Haluk Erçeber Re-elected as Chairman of TKSD for Second Term

Haluk Erceber, re-elected for a second term as Chair of the Turkish Chemical Manufacturers' Association (TKSD), a body representing one of Türkiye's most important sectors, has announced a new vision document and future objectives. Erceber, who will serve in this crucial role for three years, has prioritized increasing export figures and ensuring earthquake resilience for industry in seismically risk-prone regions. Erceber notes that the coronavirus outbreak first seen in China is expected to have a positive effect on the sector, bringing increased orders from EU countries and rising export figures. The chemical sector achieved USD 17.8 billion in exports in 2019, while imports reached USD 36.3 billion. The Turkish Chemical Manufacturers' Association TKSD continues with Haluk Erceber. Erceber, elected to the TKSD Board of Directors Chair for a second time, will serve for three years. Explaining his future objectives for the new term, TKSD Chair Haluk Erceber emphasized that Turkish REACH (KKDİK) training and implementation will be completed without gaps in accordance with the standards of the Environment and Urbanization Ministry, and that integration between EU Chemical Industry and ECHA is included in the new vision document. He shared the following information about work accomplished to date: "At the TKSD General Assembly, we have renewed our confidence for the second term lasting three years. Since 22 February 2018, we have made it our principle to be the leading non-governmental organization of the chemical sector with a cohesive board of directors and to provide the highest level of service to our chemical manufacturers while creating solutions for their problems. Our important objectives were to have Turkish chemical industry selected as a priority sector and to carry out work to address regulatory harmonization with EU chemical industry, technology, scale and clustering deficiencies. By establishing a very close relationship with the EU Chemical Industry Council CEFIC, of which we are a member, we have immediately distributed all reports related to world and EU chemical industry to our members. We cooperated with TSE on KDU and GBF training. By working closely with all ministries and non-governmental organizations, we provided support to our manufacturers and became a point of solution for problems. We successfully launched and began implementing the CEFIC Responsible Care Triple Responsibility revival project. Over the past two years, TKSD has increased its membership by 22 percent. We desire to increase this success even further and to be the sector that contributes the highest to the national economy. TKSD has succeeded in becoming the first point of contact for both domestic and foreign manufacturers in the chemical sector."

New projects to increase our revenue sources

Expressing awareness that sustainability will be an important target for the chemical sector in the coming period, Erceber stated that they wish to prioritize support for sectoral development, and added as follows: "We will share short and long-term measures with our manufacturers to prevent production, which is the foundation of Türkiye's economy, from suffering damage from a possible earthquake, and we will hold discussions with ministries regarding necessary financial support. Being closer to manufacturers to provide greater contribution, increasing our membership and reaching potential members are among our basic priorities. In this context, we embarked for a second time with the goal of 100 members. We will support our manufacturers through new projects to increase our revenue sources and by providing new training and consulting services in line with the sector's needs. In this context, we will establish even stronger collaborations with other sector associations and confederations. In the new term, we are beginning to carry out facility inspections and training within the scope of the new version of Responsible Care developed by CEFIC. We will provide technical consulting services for improvements. Supporting the development of raw material supply security and education and services related to improving chemical transport and logistics are also among the projects of the new term."

Export figures in the chemical sector are expected to increase due to the coronavirus outbreak...

While Turkish chemical industry conducts 44 percent of total exports to EU member countries, the fact that unit prices of sold products remain below USD 1 continues to be an important problem for the sector. According to Erceber, re-elected TKSD Board of Directors Chair for a second time, it is of great importance for the chemical industry to redirect toward new investments and work for specialty chemical exports. Noting that this will double unit prices, Erceber lists the objectives in his new vision document as follows: "The main reason unit values remain below USD 1 is that we are not at the desired level in specialty chemical exports. The coronavirus outbreak originating in China is positive for the sector. In particular, we will receive more orders from EU countries and our export figures will increase. The chemical sector achieved USD 17.8 billion in exports in 2019, while import figures reached USD 36.3 billion. We account for 59 percent of the foreign trade deficit. Seventy-five percent of raw materials used in production are imported. Fifty-five percent of raw materials come from China. However, after coronavirus, we are seeing this import shift to other countries."

High technology should reach 10 percent

"Pointing out the need for new investments to raise the proportion of high-technology products in the chemical industry from 4 percent to 10 percent, Erceber explains his suggestions and future plans as follows: "We need to increase investments. Free trade agreements will negatively impact China's export figures as much as coronavirus, and with the effect of this undesired negative development we will be able to increase our chemical exports. The second event affecting China is the implementation of carbon tax at the border in 2021. Türkiye will face fewer problems at this point, and the sector will increase export figures."

Customs update will provide advantage

"We are a country very close to EU countries in terms of travel and transport. With this, we can double our gains. In the new term, China will try to sell products to the EU through Vietnam. We need to keep all of this in mind. Short and long-term planning must be done to increase exports. Companies facing difficulties in the domestic market can shift toward foreign exports. Without overlooking the contribution of cooperation, we must develop our export position. The EU customs union update will have positive implications for Türkiye and the sector. Following Brexit, we expect an FTA agreement with the United Kingdom by the end of this year. We will provide tax and competitive advantages."

Chemical clusters should be established in locations suitable for ports, close to markets and major cities, away from earthquake risk

"Over the next three-year period, we will further increase our proximity to the EU Chemical Industry Council CEFIC. An important objective of ours is that chemical clusters in Türkiye (CHEMPORT) be established by the Ministry of Industry and Technology and the Ministry of Transport and Infrastructure on coastlines suitable for ports, close to markets and major cities, but far from earthquake risk, and be managed with the landlord model. China today holds 36 percent of world chemical trade and owes this success to 66 mega chemical clusters it established over a 30-year period. For our manufacturers, increasing today's USD 17.8 billion in exports and raising the average kg sales price of USD 0.9 through R&D and innovation are important objectives. It is too late for petrochemical investments planned to be established in the Ceyhan region. If competitive-price production is possible, investments must begin as soon as possible. We are aware of the chemical sector's 59 percent share of Türkiye's total foreign trade deficit. This ratio can only be reduced through technological investments in new and specialty chemicals. To realize new investments, the Chemport specialty chemicals cluster must be established quickly.

Earthquake solidarity must be realized

"The earthquake issue is very important. USD 117 billion in exports come from the Marmara Region, USD 85 billion in exports originate from Istanbul. Sixty-five percent of total USD 180 billion in exports take place from the Marmara Region. In the context of earthquake safety measures in industry, life safety, how the private sector will support the public, improvements and training to be conducted at facilities before earthquakes, and earthquake solidarity with members are important. One of our objectives for the coming term is also to achieve safe use of chemicals and meet EU standards."