkish made pumps and compressors. At present, pumps and compressors industry exports comprise about 5% of the exports of the Turkish machinery sector and have an increasing trend. The total export value of pumps and compressors rose to 340 million dollars in 2006. Major export markets are Germany, the USA, Romania, Russian Federation, the United Kingdom, Belgium, France, Iraq and Italy. The Turkish agricultural machinery industry largely meets domestic demand and exports the surplus. Exports of the sector have an increasing trend. While exporting US$ 37.4 million in 2003, the value of agricultural machinery exports including tractors reached US$ 259.5 million in 2006. This remarkably high increase in export values has undoubtedly been achieved due to the recent modernization and technological improvements realized in the sector. Turkish agricultural machinery industry products are exported to a wide range of countries in the world. Major export markets are: the USA, Romania, France, Uzbekistan, Sudan, Bulgaria, Iran and Azerbaijan in agricultural machinery; the USA, Sudan, Morocco, Republic of South Africa, Australia and Mexico in tractors. The Turkish textile machinery industry has an integral role to play in the growth of Turkish textile exports. Besides supplying the Turkish domestic market the textile machinery and equipment industry also has great importance for Turkey due to its promising export potential. Textile machinery and equipment exports have increased rapidly since five years and reached US$ 225 million with a share of 3.5 % in total machinery exports in 2006. The sector exports are directed to about 120 countries. Major markets in order of rank are India, Bangladesh, Pakistan, Uzbekistan, Syria, Iran, Germany and Egypt.
© IGEME – Export Promotion Center of Turkey, 2007
Strong agricultural potential and Turkey’s food industry, changing lifestyles and tastes due to increased industrialization and urbanization, the increase in family income, and the decrease in available time for preparing meals, have resulted in a strong food processing sector. Accordingly, a large food processing sector has accelerated the development of the food processing machinery and equipment industry in Turkey. At present, the Turkish food processing machinery and equipment industry is the most modern in the Middle East, North Africa, Balkans, Baltic and Central Asia. Moreover, the recent developments in catering services in Turkey have accelerated the demand for industrial kitchenware. Both of these sectors show promising export potential. In the food processing machinery and equipment industry, exports reached US$ 196 million in 2006. In the food processing machinery and equipment industry, exports are directed to about 125 countries. Major markets in 2006 in order of rank are Saudi Arabia, Kazakhstan, the Russian Federation, Iraq, Azerbaijan, Romania, Tunisia, Syria, Egypt, Iran, Algeria and Morocco which have similar agricultural structure and consumption habits. Turkey with its traditional good quality workmanship, excellent engineering capacity, efficient infrastructure, advantageous labor costs and liberal economic policies is attracting the interest of developed countries for investment purposes. A significant number of medium and largescale companies have “knowhow” license agreements with wellknown international companies. Turkish companies welcome foreign investors through joint ventures with the transfer of technology, making use of skilled labor to be competitive in the world markets. According Turkish Treasury there are 195 foreign capital companies in machinery industry. The Turkish machinery manufacturers/exporters follow European and international standards and norms. Companies exporting to the European Union affix the “CE Mark” under the “New Approach” Directives. The obligation to affix the “CE Mark” also started in the Turkish domestic market in 2002.
EXPORTS Turkish machinery sector products are competitive in international markets due to relatively flexible production and good engineering skills in Turkey. Turkish machinery industry has recorded a substantial increase in exports compared to Turkey’s overall exports. In 2005, the export value of the machinery industry was US$ 5.25 billion, indicating a 27% increase compared with 2004 figures. In 2006 total exports of machinery manufacturing industry exceeded US$ 6.2 billion, up 24% compared with the year before. In 2006, Germany was the main importer of machinery by a share of 16%. The United Kingdom, Italy, France, the United States, Russian Federation, Spain, Romania, Iraq, Poland, Iran, Bulgaria, Netherlands, Ukraine, Kazakhstan, Azerbaijan, Belgium and Greece are the other important markets for Turkish machinery exports.
NonElectrical Machinery Exports by Products (Value: million US $)
Product Refrigerators Engine and Spare Parts Washing Machines
2003 589.3 548.7 262.2
2004 730.3 734.8 404.1
© IGEME – Export Promotion Center of Turkey, 2007
2005 2006 916.4 1156.6 875.5 1026.9 491.8 609.6
Construction and Mining Machines Metal and Wood Processing Machines Pumps and Compressors Machinery Components Food Processing and Packaging Machines Textile Machines Steam Boilers Taps, Cocks, Valves and Similar Appliances for Pipes, Boiler Shells, Tanks, Vats Air Conditioning Machines Comprising a Motor Driven Fans Centrifuges; Filtering or Purifying Machinery and Apparatus, for Liquids or Gases Rubber and Plastic Processing Machines Agricultural Machines (excl. tractors) Office Machines Industrial Furnaces Printing Machines Leather Processing Machines Others TOTAL
219.6 140.0 137.9 109.2 93.7 72.6 100.6 94.8
310.1 201.3 203.6 161.1 124.6 113.3 125.2 125.2
434.6 282.3 257.3 195.1 181.2 162.8 152.7 148.0
530.0 365.0 340.0 220.1 196.4 224.6 165.0 184.9
75.9
98.8
110.3
132.6
50.9
86.1
96.3
122.2
38.7 37.4 29.4 9.7 8.8 5.7 367.9 2,993
58.1 60.5 35.8 17.3 10.9 5.5 519.4 4,126
90.7 81.1 47.5 23.4 19.9 5.2 673.9 5,246
119.5 109.3 60.8 34.7 21.1 8.3 866 6,502
Source: Undersecretariat for Foreign Trade (DTM)
NonElectrical Machinery Exports of Turkey by Countries (Value: US $)
Country Germany United Kingdom Italy France USA Russian Fed. Spain İstanbul Leather FTZ Romania Iraq Poland Iran Bulgaria Netherlands Ukraine Kazakhstan Azerbaijan Belgium Greece Others
2003 2004 2005 2006 611,702,925 769,471,227 878,285,751 1,059,318,118 212,961,505 274,966,942 417,648,930 498,722,571 206,526,465 279,345,942 337,254,035 381,464,078 170,169,875 237,558,865 288,019,326 372,225,508 143,952,931 178,571,463 220,648,083 298,510,566 75,922,998 114,943,700 163,070,124 249,070,347 116,381,009 176,867,743 181,754,348 239,306,855 97,558,403 145,583,429 183,866,352 177,819,292 90,756,232 109,006,174 146,388,437 175,033,963 49,163,233 136,323,237 163,671,361 173,715,164 46,983,892 89,046,848 112,533,137 148,839,143 62,337,975 85,000,619 103,251,105 128,874,618 43,555,195 61,279,501 110,960,295 121,738,445 35,992,919 55,594,705 63,896,447 114,527,697 36,291,702 52,391,930 72,108,139 105,104,766 42,806,962 54,391,354 66,357,842 104,913,150 34,580,677 44,181,798 68,652,475 96,332,594 49,568,170 63,378,897 78,913,464 95,255,850 55,123,310 73,734,357 79,868,027 95,015,720 810,646,360 1,124,295,493 1,509,271,578 1,866,551,288 © IGEME – Export Promotion Center of Turkey, 2007
2,992,982,738 4,125,934,224 5,246,419,256 6,502,339,733
TOTAL Source: DTM
The most important items in exports were refrigerators, engine and spare parts, washing machines, construction and mining machinery, metal and wood processing machinery, pumps and compressors, machinery components, food processing and packaging machinery, textile machinery, steam boilers and Taps, Cocks, Valves and Similar Appliances for Pipes, Boiler Shells, Tanks, and Vats. The export values for refrigerators, engine and spare parts, washing machines, construction and mining machinery, metal and wood processing machinery, pumps and compressors, machinery components, food processing and packaging machinery, textile machinery, steam boilers and Taps, Cocks, Valves and Similar Appliances for Pipes, Boiler Shells, Tanks, Vats in 2006 were US $ 1,156.6 million, US $ 1,026.9 million, US $ 609.6 million, US $ 365 million, US $ 340 million, US $ 220.1 million, US $ 196.4 million, US $ 224.6 million, US $ 165 million and US $ 184.9 million, respectively. The products of Turkish machinery industry are exhibited in international and national fairs organized in Turkey. In 2007, major fairs organized in this sector are;
Machine Tools Fairs Hannover Messe Bileşim Fuarcilik A.Ş.
WIN WORLD OF MACHINERY 2007
2428 February
TÜYAP Beylikdüzü / Istanbul
www.hf turkey.com.com
info@ hf turkey.com
EMO Yayıncılık ve FuarcılıkTanıt GAZITEK 2007 ım hizmetleri Ltd. Şti.
29 March 1 April
M 1 Gaziantep Sanayi Odası Fuar Merkezi / Gaziantep
www.emomakinemark et.com
emo@emomm. com
Tureks Uluslararası Fuarcılık Ltd. Şti.
58 April
Kayseri Dünya Ticaret Merkezi www.tureksfuar.com.tr / Kayseri
tureks@tureksf uar.com.tr
TÜYAP Konya KONMAK Fuarcılık A.Ş.
2629 April
KTOTUYAP Fuar Merkezi / Konya
www.tuyap.com.tr
tuyapkonya@tu yap.com.tr
Yağmur Fuarcılık Yayıncılık Tanıtım Hizmetleri Ltd. Şti.
36 May
Uluslararası İzmir Fuar Alanı / İzmir
www.yagmurfuarcilik.c om
bilgi@yagmurfu arcilik.com
2730 September
İstanbul Expo Center Yeşilköy / İstanbul
www.itf exhibitions.com
info@itf exhibitions.com
th
6 KAYSERİ INDUSTRY ELETEX FAIR
3T 2007 FAIR
İstanbul TIME 2007 Fuarcılık A.Ş.
© IGEME – Export Promotion Center of Turkey, 2007
Akdeniz Reklamcılık Tanıtım Hizmetleri A.Ş.
YAPEX WINDOOR FAIR
811 October
Antalya Expo Center Aksu / Antalya
www.bauconyapex.co m
[email protected] m
1518 November
ANFA Altınpark www.emomakinemark Fuar Merkezi / et.com Ankara
emo@emomm. com
METAL TÜYAP PROCESSING 512 Bursa TECHNOLOGIE December Fuarcılık A.Ş. S FAIR
TÜYAP Bursa Uluslararası www.tuyap.com.tr Fuar ve Kongre Merkezi / Bursa
tuyapbursa@tu yap.com.tr
EMO Yayıncılık ve ENDUSTRI FuarcılıkTanıt 2007 ım hizmetleri Ltd. Şti.
EGS Fuar ve Kongre Merkezi / Denizli
emo@emomm. com
EMO Yayıncılık ve FuarcılıkTanıt ANKATEK 2007 ım hizmetleri Ltd. Şti.
1316 December
www.emomakinemark et.com
Agricultural Machinery Fairs ·
AEGEAN AGRICULTURAL GREENHOUSE AND LIVESTOCK EXHIBITION 2007 (Agriculture Technologies) in Denizli in 28 March – 4 April 2007
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AGROMACH 3 RD AGRICULTURE, AGRICULTURE TECHOLOGIES END STOCKBREEDING FAIR (Agricultural Machinery) in Şanlıurfa in 47 April 2007
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HASYURT AGRICULTURE FAIR (Agriculture Technologies) in Antalya in 912 May 2007
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MIDDLE EAST EGRICULTURE FAIR (Agriculture Technologies) in Diyarbakır in 2327 May 2007
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AGRICULTURE FAIR 2007 (Agriculture Machinery) in Tekirdağ in 15 September 2007
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AGROISTANBUL – ISTANGUL AGRICULTURAL EXHIBITION ( Agricultural Machinery) in İstanbul in 1720 October 2007
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MANISA AGRICULTURE AND NOURISHMENT FAIR (Agricultural Mechanization) in Manisa in 1821 October 2007
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LAKES AREA AGRICULTURE AND LIVESTOCKBREEDING FAIR (Agriculture Technologies) in Isparta in 811 November 2007
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AGROEXPO EURASIA AGRICULTURAL GREENHOUSE AND LIVESTOCK EXHIBITION (Agriculture Technologies) in Izmir in 2225 November 2007
© IGEME – Export Promotion Center of Turkey, 2007
·
AGRICULTURE AND NOURISHMENT AND STOCKBREEDING FAIR (Agricultural Mechanization) in Aydın in 28 November – 2 December 2007
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GROWTECH EURASIA 2007 7 TH INTERNATIONAL HORTICULTURE, AGRICULTURE, FLORICULTURE AND TECHNOLOGIES FAIR (Agriculture Equipments) in Antalya in 69 December 2007
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ADANA AGRICULTURE 2007 (Agriculture, Stockbreeding, Poultry, Dairy Industry) in Adana in 1316 December 2007
Food Processing Machinery Fairs ·
FOTEG ISTANBUL (Food Processing Technologies and Equipment) in 14 March 2007
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MERSİN FOOD, FOOD PROCESSING TECHNOLOGIES AND PACKAGING FAIR in 228 April 2007
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KONYA FOODTECH 2007 (Food & Beverages, Bakery Technologies) in 1013 May 2007
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ÇUKUROVA FOODTECH 2007 (Food & Beverages, Beverage and Bakery Technologies) in 59 May 2007
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GAPFOOD 7 th FOOD, FOOD TECHNOLOGIES AND PACKAGING FAIR in 2528 October 2007
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FOODTECH 2007 (Bakery & Confectionary Products and Technologies) in Istanbul in 1316 December 2007
Packaging Machinery Fairs ·
PACKAGING 2007 in Adana in 58 April 2007
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BURSA PACKAGING 2007 in Bursa in 1922 April 2007
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KONYA PACKAGING 2007 in Konya in 1013 May 2007
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IPAF&APOS 2007 FAIR in Izmir in 31 May – 3 June 2007
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ISTANBUL PACKAGING FAIR in 1721 October 2007
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IPACK 2007 in Istanbul in 31 October – 3 November 2007
Construction and Mining Machinery Fairs ·
ADANA CONSRTRUCTION 2007 FAIR (Building Equipment, Construction Technologies and Construction Works Machinery) in 2125 February 2007 © IGEME – Export Promotion Center of Turkey, 2007
·
10 th KOMATEK 2007 (Construction Machinery and Equipment) in Ankara in 1520 May 2007
Textile Machinery Fairs ·
INTERNATIONAL TEXTILE, KNITTING, HOSIERY MACHINES, INDUSTRIES, AND CHEMICALS FAIR in Istanbul in 1216 May 2007
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CLOTHING MACNIES, EMBROIDERY MACHINES, CLOTHING SIDE INDUSTRY AND CHEMICALS FAIR in Istanbul in 2327 May 2007
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BURSA TEXTILE MACHINES AND YARN FAIR in Bursa in 2225 November 2007
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HIGHTEX 2007 TECHNICAL TEXTILES AND NONWOVEN FAIR in Istanbul in 30 November – 2 December 2007
© IGEME – Export Promotion Center of Turkey, 2007
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