AKMİB Exports Reach $787.8 Million

Mediterranean Chemical Substances and Products Exporters Association (AKMİB) Board Chairman Saadettin Çağan said the association achieved exports worth USD 787.8 million in July, representing a 143.5% increase compared to the same period last year. Board Chairman Saadettin Çağan noted that AKMİB maintains a clear lead among the 8 unions under the Mediterranean Exporters Associations (AKİB) and made the following comments on the matter: "During a period when commodity price increases, rising demand, and changes in the supply chain have occurred simultaneously, our sector has gained a more preferred position in terms of production performance, logistics advantage, and product quality. However, a slowdown is expected worldwide in the second half of the year. We hope that with our logistics and quality advantages, we will be less affected by a potential recession."

We achieved record-level increases

Board Chairman Saadettin Çağan stressed that Turkey has gained strong momentum in chemical substances and products exports to distant markets such as Singapore, South Africa, Brazil and Argentina, while AKMİB has recorded export increases exceeding 152 times in the markets of Morocco, Togo and Georgia. Stating that as AKMİB they supported the Turkey-wide sector export of USD 2.94 billion in July at a rate of 26.7%, Chairman Çağan continued: "In July, our Association marketed 899,332 tons of products in international markets, achieving the highest export values in the Netherlands, South Africa and United States markets. We achieved exports worth USD 193.7 million to the Netherlands with a 240% increase, USD 175.4 million to South Africa with a 314% increase, and USD 73.7 million to the United States with a 379% increase. During this period, we achieved record-level increases in our exports to Togo, Morocco and Georgia. We reached USD 20.7 million to Togo with a 15,217% increase, USD 47.7 million to Morocco with a 12,265% increase, and USD 33.8 million to Georgia with a 2,303% increase."

We exported the most mineral fuels and mineral oils

Evaluating the region's July exports by product groups, Board Chairman Çağan stated: "Mineral fuels and mineral oils constituted the product group we exported the most in July with an 185% increase and a value of USD 631.4 million. Following mineral fuels and mineral oils, which constitute 80.1% of our region's exports, plastics and plastic products ranked second with an 81% increase and a value of USD 80.4 million. This was followed in third place by inorganic chemicals with a 49% increase and a value of USD 31.4 million. Looking at the product groups where we achieved the strongest increases in export volume in July, mineral fuels and oils were followed by plastics and plastic products, organic chemicals with a 96% increase and a value of USD 6.9 million, and soaps and washing preparations with an 80% increase and a value of USD 5.6 million.

Regulation change will harm companies investing in solar power plants

Addressing topics discussed on the sector's agenda, Chairman Çağan said that the regulation on changes to the Unlicensed Electricity Production Regulation in the Electricity Market, prepared by the Energy Market Regulatory Authority (EMRA) and published in the Official Gazette dated 11 August 2024, will harm exporting companies investing in Solar Power Plants (GES). Noting that the said regulation is favorable to producers in terms of transformer capacities but needs to be reconsidered as it will create difficulties for industrialists investing in this field, Chairman Çağan spoke as follows: "With the regulation made, companies investing in GES are forced to transfer surplus energy to the Renewable Energy Resources Support Mechanism (YEKDEM) free of charge. Our producers pay millions of dollars for these investments. Therefore, it is not correct to transfer the surplus from production to YEKDEM free of charge. At a time when green transition is at the forefront of the global agenda, this change will both discourage new investors in GES investments and create difficulties for those who invested previously. We expect the regulation to be reconsidered so that our companies that took out loans and borrowed for GES investment based on the regulation published in 2019 do not face irreparable harm and so that existing production is not interrupted. We need to benefit from renewable energy sources at the highest possible level so that the billions of dollars we pay for energy imports, which is the largest item in our current account deficit, stay in our country. We believe that a common solution that everyone can agree on can be found on this matter. For example, energy costs of companies using natural gas could be offset by excess energy to be generated in GES plants. If we can find these and similar solutions, we will have protected the environment and created a system where everyone wins for our country and our industrialists." Noting that the recycling of glass, metal and plastic packaging to return them to the economy is also very important for the sector, Board Chairman Çağan added that they expect the work carried out by the Ministry of Environment, Urbanization and Climate Change within the framework of the "Zero Waste Project" on switching to a deposit management system to reduce our country's dependence on chemical raw materials to be completed urgently.