Chemical Sector Sets Course for New Export Year

Turkey's chemical sector has maintained its success, ranking second among the country's top export sectors in 2023 with USD 30.6 billion in exports, and under the leadership of İKMİB, charted the course for the new export year. Stepping into 2024 with an export target of USD 35 billion, the chemical sector rolled up its sleeves to increase market diversification through high-value-added products despite the slowdown in global trade. Adil Pelister, Chairman of İstanbul Kimyevi Maddeler ve Mamulleri İhracatçıları Birliği (İKMİB), noted that leading chemical exporters worldwide increased their share of global exports by close to 10 percent in the first half of 2023. He stated that the chemical sector, along with its 16 sub-sectors, exported to 230 countries and regions last year, accounting for approximately 13.8 percent of Turkey's total exports according to TİM data.

Plastics and products sector leads

The sub-sectors achieving the highest export volumes in the chemical sector, which completed 2023 with USD 30.6 billion in exports, have been identified. While nine of the 16 sub-sectors showed export increases compared to the previous year, plastics and plastic products led chemical exports in 2023 with USD 9.164 billion. Mineral fuels and products came in second with USD 8.333 billion in exports, while inorganic chemicals exports ranked third with USD 2.765 billion.

European countries dominate top 10

The chemical sector, operating under the umbrella of İstanbul Kimyevi Maddeler ve Mamulleri İhracatçıları Birliği (İKMİB), acted as a lever in raising the country's export growth, exporting to 230 countries and regions in 2023. During the January-December 2023 period, seven European countries stood out among the top 10 destinations for chemical exports. The Netherlands topped the list, followed by Russia, Italy, Romania, Spain, Germany, the United States, Iraq, the United Kingdom, and Belgium.  

"We aim to reach USD 50 billion in chemical exports by 2030"

İKMİB Chairman Adil Pelister stated that they succeeded in raising unit prices by 10 percent in chemical exports in 2023 compared to 2018 when they took office. "As the rising star of exports, the chemical sector continues to be one of Turkey's locomotive and strategic industrial areas in exports. We achieved second place among the highest exporting sectors with USD 30.6 billion in exports in 2023. We view increasing our global market share even during a period of decline in global chemical exports as a valuable achievement. With this motivation, we are focusing on increasing market diversification and targeting USD 35 billion in chemical exports in 2024. As İKMİB, pioneering qualified exports and opening up our chemical sector to the world with the 'Vision 2030' motto, we will continue our efforts to reach USD 48 billion in exports in 2028 and USD 50 billion in 2030," he said.

"Through our Chemical Technology Center and Turkey Chemistry Agency initiatives, we will carry chemical exports into the future"

İKMİB Chairman Adil Pelister, noting that they are prioritizing increasing market diversification for chemical exporters, high-value-added exports, and green transformation and circular economy from a sustainability perspective, stated: "We see a difficult process ahead in the near future and are acting with awareness of our responsibilities. Geopolitical developments such as wars or tensions between countries, along with global inflation, high interest rates, and commodity and energy prices, are negatively affecting the supply and demand balance. Therefore, our priority goal is to rapidly adapt our chemical exporters to all transformation and change processes. In this direction, we are working on many innovative projects. Through our Chemical Technology Center project, which will be a first in Turkey, we aim to establish a new ecosystem focused on high technology and high value-added. We will inaugurate the CTM located in Technology Valley in the first half of this year. Within our Chemical Technology Center, a total of 175 different tests will be conducted and 83 will be accredited. Thus, we expect to achieve minimum annual savings of USD 7.2 million in test and analysis services at optimum capacity. Through Turkey Chemistry Agency projects we plan to implement in the near term, we aim to increase the Turkish chemical sector's global market share from 0.6 percent to above 1 percent," he said.

Pelister: "We want the chemical sector to be among the game-changers of the new era through sustainable exports"

İKMİB Chairman Adil Pelister, emphasizing that the time for change and transformation in sustainable chemical exports has now come, stated: "With the 'Chemical Sector Sustainability Action Plan Report', we have set the course for this change and transformation in the chemical sector. This is because our chemical sector is in a strategic position that serves and provides inputs to all other sectors. Particularly when we consider the EU market, which accounts for more than 40 percent of our exports, the 'Carbon Border Adjustment Mechanism' to be introduced with the Green Deal, 'Fit for 55', and the 'EU Emissions Trading System' (ETS) will significantly affect chemistry along with all our sectors. Therefore, adapting to sustainability is necessary for further chemical exports. For this reason, establishing an ETS and implementing carbon pricing regulations urgently in our country is very important. We want the chemical sector not to miss the sustainability train and to be among the game-changers of the new era brought by green transformation and circular economy," he said.

İKMİB to hold 35 export activities in 19 countries

İstanbul Kimyevi Maddeler ve Mamulleri İhracatçıları Birliği (İKMİB) will organize important events in 2024 that will open new markets to chemical exporters. İKMİB will hold 35 export organizations in 19 countries this year, organizing 16 national fair participations, 4 info stand participations, 11 sectoral trade delegations, and 4 buying delegations. Through events centered on Turkey as well as the United States, China, Germany, Italy, Spain, Romania, the Czech Republic, the Netherlands, the UAE, Saudi Arabia, Indonesia, Hong Kong, Kazakhstan, Panama, Chile, Mexico, Colombia, and Russia, İKMİB will bring the potential of chemical exporters to target markets.