Plastics Sector, Which Grew 10% in 2017, Expects at Least 5% Growth in 2018

Turkey's plastic sector, which ranks sixth globally and second in Europe by production capacity, continued its growth momentum. The sector, which grew 10 percent in 2017, is expected to close the year with production of USD 37.1 billion and exports exceeding USD 4.3 billion. PAGEV Chairman Yavuz Eroğlu stated that the plastic sector has 5 percent growth potential in 2018, while noting that problems in export markets—particularly Iraq and Syria—geopolitical developments and possible fluctuations in financial markets are the main risk factors that could negatively affect growth. Turkey's plastic sector, strengthening its position in the economy, is advancing with confident steps toward leadership in the global arena through its production, export and growth performance. Sector production is estimated to reach 9.7 million tonnes by end of 2017, up 10.2 percent by volume, and USD 37.1 billion, up 9.8 percent by value. Domestic consumption is expected to reach 8.7 million tonnes and direct finished product exports to reach USD 4.3 billion. The plastic sector is targeting 5 percent growth in 2018.

"Plastic Sector Continues to Grow Despite Negative Perception Campaigns"

PAGEV Chairman Yavuz Eroğlu, stating that the sector will close 2017 with growth despite all problems and negative perception campaigns against plastics, said: "Turkey ranks sixth globally and second in Europe in plastic product manufacturing. Plastics are indispensable materials of the future used as alternatives to or alongside materials such as glass, metal, rubber, wood and inorganic substances worldwide. In parallel with developing technology, plastics enable new applications in numerous industrial sectors every day, from medicine and pharmacy to cosmetics and pharmaceuticals, from construction to textiles, from sporting goods to automotive. Due to their cost-effectiveness and ease of application, consumption is rising rapidly compared to alternative materials. Although negative perception campaigns are conducted against our products such as plastic bags, water bottles and PET bottles, the plastic sector continues to grow. Our sector, which has demonstrated growth of 10 percent—above Turkey's economic growth rate—today should be supported and its success should be celebrated rather than attacked. Emphasizing that Turkey lags behind global averages in terms of added value created through exports, yet stressing that the plastic sector's potential is much higher,

Yavuz Eroğlu said: "Especially with the plastic sector targeting at least USD 17 billion in exports by 2023, in order to achieve this level of exports, steps must be taken to address increasing problems in parallel with growth, and measures must be adopted to raise unit export prices, which have fallen below USD 3 per kilogram, to developed country averages."

Eroğlu, stating that despite some positive developments in the global and Turkish economy, risk factors will continue in 2018, said: "Problems in export markets, particularly Iraq and Syria, geopolitical developments and fluctuations that may occur in financial markets continue to be the main risk factors. Uncertainty is expected to generally lead to risk aversion and cautious resource use. Although Turkey targets higher production and lower inflation in the Medium-Term Program, like in 2017, Turkey remains among the economies with fragility risk in 2018. High current account deficit, inability to reduce inflation and increasing financing needs are seen among the main risks the Turkish economy will face in 2018." PAGEV Chairman Yavuz Eroğlu, stating that they expect at least 5 percent growth in the plastic sector in 2018 if the 5 percent economic growth targeted in the Medium-Term Program announced by the government is realized, said: "We expect our plastic production to reach 10 million tonnes by volume and USD 39 billion by value in 2018. We can provide the economy at least USD 15 billion in added value. We believe our sector's direct exports of finished and raw materials in 2018 will reach at least USD 5.6 billion, and the sum of direct and indirect exports will exceed USD 16 billion."