Turkish Chemical Sector Exports on the Rise

Chemical Sector Closes 2019 with Record Exports; 2023 Target Set at USD 30 Billion

At a press conference attended by İKMİB Board Chairman Adil Pelister, İMMİB General Secretary Dr. S. Armağan Vurdu and İMMİB Deputy General Secretary Coşkun Kırlıoğlu, the chemical sector—a major contributor to Turkey's economy and exports—presented its 2019 assessment and shared future targets. The chemical sector achieved a historic export record of USD 20.6 billion in 2019, becoming Turkey's second-largest exporting sector that year. Drawing attention with rising export performance, the chemical sector achieved Turkey's fastest-growing export sector status in 2019, posting 18.54 percent growth among sectors exceeding USD 3 billion in exports. Evaluating the sector's year-end exports at the conference, İKMİB Board Chairman Adil Pelister stated: "Our chemical sector exports achieved a historic record in 2019. Exceeding our USD 20 billion target, we achieved significant success with USD 20.6 billion in exports. Additionally, among sectors exporting over USD 3 billion, we became Turkey's fastest-growing export sector with 18.54 percent growth. Our sector's 2019 exports on a volume basis reached 26 million 539 thousand tons, up 35.83 percent. With USD 1.94 billion in exports achieved in October 2019, we set a new monthly export record. Throughout 2019, we maintained our position as Turkey's second-largest exporting sector every month consecutively, achieving our sustainable second-place objective. As the chemical sector, by capturing 11.44 percent of Turkey's total exports, we provided significant added value to our country. In 2020, we aim primarily to maintain our position as Turkey's second-largest exporting sector and increase our contribution to the nation's exports and growth. Furthermore, in line with roadmaps we will develop for our sub-sectors, we plan to conduct our operations on a broader scale."

Among Top 5 Priority Sectors in the 11th Development Plan and New Economy Plan

Noting that the chemical sector's importance grows each year and citing its high growth potential as a strategic sector, Pelister stated: "The chemical sector is ranked among the top 5 priority sectors in the Export Master Plan announced in 2019, the 11th Development Plan, and the New Economy Plan. As İKMİB, together with our 16 sub-sectors ranging from plastics to paints, cosmetics to pharmaceuticals, rubber to organic and inorganic chemicals, we successfully represent the Turkish chemical sector worldwide. In this scope, throughout 2019 we organized 14 national pavilion exhibitions involving approximately 500 exporting companies, 11 overseas trade fair visits, 4 information stand organizations, 5 sectoral trade missions, 12 buying missions, 4 Turkey Promotion Group (TTG) projects, 3 seminars, 3 trade missions and 3 trainings under 7 ongoing international competitiveness development projects (URGE), and 6 workshops on different sectors. Additionally, we held our 8th R&D Project Market event, the fourth İKMİB Export Stars Awards Ceremony, and an industrial design competition."

"Removing Obstacles Faced by Our Exporters"

Noting that they have collaborated with numerous NGOs in different areas, Pelister stated that in 2020 they will take new actions to increase exports from chemical sub-sectors, adding: "As İKMİB, to contribute to our members' exports, we signed an important partnership with Turkish Airlines Aviation Academy and UPS to address the various challenges our exporters face in sending samples abroad. Under our cooperation agreement, İKMİB members can receive training from Turkish Airlines Aviation Academy in Dangerous Goods Regulations (DGR/Category 1,2,3,6) (IATA certification) and benefit from the favorable rates offered by UPS to conduct sample shipments. Moreover, from the day our Board of Management took office, we have made special efforts on one of our commitments—lowering the limits for obtaining green passports and extending the usage period from 2 years to 4 years—and we have undertaken initiatives with our government, worked with our management, and followed up on the promises we made to our exporters. The USD 1 million threshold required for exporters to obtain a green passport has been reduced to USD 500 thousand. The green passport usage periods have been extended from 2 years to 4 years. Thus, one more obstacle facing our exporters has been removed. In 2019, we processed application procedures for 719 member companies that met green passport requirements. In 2020, we will work to double this figure."

"We Want to Change the Perception of Chemistry"

Noting that changing the perception of chemistry is among the priority issues they emphasize this year, Pelister stated: "According to TÜİK data, our sector's imports for the 11-month period of 2019 were approximately USD 68.57 billion, with approximately USD 25 billion used for heating and energy. The remainder is supplied to other sectors as semi-finished products or raw materials. Therefore, we need to change this misconception about our chemical sector. Another important matter for us is recycling and waste, which plays a significant role in the circular economy. We believe recycling will have a positive environmental impact and help reduce import dependence. We will continue our efforts to ensure continued growth in the added value our chemical sector provides to our country, to properly convey chemistry's strategic importance, and to increase the Turkish chemical sector's share of world trade."