Türkiye’s domestic demand market is huge and its future development potential has attracted much attention.
Türkiye’s economic situation:
Turkey's economy is growing rapidly, with an annual growth rate of 8.9%, ranking first among European countries and OECD countries, and second only to China in the world.
Turkey's economy is large, with construction, manufacturing and retail performing the best, with an annual economic growth rate of 8.5%. In terms of trade policy, the Turkish government hopes to become one of the world's top ten economies by 2023, with exports reaching US$500 billion. The plastics industry is one of Turkey's rapidly developing emerging industries, with an annual output growth rate of 13.5%, and has considerable competitive advantages in the global market.
Turkey's machinery manufacturing industry currently accounts for 4.5% of the country's overall manufacturing industry. The main production projects of the Turkish Machinery Industry include internal combustion engines, boiler burners, pulverizers, engineering machinery, heavy industrial machinery, plastic machinery, rubber machinery, machine tools, cutting machines, woodworking machinery, steam engines, textile machinery, food processing machinery, sewing machines, refrigerators, Washing machine etc. There are more than 1,000 machinery manufacturers in Türkiye.

Turkey's plastic consumption has reached 7.5 million tons, and it is expected that there will still be more than 15% market growth space in the next few years. The total annual output of Turkey's plastics industry has exceeded 9 million tons, with an output value of US$34 billion, ranking second in Europe and sixth in the world.

Türkiye’s plastics market development scale:
Turkey's high demand for plastic machinery has driven the rapid development of the local plastics industry. According to the statistical report of the Turkish Plastics Industry Foundation, from 2015 to 2021, Turkish manufacturers' average investment in plastic machinery and equipment reached US$800 million, with an average annual growth rate of 2.1%. Equipment purchased and invested in include plastic injection molding machines, plastic extruders, plastic thermoforming machines, blow molding machines and related components. In 2020, the value of domestically produced plastic processing machinery in Turkey was US$462 million. Turkish manufacturers purchased $870 million worth of plastic equipment, 69% of which was imported. Türkiye imported US$603 million in plastic machinery and exported US$195 million.

In terms of plastic machinery imports, the compound annual growth rate from 2015 to 2020 was 0.7%. Among the imported processing machinery, stamping machines accounted for 32%, injection molding machines accounted for 32%, plastic extruders accounted for 21%, blow molding machines accounted for 5%, plastic heaters accounted for 5%, molding machines accounted for 2%, and parts and components accounted for 2%. 8%. In 2020, the top ten importing countries accounted for 93% of Turkey's total imports. The top three are China, Germany and Italy.

In terms of exports, the compound annual growth rate from 2015 to 2020 was 6.8%. Among the US$195 million of plastic machinery exported in 2020, stamping machines accounted for 43%, plastic extruders accounted for 19%, plastic thermoforming machines accounted for 8%, injection molding machines accounted for 7%, blow molding machines accounted for 3%, and spare parts accounted for 20% . The top 10 exporting countries accounted for 49% of total exports, with the top 3 being Germany, Russia and Iran.

Turkey's plastic machinery is still highly dependent on imports, especially injection molding machines, 90% of which are imported, and 80% of plastic extruders and blow molding machines. The overall proportion of plastic machinery imports is 57%.

If we compare the countries of origin of injection molding machines, plastic extruders, blow molding machines, and plastic thermoforming machines respectively, Taiwan accounted for 8.9% of Turkey's injection molding machine imports, 4.3% of plastic extruder imports, and blow molding machines in 2020 Imports account for 4.5%, accounting for 10% of plastic thermoforming machine imports. The main competitors are China, Germany and Italy.

Türkiye market environment analysis:
The most liberal, open and progressive among Muslim countries
Turkish people are very warm and family-oriented, so they pay great attention to interpersonal relationships in business
Turks have a good face, rearrange the stage, emphasize class concepts
Consumption polarization
long term inflation
Market sentiment fluctuates greatly
Analysis of investment environment advantages:
Labor force is abundant, young and wages are low
No exchange controls, free flow of funds
The Eurasian Bridge is the springboard into Europe, Central Asia, the Middle East and the North
Africa and other markets
Large population and huge domestic market
Analysis of investment environment disadvantages:
Insufficient electricity, the power supply is not as fast as the population development, and there are occasional power outages.
Large cultural and language differences make daily life and business travel inconvenient
Government administrative efficiency is low and administrative procedures are complex
Foreign investors speculate on their stocks and house prices, resulting in relatively high operating costs
Looking ahead to the plastics market:
According to the five-year development plan announced by the Turkish government, major industries such as chemicals, pharmaceuticals, medical materials, electronics, machinery and electrical equipment, automobiles, and railway system vehicles are listed as priority development projects in the national development plan from 2019 to 2023. Turkey's five major development advantages include: competitive production and efficiency, stable and strong economy, kind people and strong society, environmentally sustainable and livable urban conditions, and good governance with democracy and the rule of law. Turkey is a developing emerging market, with a per capita GDP of only about US$8,600 in 2020. When Turkish businessmen purchase plastic machinery, price is usually an important consideration, which results in Chinese machinery products occupying the largest share of imports in the market. Compared with the products of major competitors in Germany, Italy and other countries, Taiwan's plastic machinery has high value and competitive prices, and still has great growth potential in the Turkish market.

TEPAI injection blow molding machinery for the Turkey

Plastic machinery and equipment: extruders, injection molding machines, blow molding machines