First Day of the 2021 Turkey Chemical Sector Council Completed

The 17th term of the Chemistry Sector Platform (KSP), chaired by the Istanbul Association of Exporters of Chemical Substances and Products (İKMİB), held the "2021 Turkey Chemistry Sector Congress" on a digital platform with opening speeches hosted by KSP Chairman and İKMİB Board Chairman Adil Pelister. At the Congress, Minister of Industry and Technology Mustafa Varank said, "The chemistry sector is the mortar of our economy." Held biannually, the Turkey Chemistry Sector Congress is organized by the Chemistry Sector Platform, which brings together 36 leading institutions in the sector, including chemistry exporter associations, trade unions, chambers, federations, foundations, associations and universities. This year, the opening speeches of the 2021 Turkey Chemistry Sector Congress, where the pulse of the chemical industry will be taken on 12-13 March 2021, were delivered by Republic of Turkey Minister of Industry and Technology Mustafa Varank, Republic of Turkey Minister of Commerce Ruhsar Pekcan, Turkish Exporters Council (TİM) Chairman İsmail Gülle, and Chemistry Sector Platform (KSP) Chairman and İKMİB Board Chairman Adil Pelister. Additionally, in the sessions held on the first day, Republic of Turkey Deputy Minister of Industry and Technology Mehmet Fatih Kacır, Republic of Turkey Deputy Minister of Commerce Rıza Tuna Turagay and Republic of Turkey Deputy Minister of Commerce Gonca Yılmaz Batur also participated as panelists.

Following the opening speeches, TOBB Chemistry Industry Council Chairman Timur Erk, Turkey Chemistry, Oil, Rubber and Plastics Industry Employers' Association Chairman Levent Kocagül, Turkey Chemistry Association Chairman Prof. Dr. Bahattin Yalçın, Plastics Manufacturers Federation Chairman Ömer Karadeniz, Plastics Manufacturers Association Chairman Selçuk Gülsün, Turkish Plastics Manufacturers Research, Development and Education Foundation Chairman Yavuz Eroğlu, Flexible Packaging Manufacturers Association Chairman Fahri Özer, Packaging Manufacturers Association Chairman Mustafa Zeki Sarıbekir, Rubber Association Vice Chairman Fahriye Yüksel, Turkey Chemical Manufacturers Association Chairman Haluk Erceber, Turkey Pharmaceutical Industry Association Chairman Hasan Ulusoy, Turkey Health Industry Employers Association Chairman Metin Demir, Paint Manufacturers Association Chairman Mehmet Akın Akçalı, Mineral Oil and Petroleum Products Manufacturers Association Chairman Tayfun Koçak, Composite Manufacturers Association Chairman Barış Pakiş, Cosmetics and Cleaning Products Manufacturers Association Chairman Ahmet Gündoğdu Pura and Aerosol Manufacturers Association Chairman S. Özgür Öztürk addressed sector problems and solution proposals.

Mustafa Varank: "We Will Make the Investment Climate in Turkey Much More Attractive Through the Economic Reform Package"

In his speech, Republic of Turkey Minister of Industry and Technology Mustafa Varank addressed the impacts of the Covid-19 pandemic on the economy, production and supply chains, stating that the importance of the chemistry sector, which provides inputs to many sectors during this period, has increased. Drawing attention to the fact that Turkey has been affected by developments in the global economy but has succeeded in positively differentiating the country from the global average through timely and effective policies, Varank said, "Our country last year became the second G-20 country with the highest growth at 1.8 percent after China. One of the most important contributors to our country's success during this period is our manufacturing industry. Despite the pandemic, the industrial sector created an additional 337,000 jobs in the past year. According to industrial production index data, our industrial production in January far exceeded expectations, increasing by 11.4 percent compared to the same month last year and 1 percent compared to the previous month. With these figures, we were among the G-20 countries that increased industrial production the most on an annual basis in January. There is a significant increase in new investment demand. With the Economic Reform Package that our President will announce today, we will make the investment climate in Turkey much more attractive," he said.

Varank: "The Chemistry Sector Is One of the Key Sectors of Manufacturing Industry"

Emphasizing that the chemistry sector is one of the key sectors of the manufacturing industry, Varank stated: "The sector grows by improving itself every year in terms of the number of enterprises, production and employment between 2009-2019. Approximately 77 percent of production in the sector is used as inputs within the sector and in other sectors. In addition to traditional industries, it provides critical raw materials and intermediate products to future-oriented sectors. From this perspective, it would not be wrong to say that the chemistry sector is the mortar of our economy. Despite the sector's critical importance, we see that it is highly dependent on imports and this results in approximately 20 billion dollars of foreign trade deficit annually. The reasons for this stem from the need for hydrocarbon sources such as crude oil or natural gas in production and the insufficiency of petrochemical production in the country. As the Ministry, we are aware of the deficit and potential in the sector, and for this reason we have identified the chemistry sector as one of our priority areas. We have mobilized our incentive and support systems for sector development. We are establishing industrial zones to support domestic production of critical products. We are encouraging large-scale investments, particularly in petrochemicals, through investment locations, facilitation processes and attractive support opportunities. Of the 22 industrial zones approved by us, 6 serve the chemistry sector. When investments in these zones are completed, they will contribute over 3 billion dollars annually to our current account balance." Noting that the chemistry sector is also suitable for clustering, Varank explained that they have established chemistry specialization OSBs (Organized Industrial Zones), and that the İzmir-Aliağa, Kocaeli-Gebze, Yalova and İstanbul-Tuzla chemistry specialization OSBs have yielded successful results. Stating that they have issued 3,691 incentive certificates for the chemistry sector from 2012 to date, Varank reported that the value of these investments exceeds TRY 96 billion. Varank also discussed the support they provide to the sector through development agencies, TÜBİTAK and KOSGEB.

Ruhsar Pekcan: "Our Chemistry Sector Is One of Five Target Sectors"

Republic of Turkey Minister of Commerce Ruhsar Pekcan, who participated in the Congress via video conference, stated in her message that she was pleased that such a comprehensive and exemplary sector congress was being held regarding the chemistry sector, which is among the most strategic sectors of our country. Noting that as a country they view investment, production and exports as among the most important and priority national issues, Pekcan spoke as follows: "It is extremely important that we act in a planned and programmed manner by sectors. I believe today's Congress provides a unique opportunity to jointly discuss the dynamics of our sector, review our goals and plan the future. As you know, in August 2019 we announced our Export Master Plan and identified our chemistry sector as one of five target sectors. Following this, we jointly conducted our chemistry sector strategy workshop. After this workshop, we established a working group to monitor workshop outputs, address policy proposals and implement them. Our working group, led by the relevant units of our Ministry and İKMİB, has held regular and frequent online meetings at the technical level. Going forward, with the contributions of you valued sector representatives, we are confident that our sector will advance within the framework of planned, programmed strategies with feet on the ground, thanks to you all. We, as the Ministry of Commerce, will continue to stand by you and move forward on this path together with you." Recalling that under TURQUALITY, which is a comprehensive support program in terms of branding, they currently support 54 companies from the chemistry sector, Pekcan said, "On this occasion, I would like to invite all our sector companies once again to benefit from the state support we provide in exports, Turkish Eximbank financing opportunities and the Easy Export Platform, which we put into service in August of last year and provides comprehensive digital consulting services to our companies."

İsmail Gülle: "The Chemistry Sector Is a Driving Force for Our Other Sectors"

Turkish Exporters Council (TİM) Chairman İsmail Gülle, speaking at the Congress, stated that following January exports that ended in records, they also closed February with a monthly export record of USD 16.012 billion, saying, "Every sector and every product is of special importance to take our country to the high targets we are focused on. We regard our Exporter Associations as valuable institutions reflecting our motto 'Strength comes from unity.' Seventy-seven percent of products produced by Turkish chemical industry are used as intermediate goods or raw materials in other sectors. With this quality, the chemistry sector is in a driving force position for our other sectors. On the one hand, our sector representatives, who reduce imports by providing the intermediate goods our country needs, are also among the greatest architects of the export successes we have achieved. In the January-February 2021 period, our sector's exports of chemical substances and products reached USD 3.315 billion with an increase of 4.6 percent. The increase in our sector's exports to countries all over the world is an important indicator that Turkey is a world brand in the chemical substances and products sector," he said. Gülle continued, "The problems experienced in global supply chains with the pandemic are putting upward pressure on raw material prices. Hopefully, the Turkey Chemistry Congress will strengthen our manufacturers and exporters against the problems they face, help find solutions to common problems in our sector, and contribute to increased production and exports."

Adil Pelister: "All Our Efforts Are Directed at Establishing a Domestic and National Chemistry Industry"

Adil Pelister, Chairman of the Chemistry Sector Platform (KSP) and Chairman of the İKMİB Board, who delivered the opening speech of the Congress, stated that KSP was established in 2004 to bring all parties of the chemistry sector to a single table, discuss sector problems and solution proposals, and develop the scientific and economic scale of the sector at national and global levels, and that İKMİB is chairing the 17th term. Drawing attention to the fact that a country has 4 main strategic sectors as food, defense, energy/mining and chemistry, Pelister continued: "Chemistry is present within all other strategic sectors. At this point, our sector's investment needs must be realized in high-technology areas that generate added value, our raw material needs must be localized as much as possible, and in this way we can reduce our dependence on imports and increase our industrial and commercial initiatives. All our efforts are directed at establishing a domestic and national chemistry industry based on high technology to the extent possible. We are pleased that our chemistry sector has been included in the Technology-Oriented Industry Drive Program, and we express our gratitude to our President in particular, our Minister of Industry and Technology, our Minister of Commerce and everyone who contributed."

Pelister: "A National Chemistry Agency and Chemistry Technology Valley Should Be Established"

Emphasizing that when looking at countries that are more advanced industrially and economically, they observe that technological and scientific developments in the chemistry sector are made into a comprehensive country strategy, Pelister said, "As the chemistry sector, with the support of our state, we advocate for the establishment of a 'National Chemistry Agency' in public-university-private sector partnership and for our state to provide serious support to our sector at the highest levels. Perhaps we should establish a 'Chemistry Technology Valley,' which may be the first of its kind in the world. As a first step to this, under the leadership and contribution of our İKMİB, with the support of our Chemistry Sector Platform stakeholders, we have begun to implement our Chemistry Technology Center project. We believe that the National Chemistry Agency would bring significant benefits in terms of our project serving as a foundation for greater economic and scientific developments," he said.

Four Sessions Held on the First Day of the Congress

In the 2021 Turkey Chemistry Sector Congress, attended by representatives from public, private sector and civil society organizations as well as academics as speakers and guests, the present and future of the sector are being discussed in 7 sessions over two days. On the first day, following the opening speeches, the Congress continued with sector problems and solution proposals addressed by chemistry sector association and foundation presidents. In the first session, moderated by Prof. Dr. Emre Alkin, the impacts of the pandemic on the world and Turkey's chemistry sector and future expectations were evaluated. In the second session, moderated by Dünya Newspaper Board Chairman Hakan Güldağ, the investment needs of Turkish chemical industry were addressed, while in the third session, moderated by İMMİB Secretary General Dr. S. Armağan Vurdu, issues of the chemistry sector's foreign trade, financing, logistics and digitalization were discussed. The first day of the Congress ended with the fourth session, moderated by Bloomberg HT London Representative Cüneyt Başaran, which discussed the revision of the Customs Union and the impacts of trade agreements on the chemistry sector. The fifth session titled "Impacts of the European Green Deal on the Chemistry Sector," which will be moderated by İKMİB Board Member Ahmet Faik Bitlis, will begin at 10:30 on Saturday, 13 March. This will be followed at 11:45 by the sixth session titled "Sustainability Management in the Chemistry Sector," moderated by Istanbul Technical University Faculty Member and Sustainable Production and Consumption Association Chairman Prof. Dr. Filiz Karaosmanoğlu, and finally at 13:30 by the seventh session, which will be moderated by Istanbul University Cerrahpaşa Faculty Member Prof. Dr. Mehmet Ali Gürkaynak, addressing cooperation between the chemical industry and universities.