PAGDER, Toy Industry Specialized OIZ Sign Cooperation Agreement

Clustering: The Key to High-Value Manufacturing

PAGDER Chairman Selçuk Gülsün, noting that Turkey's toy production exceeds 100 million dollars, but that production can meet approximately 20 percent of the country's needs when foreign trade is considered, stated: "However, this is an assessment on a finished product basis. In domestic toy production, semi-finished materials such as imported auxiliary materials, particularly electronic components, may be involved. One of the most important advantages of clustering is the development of the supplier industry. In particular, firms producing components and parts can multiply. Additionally, structures such as mold manufacturers and packaging producers are included within the same cluster. In this context, the Toy Specialized Free Trade Zone, which will be implemented through a protocol signed between TOY-KOOP, Asrey Construction, PAGDER ASLAN Plastics Specialists Special Organized Industrial Zone (PAOSB) and the Plastics Manufacturers Association (PAGDER), is of great importance," he said. Noting that clustering is the key to high-value manufacturing in terms of creating an appropriate ecological system for know-how transfer, Gülsün stated: "The Toy Specialized Free Trade Zone will be located immediately next to the PAGDER ASLAN Plastics Specialists Special Organized Industrial Zone and will be a fine example of vertical clustering."

Turkey Has Significant Potential in the Toy Sector

Continuing his remarks, Gülsün said: "We rank among the world's countries with the most superior logistical characteristics. The fact that toys are a voluminous product logistically places Turkey in an even more advantageous position." Due to recent devaluations, Gülsün noted that the Turkish lira has become more competitive against the yuan: "This situation presents great opportunities for new investments. If sufficient investment is made in R&D, particularly in modeling, design and development, I believe our toy sector will reach very strong export positions," he said. Noting that Turkey's toy imports are at approximately 200 million dollars, Gülsün continued by saying: "I anticipate that this import level will decline significantly once the sector's production capacity, know-how and branding reach desired levels." Emphasizing the importance of continuing inspections during and after imports, Gülsün stated: "Phthalate testing in particular is quite necessary. However, regular inspections are being conducted in stores and supermarkets by our authorized Ministry.

Increasing these inspections, sending products to authorized organizations for testing, and subsequently applying penalties for non-compliant products are of critical importance," he said.

Providing information about the Toy Specialized Free Trade Zone, Asrey Construction Board Member Fidan Aslan Eroğlu said, "We are experiencing the excitement and joy of the cooperation between TOY-KOOP Chairman Ender Mıcık and Asrey Construction regarding the establishment of the Toy Specialized Free Trade Zone in Vize, Kırklareli. As Asrey Construction, we took a pioneering role in establishing a special organized industrial zone in Vize and achieved a first in Turkey. In 2012, with the protocol signed with the Plastics Manufacturers Association (PAGDER), the first step was taken toward the establishment of the PAGDER ASLAN Plastics Specialists Special Organized Industrial Zone on an area of 650 thousand square meters. For the first time, the private sector and civil society organizations entered into such cooperation. Alongside numerous advantages ranging from cheap energy to investment incentive support, from proximity to Istanbul and Europe to relocation credit support, we aim to provide our toy manufacturers with the specialized free trade zone they have needed for many years, with modern infrastructure facilities and social living areas. I wish that Turkey's first Toy Specialized Free Trade Zone, which will be established initially on 600 thousand square meters with expansion areas on a total area of 1 million square meters, will be beneficial for our country, the toy sector, and the region," he said.

One Quarter of the Sector Is Now Located in Vize

Noting that the second clustering model after toy manufacturers clustered in China's Santo region will be realized in Vize, TOY-KOOP Chairman Ender Mıcık said, "As of today, 38 firms including printing houses and mold manufacturers from the sector's auxiliary branches and service-providing sectors have taken their place in the region. According to Ministry records, considering that 156 toy companies operate in our country, we will have provided synergy opportunities to one quarter of the sector in Vize. Investments that will create new business opportunities will provide value to the lives of 60 thousand people living in Vize, Pınarhisar, Ahmetbey districts and towns. Within three years, with the completion of infrastructure and regulatory arrangements in the region, manufacturers will be able to establish their facilities. Starting production in 2022 and establishing a settlement