Turkish Machinery

Turkey: Take advantage of the business opportunities, with and through Turkey

| Author / Editor: Ahmet Yılmaz / Stéphane Itasse

At the beginning of August, the Turkish steel producer Çolakoğlu Metalurji A.S. gave Siemens VAI Metals Technologies the final acceptance certificate for the modernization of electric arc furnace no. 1 in the Gebze Plant, just four days after the first heat. Being already one of the most productive electric arc furnaces in the world before modernization, its performance has been significantly improved once again. Electrical active power input has been increased by eight percent, while the electrical energy consumption has been reduced by six percent at the same time, without increasing the fossile energy comsumption. This has boosted the overall productivity of the electric arc furnace by twelve percent without any change in the tapping weight.
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At the beginning of August, the Turkish steel producer Çolakoğlu Metalurji A.S. gave Siemens VAI Metals Technologies the final acceptance certificate for the modernization of electric arc furnace no. 1 in the Gebze Plant, just four days after the first heat. Being already one of the most productive electric arc furnaces in the world before modernization, its performance has been significantly improved once again. Electrical active power input has been increased by eight percent, while the electrical energy consumption has been reduced by six percent at the same time, without increasing the fossile energy comsumption. This has boosted the overall productivity of the electric arc furnace by twelve percent without any change in the tapping weight. (Bild: Siemens)

Turkey is a byword in Germany not just for the people of Turkish origin living in Germany and a favourite holiday destination, but also for the increasing economic relations. With 32.6 billion Euros of trade volume, Turkey occupies the 16th place in foreign trade. The products responsible for this trade volume on both sides comprise machines, automotive, textile and chemicals industry.

Time and again a specific sector comes into focus of the economic activities in Germany, namely machine building. Turkish machine and accessories manufacturers have proved in the past that they can offer qualitative and innovative products. This can be seen from the customer satisfaction of European companies and from the continually increasing export figures. This position can be mainly explained with the flexibility of companies regarding requirements of the market and the local procurement options of raw materials.

Family business dominates the Turkish machine building industry as well

All in all Turkish firms are young, dynamic, very flexible and equipped with the most modern systems and machines owing to their willingness to invest, these are mostly family businesses. For all entrepreneurs in machine building, Germany is an indispensable location because trends begin here and new technologies are developed. Hence in many respects Germany is a benchmark and everyone takes note of things here.

The German-Turkish collaboration in the field of machine building offers enormous opportunities and high potential. Many successful German-Turkish partnerships from other fields prove it. Currently Turkey has a share of just 2 % of German imports in machine building. This share is set to increase. The German-Turkish collaboration offers something more than trade. The countries are ideal partners for co-operations, joint ventures and joint investments in third countries.

Production is done according to German standards and German sense of quality

Production in Turkey is done according to the German sense of quality, German guidelines and standards. From the very beginning they were oriented towards Germany. With good qualified personnel partially trained in Germany, Turkey offers itself as a co-operative partner and a procurement market. Competitive in comparison to the rest of Europe, Turkey is the perfect partner for products from the mid price segment.

Of course there is the geo-strategic location of Turkey; an axis from Europe right to the Middle East and North Africa and neighbouring countries like Russia offer very interesting options as a location for production and distribution.

Successful international cooperation promotes intercultural competences

Successful international cooperation promotes intercultural competences This goes for both sides. Both sides face the challenge of developing new business models where intercultural business competence can be used as a drawing card because intercultural differences still exist and these differences must be considered from the beginning. For example in business meetings: The German partner conducts direct communication whereas the Turkish partner prefers indirect communication. German partners get straight to the point and Turkish partners bring up the most important topic only at the end.

These differences can continue in a long list. Generally speaking, there are differences for example in the objectives pursued, handling insecurities, behaviours, in business communication, handling time, negotiating style and decision making.

Competition in the global machine building industry calls for new partnerships

Competition is intensifying in the machine building industry. Medium-sized companies are facing a big challenge in terms of internationalization and cost management. The price competition for machines in the mid and low cost segment is becoming more important worldwide. Many European and especially German machine building companies are suffering in international comparison. Particularly, medium-sized companies are increasingly under attack from the Asian competition. To counter this development, German machine building companies are under pressure to act and they urgently need a reliable and competitive partner.

The Turkish machine building industry can take over an important key position in this regard. Progress made in recent years clearly shows that we can keep pace with the technological and price factors in the worldwide competition. Evidence for this can be found in the continuously rising export figures. Of special mention are the exports of sheet metal forming machines and cutting machines, cast components, mechanical components, compressors, hydraulic cylinders and pumps. Turkish manufacturers are continuing to grow even in the field of conveyor technology.

Foreign companies and global players located in Turkey are pioneers in the field of industry 4.0. However, there are many suppliers that offer products and services worldwide in this regard.

As Turkish Machinery we have a network of over 5000 member companies. We will gladly support you with the intervention of suitable companies.

German-Turkish economic relations in figures
German exports to Turkey (2014) 1)19.3 billion Euros
German imports from Turkey (2014) 1)13.3 billion Euros
German investments in Turkey in 2014 2) 319 million USD
The most important export branches of Germany 2014 1)Cars and car parts: 202.6 billion Euros, Machines: 164.9 billion Euros, chemical industry: 106.7 billion Euros
The most important export branches of Turkey 2014 3)Automobile industry: 22.7 billion US-Dollar, Garment industry: 18.7 billion Dollar, chemical industry: 17.8 billion Dollar
People of Turkish origin in Germany 4)3 million
People of German origin in Turkey 4)70.000
Number of German companies in Turkey 4)almost 6000
Number of Turkish companies in Germany 5)approx. 750
  
1) Quelle: Destatis 
2) Quelle: Türkisches Wirtschaftsministerium 
3) Quelle: Deutsch-Türkische AHK 
4) Quelle: Auswärtiges Amt 
5) Quelle: Bureau van Dijk Electronic Publishing

* Ahmet Yılmaz is the head of the German office of Turkish Machinery in 38100 Braunschweig g

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