October 4, 2022
Posted by: Explore Middle East FZE

Turkey is going faster for industrialization and encouraging industries in sectors like machinery, shipbuilding, electronics, defence equipment, mining, boron, automobile, steel, copper, iron and food processing: Opportunities are bigger if you are manufacturer or supplier of Stainless Steel, titanium, chromium manganese, zirconium and Nickel Alloys.

Opportunity for steel manufacturers and suppliers in Turkey

Turkey oil and gas imports are on the rise

Annually, the oil and gas imported by Turkey net $45 billion. With the discovery of offshore natural gas in the Black Sea, the Turkish Petroleum Corporation has recently started sourcing materials required for offshore drilling and production. Plans for the immediate future include – exploration in both, the Eastern Mediterranean Sea and the Black sea. Moreover, Turkey could see investments made for various floating storage and regasification unit (FSRU) vessels. In the forthcoming years, several of Turkey’s long term take-or-pay agreements will expire. The Ministry of Energy and Natural Resources has plans to privatize BOTAS, concurrently decreasing its share in the market. Currently, BOTAS owns an LNG facility and one FSRU facility, while a private entity owns the other.

Turkey plans to commission a new FSRU LNG import terminal

With the success of Turkey’s first FSRU, the government seeks expansion of its gas storage facility at Silivri. As of 2022, Turkey plans to utilize Saros Bay to construct the third FSRU facility, in northwest Turkey. The construction of a third facility may see an increase in the import of good quality, durable, corrosion resistant materials like stainless steel.

Potential pipeline to connect Turkey to Europe?

Turkey has been a big importer of oil and natural gas. However, it is a transit country for oil producing nations such as Azerbaijan and Russia. The availability of potential deposits in the eastern Mediterranean would mean a requirement for pipelines from Turkey to Europe. An opportunity presents itself for suppliers and manufacturers of stainless steel alloys/ components like pipes, tubes etc.

Turkey’s defence and aerospace sales have grown almost 1,200%

The Defence Industry Manufacturers Association reports that Turkish defence and aerospace sector sales touched $10.1 billion in 2021. The acceleration in exports comes close on the heels of a steep decline caused by the Coronavirus pandemic. The Turkish government is close to seeing the geo-political expansion of their defence sector. Countries such as Hungary, Latvia, United Kingdom, Lithuania, Latvia, Bosnia-Herzegovina, Serbia, Slovakia, Saudi Arabia, Uruguay and Albania have been identified as potential buyers of Turkish made drones.

Turkish defence companies have also found a market for Armoured trucks in African nations. Considering the growing threats of terrorism and cross-border tension, the defence sector may witness an export opportunity in Africa. Armoured trucks made in Turkey using galvanized or stainless steel would see an import of these metals. In particular, alloys that contain high amounts of chromium or nickel are preferred.

Turkey increases investment in Boron production.

Turkey accounts for nearly 73% of boron production across the globe. As of 2021, Turkey set a record by exporting 2.5 million tons of boron. The sales estimates are said to have crossed over the $1 billion mark. Plans to set up Lithium boron facilities around Balıkesir’s Bandırma and Kırka neighbourhood in the central Eskişehir province of Turkey.

The auto sector rose by 3.5% since last July

According to the Uludağ Automotive Industry Exporters’ Association, the increased exports hit sales worth $2 billion. The UK market increased its import of Turkish automobiles by 38% in sales amounting to $321 million. The year-on-year exports to Italy grew to 16%, whereas German imports increased by about 8%.

Gilead Sciences invests $60 Million in Turkey

In what is seen as a strategic move, Bio-pharma company Gilead Sciences is set to produce hepatitis and HIV drugs with Pharmactive. With an investment of $60 Million, the company aims to generate a sales volume as high as 70% in Turkey.