Plastics Sector Export Growth Accelerated in 2020

PAGDER Chairman Selçuk Gülsün, assessing the plastic sector's 2020 performance: "We see that export growth has accelerated in the plastic sector in 2020, serving as a driving force for sector growth."

Plastic Sector Expected to Grow 5.7% by Year-End

Stating that the sector, despite 3.9% growth in 2019, had failed to reach 2017 production levels until finally surpassing this threshold in 2020, Gülsün said: "After two weak years marked by the exchange rate shock in 2018 and the contraction in the global automotive market in 2019, we expect the sector to grow 5.7% in 2020. Plastic consumption increased during the pandemic, which opened deep wounds worldwide, as it became critical for maintaining hygiene and preventing supply chain disruptions. Our country's plastic sector, thanks to its existing installed capacity and flexible structure, made significant progress in meeting this growing global demand. In this context, analyses conducted by our association show that plastic product manufacturing in our country will reach approximately 10.4 million tonnes by year-end," he said.

Exports Rose 7.6% Due to Pandemic Impact

Continuing his remarks, Gülsün stated: "We expect plastic sector exports to rise 7.6% by year-end. While the most significant increase among our export items occurred in plastic film for packaging, engineering plastics and plastic construction materials sectors achieved important growth levels." Emphasizing the importance of making the export growth driven by pandemic impact permanent, Selçuk Gülsün noted: "The increase in exports resulting from both rising demand and preference for Turkish products over Far East-origin products should be made permanent through promotional activities of organizations such as the Turkey Promotion Group." he said.  

Steps Must Be Taken to Strengthen the Domestic Market

PAGDER Chairman, noting that the pandemic and related uncertainties will continue especially in the first half of 2021, stated: "Although our sector continued its export-driven growth in 2020, in periods marked by intense uncertainty, a strong domestic market is of great importance for all manufacturing industry. Recent currency movements and the resulting decline in purchasing power have contracted the domestic market. Steps to strengthen the domestic market must be taken urgently for the survival of our enterprises that must work for the domestic market due to sector-specific and other reasons and lack export experience." Noting that when these steps are taken and the domestic market is strengthened, manufacturing industry will be able to implement investments with confidence, Gülsün said: "As in all developed countries, we must develop our manufacturing industry for permanent and sustainable growth." he said.  

We Must Be Ready for the New Normal!

Underlining that the circular economy issue, which fell behind the agenda during the pandemic, will become an important agenda item again in the post-pandemic period, Selçuk Gülsün stated: "With the EU Green Deal process and carbon border tax implementations, the circular economy will occupy an increasingly larger place in our agenda. To prepare for this process, we must develop our recycling system and our collection-sorting system and resolutely move towards zero waste targets. If short-term populist approaches are taken instead of medium and long-term policies, such as banning waste imports which would completely eliminate the recycling sector, the export potential of the plastic sector will rapidly erode and our country will not become part of the newly established supply chain. Instead, having a healthy recycling sector through increased inspections will prepare our sector for the new normal," he said.