İKMİB Charts Roadmap for Chemical Exports

İKMİB Sets Out Roadmap for Chemical Exports 10-step strategy to reach USD 50 billion in exports

Leading export targets in the chemical sector, the Istanbul Chemical Substances and Products Exporters Association (İKMİB), has undertaken significant work in cooperation with A.T. Kearney to determine the course for exports covering 2017-2023. The chemical sector, which will close the year with approximately USD 15 billion in exports, set its export target for 2017 at USD 15.5 billion. On the other hand, to reach the sector's 2023 target of USD 50 billion in exports, exports must increase by 20 percent annually. The Istanbul Chemical Substances and Products Exporters Association (İKMİB) announced its 10-step strategy to accelerate chemical exports based on the outputs of this report.

Updating the Customs Union agreement with the EU in Turkey's favour, securing raw material supply with new formulas, investment in specific specialty chemicals, sectoral clustering, and scale synergy in R&D are among these steps.

The chemical sector, which holds critical importance for the Turkish economy in many fields from plastics to cosmetics, from rubber to paints and coatings, supplies raw materials and intermediate goods to nearly all sectors, serving as the pulse of Turkish industry. The chemical sector, which increases its contribution to the country's economy year after year through production, exports and employment creation, ranks among strategic sectors with its high potential for value creation. The report "Turkey Chemical Substances Sector Export Growth Strategy" by İKMİB, which sheds light on the status of the chemical industry in Turkey and reveals its risks and opportunities, sets out the sector's roadmap until 2023. Under current conditions, chemistry needs to achieve 20 percent annual export growth each year to meet the 2023 export target. Based on the outputs of the report prepared in cooperation with international consulting firm A.T. Kearney, İKMİB articulated the strategies that chemical exports must follow.

İKMİB Board Chairman Murat Akyüz emphasized that new formulas are needed to secure raw material supply, which occurs with high import rates, and that investment in specific products is essential.

Pointing out the need to revisit the Customs Union Agreement with the EU, which operates against Turkey's interests, and that Turkey must also be a party to bilateral agreements, Murat Akyüz stated: "The report analyzing the situation of the chemical industry presents the current picture objectively. When we evaluate the outputs of the report, we see that a strategy consisting of 10 steps must be implemented to reach the export figures we target for the chemical sector.

The Customs Union Agreement with the EU must be updated as soon as possible and Turkey must definitely be a party to bilateral trade agreements that work against our exporters.

Another important output is that chemistry must review its existing production models and shift toward the production of high-value specialty chemicals. High energy costs that reduce our exporters' competitiveness also need to be reduced. The sectoral clustering need of the chemical sector, which has never been resolved, comes up once again. Furthermore, the chemical sector's dependence on foreign raw materials is increasing. Since new investments in petrochemicals do not appear feasible in the near term, we need new formulas to secure raw material supply. One of these formulas is for the chemical sector, which has a foreign trade deficit of USD 40 billion, to ensure input security through overseas purchasing or partnerships. Creating scale synergy in R&D, increasing value added, developing customer-specific products and commercializing innovation in export markets stand out as other strategies we must monitor in the coming years."