REPUBLIC OF TÜRKİYE MINISTRY OF INDUSTRY AND TECHNOLOGY – CHEMICAL SECTOR REPORT (2020) (Part 3)

1.6. Sector Capacity Utilisation

Capacity utilisation in the chemical sector has developed in line with the country's general trend, considering the inputs it provides to other sectors. The weighted average capacity utilisation rate over the past five years has been 74.2%. Table 4. Capacity Utilisation Rate by Year (Weighted Average %) Source: TCMB (NACE REV.2 Code:20-21-22) 1.7. Number of Workplaces and Employment in the Sector According to TÜİK data, 337,799 people were employed in the chemical sector in 2016, and this figure increased by 3.7% compared to the previous year to reach 350,404 in 2017. The share of chemical sector employment within manufacturing industry was 8.6% in 2016 and rose to 8% in 2017. Table 5. Number of Employees in the Chemical Sector Source: TÜİK Figure 17. Employee Profile in the Chemical Sector In 2018, women constituted 20.6% of employees in the chemical sector. The sector provides employment for qualified human resources. In a sector with 23,163 entrepreneurs in 2016, the number of entrepreneurs increased by 4.3% to reach 24,155 in 2017. Its share within manufacturing industry also rose from 6.1% to 6.2%. Table 6. Number of Entrepreneurs in the Chemical Sector Source: TÜİK 1.8. Sector Production Value According to TÜİK data, the chemical sector's production value in 2017 increased by 30.5% compared to the previous year to reach TRY 163 billion. Of this value, 47% was generated by the chemicals and chemical products manufacturing sector and 53% by the rubber and plastic products manufacturing sector. Table 7. Production Value (TRY) Source: TÜİK 1.9. Sector Turnover According to TÜİK data, the chemical sector's turnover increased by 31% compared to the previous year to reach TRY 178 billion. Of the 2017 turnover, 47.2% was generated by the chemicals and chemical products manufacturing sector and 52.3% by the rubber and plastic products manufacturing sector. Table 8. Chemical Sector Turnover (TRY) Source: TÜİK 1.10. Sector Added Value The share of the chemical sector's 2017 added value at factor cost within manufacturing industry was 13.57%. The largest share in the added value produced by the sector belongs to the rubber and plastic products manufacturing sector with 44.1%. This sector is followed by the chemicals and chemical products manufacturing sector with 41.6% and the basic pharmaceutical products and pharmaceutical preparations manufacturing sector with 14.4%. Table 9. Chemical Sector Added Value (TRY) Source: TÜİK The chemical sector, which has a leading nature in terms of fluctuations in general economic activity, has shown strong momentum in turnover in recent years. In 2017, the chemical sector's turnover realised at TRY 83.7 billion, production value at TRY 75.9 billion, and added value at TRY 19.3 billion. Turkey, the world's 18th largest economy, ranks in global production-to-sales as follows:

• 17th in personal care products,
• 19th in inorganic industrial chemicals,
• 21st in polymers,
• 22nd in speciality chemicals,
• 27th in pharmaceuticals,
• 44th in petrochemicals.

Figure 18. Chemical Sector's Share within Manufacturing Industry Figure 18 shows the share of the chemical sector within manufacturing industry. Accordingly, in 2017, the chemical sector's share of the number of enterprises within all manufacturing industry was 1.38%; the ratio of the number of employees was 2.12% and the production value was 4.82%. 1.11. Sector Research and Development Activity Based on calculations made according to survey results from public institutions, foundation universities and the commercial sector, and budget and personnel breakdowns of state universities within the scope of Research and Development (R&D) activities research, Turkey's gross domestic R&D expenditure in 2015 increased by 17.1% compared to the previous year to TRY 20 billion 615 million. The share of gross domestic R&D expenditure, which was 1.01% in the previous year, within gross domestic product (GDP) increased to 1.06% in 2015. This rate was 0.95% in 2013. In gross domestic R&D expenditures, the commercial sector had the largest share at 50%, followed by the higher education sector at 39.7% and the public sector at 10.3%. While 50.1% of R&D expenditures were financed by the commercial sector in 2015, this was followed by the public sector at 27.6%, the higher education sector at 18.1%, other domestic sources at 3.2% and foreign sources at 1.1%. In 2015, a total of 122,288 people worked as R&D personnel in full-time equivalent (FTE) terms. The increase in R&D personnel numbers in FTE terms compared to the previous year was 5.9%. When looking at the distribution of R&D personnel by sectors, in 2015, 54.5% of total R&D personnel in FTE terms were in the commercial sector, 35.4% in the higher education sector and 10.1% in the public sector. In the chemical sector, commercial sector R&D expenditure increased by 73.1% compared to the previous year in 2018, reaching TRY 1,572 million. The chemical sector's share of gross domestic R&D expenditure within gross domestic product (GDP) realised at 0.04% in 2012, 2013, 2014 and 2015. Table 10. R&D Expenditure in the Chemical Sector (Million TRY) (2018) Source: TÜİK (NACE REV.2 Code:(19-20)1 -21-22) (Data have been presented in aggregate form in accordance with the confidentiality principle of the Turkish Statistical Law No. 5429.) *This report was prepared by the Ministry of Industry and Technology – General Directorate of Industry of the Republic of Turkey. REFERENCES

1. Ministry of Industry and Technology of the Republic of Turkey
2. State Planning Organisation Ninth Development Plan Chemical Industry Specialisation Committee Report
3. CEFIC European Chemical Industry Report (2020)
4. TÜİK
5. Trade Map