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The Development of Technical Textile in Turkey

By Business in Turkey, News about Turkey No Comments

Being one of the most significant centres of the world textile industry, the market for technical textile in Turkey has begun to grow in the last few years thanks to the development of products with high added value. Manufacturing companies, which started their activities with essential products in the 1970s, now export tons of technical textile raw materials or finished products to the world. Meltblown, Spunbond, Spunlace, Thermobond, Waterlaid technologies are particularly popular in Turkey. Companies producing technical textiles manufacture raw materials or semi-finished products used by all sectors, especially construction, ready-made garments, geotextiles, home textiles, cleaning/cosmetic/hygiene, automotive, packaging, food industries. As the manufacturing companies operating in the Turkish market are new to the technical textiles market, they describe themselves as part of the sector they supply. Satisfied with the global demand for their products, manufacturers make constant technological investments to update their technologies and increase their production capacity. New countries are also beginning to operate in the sector. Intending to start smart textile production in Turkey as well, Turkish textile manufacturers are receiving attention with the R&D and P&D investments they have recently boosted. Products marketed by most of the companies manufacturing finished products under their brand name are also attracting global interest. There are hundreds of companies operating in this field in Turkey. As a result of these developments in Turkey, many foreign companies are either transferring production facilities to Turkey or becoming partners with Turkish companies.

Investments in technical textiles are showing signs of paying off

The Centre for Research and Application of Technical Textiles was created five years ago by the Aegean Association of Textile and Raw Material Exporters. By creating this application centre to raise the share of exports of technical textiles, the union began to see the results of its investments.

The exports of technical textile in Turkey increased by 19% from 899 million USD to 1071 million USD in the period January-July 2018, whereas the exportation of technical textiles from the Aegean region rose by 40% from 45 million USD to 64 million USD.

Metyx Group and Karl Mayer sign an agreement

METYX Group has signed a deal with Karl Mayer – a technology supplier to a German manufacturer of technical textile machinery – for new production facilities to provide an additional 12,000 tons of glass and carbon fibre fabric knitting capacity to its new manufacturing lines. It has both expanded the production capacity of the Manisa plant in Turkey with the manufacturing area and also laid the foundation for overseas manufacturing plants as part of its multinational strategic business growth plan.

Korteks expands its R&D investments every year

The Turkish textile market in Europe and the Middle East, maintaining its leading position in the markets of technical textiles, automotive textiles, and functional products, is one of the most significant drivers for R&D. Within this framework, Korteks considers R&D to be the most crucial element of competition.

Korteks produces high quality, original, innovative, and eco-friendly polyester yarn products for the many textile firms around the world. The Korteks R & D Centre promotes the development of new types of polyester yarns by directing research and development activities within the company and improves the competitiveness of the products on the international markets. Using its yarn testing and analysis methods, polymer material technologies, polyester polymer production, yarn texturing and twisting, coloured threads, and masterbatches, Korteks has raised its R&D budget share each year by increasing its R&D investment to develop the technical textile in Turkey too.

The Sun Group expands with R&D and P&D

With more than 30 years of experience in the textile industry, the Sun Group keeps growing with the strength of its R&D and P&D activities. Sun Group companies include Sun Tekstil, Ekoten Tekstil, Ames Tekstil, TDU, and Jimmy Key – its women’s retail clothing brand. With a turnover of 140 million USD in 2017, Sun Tekstil is pursuing its exports with a growth target of 20% this year.

Yarn made of plastic bottles

With the largest and most integrated and innovative polyester yarn production facility in Europe, Korteks İplik is still working on the production of recycled polyester yarns. One of the projects Korteks is working on is yarns made from plastic bottles. Adding a new one every day to its R&D studies, Korteks carries on its research on self-soluble threads.

Fabric made 100 times finer than hair

Manufactured by Mogul – one of the major hybrid nonwoven manufacturing companies not only in Turkey, but also worldwide – smart microfilament fabrics, that are 100 times thinner than hair, are bringing about important transformations in many areas of life in many industries such as fashion, home textiles, medical supplies, cleaning supplies, packaging and automotive.

Turkey brings the change in protective textiles

With technological advances, textile structures, protecting the human body in unsafe surroundings, are on the rise, among other technical textile products. The newly developed manufacturing method, which places importance on the environment and human health in the global marketplace, is enhancing the recognition of technical textiles. Protective textiles, an essential branch of technical textiles, are gaining consumer appreciation by setting standards in the field of safety and hygiene. Particularly in developing countries, as the rate of industrialization rises, the demand for protective clothing increases as the level of sanctions increases.

Production of anti-ballistic fabric

Kipaş Holding Mensucat succeeded in producing bullet-proof fabrics two years ago, thanks to R&D studies. An exceptional fibre was used in this textile. In addition to the bullet-proof function, it is regarded that the fabric, which is invisible with infrared rays, fireproof and water-resistant, can be used as an alternative to steel jackets, which are disadvantageous because of its weight. After manufacturing a bullet-proof fabric two years ago, a 50% cheaper bullet-proof suit is now being manufactured.

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Today, the Turkish textile and clothing industry is the most internationally oriented industry that can challenge any other country in terms of quality and a wide range of products on the international markets. Turkey has already expanded its cotton production, which will bring it on the way to become more independent of external sources of cotton.

Simultaneously, the country’s government is very concerned about solving the remaining problems in the industry, and consequently, soon, Turkey could be the most powerful competitor for its main rival countries. Although it is not possible to see Turkey as the biggest competitor of China, for smaller needs of demanding countries, Turkey can be the best option thanks to its location and ease of transporting to European countries not only with the help of textile industry but also expanding contribution of technical textile in Turkey.

Source: https://www.etextilemagazine.com

Textile Industry in Turkey in 2020

By Business in Turkey, News about Turkey No Comments

Turkey is one of the most significant textiles and clothing producing countries in the world and the 6th most significant supplier in the world and the 3rd largest supplier to the EU. Turkey’s textile industry is of great importance in the European and North American textile trade. The modern industrial facilities in Turkey demonstrate the considerable growth of the textile industry in recent years.

The Turkish textile and ready-to-wear industry currently employ more than one million people. The textile industry and its supporting sub-sectors now employ a total of 1.67 million people, and this number will increase in the coming years due to additional investments and increased exports.

As Turkey’s trade minister said, Turkey exported some $17.7 billion worth of ready-to-wear products in 2019. Turkish manufacturers are now seeking to seize the window of opportunity created by coronavirus-affected China, which is expected to suffer from production delays of five-six months in 2020.

According to the Istanbul Garment Exporters Association (İHKİB), the sector had a 10.1% share of the country’s total exports of $14.8 billion in January 2020, reaching an export figure of $1.5 billion, up 5.8% in the same month last year. Nearly 73.4% of exports went to EU countries, with Germany and Spain as the primary recipients.

Turkey is one of the production centres that is taking the most advantage of the coronavirus epidemic, as it presents itself as an alternative production hub to the Chinese market.

In January, the country’s fashion exports recorded an annual increase of 5.8% according to the latest data from the Istanbul Garment Exporters Association (Ihkib). In the first month of the year, Europe was Turkey’s primary customer.

Germany, Spain, and the United Kingdom were the largest importers of Turkish fashion products during the period, recording an increase in exports of 4.7%, 8.7%, and 3.9%, respectively. The Netherlands, France, USA, Denmark, Iraq, and Poland are also among the leading importers of Turkish textiles.

In the meantime, Mustafa Gultepe, President of the Ihkib, said that the coronavirus would positively affect the Turkish industry since the major fashion operators moved their products into the country before the outbreak of the outbreak. Nevertheless, it also affects the decrease in the production of raw materials in China which has been hit by the coronavirus.

The main advantages of the Turkish textile and clothing industry are:

Turkey has several advantages in textile production as well as the supply of raw materials based on the following points:

– In logistics terms, the country has a very strategic position since it is the gateway to the European countries’ markets.

– The county is a source of raw materials used for manufacturing. Turkey ranks 7th in world cotton manufacturing.

– Thanks to its flexible trade policies with a highly skilled labour force, the country has a highly developed industry capable of producing quality goods.

– The country has a customs union agreement with the EU and free trade agreements with other countries.

– Turkey is also known to attach importance and priority to the working conditions of its workforce.

– Turkey continues to invest in the use of advanced technologies to develop its industry.

–  Turkish companies have skilled and educated human resources.

– The design capacity of Turkish manufacturers is strengthening.

– Accumulation of technical know-how is perfectly well in the textile industry in Turkey.

Sources: https://www.textiletoday.com  https://www.dailysabah.com  

How to protect yourself against the new coronavirus?

By News about Turkey No Comments

The coronavirus, with its new given name Covid-19, has become one of the major problems of the world within the last couple of weeks. The disease first diagnosed in China and then spread to almost every country around the world. As of 19.03.2020, there have been 227.310 confirmed cases, and 84.532 of them recovered while unfortunately 9.311 of them lost their lives.*

The good news is it is not so difficult to protect yourself and your family from the coronavirus. You only need to take some simple precautions which are pretty effective!

  1. Wash your hands frequently with soap and water for at least 20 seconds, but please do not forget to turn off the tap while using the soap!
  2. Cover your mouth and nose with disposable wipes when you cough or sneeze and use the inside of the elbow if there are no wipes nearby.
  3. Keep a distance of 3 to 4 steps from people with cold or flu symptoms.
  4. Cancel or postpone your planned stays/business trips abroad.
  5. Ventilate your room/house or office environment frequently.
  6. Clean frequently used surfaces, such as door handles, light fixtures, sinks, with water and detergent daily.
  7. Wash your clothes with regular detergent at 60-90 ° C.
  8. Avoid close contact with people (shaking hands with others, hugging, etc.).
  9. If you have symptoms such as fever, cough, shortness of breath, wear a mask and contact a health care professional.
  10. If you have cold symptoms, avoid contact with the elderly, and chronic patients, do not go outside without wearing a mask.
  11. Avoid touching the eyes, mouth and nose with your hands.
  12. Do not share any personal items (including hygiene items such as towels) in common.
  13. Stay at home for the first 14 days when you return from abroad.
  14. Drink lots of fluids, eat a balanced diet, and pay attention to your sleep patterns.

As you see, the precautions are very simple and highly protective. Please pay attention to each one of them until the outbreak is over! Scientists from every country are working on stopping the virus spreading and curing the people who already have it. We can only help them by protecting ourselves and people around us only by following these simple rules.

Data source: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

Electric Car Production in Turkey

By Business in Turkey, News about Turkey No Comments

Construction of the car factory for electric car production  would start in May 2020 in Bursa

The Managing Director of the TOGG Group, consisting of the companies Kök, BMC, Zorlu, Turkcell and Anadolu Group, stated that construction of the Turkish electric vehicle plant would start in May 2020 in the province from Bursa to start electric car production. The objective is to start mass production in 2022 with an annual capacity of 175,000 units and produce one million electric vehicles a year by 2032. He also indicated that the company was in discussion with the German engineering company EDAG as a technology partner for integration vehicles.

Turkey will have 4 hybrid vehicle production plants by the end of 2020

The first production of hybrid vehicles in Turkey dates back to 2016 with Toyota’s C-HR in Sakarya in the Marmara region. Oyak Renault will produce hybrid engines in Bursa beginning from 2020. Ford Otosan manufactures The PHEV Transit Custom PHEV Plug-in Hybrid Electric Utility Vehicles (PHEVs) in its facilities from Gölcük to Kocaeli. Finally, Hyundai Assan plans to start production of a new model of hybrid vehicles (i20) in the last quarter of 2020, followed by the hybrid engine of the B-SUV model in 2021.

Will there be more than one million electric vehicles in Turkey by 2030?

The Ministry of Energy and Natural Resources predicts that by 2030, more than one million electric vehicles will be in use in Turkey and that sales of electric and plug-in hybrid vehicles will reach 55% of total sales of vehicles. The ministry announced that it is evaluating the impact of the deployment of one million load points on the network of the country’s electricity distribution system before starting the electric car production in Turkey.

Source: https://www.dailysabah.com/

Ankara will be the capital for the Turkish defence industry

By Business in Turkey, News about Turkey No Comments

The production centre for the Turkish defence industry was founded in the capital city of Turkey. Ankara Aerospace Industrial zone will be completed in 2022 and it will be the capital of high technology production and export.

160 companies will be able to operate in the centre established in an area of 7 million square meters. Over 20 thousand people will be employed at the centre, which will be completed in 2022.

The President of Defense Industries Ismail Demir stated that “This place will be the heart of Ankara and Turkey’s aerospace industries. In terms of manufacturing technology, the area will be a centre of excellence. Some companies have already begun their activities.”

All links of the chain related to Turkish aviation and space technologies will be gathered at this centre. The centre, which will be the base of the defence industry, is of great interest for the leading companies of the world, as well as the Turkish companies, have taken action to have a place in the centre.

“The centre will have a significant place in the world, and it will be appealing for global companies as well. The environment of the centre will create an atmosphere for scientific and technological inventions and will open new gates for the Turkish companies to open up to the world,” he noted.

Source: https://www.tccb.gov.tr/

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Turkish furniture sector is set to enlarge its world-wide presence

By Business in Turkey, News about Turkey No Comments

The Turkish furniture sector is enlarging its presence globally. As a country that exported $3.5 billion worth of furniture last year, Turkey is planning to launch two shopping malls in the United States and Dubai in the upcoming months.

As the Turkish furniture sector maintains its position in the global market in terms of exports, it is focused on building a global brand and continuing sales channels abroad.

Koray Calışkan, director and shareholder of the country’s oldest furniture showroom, Modoko, said the U.S. mall is scheduled to open in the first half of this year in Kansas, while the Dubai project will be ready in two months.

These new furniture shopping centres will sell Turkish products from many brands.

The project was launched jointly by Modoko, another large MASKO furniture showroom and the Kayseri Organized Industrial Site (OIS), said Çalışkan to Anadolu Agency (AA).

Shopping malls in Dubai and the United States were the company’s first target, adding that it plans to open more stores in the United States and around the world, he added.

Turkey and the United States also recently declared a goal of $100 billion in bilateral trade volume, and the furniture sector was among the top five sectors targeted by that goal.

“This project will provide Turkey with a global brand and a permanent outlet for the promotion and export of the country’s furniture products,” said Çalışkan.

Regarding the US project, Çalışkan said studies for the shopping centre were continuing, adding that much of the work had already been completed.

The mall in the United States will offer services such as management, sales, assembly and logistics.

“We are awaiting the approval process and incentive procedures, which will be announced in the first half of 2020,” he continued.

Çalışkan said that these shopping centres will significantly increase Turkey’s exports, adding that each shopping centre is expected to achieve high sales in a short period of time.

Stating that the country’s furniture exports have reached $3.5-4 billion compared to $100-150 million over the past 15 years, he added that the sector’s target for 2023 is $10 billion.

The planned furniture shopping centre is also foreseen to provide support to secondary sectors such as household goods and carpets, and to generate new opportunities for small businesses, which currently lack sufficient capacity to export goods.

The project will also boost the value of Turkish brands abroad.

Source: https://www.dailysabah.com/

Chinese Geely to produce a ‘virus-free’ car

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Chinese automaker Geely, which also owns Volvo, has announced that it will develop a  virus-free car that will protect drivers and passengers against viruses.

“Geely Auto transferred 370 million yuan (around $ 53 million) to develop healthy and smart cars that will clean the air and filter viruses, as part of the fight against coronavirus,” the company said in a statement.

“Geely Auto’s R&D and design teams in Europe, the USA and China will work together to develop environmentally sustainable materials with anti-bacterial and anti-viral properties that can be used on ventilation surfaces and frequently touched surfaces such as buttons and arms.” as it is stated.

“Prevention of the epidemic requires a long-term effort with the participation of all segments of the society. People spend a lot of time in their cars, which are the most common means of transportation. Cars are like their second home,” said An Conghui, Chairman and CEO of the company.

Geely’s virus-free car project has been compared to “Biological Weapon Defense Mode” in Tesla’s Model X and Model S vehicles by auto experts and users on social media.

Tesla uses HEPA (High-Efficiency Particle Trapping) filters, which he calls “100 times more effective” than the filters of luxury cars in these models. The company says these filters eliminate 99.97 per cent of bacteria, virus, pollen and fungal spores, and the filter captures small particles up to 0.3 micrometres.

The company tested a Model X vehicle in 2016 by placing it in a giant transparent tent filled with air pollutant particles.

He explained that the Biological Weapon Defense Mode completely cleaned the vehicle’s air within minutes after it was activated, and even the system started to clean the air outside the car. However, after the experiment, some experts pointed out that viruses can have particles smaller than 0.3 micrometres.

“If you are concerned about anthrax and plague, a good filter system will probably protect you. But if you believe that all bioterrorist substances are bacteria, you’re protected to a limited extent,” he added.

Source: https://www.sondakika.com/

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Major Turkish Construction Companies

By Business in Turkey, News about Turkey No Comments

As of August 2019, 44 Turkish companies are included in the list of the “Top 250 International Contractors of the World” published by the international construction sector magazine ENR (Engineering News-Record) based on the revenues earned from contractors’ activities abroad. Turkey, while maintaining the second place after China ranks first in the list with that number, and the US with 36 firms ranked third.

Turkish construction firms increased their share in the Middle East market from 9.7% to 10.4% in 2018, while its share of the Asian market shrank from 4% to 2.1%. Their shares in the African and European markets remained unchanged at 5.6% and 7% each. 130 projects with a value of $5.6 billion were undertaken abroad between January and July 2019. Up to the first half of 2019, 9.682 projects of a value of $386 billion have been contracted by Turkish companies for services in 124 countries abroad.

The construction market grew modestly by 1% to $477.3 billion annually in 2018 worldwide, while it increased from about $500 billion to $544 billion between 2012 and 2014.

Seven Turkish companies were listed among the top 100 companies on the Engineering News-Record (ENR) list – Ronesans 33rd, Limak 67th, Tekfen 69th, TAV 71st, Yapi Merkezi 77th, Ant Yapi 87th and Enka 92nd.

Here you can read more about the Turkish construction companies which take place in the top 100 construction companies in the world:

https://yeniexpo.com/english/general-topics/top-5-residential-and-commercial-construction-companies-in-turkey/

  • Rönesans Holding: The holding was established in St. Petersburg, Russia, in 1993. Rönesans Holding is active in different fields such as; real estate development, energy, industrial facilities, and healthcare. The holding is actively working in 23 different countries and ranks 33 in the ENR’s list of the world’s largest construction companies. The holding comes in 9th place among the contracting companies in Europe.
  • Limak Group: Limak Group was founded in 1976, and since then the group companies have been working in different fields such as; construction, tourism, cement, infrastructure, energy contraction, aviation and food. The construction company has finished more than 100 projects which worth 10 billion dollars. These projects include airports, dams, power plants, industrial facilities, oil and natural pipelines, holiday villages, building complexes. Limak Group is one of the contracting companies of Çanakkale Bridge project.
  • Tekfen Holding: The company was established in 1956, and it is an international contractor with significant accomplishments in Turkey, the Middle East, North Africa, Caucasia & Central Asia, East & Central Europe. The company’s activities cover massive civil engineering works, refineries, petrochemical plants, satellite cities, industrial processing plants, pipelines, marine structures, power plants and electrical and communications works.
  • TAV Construction: The company is a member of the TAV Group which was established in 1997 by Tepe Group and Akfen Holding. TAV was created to develop Istanbul Atatürk Airport, then in 2003 TAV construction was established, and in a short time, the company realized important projects in airport construction.
  • Yapı Merkezi: The company was founded in 1965 for the construction projects. The company is a holding which includes 8 different companies for its various activities. Those activities can be listed as follows: prefabricated buildings, cable-stay systems, heavy lifting, ground anchorage, education, GRP pipes, rail systems, tunnels, bridges, viaducts, industrial and general service buildings, water collection and supply systems, restoration, mass housing and city planning etc.
  • Ant Yapı: The company was established in 1991 in Turkey and based in Istanbul. It has offices in Russia, England and America. The companies in the holding is actively working in the following fields; residences, holiday estates, schools, hospitals, rest and recreation facilities and they maintain contracting and project development works for the main company.
  • Enka: The company was established in 1957 in Istanbul. The company has completed 124 projects in Turkey, of which total amount $7 billion and another 396 projects with a value of $40 billion in foreign countries. The holding is working in the following areas: health, safety & environment, design & engineering, human resources, quality management, information technologies, machinery & equipment, finance & accounting, legal affairs and security.

Below you can see the full list of Turkish construction companies which are in the ENR’s top 250 construction companies. The primary objective of these companies is to increase the global share of Turkish companies to 7%, which is equivalent to USD 50 billion in business volume per year by the 2030s.

The Construction Industry in Turkey in 2020

By Business in Turkey, News about Turkey No Comments

It is predicted that the construction industry in Turkey just like it is in other developing economies in 2020 will continue the tradition of positive segregation in the medium and long term. The trend of Turkey’s economic growth traditionally based on the construction and real estate market together with textile, automobile, aviation and defence industries. Yet the construction industry has a locomotive role in employment with the sectors that it interacts with.

While the overall economic confidence index increased by 14 per cent in the January-October period in 2019, the increase in the construction sector confidence index was realized as 15 per cent. As of November 2019, the October confidence index data experienced a significant recovery in Turkey, which has experienced the most stable financial climate of the recent period. The usual “high coefficient response” of the sector was also observed here. The general economic confidence index increased by 4.5 per cent in October ‘19, while the construction sector confidence index rose by 8.3 per cent. Here, the reflection of the general trend and the rapid improvement in consumer confidence indices on the construction sector also stands out as an important factor.

Housing sector

As the Turkish Statistical Institute (TÜİK) announced on Jan. 15. House sales decreased by 1.9% or 26669 units in 2019 compared to the previous year, according to data from the Turkish Statistical Institute (TurkStat). Approximately 511,700 houses were sold for the first time from January to December, while the rest were second-hand sales. You can read more details regarding the number of house sales in our article 1.35 Million Houses sold in Turkey in 2019.

Commercial real estate industry

The total demand increased to 6.46 million m² with the introduction of a new office area of 100.910 m² in Istanbul, where almost a third of the country’s economy revolves. The 78,382 sqm lease made in the last quarter of 2019 is 4.8% lower compared to the same period last year. With the acceleration of economic recovery and stability in foreign exchange rates, the rapid recovery in the third quarter of 2019 is expected to continue in 2020.

Number of Shopping Centers has not changed

The total number of shopping centres with 453 across Turkey as of year-end 2018, has not changed in the last quarter of 2019. Although this is a historical situation encountered for the first time, the number of shopping malls in the project phase was 44.

As of the last quarter of 2019, 13 million 453 thousand square meters of leasable area stock in Turkey will reach 16 million square meters with the implementation of new projects.

Shopping malls have become a part of urban life. Despite the economic difficulties and relative falling numbers of visitors, the turnover index increased by 3.5% annually in September 2019.

Touristic facilities hosted 41 million tourists

The number of tourists, which increased by 27 per cent in 2017, increased by 21.6 per cent in the first 10 months of 2018 compared to the same period of the previous year. The increase continued in the first 9 months of 2019 and reached 41 million, with a total of 14.5%.

In the third quarter of 2019, revenues increased by 22% compared to the same quarter of the previous year. During this period, with an income of 14.3 billion US dollars, the average expenditure of visitors per person was 649 US dollars. The increase in this figure, which was 612 USD in the same period of last year, can be considered as a power source for the sector. Within the scope of the New Economic Program, the tourism income target for 2021 has been determined as 42 billion USD.

In our previous article, we have announced the record in the tourism sector in 2019 which you can read in our blog. It can be said that tourism will grow in 2020 and a new record is expected in the Antalya region with at least 14 million tourists.

Mega Projects of Turkey

In the New Economic Program (YEP) announced in September 2019, it has been repeated that projects that have been or have not been tendered but whose construction has not started will be suspended. It was stated that new and extended business plans will be created for those whose financing conditions are suitable from the ongoing projects to support the construction industry in Turkey.

The latest situations in some of the existing mega projects of Turkey are as follows:

Istanbul New Airport: Istanbul Airport, which started its operations in April 2019 with the biggest moving operation in aviation history, continues to approach its potential. A total of 41.8 million passengers travelled at the New Airport between January and October 2019 with arrival and departure flights. On the other hand, it has been announced that the operator of the airport has decided to restructure the maximum amount of 5 billion Euro of IGA’s debts.

The Istanbul Financial Center: Three new contracts, totalling TL 3.7 billion, have been signed for the constructions. As the authorities stated that the construction of the project will be completed by the end of 2020, and the companies will move and start working there in 2022.

Çanakkale 1915 Bridge: The construction of the bridge, which started on 18 March 2017 and undertaken by a consortium by 4 companies, two of them Turkish and two Korean, continues. Middle opening of the bridge is identified as 2023 meters to symbolize the year of the 100th anniversary of the founding of the Republic of Turkey and the bridge will be the world’s longest suspension bridge with a clearance from the tower. Çanakkale 1915 Bridge is planned to be completed in 2023.

Canal İstanbul: The project, which came to the agenda for the first time in 2011, whose purpose was to completely close the Bosporus to tanker traffic, was postponed after the macroeconomic crisis in 2018. It was announced that the technical studies and environmental studies for the project were completed. Following the preparation of the Environmental Plan which will clearly show if there are any hazards for the environment, the tender stage will start.

City Hospitals: Although the efficiency of city hospitals has been discussed in recent days, the budget resources will continue with the use of the PPP (public-private partnership) system. Along with Ordu, Sakarya and Sancaktepe, 10 hospitals are planned to be built with state resources.

SWOT Analysis of the Construction Industry in Turkey

Strengths

• Turkey’s geopolitical position increases the centre of attraction for Middle Eastern countries

• Young population ensures continuity of housing and infrastructure investments

• Cheap labour force caused by migration relatively limits the increase in costs

• There are important sector representatives with international experience and institutionalism.

 

Weaknesses

• Impacts and fragility caused by the deterioration in financial conditions

• Increase in the cost of building construction

• Low economic confidence of individuals in the long term

• Weak institutionalization in the sector

• Technological developments in the world have not been caught in the sector yet

Opportunities

•Turkey’s being the second-largest country in the international contracting services creates a climate of trust that paved the way for all sectors

• The geographical location keeps international demand alive

• Natural demand is high due to the young population

• Low housing ownership feeds potential demand

• The government’s practices to encourage housing purchase and savings are getting stronger

• The current value of TL keeps foreign demand high

• The need for urban transformation creates supply appetite in the medium and long term

Threats

• Fragility in financial markets

• The sensitivity of economic trust to financial markets

• Geopolitical uncertainties

• The supply-demand imbalance caused by wrong investment decisions in some segments

• Downward pressure on prices due to high idle capacity

• The decline in oil and natural gas prices also reduces the income of energy exporting countries and this negatively affects the construction activities and the business volume of Turkish contractors.

• Real value application in the land registry

• Valuable housing tax application

2020 Expectations

After a growth trend in average close to potential in Turkey sharply weakened in 2018 and in 2019. On the other hand, the recovery process of the construction industry in Turkey that started with the second half of 2019 and the growth estimates between 3% and 5% in 2020 provide an improvement in future expectations. The sector maintains its high potential in almost all areas in the long term. Short-term vulnerabilities also strive to be overcome with public support. Despite the increasing production costs, the funding costs that came down in the last period of the year are an important development for the sector’s turnover.

In this process, projects and urban transformation practices for the development of health tourism, which are also included in the New Economy Plan, are also important for the sector’s mobilization. There is another important fact that Turkey has been encountering earthquakes and as a result, the government has been transforming the old buildings into new ones. Regardless of all the crises construction sector stays alive and active in order to meet the needs of the Turkish society. Implemented urban transformation projects increase the property market of Istanbul which is helping the construction industry in Turkey to increase its share in GDP.

How can Coronavirus Spread Impact Global Business?

By Business in Turkey No Comments

Coronavirus spread is not only threatening people’s health, but it has also become a risk for world economies. Due to the virus, China’s Asian neighbors and commodity exporters will also face difficulties, according to economists.

What is Coronavirus, and what is the situation now?

“Coronavirus is a virus that causes diseases in birds and mammals. It causes respiratory tract infections, which are generally not serious but have a risk of death, diarrhea in cows and pigs, and upper respiratory tract diseases in chickens.” as it is defined on Wikipedia. However, the current Corona Virus outbreak is more than this, according to scientists, and has enormous effects on human life and business life around the world but mostly on China at the moment.

The Chinese scientists are currently working on developing the vaccine to this virus, which is spreading inevitably fast. Together with government scientists in China, the United States and Australia, as well as those working at Johnson & Johnson, Moderna Therapeutics, and Inovio Pharmaceuticals, are all engaged. As of 30.01.2020, 170 Chinese citizens lost their lives due to the “new coronavirus,” and around 7.711 people are confirmed to have the infection.

All the countries around the world are on alert and warned by the World Health Organization to take action against the SARS-like virus, and it has been confirmed to be detected in almost 20 countries at the moment, and the WHO declared a global health emergency.

coronavirus spread

coronavirus spread

The economic impact of coronavirus spread

Asian stocks and currencies fell on January 30 as the number of people who died rose, and more cases were reported worldwide. The effects of the virus are already severely impacting China’s economy, the second-largest in the world, as companies cut back on business travel and tourists cancel trips during the traditional Lunar New Year holiday period.

A government economist said the crisis could reduce China’s first-quarter growth by 1.5-2% or less as the crisis affects sectors ranging from mining to luxury goods.

Also, it is stated that the outbreak will create a drop in Chinese tourism revenues in other parts of Asia, especially in Hong Kong and Thailand.

Turkey is among the major trading partners of China. In 2019, Turkey 19.1 billion dollars while imports with China, exports were $ 2.6 billion. Since 2002, the amount of foreign direct investment from China to Turkey reached $ 1 billion 38 million. The number of Chinese tourists came to Turkey last year to 450 thousand. Tourism is expected to be negatively affected at the first stage due to coronavirus.

As a result, tourism all over the world, including Turkey, will have a great loss since the Chinese government banned package tours outside China for a month, which can be extended later.

As economist Eswar Prasad, former head of the International Monetary Fund’s China unit stated, “A broader spread of this disease has the potential to disrupt travel, trade and supply chains throughout Asia, with knock-on effects on the world economy, since Asia is now a key driver of global growth.”

On the other hand, a weakening of the Chinese economy would affect oil demand as the country is the world’s largest importer of crude oil – importing a record 10.12 million barrels per day in 2019 – and the world’s second-largest oil consumer, according to data from the General Administration of Customs.

Important events canceled due to the coronavirus spread

Xiamen Natural Stone and Technologies Fair, one of the world’s largest natural stone fairs planned to be held in China on 16-19 March, and the World Indoor Athletics Championship, which is planned to be held in Nanjing, China on 13-15 March, were delayed due to the coronavirus outbreak.

What are the reactions of important brands?

HONDA

Honda Motor stopped production until February 9 to support efforts to prevent a coronavirus outbreak at two motorcycle factories in China. No explanation was made as to when production will resume at Honda Motor’s 3 automobile plants in Wuhan. The facilities were planned to be operational again on February 3 after the Chinese New Year holiday.

TOYOTA

The Japanese automotive giant announced that it had stopped its production in Tianjin and Guangdong in China until February 9. In addition to Honda and Toyota, PSA Group, owner of General Motors, Nissan, Renault, and Peugeot, also stopped production in China due to coronavirus.

APPLE

The company authorities have stated that they are following the situation in China very closely. They have reduced the number of working hours of their employees in Apple stores in China and limited their travels. The factories which are producing for Apple have stayed closed for more than it is expected, and the mass production, which is planned to start in the third week of February, may be delayed due to the coronavirus.

GOOGLE

Google is shutting down all its offices in China temporarily, which are located in China, Hong Kong, and Taiwan, according to the technology website, The Verge.

FACEBOOK

Together with other U.S. companies, Facebook has also restricted travel to China to keep its employees safe. As Business Insider stated, the company stated that they would not allow the staff to go to China unless it is necessary, they would have a special permit requirement for the staff who had to go to China and would be very sensitive to the issue.

IKEA

Ikea announced that they have temporarily closed all its stores in China due to the coronavirus outbreak. They have 30 stores around China, and half of them closed while the rest shortened their opening hours.

STARBUCKS

Kevin Johnson, CEO of Starbucks, told CNBC that they have closed more than half of its stores in China and wouldn’t hesitate to close more if necessary. The remaining Starbucks shops required people to have their temperatures taken and to wear masks.

International Flights and Transport Links

Turkish Airlines, British Airways, American Airlines, Air Canada, Iberia, Air France, KLM, Lufthansa, Delta Airlines, El Al Israel Airlines, Seoul Air of South Korea and Lion Air Group of Indonesia have canceled, suspended or reduced their flights to and from China because of coronavirus. Other airlines have also started to cancel or suspend their flights to and China since the death toll and number of infected cases increase.

Kazakhstan government declared that it had stopped issuing visas to Chinese citizens and will cut all primary transport links with China. Passenger train services, cross-border bus journeys are suspended as well as regular flights between the two countries.

The government of Russia has also announced that they will limit the number of passenger trains starting from 31.01.2020 and will be active between Moscow and Pekin only.

Comments

Within the light of all this information, the coronavirus spread may have inevitable consequences on the world’s economy, and these consequences may be negative or positive for some countries, depending on their situation. Depending on the progress of the spread of the coronavirus, the world’s economy may experience great changes.

Although the negative effects have been stated in this article, it should be noted that for some countries which are competitors with China in terms of production facilities such as Asian countries, Middle East countries and Turkey, etc., this outbreak may have a positive effect. In the case of a nationwide quarantine in China, all the production facilities and factories would be shut down, and manufacturing would stop. At that point, international brands would look for other alternatives to continue their production. Obviously, among all the other countries, Turkey has an outstanding advantage of its location.

Not only Turkey’s geopolitical position puts the country one step forward, but also production facilities of high quality and high capacity, cultural similarities between European countries are all its advantages compared to Asian and Middle Eastern countries. As a result, Turkey may be the new production hub for important international brands who would like to benefit from the ease of transport, accessibility of the manufacturers, cheap workforce, and customs union with the European countries.

Over 84,000 New Companies Founded in Turkey in 2019

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In 2019, 84.102 new companies founded in Turkey. More than 86% of the newly established enterprises were joint-stock companies, while 13.6% were joint-stock companies.

The three main areas of activity of the new enterprises were wholesale and retail trade, manufacturing, and construction.

In 2019, 12,634 new companies with foreign partners were established. Most of them, approximately 35,794, opened in Istanbul, followed by the capital Ankara with 8,673 and the Mediterranean city Antalya with 3,778.

Also, during the year, 1,161 new cooperatives were established.

At the same time, the number of newly created enterprises rose by 23.49% year-on-year in December to reach 7,849 enterprises on a yearly basis.

Within the framework of Turkey’s new strategy, it will provide various incentives and support to the business community and professional managers to support new technology companies. Minister of Industry and Technology Mustafa Varank announced Turkey’s Industry and Technology Strategy previously for 2023, a roadmap that will help the country become competitive in critical technologies and a significant player in the global league.

The strategy outlines the steps that will increase Turkey’s competitiveness, strengthen its economic and technological independence, and improve value-added production in the industry. It also covers policies to encourage and support the development of the high-tech entrepreneurial ecosystem.

Through the encouragement of business people and professional executives to support new technology companies, the number of angel investors will be more, and the utilization of mass financing will be increased.

Provisions will be established to ensure that angel investors do not limit themselves to financing, and they will also transfer experience and provide actionable advice to entrepreneurs. Thanks to their support and experience, the number of new companies founded in Turkey will increase in 2020.

If you would like to find out how to set up a business in Turkey in 8 steps you can check this article.

Source: http://www.hurriyetdailynews.com/

KOSGEB Supports Turkish Women Entrepreneurs

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The Administration for the Development and Support of Small and Medium-sized Enterprises (KOSGEB) provided a total of 1 billion 5 million 363 thousand 551 TL between the years 2015-2019 to 55.046 enterprises owned by Turkish women entrepreneurs.

According to the information collected from the KOSGEB data for the year 2020, the institution has intensified its efforts to increase women’s participation in the workforce. There has been a significant increase in the support provided in the entrepreneurship of women.

The President of the KOSGEB, Professor Uzkurt, said that by 2018, they had provided almost 220 million Turkish liras of entrepreneurship support to 11,000 women entrepreneurs. Thus those 11,000 women started their businesses.

He said that many women entrepreneurs developed their businesses in a short time with the support of KOSGEB, and some of them even started importing abroad. At this point, the President of KOSGEB stressed the importance of their support to women entrepreneurs as women entrepreneurs have countless success stories in their support.

The total amount of support for women entrepreneurs, reached to 57.933.100 TL in 2015, increased five times in 5 years and reached 298.285.791 TL by the end of 2019.

The number of businesses owned by women entrepreneurs receiving support has also increased three times in 5 years. While this number was 5.681 in 2015, it rose to 14.978 in 2019.

Within the framework of the KOSGEB support programs, a total of 1.363,000,551 TL was granted to 55.046 enterprises owned by women entrepreneurs in the period 2015-2019, which will be more in 2020.

Source: https://www.borsagundem.com/

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Turkey is Still a Secure Hub for Investors

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The Regional Director of the Islamic Development Bank (IDB) Group in Turkey, Salah Jelassi, commented on the IDB’s new strategies and Turkey’s current position. “In a climate where investment opportunities are limited worldwide, Turkey continues to be a secure hub for investors,” said Sallah Jelassi, Regional Director of the Islamic Development Bank (IDB) Group in Turkey.

Jelassi gave an interview to the Anadolu agency, where he commented on global economic issues, the IDB’s new strategies, and Turkey’s current position and future expectations.

“It is difficult to find a country with a strategic position like Turkey’s,” he said, adding that Turkey carries a very high potential to achieve its growth and development objectives.

He went on to discuss global economic problems and stressed that “political issues have created a global crisis. Jelassi said that it is mainly developing countries that are affected by it.

He said that Turkey, compared to other developing economies, has more significant potential.

“We ended 2019 with good news, and I hope this positive trend will continue in 2020 and beyond. In a climate where investment opportunities are limited worldwide, Turkey continues to be a safe port for investors,” he added.

Jelassi went on to discuss Turkey’s activities on the African continent.

“Turkey, which has developed an action plan for Africa, is on the right track. Many member countries of the IDB Group are grateful to Turkey. We believe that the experience of Turkish businessmen will help to realize the potentials of these countries,” he concluded.

As Jelassi stated Turkey continues to be a secure hub for investors in 2020 as well.

Source: https://www.trt.net.tr/

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Canal Istanbul: New Landmark Project of Turkey

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The Turkish Government is working on a new project these days. According to the Turkish President, the European side of Istanbul may soon find itself transformed into an island. As Hürriyet Daily reports, Recep Tayyip Erdogan has reaffirmed his intention to dig a deep canal through the city linking the Black Sea and the Sea of Marmara. “We are going to launch the Canal Istanbul very soon,” said the Turkish leader, considering that “it is not possible to reduce traffic on the Bosphorus.”

As Mr. Erdoğan stated; “We, therefore, need an alternative seaway project. All the studies have been done, and we will have no problem financing or building this canal,” the Turkish leader concluded, without convincing the opposition press, which questions the argument that the project will relieve traffic on the Bosphorus. An academic specializing in the issue explained in an interview with the online media outlet Gazete Duvar: “We are living in a period when traffic on the Bosphorus is falling, and the number of accidents is also falling. We are not in a crisis, but on the contrary, in a reduction of risks […] This project does not meet a logistical or urbanistic need, it is only a way to open a huge market to the real estate sector in a sector of Istanbul that is still preserved from construction”.

The ambition is to create a canal about 40 kilometers long, 150 meters wide and 25 meters deep, at an estimated cost of more than 11 billion euros. On either side of this canal, the Turkish president imagines building a “new city.”

The main argument is that this artificial strait would ease traffic on the Bosphorus, one of the busiest waterways in the world, with its risks of collision and accidents. The government also talks about creating 10,000 direct jobs, contributing to the growth of the Turkish economy, and strengthening Istanbul’s position as a world center for maritime trade. The Istanbul Canal is presented as a prestigious project, “one of the biggest projects of the century, incomparable to the Panama Canal or the Suez Canal,” Tayyip Erdogan even said.

Source: https://www.courrierinternational.com/

Construction of Metro Line for New Istanbul Airport Started

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The Turkish authorities have begun construction of a new metro line for New Istanbul Airport which is between Istanbul’s financial district, Gayrettepe, and theNew Airport, as the Daily Sabah daily reported on Sunday.

“We did not neglect the transport problem when we built the New Istanbul Airport. In addition to bus transport from the city, we have started construction of a metro line connected to all public transport (in Istanbul),” said the President Mr. Erdoğan at the opening ceremony of the construction.

Mr. Turhan, the Minister of Transport and Infrastructure, stated that “the construction of Istanbul Airport simultaneously with the construction of the airport’s infrastructure during the construction of the check-in area has started. Stating that they have established the metro infrastructure between Gayrettepe and Istanbul Airport as a ministry, Turhan said: “Our goal is to eliminate the shortage of transport means to Istanbul Airport by offering this line service in 2020. We are building the infrastructure of the railway system between the new airport and Halkalı. We also completed the delivery of the square in March. In 2022, they will be in operation,” said the minister.

Istanbul Airport is located on the city’s Black Sea coast. Passengers can currently take a one-and-a-half-hour bus to the airport or pay about 100-150 lira ($17-25) to taxis in the central districts.

52.6 million passengers, including 12.7 million domestic passengers, used Istanbul Airport in 2019, stated in Daily Sabah.

Source: https://www.turquie-news.com/

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1 Million Electric Cars in Turkey Foreseen for 2030

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According to the Minister of Energy and Natural Resources Fatih Donmez, it is predicted that more than 1 million electric cars in Turkey will be used in 2030.

Along with the local electric car production in Turkey, Donmez says they foresee that by 2030, “1 million electric vehicles will be on the roads. The government will evaluate the effect of the electric cars’ charging points on the distribution network, and we hope to put them into practice.” he stated.

 

Besides the electric cars, the Minister Mr. Donmez noted that “We’ve received 1,300 applications for roof-top installations for roof-top power plants, reaching 800 megawatts from almost 900 industrial plants and 10 megawatts from residences.” He continued.

In his statement, the Minister added: “In the last five months of 2019 alone, 696 industrial or commercial establishments have applied to electricity distribution companies with a total installed capacity of 432 megawatts. In homes, 1.187 applications have come in, there is a 10-kilowatt limit in houses, and we have received one application of approximately 11 megawatts. In total, we received 443 megawatts of applications for roof-top applications. In addition, based on the previous system, the number of applicants to install a solar energy system on their roofs is 5,000,402. This corresponds to 1.104 megawatts. However, we have reached 6,206,206 megawatts in all unlicensed GHG applications.”

To provide uninterrupted, high-quality electricity, the government will have invested approximately 41 billion Turkish liras in the current transmission and distribution lines during the implementation period 2016-2020. Additionally, as a result of the reforms carried out in the framework of the strategy to become an energy trading center, an investment of more than $100 billion has been made in the energy sector. Studies on the preparation of plans and programs for the implementation period covering the years 2021-2025 for the power sector are also underway.

As the Minister of Energy and Natural Resources stated there will be more than one million electric cars in Turkey by 2030 and more people will be benefiting from solar power in their houses and workplaces.

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Source: https://www.dunya.com/

2019: Golden Year for Turkish Exporters

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Turkish exporters were supported with 3.2 billion TL ($543.2 million) in 2019, which is a record in the history of the Republic, as the Minister of Trade stated.

“We will offer a support budget of 3.8 billion TL to our exporters for the export of goods and services in 2020,” Ruhşan Pekcan told the Anadolu agency.

Pekcan said her ministry is expanding its financial support every year to create new exporters so that exporters can follow their global competitors and assist exporters in creating their brands.

The support is provided in three phases, export preparation, global market update, and the creation of brands and designs, she explained, adding that most of the support packages are also available for service exporters.

The year 2019 has been a “golden year” in terms of support for exporters, Pekcan noted.

“In terms of support payments, we broke the record in the history of the Republic and obtained the highest public support to date for exports, with a total of 3.2 billion lire, of which 2.4 billion lire was for good exports,” she stated.

“In 2020, we have a total support budget of 3,800 million lire for our exports of goods and services, of which 3,100 million lire are for the export of goods.” Our objective is to support our exporters using the entire budget. ”

Applications for support began January 1, she noted.

Last year, 685 million TL were provided under the Turquality program, which supports companies in their branding efforts to become a global player in international markets with their brands, to build a positive image of Turkish goods and services by creating strong brands.

“Currently, 312 companies with 325 brands, 199 of them in the Turquality Program and 126 in the Marka Program, are receiving support,” said Pekcan.

The minister noted that Turkey especially encourages design companies and design competitions, believing in the power of design, which is a crucial element for value-added exports.

“Fifteen design companies, four design offices, and 19 design competitions are supported,” Pekcan said.

“Payments in design support have exceeded 150 million TL in 2019. The most significant indicator that our ministry’s efforts are yielding results is that while the unit price of Turkish exports in 2018 was $1.33, the unit price of exports of the companies that benefited from design support was $13.1”.

Around 13.550 companies were supported with 624.1 million TL ($106 million) in international fairs in 2019, while 170 million TL ($28.8 million) of support was used by Turkish exporters for export company announcements, brand, office, store and warehouse expenses, she continued. In 2019, the ministry also spent 80 million lire ($13.5 million) on market research, membership in e-commerce websites, purchasing committees, and acquisition financing.

Source: http://www.hurriyetdailynews.com/

EBRD plans to increase investment in Turkey in 2020

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investment in TurkeyAfter achieving high investment volumes in challenging market conditions last year, the EBRD plans to increase its investment in Turkey in 2020 as the economy prepares to recover.

2019 has been a difficult and challenging year for the Turkish economy. It experienced a weakening of overall asset quality in the banking sector and a reduction in debt levels among creditors. The risk of sanctions and market instability undermined investor confidence, leading to unsatisfactory levels of public and private investment.

Within this context, the EBRD successfully provided € 1 billion of debt and equity financing for 35 projects in Turkey.

Arvid Tuerkner, EBRD Managing Director for Turkey, said: “In a challenging business environment, our business volume in Turkey in 2019 remained unchanged from the previous year. Last year we provided EUR 1 billion of financing in various sectors and were able to support our clients to ensure business continuity and growth opportunities. The vast majority of our investments were made in the private sector, and half of these investments were dedicated to Turkey’s sustainable development program, the country’s blueprint for implementing global development goals.

Mr. Tuerkner noted that the EBRD anticipates the Turkish economy to recover in 2020: “As investors seek financing, we will aim to support even more investment projects that stimulate the economy, create jobs and improve people’s lives.

In 2020, the Bank will also aim to enlarge its Women in Business program and focus on attracting new investors under this initiative. It will maintain its involvement with the Turkish government to deploy energy efficiency technologies in schools and the liberalization of the railway sector. The EBRD will keep its focus on renewable energy projects and make an investment in Turkey in this field as well.

The Bank will also investigate opportunities for Islamic financial products and expects an increase in issues from Turkish companies. Its involvement will be in line with the Bank’s recently approved country strategy, which focuses on building economic sustainability, encouraging a knowledge-based economy, enhancing inclusiveness, and promoting the shift to a green economy.

A large part of this financing is expected to be in Turkish liras, as in 2019. About one-third of the Bank’s financing in 2019 was tied to the local currency and the development of local capital markets to support businesses in reducing foreign exchange risks.

One such loan in Turkish Lira, equivalent to US$100 million, to energy group Enerjisa Enerji, significantly contributed to the improvement of the capital market in Turkey through its link to TLREF, a new overnight risk-free benchmark rate that the EBRD had helped develop.

The EBRD celebrated its 10th year of operation in Turkey in 2019. Twelve billion has been invested in various sectors of the Turkish economy since 2009, with almost all of it in the private sector. The EBRD’s €6.7 billion portfolio in Turkey is the largest of the 38 countries in which the Bank invests. The EBRD is a major investor in Turkey.

In the energy sector, the Bank also supported the expansion of a geothermal power plant and invested in a stake in Ictas Holding’s renewable energy activities in 2019.

The EBRD’s equity-related transactions in Turkey focused on the technology sector, with investments in Modanisa, the online shop for Muslim women’s clothing, and the Obilet bus ticketing application, as well as others.

The Bank also provided incentives to Turkish exporters such as white goods manufacturer Arcelik and dried fruit and nut producer Isik Organic and May Seed, exporting sunflower seeds, maize, cotton, and beans.

In response to the request to support the improvement of port facilities, the Bank has financed four Turkish ports: an innovative logistics center to be developed by Arkas Holding in Kocaeli, Asyaport and the port of Tekirdag through loans – all three in the Marmara region – and the international port of Mersin in the south of the country by taking part in a Eurobond issue.

While bank loans continued to be tight, the EBRD also investigated new ways to increase financing for Turkish companies and supported the leasing company QNB Finansleasing and the factoring company TAM Factoring, as well as the extension of a risk-sharing agreement with Turkiye Sinai Kalkinma Bankasi (the Industrial Development Bank). Turkey or TSKB).

Besides, the Bank’s small business team launched 113 local and nine international consultancy projects with small and medium-sized enterprises (SMEs) in 20 provinces, helping them to improve their performance and growth.

The EBRD achieved a record level of investment impact in all its regions in 2019, honoring its promise to enhance both the quality and quantity of its investments in 38 economies on three continents.

The Bank funded an unprecedented 452 individual projects, up from 395 a year earlier. Funding reached more than EUR 10 billion for the first time in the Bank’s history, rising from EUR 9.5 billion to EUR 10.1 billion.

EBRD funding for the green economy reached a record €4.6 billion or 46% of total business volume in 2019, underlining the EBRD’s strong support for the global climate agenda. They aim to continue their investment in Turkey in the future as well.

Source: https://www.ebrd.com/

Latest Projects of Turkey in 2020

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The Turkish government is supporting the companies to develop new projects in their industries and we have gathered some of them here. In this article, you will read about the latest projects of Turkey in 2020 in the following sectors: energy, environment, transport, industry, automotive, and innovation.

 

 

Energy, Environment, and Transport

Solar panels: The Minister of Energy and Natural Resources announced that the potential for rooftop solar panels is 4,000-5,000 MW. To date, the Ministry has registered 900 applications from industrialists for a total capacity of 800 MW and about 1,300 applications from individuals for a total capacity of 10 MW.

Construction of a boron fuel production plant: The Minister of Energy and Natural Resources announced that a boron fuel production plant, in which Turkey holds more than 70% of the world’s reserves, would be built within two years.

“Kanal Istanbul”: During the Congress on Intelligent Cities in Ankara, the Turkish President indicated that Dutch, Belgian, and French companies were interested in the “Kanal Istanbul” project. As a reminder, the agenda of this project is accelerating, and calls for tenders will soon be launched. The final version of the environmental impact study has been adopted by the Ministry of Environment and Urban Planning. Requests for modifications had been made to the Ministry of the Environment as well as to the CIMER (Communication Centre of the Presidency of the Republic).

Industry, Automotive, and Innovation

Industrial production up in November: According to TürkStat, the industrial production index recorded a 5.1% rise in November compared to the same month in 2018 and a 0.7% increase from the previous month.

Automotive: The production of the automotive sector amounted to 1.46 million vehicles produced in 2019 (a decrease of 6%). The production of passenger vehicles decreased by 4% and that of commercial vehicles by 9%. Over the same period, sales on the domestic market fell by 23% to 419,909 vehicles. However, this figure is above market forecasts (350,000), thanks to a recovery in the last quarter of 2019.

Startup/Technology: The Turkish startup Getir, which offers a fast delivery service for groceries via an application (4 million users and nearly 55 M USD of turnover in 2018), has raised 38 M USD of funds from a group of Turkish and foreign investors led by venture capitalist Michael Moritz, a partner of Sequoia Capital. Getir, created in 2015 and based in Istanbul, Ankara, Izmir, Izmit, and Bursa, intends to develop its activities abroad, initially in London, Sao Paola, Paris, and Mexico City.

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1.35 Million Houses sold in Turkey in 2019

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Around 1.35 million houses were sold in Turkey in 2019 as the Turkish Statistical Institute (TÜİK) announced on Jan. 15.

House sales decreased by 1.9% or 26669 units in 2019 compared to the previous year, according to data from the Turkish Statistical Institute (TurkStat).

Approximately 511,700 houses were sold for the first time from January to December, while the rest were second-hand sales.

Istanbul – Turkey’s largest city in terms of population and one of its main tourist centers – has taken the most significant portion of house sales with 17.6%, a total of 237,675 houses in the year.

Official data showed that the capital Ankara and the Aegean region of Izmir achieved 132,486 (9.8%) and 79,221 (5.9%) of the total housing sales, respectively.

Mortgage sales of houses reached 332,508, representing a 24.7% share of all sales for the same period.

In December 2019, house sales increased by 47.7% to about 202,000 units – 75,480 new and almost 126,600 used – on an annual basis.

Houses Sold to Foreigners

Last year, around 45,500 houses were bought by foreigners, an increase of 14.7% compared to 2018.

Istanbul was the leading city for foreigners with 20,857 property sales in 2019, while the Mediterranean seaside resort, Antalya (8,951 sales), the capital, Ankara (2,539 sales), and the northwestern region, Bursa (2,213 sales) followed.

Iraqi citizens were the primary buyers of Turkish properties, with 7,596 house sales. Iranians, Russians, Saudis, and Afghans were among the top five.

In December 2019, foreigners bought about 5,300 houses, an increase of 16.2% on an annual basis. Nearly 900 houses were purchased by Iraqis, 76 by Iranians, and 362 by Russians.

Interest Rates Have A Negative Impact on House Sales

Ahmet Erkurtoglu, deputy head of the Association of Entrepreneurs of the Anatolian part of Istanbul, said: “Housing sales have exceeded the 100.000 barrier in recent months and broke through the 200.000 barrier last December for the first time,” he said.

Lower interest rates for housing loans and deposits have had a positive impact on house sales, he underlined.

The Turkish central bank has gradually lowered interest rates to 12% from 24% in eight monetary policy meetings in 2019 which helped houses to be sold in Turkey.

He estimated that the construction sector would concentrate on urban transformation projects in 2020 and will build new houses worth up to 1 million Turkish liras (about $169,500).

“We can again sell between 1.2 and 1.3 million houses in 2020, and we aim to sell 60,000 houses to foreigners in 2020,” he noted.

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Export Grows with Chemical Industry in Turkey

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The chemical industry in Turkey, which set a record in 2019 with the export of 20.6 billion dollars, became the second most exported sector in the past year. The chemical industry has drawn attention to the increased export performance, exporting more than 3 billion dollars in 2019, among the industries increasingly growing 18.54 percent of exports to Turkey and could be a growing industry.

The chemical sector, which stands out as the locomotive sector that exports to most countries among all industries, became the leader in this field with its exports to 208 countries and regions in November. The sector’s exports in terms of quantity in 2019 amounted to 26 million 539 thousand tons, with an increase of 35.83%. Spain, which is one of the countries with the highest export volume in the chemical industry, ranked first with exports of 1 billion 62 million dollars while the Netherlands ranked second with exports of 1 billion 32 million dollars, and Iraq ranked third with exports of 1 billion 12 million dollars.

Assessing the year-end exports of the chemical industry, the President of İKMİB, Adil Pelister, said: “Our chemical industry exports broke an all-time record in 2019. We have been very successful in exceeding our $20 billion targets with exports of $20.6 billion. Also, among the sector’s exports of more than 3 billion dollars in 2019, we were the fastest-growing sector of Turkey, with export growth of 18.54 percent. Our sector’s export in terms of quantity in 2019 was 26 million 539 thousand tons, with an increase of 35.83%. We beat our monthly export record with 1.94 billion dollars of exports in October 2019. During 2019, every month in a row as Turkey’s second-largest export sector, we have been leading our second permanent goal. In the chemical industry in Turkey, by taking a share of 11.44 percent of Turkey’s total exports, we have brought significant added value to our country. In 2020, the first sector, while maintaining our position as the second most exported sector of Turkey, Turkey’s exports, and we aim to increase our contribution to growth. Besides, we plan to conduct our activities more broadly following the roadmaps we will create for our sub-sectors. »

“Chemicals is a strategic industry with high growth potential.”

Stressing that the chemical industry is growing every year and that its growth potential is high, this is a strategic sector. As İKMİB, we successfully represent the Turkish chemical industry worldwide, with 16 subsectors of plastics, paint, cosmetics, medicine, rubber, organic, and inorganic chemicals. In this context, during 2019, with around 500 exporter companies, we participated in 14 national trade fairs and 11 international trade fairs. We visited 4 organization information stands, conducted five sector trade missions, 12 recruitment committees, 4 TTG (Turkey Promotion Group), three seminars, and continue in the framework of 7 international competitiveness development projects (URGE). We organized 3 URGE delegations and 3 URGE training and six workshops related to different sectors. In addition, we held our 8th event on the R&D projects market, the fourth of our IKMIB Export Stars award ceremony, and the Industrial Design Competition. »

The 2023 chemical export target is $30 billion.

Noting that they aim to export more than $22 billion in the chemical industry by 2020, Pelister said: “As part of our country’s 2023 targets, we aim to increase our sector’s exports to $30 billion and achieve a 13 percent share in the $226.6 billion export target. To achieve this export target, our Ministry of Commerce is forwarding our requests to the relevant ministries. This includes: facilitating our exporters’ access to financing, ensuring the digital transformation of the chemical industry, energy costs, and TCS, creating container lines, increasing fair participation rates, and investing in petrochemical plants.

The Star Refinery facility, opened in 2018 and operating in the petrochemical sector, has made a significant contribution to our industry in terms of chemical exports. Our chemical exports are also positively affected by the investments made in our industry. We need six new petrochemical plants. We expect investments in petrochemicals and pharmaceuticals to begin. However, it is essential for our exporters that efforts to update the customs union agreement with the European Union are completed as soon as possible. As exporters of chemicals, we will continue to contribute to the development and growth of our country. »

Spain was the most exported country in 2019

In analyzing the distribution of chemicals and chemical products exports by country in 2019, Spain ranks first with exports of $1.62 billion, while the Netherlands is second with exports of $1.32 billion and third Iraq with exports of $1.12 billion. Italy, Egypt, Germany, the United States, Greece, England, and Malta are in the top ten.

EU countries ranked first in chemical industry exports in 2019

In 2019, the European Union ranked first among the countries in which the chemical industry exports were made, with an exportation of 8.51 billion dollars and an increase of 27.24%, while the countries of Asia and the Near and Middle East were second with a rise of 3.9 billion dollars and an increase of 24.56%. Other European countries were third with exports of 2.66 billion dollars, and a rise of 17.16%, North African countries were fourth with exports of 1.85 billion dollars and an increase of 7.78% and other Asian countries with exports of 1.36 billion dollars and 1%, It ranked fifth with 12 decreases.

Most of the “plastics and products” were exported

The “plastics and products” product group ranked first in the chemicals and chemical sector’s exports in 2019, with an increase of 4.12% and exports of $6.12 billion and had a 29.67% share of the industry’s total exports. The group of “mineral fuels, oils, and mineral products” with an increase of 85.78%, exports of 6.08 billion dollars and a share of 29.46% and an increase of 0.91%, exports of 1.82 billion and 8%, The group of “inorganic chemicals” followed with 82 actions. The other most exported product groups in the chemical industry in Turkey were respectively “rubber, rubber products,” “essential oils, cosmetics and soap,” and “pharmaceuticals.”

Source: https://www.businessworldglobal.com/

Turkey’s CB Cuts Interest Rate More Than Expected

By Business in Turkey, News about Turkey No Comments

The Central Bank of Turkey cut its benchmark interest rate by 75 basis points, beating most economists’ forecasts and risking a possible liquidation of the pound.

The Bank of Ankara cut its one-week lending rate to 11.25% from 12%, according to a decision taken on 15th January. Turkey’s primary interest rate, minus inflation of 11.8%, is now negative, making assets denominated in lira less attractive.

In its reasoning, the central bank cited improved inflation prospects, weak investment, and weak global economic activity.

As the President Erdoğan said earlier Thursday that the central bank had another opportunity to cut rates at today’s meeting.

Economists were almost evenly divided on whether the central bank would cut rates, according to polls conducted by Reuters and the state-run Anadolu news agency. Those expecting a cut more commonly predict a 50-basis point cut.

President Erdoğan claims that higher interest rates are inflationary, an opinion that is in contradiction with conventional economic theory. Consumer price inflation in Turkey accelerated from 8.6% in October but is less than half the levels reached in the aftermath of the currency crisis.

Economists predict that inflation could slow to around 9.5% in 12 months, according to a central bank survey released earlier in January 2020.

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Source: https://www.turquie-news.com/

Chinese Realme is Entering the Technology Markets in Turkey

By Business in Turkey No Comments

Following Oppo, Xiaomi, and Huawei, one more Chinese smartphone producer is preparing to offer its products to Turkish consumers in January 2020 in the technology markets in Turkey.

Realme will initially launch three new models on the Turkish market and will also offer accessories and other phone models in the coming period, according to the news.

Founded in May 2018 and targeting young consumers, Realme comes seventh in the global smartphone market. The company is headed by Li Bingzhong, the former vice president of another Chinese smartphone brand, Oppo. Realme operates in more than 18 countries, including China, India, Indonesia, Vietnam, Thailand, and Malaysia. It has been present in Europe in the UK, Spain, France, and Italy since May 2019.

The company also launched a Turkish website and introduced phone models. According to the company, three smartphone models identified as Realme C2, Realme 5 Pro, and Realme XT will be on the market in January.

Realme C2 – which has a range of features, including a 4000 mAh battery, 16GB of internal storage, fast charging, a display fingerprint sensor, and a 2 GHz Cortex A53 processor – will be priced at 502-670 TL on the Turkish market.

The Realme 5 smartphone works on the Android v9.0 (Pie) operating system. The phone is powered by Octa-core. It has 3GB of RAM and 32GB of internal storage. The display has a resolution of 720 x 1600 pixels and a pixel density of 270 PPI. A 5000 mAh battery supports the device. It will have a price of about 1,120-1,360 TL on the Turkish market.

The Realme XT 128GB smartphone runs on the Android v9.0 (Pie) system. The phone is powered by an Octa-core processor (2.3 GHz, dual-core) and has the Qualcomm Snapdragon 712 chipset. It has 8GB RAM and 128GB of internal storage. It is supported by a 4000 mAh battery. It will be sold for 1,899 TL in Turkey.

The Chinese company Oppo, the world’s fifth-largest smartphone manufacturer, entered the technology markets in Turkey in 2018, opening its Turkish office in Istanbul. Xiaomi, Oppo’s closest rival in China and on the world market, also launched its operations in the country in 2018.

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Source: https://www.dailysabah.com/

The world’s first hydraulic hybrid tugboat from Turkey

By News about Turkey No Comments

Sanmar built the world’s first LNG tugboat and the first autonomous vessel, which is the first hydraulic hybrid tugboat. Boğaçay XXXVIII appointed environmental tug, will join the Turkish fleet, and serve in Izmit.

The Sanmar shipyard in Yalova, one of the world’s leading Tugboat manufacturers, has innovated. Having built the world’s first LNG tug and the industry’s first autonomous vessel Sanmar has produced the first hydraulic hybrid tug with Advanced Variable Drive (AVD) technology. Sanmar launched Boğaçay XXXVIII on Saturday with a ceremony attended by the Minister of Transport and Infrastructure Cahit Turhan. The ship built at the shipyard Altınova will serve in the Turkish naval fleet.

The AVD system is defined as a fully integrated propulsion solution that allows the propeller speed to be adjusted independently of the speed of the ship’s diesel engines. Meanwhile, the tug’s floral designs emphasizing environmentalism were inspired by the famous artist Andy Warhol’s work “Flowers.” Sanmar, which has built 200 tugs in its Tuzla and Yalova shipyards, exports 75% of its production. The Sanmar shipyard, one of the world’s leading tugboat manufacturers, has also built the first LNG-powered tug and the first autonomous vessel.

The yard has also manufactured the first hybrid hydraulic tug with Advanced Variable Drive (AVD) technology. AVD is defined as a fully integrated propulsion solution that allows the propeller speed to be adjusted independently of the speed of the ship’s diesel engines. Boğaçay XXXVIII (38) was launched at the shipyard Altınova at a ceremony attended by the Minister of Transport and Infrastructure, Cahit Turhan, on Saturday.

The old tug has been exported to Mexico.

Boğaçay XXXI, which will replace the hybrid tugboat, was exported to Mexico. Ali Gürün said, Vice Chairman of the Board of Sanmar, “Our country’s fleet is rejuvenating with more technological vessels, and our country is earning foreign currency with this export.” Sanmar, which also provides guidance and towing service, has added the tug Boğaçay XXXVIII to its fleet in the bay of Izmit.

Ali Gürün said that it is a shipyard that develops LNG and stand-alone technology with the Rolls-Royce group and “hydraulic hybrid” technology with the Caterpillar group. The world’s first LNG tugs were commissioned in Norway and the first autonomous tug in Denmark. The first hydraulic hybrid tugboat will be put into service in Turkey,” he said.

Greener and more economical

Boğaçay XXXVIII developed with Caterpillar Propulsion has lower emission values and lower fuel consumption. The tug, classified by ABS and flying the Turkish flag, has been produced with fully computerized modeling. The system, which consists of two main and one auxiliary engine, a reduction gearbox integrated with the planetary gears and software to control the hydraulic pumps and motors connected to them, has been applied to the 38th brother of the Boğaçay series, which has achieved great commercial success abroad. Boğaçay, which has a length of 24 meters, a traction power of 70 tons and can rotate around its own axis, has a quenching capacity of 2,500 tons per hour. The tugboat is equipped with high-tech navigation devices; the tugboat can provide traction in all directions and continuously transmit this power from zero to one hundred percent.

Flowers by Andy Warhol

The floral motifs on the tugboat were inspired by the famous artist Andy Warhol in his work “Flowers.” Ali Gürün said: “Today, it is not only engineering goals that are sufficient for high technology and technical excellence. The environment, safety at work, employee comfort, and the aesthetics of the product are essential. The aesthetic design makes people’s lives more beautiful.”

Minister Turhan: Sanmar’s success is no coincidence

In his speech at the ceremony, Cahit Turhan, Minister of Transport and Infrastructure, stressed that the Turkish shipbuilding industry had become an important sector that can build environmentally-friendly ships using the latest technology.  He said: One of the best examples of this work is Sanmar’s latest product Boğaçay XXXVIII hybrid tugboat. Among other technological features of the tug, it must have the world’s first AVD, the Advanced Variable Propulsion System. Sanmar’s success is not a coincidence, of course. Sanmar is a pioneer in the world that builds the first natural gas tugboat and then the first autonomous tugboat. Making the first hydraulic hybrid tugboat is a prideful event for our country and industry. ”

Source: https://www.dunya.com/

BGC Expects Growth in the Turkish Economy in 2020

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BGC Partners has released a report on the expected Turkish asset base in 2020. In the first half of 2020, growth in the Turkish economy is expected to increase as business concerns have faded, and expansionary policies of central banks have diminished. Agency forecast that Turkey is expected to experience a balanced growth of 3 percent in 2020.

Fiscal balances have deteriorated due to weak economic activity and elections despite the government’s cost-cutting measures. According to the report, a recovery in economic activity, combined with measures taken to increase the tax collected, would bring the budget deficit-to-GDP ratio in 2020 below 3 percent.

After the sharp fall in interest rates, improved demand conditions could put upward pressure on inflation. The agency expects inflation to be in double-digit lows for most of 2020, ending the year at just over 10%.

According to the report, BGC expects the Central Bank to lower interest rates in early 2020, “Only 100 basis points to bet. According to the agency, further cuts will occur if CPI inflation falls to single digits which will eventually result in the growth in the Turkish economy.

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Source: https://www.bloomberght.com/

2023 Vision Project of Turkey

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2023 Vision Project of Turkey was born about 15 years ago when the Turkish government began to change direction. They were not content to be mere background players and wanted global recognition.

Anyone who has followed Turkey could have quickly ignored the goals of the 2023 Vision Project, but over the years, it seems that the country is harvesting the fruits of hard work.

What is the 2023 Vision Project of Turkey?
2023 Vision Project is a set of collective goals that Turkey wants to achieve by the year 2023, the 100th anniversary of the Turkish Republic. The goals focus on the economy, tourism, energy, foreign policy, transport, and health care.

All are essential aspects of society, but together they collectively contribute to the ultimate and most important goal of being one of the most successful economies in the world.

Targets for the Turkish economy by 2023

In order to be one of the top ten economies in the world, Turkey has set smaller goals. Turkey wants to achieve:

– Five percent unemployment.

– 1 trillion USD in foreign trade

– A gross salary of 25,000 USD

– An export industry worth USD 500 billion a year

– A gross domestic product of US$2 trillion

The Turkish economy grew by 6.1% in 2015, 3.2% in 2016, and 7% in 2017. The Economist’s magazine called it one of the most dynamic markets in the G20. The areas currently underachieving are the account deficit, unemployment, and inflation, which the country plans to address as part of the government-approved medium-term program for Turkey from 2018 to 2020.

Foreign policy objectives

Foreign policy is a critical part of the 2023 vision project. EU membership is currently an uncertain issue for Turkey, especially after the UK, with which they have fruitful export and import links, voted for Brexit. It also wishes to play an active role in regional and security issues to maintain economic stability.

The energy sector in 2023 Vision Project

Turkey is entirely dedicated to wind energy, as can be seen on the Aegean coast, where large wind farms have been built in many central districts. They aim to generate a combined 20,000 megawatts from wind energy, and in some areas, they have also ventured into geothermal power plants.

Turks and foreigners who have been living in Turkey for a long time will already have noticed an improvement in efficiency aimed at reducing overall consumption, and three nuclear power plants are also planned.

Health, transport, and tourism

Previously, the Turkish health system was in financial difficulties, and the insecure employment rules allowed many employers to have some flexibility in paying employee health premiums. However, by 2023, Turkey wants every citizen to be actively enrolled in the insurance system, and the number of doctors to be increased to 210 per 100,000 inhabitants.

11.000 kilometers of new railway lines will link up the once weak railway industry and, in turn, contribute to business and freight transport as well as domestic tourism. 15.000 kilometers of new and better-built motorways will also be part of the Belt and Road Initiative project launched by China, in which Turkey is an active participant.

Finally, despite a decline over the last two years, tourism has always been a powerful engine of the Turkish economy. Mass marketing campaigns around the world, as well as the government’s insistence on embracing the power of Internet advertising, have been successful, and the country is already one of the top ten destinations visited in the world.

Overview

The Spectator Index and other foreign financial institutions have designated Turkey as an emerging market for 2018. As economic performance improves year by year, there is a strong chance that the Vision Turkey 2023 plan will be realized and, in so doing, transform the country into a global powerhouse.

Source: https://www.istanbulhomes.com/

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Novo Nordisk Makes Istanbul The Management Hub

By Business in Turkey No Comments

Danish drug manufacturer Novo Nordisk, which is best known for its leadership in diabetes care, will run operations in 73 countries with a population of about 1.6 billion people from its headquarters in Istanbul by making it the management hub of the company.

The world’s leading manufacturer of medicines for the treatment of diabetes, obesity, hemophilia and growth disorders has increased the number of countries it manages from Istanbul to 73, up from 22 in the last months of 2019, said the company’s Vice President, Emil Kongshøj Larsen in a recent interview.

From its headquarters in Istanbul, Novo Nordisk will now be managing the Middle East, Commonwealth of Independent States (CIS) and Africa (BANECA) business area with a combined population of approximately 1.6 billion people.

Its previous operations included a region of 22 countries, including Turkey, Russia, Israel, Pakistan, Kazakhstan, Lebanon, Ukraine, and Jordan, with a combined population of approximately 680 million people.

Nearly 5 million patients in the Middle East, CIS, and African countries are currently expected to be treated with Novo Nordisk medicines, a number that is expected to increase steadily in the coming period due to rising rates of diabetes and obesity.

“In recent years, Turkey has become an excellent and increasingly critical base for Novo Nordisk because of its geographical location and strong logistics infrastructure,” said Larsen.

In 1995, the pharmaceutical giant entered the Turkish market. It had conducted operations in 11 countries in the Middle East region from Istanbul in the first stage, a figure that has grown to 22 in 2017, according to Larsen. The company had moved its headquarters from Athens, Greece, to Istanbul in 2007, according to Larsen, for whom the company had found Istanbul to be a more cosmopolitan hub because of both logistics and Turkish expertise.

“Istanbul is a more natural hub if you want to cover much of the Middle East, the CIS countries, and Africa. And it has proven to be a success. Because of the success of the hub, we have expanded the geographical area over the years,” he added.

In reference to what he said, there were other reasons behind the company’s move to make Istanbul the management hub of the company. The Vice President of Novo Nordisk said: “it is the appreciation of the company’s highly skilled and innovative workforce that makes it open to change, in addition to the geographical advantages of managing operations in Turkey’s largest city.”

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Source: https://www.dailysabah.com/

Silicon Valley Supports Turkish Start-up

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A Silicon Valley investor is leading a $40 million financing for the ultra-fast delivery company Getir which is a Turkish start-up.

The company offering ultra-fast delivery has secured nearly $40 million in funding from a group of investors led by Silicon Valley venture capitalist Michael Moritz to boost Turkey’s emerging high-tech market.

Getir, an Istanbul-based company founded in 2015, allows users to order products ranging from ice cream to iPhone chargers, cat food to preservatives at no extra charge, with a small margin on supermarket prices. It promises an average delivery time of 10 minutes.

Last year, Getir, the Turkish start-up caught the attention of Sir Michael, a technology investor who is a partner in Sequoia Capital, the leading private equity firm. He previously made investments through Sequoia to a chain of processed cheese sandwiches and an Indian “cloud kitchen”.

After traveling to Istanbul to spend time at Getir’s Istanbul headquarters, Sir Michael offered to inject $25 million into the company via his personal investment company Crankstart, which is also the sponsor of the prestigious Booker Prize for English-language fiction.

An additional $13 million was provided by undisclosed investors in Brazil and Turkey, bringing the total amount raised under Series A to $38 million.

Getir, whose name stands for “bring” in Turkish, works through a network of franchises that are responsible for managing delivery, while the parent company manages product selection and pricing and the shipment of items to warehouses for distribution.

The company has grown rapidly, successfully doubling its order volumes in the second half of 2019, with nearly 1.5 million deliveries last month. After initially focusing on Istanbul, where it is also experimenting with takeaway deliveries, it has recently started operating in the Turkish cities of Ankara, Izmir, Bursa, and Kocaeli.

The target capitalization is expected to exceed $500 million, placing the Turkish start-up company among the most successful start-ups in Turkey.

Source: https://www.ft.com/

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