A Presentationby

ASSOCIATION of TURKISH MACHINERY MANUFACTURERS

Arslan SANIRGeneral Coordinatorhttp://www.mib.org.tr

sanir@mib.org.tr

MIB

ASSOCIATION OF TURKISH MACHINERY MANUFACTURERS IS

REPRESENTING TURKISH MACHINERY SECTOR ALL AROUND THE

WORLD AND ESTABLISHED IN 1990 AS NON GOVERNMENTAL

ORGANIZATION.

MIB INCLUDES ALL KINDS OF MACHINERY MANUFACTURERS.

MIB IS MEMBER OF CECIMO (European Association for Machine Tool

Industries) SINCE 1999 AND ALSO MEMBER OF PNEUROP (European

Committee of Manufacturers of Compressors, Vacuum Pumps, Pneumatic

Tools and Allied Equipments) SINCE 2005.

MACHINERY SECTOR IN TURKEY IS RATHER YOUNG, IN COMPARISON TO

THOSE IN EUROPEAN COUNTRIES. THE FIRST INVESTMENTS IN MACHINERY

MANUFACTURING INDUSTRY HAVE BEEN INITIATED IN 1950’S AS STATE

ENTERPRISES. AT THE END OF 1950’S THE FIRST PRIVATE COMPANIES

STARTED TO INVEST IN THIS SECTOR. HOWEVER NOWADAYS; THERE IS NOT

ANY GOVERNMENT INVESTMENT IN MANUFACTURE MACHINERY.

THE COMPANIES, THAT ARE MANUFACTURING MACHINERIE ARE 95% SMS’S

AND ALL OF THEM ARE OWNED BY FAMILIES.

2011

SIZE OF MACHINERY MARKET 27,7 BILLION €

PRODUCTION 18,3 BILLION €

EXPORTS 7,6 BILLION €

IMPORTS 17,0 BILLION €

MACHINERY IMPORT FROM ITALY WAS 1,75 BILLION €

ALTHOUGH THE MACHINERY MANUFACTURING SECTOR HAS SHOWN A SUCCESSFUL PERFORMANCE, THE VALUE OF

IMPORTS IS STILL HIGH.

AS IT IS KNOWN THAT, IN DEVELOPED COUNTRIES QUALITY, RELIABILITY AND TECHNOLOGY OF MACHINERY IS MORE IMPORTANT

THAN PRICE. 45% OF THE TURKISH MACHINERY EXPORT IS TO EU COUNTRIES, USA AND CANADA.

WE THINK, IT SHOWES THAT TURKISH MACINERY MANUFACTURERS HAVE A REASONABLE COMPETITIVE POSITION IN THE WORLD

MARKET

A REPORT, WHICH IS PUBLISHED IN EUROPE, SHOWS THAT TURKEY IS 6TH BIGGEST MACHINERY MANUFACTURER IN EUROPE (AS VALUE) AND ALSO ACCORDING TO CECIMO’S

PUBLICATION; TURKEY IS IN THE 7’TH RANK IN EUROPE AS MACHINE TOOLS

MANUFACTURER COUNTRY.

IN 15. RANK AS TO THE MACHINE TOOLS MANUFACTURER AND EXPORTER IN THE WORLD

ACCORDING GARDNER PUBLİCATION SURVEY 2011

BESIDES MACHINE TOOLS, SOME CONSTRUCTION MACHINERY,

CRANES, LIFTING AND TRANSPORTING EQUIPMENTS, PUMPS AND

COMPRESSORS, INDUSTRIAL FURNACES, AIR CONDITIONING

INDUSTRIES ARE ALSO IN COMPETITIVE POSITION.

PRODUCTION, EXPORT, IMPORT AND CONSUMPTION

x 1000 EURO

  2007 2008 2009 2010 2011

CONSUMPTION 24.561.365 21.211.106 16.864.295 23.211.732 27.686.084

Change % 9,30 -13,64 -20,49 37,64 19,28

PRODUCTION 15.637.794 13.871.683 11.239.427 15.679.000 18.253.123

Change % 6,20 -11,29 -18,98 39,50 16,42

EXPORT 5.791.652 6.416.823 5.347.528 6.496.958 7.594.530

Change % 28,7 10,79 -16,66 21,49 16,89

IMPORT 14.715.223 13.756.246 10.972.396 14.029.689 17.027.491

Change % 13,98 -6,52 -20,24 27,86 21,37

MARMARA REGION, INCLUDING ISTANBUL, KOCAELI, BURSA, AND THE CITIES OF IZMIR, ANKARA, KONYA, AFYON, ESKISEHIR AND

GAZIANTEP ARE THE PLACES WHERE MACHINERY MANUFACTURING IS MAINLY OBSERVED.

AS TO THE MACHINE TOOLS, THE PRODUCTION IS RATHER REALIZED IN ISTANBUL, BURSA, KONYA AND IZMIR.

THE PRODUCTION OF AGRICULTURAL MACHINERY IS PERFORMED IN MANY CITIES, HOWEVER MOST OF THE COMPANIES ARE SMALL IN

SIZE.

FACTORS WHICH GIVE COMPETITIVE STRENG TO THE TURKISH MACHINERY

SECTOR ARE

THE ABUNDANCE OF RAW MATERIAL,

ITS GEOGRAPHICAL PROXIMITY TO DEVELOPING EXPORT MARKETS

CULTURAL SIMILARITY AND ADVANTAGES

AND

DEVELOPMENTS IN LOCAL AND NEIGHBOURING COUNTRIES

ECONOMIC INDICATORS OF TURKEY

GROSS NATIONAL PRODUCT IN 2011 803,3 BILLION EURO

PER CAPITA INCOME 11.576 EURO

TOTAL IMPORT 172,9 BILLION EURO

38,8% FROM EU COUNTRIES

TOTAL EXPORT 96,9 BILLION EURO

46,2% TO EU COUNTRIES

BRIEF INFORMATION

ABOUT

SOME SUB-SECTORS

MACHINE TOOL

AS MENTIONED BEFORE TURKEY IS 7’TH BIGEST MACHINE TOOL MANUFACTURER COUNTRY IN EUROPE

IN 2011413,8 MILLION EURO EQUIVALENT OF MACHINE TOOLS PRODUCED

74% OF THIS PRODUCTION WAS SHEET METAL PROCEESING MACHINES

WE HAVE WELL KNOWN SHEET METAL PROCESSING MACHINE MANUFACTURERS

BUTLIMITED NUMBER OF METAL CUTTING MACHINE TOOL

MANUFACTURER; LIKE MACHINING CENTERS, MILLING MACHINES, MULTY SPINDLE TURNING MACHINES, FORGING MACHINES,

IN 2011, VALUE OF IMPORTED MACHINE TOOLS WAS 790,7 MILLON €

70% OF THIS FIGURE WAS METAL CUTTING MACHINES LIKE; TURNING MACHINES, MACHINIG CENTERS, MILLING, GRINDING AND GEAR

CUTTING MACHINES

TURNING MACHINE AND MACHINING CENTER IMPORTATION WAS 326,4 MILLION € AND THIS IS 41,3% OF MACHINE TOOL IMPORTATION

ACCORDING MY OPPINION, THIS PART OF THIS SUB SECTOR SHOULD BE INTERESTING FOR NEW INVESTORS

MACHINE TOOL IMPORTATION FROM ITALY WAS 119,5 MILLION €15,1% OF TOTAL IMPORT

20,4% OF IMPORT WAS FROM GERMANY, 19,7% WAS FROM TAIWANITALY IS IN 3’TH RANK

CRANES

IN 2011 TURKEY IMPORTED 125,6 MILLION EURO EQUEVALANT OF CRANES

IMPORT FROM ITALY WAS 16,7 MILLION €

FROM CHINA 33,1 MILLION €, AND FROM GERMANY 31,1 €

IMPORT OF TRANSPORTER CRANES, GANTRY CRANES AND MOBIL LIFTING FRAMES WAS 46,7 MILLION €, IMPORT FROM ITALY ONLY 515 THOUSAND €

AND IMPORT OF TOWER CRANES WAS 28 MILLIO €, 8,7 MILLION € BELONGS TO ITALY

WE HAVE SOME BIG SIZE COMPANIES FOR OVERHEAD CRANES

BUT

WE NEED NEW INVESTMENTS FOR GANTRY AND TOWER CRANES

WOOD WORKING MACHINERY

WOOD WORKING MACHINERY IMPORT WAS 134,7 MILLION EURO IN 2011

33,4 MILLION OF THIS, CAME FROM ITALY 24,8%

IN TURKEY THERE ARE TREE MEDIUM-BIG SIZE COMPANY THEY ARE PRODUCING:

• EDGE BANDING, SIRCULAR SAW MACHINES

• LOG SAWING LINES

• SAWMILLS

• LOG CARRIAGE

• BAND SAW

• PARALLEL BOARD EDGERS,

• BOARD RESAWING MAHINES

• RIPSAWS

• TRIMMERS

OTHER COMPANIES ARE MOSTLY SMALL IN SIZE

BIGGEST IMPORTED GROUP WAS BENDING AND ASSEMBLING MACHINES (35,1 MILLIO €)

HS CODE 8429 BOLDOZERS, ANGLEDOZERS, GRADERS, LEVELERS, EXCAVATORS, SHOVELS, SCRAPERS, TAMPING MACHINES, ROAD ROLLERS

IN 2011 TOTAL IMPORT OF TURKEY FOR THIS GROUP WAS 903.275.673 EUROS

24.058.642 EUROS OF THIS FIGURES CAME FROM ITALY

BIGGEST EXPORTER TO TURKEY WAS JAPAN WITH 242,1 MILLION €

WITH 144 MILLION (BOTH) SOUTH KOREA AND BELGIUM FOLLOWED

533,4 MILLION EURO OF TOTAL IMPORT WAS EXCAVATOR SHOVEL LOADERS

SECOND BIG IMPORT ITEM WAS FRONT END SHOVEL LOADER WITH 210,5 MILLION EURO

IN TURKEY THERE ARE EXCAVATOR AND FRONT END SHOVEL LOADER MANUFACTURERS, THEY ALSO EXPORTING THEIR PRODUCTS

EXCAVATOR AND FRONT LOADERS EXPORT WAS APRR. 100 MILILON EUROS

OTHER CONSTRUCTION MACINERY

THERE ARE

• ASPHALT PLANTS

• ASPHALT RECYCLING PLANTS

• CONCRETE BATCHING PLANTS, MIXERS

• CRUSHING-SCREENING-WASHING-STCKPILLING PLANTS

• CONCRETE PUMPS

MANUFACTURERS. MOST OF THEM ARE MEDIUM OR MEDIUM-BIG

SIZE COMPANIES

BOILERS

TOTAL IMPORT OF BOILERS WAS 293 MILLION EURO IN 2011

41 MILLION OF THIS WAS STEEM OR OTHER VAPOR GENERATING BOILERS

192 MILLION EURO FOR CENTRAL HEATING BOILERS

59 MILLION EURO FOR AUXILIARY EQUIPMENTS AND COMPONENTS

ALTHOUGH THERE ARE BOILER MANUFACTURERS IN TURKEY

IMPORTED BOILERS ARE LEADING THE MARKET

COMPRESSORS

THERE ARE SOME COMPRESSOR MANUFACTURERS THEY ARE MEDIUM SIZE COMPANIES

BIGGEST IMPORT ITEM IS TURBOCOMPRESSORS AND FROM THIS GROUP SINGLE STAGE TURB0 COMPRESSORS

TOTAL IMPORT OF TURBO-COMPRESSORS IN 2011 WAS 95.070.727 € 84,1 MILLION € OF THIS FIGURE IS SINGLE STAGE

TURBO COMPRESSOR

AND 31.272.583 € VALUE OF TURBOCOMPRESSOR CAME FROM FRANCEFROM ITALY IT WAS 9,6 MILLION €

PRODUCTION OF THIS TYPE COMPRESSORS IN TURKEY IS LIMITED AMOUNT

INVESTMENT IN TURKEY

FOR DIRECT FOREIGN INVESTMENT IN TURKEY

YOU CAN FIND ALL NECESSARY INFORMATION

AND LEGISLATION

AT

www.ekonomi.gov.tr

AS ENGLISH ALSO

ON BEHALFof

ASSOCIATION of TURKISH MACHINERY MANUFACTURERS

THANK YOU.