1 year ago

MDA Technologies 3/2016

MDA Technologies 3/2016

Turkish Machinery once

Turkish Machinery once again on the way up In Turkey, the mechanical engineering sector contributes considerably to the development of the country. Over the last ten years, exports have increased 2.5 times thus driving the global competitive capacity forward. However, in Turkey they are aware that especially in the current climate, requirements are higher and trade relations are more sensitive than ever before. On the evening of July 15, 2016, there was an attempted coup in Turkey by part of the military. During this attempt, people who were demonstrating peacefully in the streets against the coup were shot, while the Turkish government building and other buildings in Ankara were bombed. The Union of Turkish Mechanical Exporters (Turkish Machinery) has condemned this violence and sees it as an attack against democracy. The Turkish Central Bank and Ministry of Finance immediately implemented corresponding fiscal and monetary control measures to counteract any potential negative effects on the financial market and to continue to guarantee a solid macro-economic foundation. The Turkish banks are stable and the exchange rate has remained within usual tolerance ranges. However, what effect will this have on the Turkish mechanical engineering sector, will it affect exports and how will the union position itself in this market situation? Investment plans continue to be positive Following a very successful year in 2015, the scope of foreign investments in Turkey has continued to develop positively during the first two quarters of this year. It is, for example, worth noting that a foreign consortium of investors has already implemented a strategic investment package worth USD 526 million in Turkey directly after the most recent events. In addition, particularly German companies such as Bosch, Metro and Siemens have once again reaffirmed that they will continue with their strategic investment projects in Turkey. Although the latest developments do cast a shadow over the economic success of Turkey, the economic climate within the mechanical engineering sector has remained positive. In line with overall production in the mechanical engineering sector, which recorded an increase of close to 3.0% in the first quarter of 2016, exports in the first half of the year increased by 4.0% to a total of USD 6.8 billion. Germany, the USA and Great Britain are the main export countries for Turkish mechanical engineers. Compared to the previous year, exports to Germany increased by 6.3% and by 9.9% to the USA. Economic planning and cooperation projects remain stable In the past the Turkish economy has proven to be very robust during times of global and national turmoil. The decision makers for the Turkish economy have reiterated that all measures (medium-term economic planning for Turkey) agreed before the latest events will continue to be implemented without any changes and that further investment and support packages will also be developed. The provision of our supply chains, starting with raw materials right through to the delivery of finished products, is safeguarded in future and will continue to be maintained as usual. As the main contact in Germany, Turkish Machinery, will in future also continue to focus on investing in the German/Turkish collaboration, generating cooperations, promoting the transfer of technology and joint projects in the research and development sector. The union will continue to develop and intensify existing, comprehensive relationships with German federations, organizations, associations and companies. The German/Turkish collaboration in the mechanical engineering sector should encompass more than just trade – globalization and technological development also require close cooperation. In this regard, Turkish Machinery sees itself as a partner on the way to developing potentials. Interested parties have been invited to exchange ideas and attend detailed negotiations in Turkey. Author: Adnan Dalgakiran, Präsident, Turkish Machinery, Ankara Turkey, Nicole Steinicke, Editor, Automation Technologies, Vereinigte Fachverlage, Mainz, Germany NEWS AND MARKETS

In conversation with Adnan Dalgakiran, President of Turkish Machinery, Ankara, Turkey Mr. Adnan Dalgakıran, Turkey, as an export-oriented country, represents the 17 th largest economy in the world and the sixth largest economy among the European countries. Do you think that the current political developments could jeopardize its position? The effects of current political developments on the global positions of national economies are not observed in a short period. Furthermore, it appears that Turkey will benefit from recent developments because we can say that the Turkish economy will grow faster as a result of the consolidation of democratic institutions and importance attached to merits. In addition, as the representatives of the machinery industry, which have a key position within the Turkish economy, we believe that we are not satisfied with our current ranking in the world and that Turkey should be among the top 10 economy of the world because of its potential and dynamics. We have both industry-specific and general roadmaps for that purpose. Our targets fully coincide with the appeal for a stronger democracy in the wake of latest developments. Developments in the machine industry have made significant contributions to the growth of the national economy particularly in the past decade. In your opinion, what are the pillars of that accomplishment from the standpoint of your industry? It is known that the Turkish economy is pursuing an exportcentered growth strategy. You have to produce in order to export. The machine industry’s development and growth has originated from this need. Largely dependent on imports, our industry started diminishing this dependence thanks to its high performance from one year to the next and consequently made a greater contribution to the growth of the national economy. Main factors behind our successful performance in this industry in the past couple of years are; importance attached to quality, entrepreneurship, and our flexible structure. Our responsiveness to demand and logistical capabilities ensured our current success. We are, however, not at the desired point in our industry yet. We need to find solutions warranted by the age of industrialization by training our employees more efficiently. Thus, our industry is facing some major issues such as digitalization, automation, and the requirements of Industry 4.0. We know that you, as the representatives of the machine industry, attach importance to technological cooperation in Turkish-German relations. We hear that your government plans to recall scientists from Germany. Would such a move put bilateral scientific relations at risk? Germany is a benchmark country from the standpoint of the machine industry and it is, therefore, of strategic importance to us. We have reached an important point in our trade with that country Adnan Dalgakiran, Präsident, Turkish Machinery, Ankara Turkey as compared with the past, but we have a potential greater than that reflected in trade. We are intensifying our efforts to enhance our technological cooperation with Germany in particular. Recalling the employees of our industry or these kind of cases are out of the question. Our ongoing efforts will continue without any interruption. Our partners have sent us messages reflecting their desire to continue. Thus, reports appearing in the media outlets of other countries should be taken with a pinch of salt. We are also endeavoring to enlighten those who have questions about different issues and to help them. We know that the Machinery Exporters’ Association of Turkey have appealed for joint investments in third countries as an ideal area where Turkey and Germany can cooperate. What would you like to say about the potential benefits of such cooperation for companies and what kind of a role they need to play? In fact, the model that we have developed and offered for cooperation between Turkish and German machinery industries is actually a model that we can also share with companies in other countries. This model aims at expanding global and modular areas of cooperation in global markets while making an optimum use of resources and business opportunities. Export quota of Turkish machines for the international market equates to 80 %. Agricultural machinery in Germany, for example, are suitable for large areas with a high automation capability. They can cooperate with our agricultural machinery manufacturers who still have not got into automation and produces for small lands. The supply network in all industries, including casting, chromium plating, and processing of sheet steel represents a network which is most suited to cooperation. Turkey has always maintained commercial ties with her close neighbors. Germany may benefit from our experience and skills regarding marketing. Mr. Dalgakiran, thank you for this conversation.. The interview was conducted by Nicole Steinicke, Editor, Automation Technologies, Vereinigte Fachverlage, Mainz, Germany Photographs: teaser fotolia, other Turkish Machinery MDA Technologies 3/2016


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