Even in turbulent economic and political times, growth rates of the Turkish plastics industry have averaged well above GDP. Figures published by the Turkish plastics industry association PAGEV (Istanbul; www.pagev.org.tr) show that the dynamic development is continuing unabated. According to the association, the industry (producers, converters, machinery manufacturers and mould-makers) experienced a 10% rise in sales from 2002 to 2003, while turnover in the conversion sector saw record growth of 32%-35%. This extremely positive trend continued well into the first half of 2004, with sales up 12% across the entire plastics segment, and PAGEV estimates a total growth rate of 20% for 2004.

Western players can only dream of such growth rates. However, it must be said that the Turkish plastics market, where more than 6,000 small and medium-size companies have a workforce of 160,000, is fairly peripheral on a global scale, representing only about 1.6% of world polymer consumption. Nevertheless, the country processed about 3m t of polymers in 2003, and the long-standing candidate for EU membership ranks sixth on a European scale, behind Spain and the UK. Market experts expect Turkey to become the third largest European and Eurasian market for polymers by 2010, with an estimated total consumption of 6.6m t – assuming that the current speed of development continues apace. Forecasts for 2005 are for demand to reach 3.8m t.

The stabilisation of the political and economic situation in combination with a slight moderation of Turkey´s chronically high inflation rate are seen as a reliable base for new projects and further expansion of the country´s plastics industry. Both production and trade are on the increase, and business and cooperation opportunities for domestic as well as foreign companies are very promising. The Turkish market for plastic products currently has an enormous potential for expansion. At 44 kg per capita, consumption may be above the global average, but it is still far below that of the western industrialised nations (about 100 kg per capita). This means that there is still pent-up demand for investment and imports.

The packaging industry is the main consumer market for the Turkish plastics industry (38%), followed by construction (24%) and E+E (10%). Changes in Turkish consumer behaviour have led to rapid growth in the packaging industry over the past few years. As a result, demand for PET bottle polymer has seen continuous growth and has now reached double-digit levels. The domestic E+E segment and the automotive industry also are undergoing rapid expansion, both in the domestic market and in import trade. As a matter of course, demand for polymer materials has surged.

In manmade fibres, the former Ottoman Empire ranks second in Europe, thanks largely to Turkey´s long-standing tradition as a textile-manufacturing nation. Turkish production of PVC film for construction is Europe´s third largest, and BOPP film is gaining in importance, says the country´s industry association. Potential in the engineering plastics sector, which is also enjoying double-digit growth rates, is extensive.

As the Turkish plastics industry is still relatively young, most production facilities have state-of-the-art technology. This is an asset that helps the country´s products compete on a global scale, as industrial leaders are eager to point out. Accordingly, the export of technical components for OEMs, plastic resins, machinery, moulds and dies, particularly to neighbouring countries, is emerging as another major economic force. The value of direct exports of finished and semi-finished products already exceeds EUR 1 bn.

Turkey exports to a total of 124 countries. Core markets are the EU, eastern Europe, the former CIS countries and the Middle East. As the most important player in its region, the Turkish plastics industry sees itself well positioned at the geographical crossroads between the large petrochemical investors to the east and the large consumer markets to the west, the association says.

The great popularity of the 14th “Plast Eurasia Istanbul”, hosted by the fair and exhibition company TÜYAP (www.tuyap.com) in cooperation with PAGEV from 1-5 December 2004 was evidence of the heightened interest in the Turkish plastics industry in the international market. On 20,000 m² of floor space, 578 exhibitors from 36 countries presented plastics machinery and materials, mould-making technology and equipment to 30,558 visitors from 53 countries. This year´s exhibition will take place in Istanbul from 30 November to 4 December.