Ömer Karadeniz Assesses the Plastics Industry

Ömer Karadeniz Assesses Plastics Sector Following Istanbul Chamber of Industry's announcement of results from Turkey's 2022 Top 500 Industrial Enterprises survey, Ömer Karadeniz, Chairman of the Board of Plastic Manufacturers Federation (PLASFED), commented: "We have left behind a difficult year for our industry, which is clearly evident in the information the report provides us. We see that the number of plastic sector companies on the list has dropped from 15 to 13. It is unfortunate that the plastic sector, which had continuously increased its presence on the list in previous years, has fallen behind its 2021 achievements," he said.

Production and Exports Essential for Continued Growth

Pointing out that exports have increased significantly compared to previous years when looking at sector data, Ömer Karadeniz stated, "Despite serious fluctuations in exchange rates in recent times, our businesses have continued production and focused on exports to mitigate currency risk. Businesses that suffered losses in dollar-based turnover have stayed afloat thanks to exports, which demonstrates how crucial production and exports are for the sector to continue growing. Looking at the ISO 500's evaluation of net sales from production, while the increase in 2020 was 21.7 percent, this rate rose to 77.5 percent in 2021 when the pandemic occurred, and in 2022, ISO 500's production sales showed a 119 percent increase, also affected by inflation and exchange rate increases. However, this sharp increase in sales was not accompanied by a similar jump in production. While exchange rate volatility has caused even greater problems in sectors highly dependent on imports for raw material supply, such as the plastics sector, both plastic sector businesses included in the ISO 500 and those outside it have continued to produce and work with exceptional dedication," he said. [caption id="attachment_157031" align="aligncenter"] PLASFED Board Chairman Ömer Karadeniz[/caption]

Production: The Only Way Out

Emphasizing that the manufacturing industry has continued production despite all global and local challenges in recent years, Ömer Karadeniz continued his remarks as follows: "The duty of both civil society organizations and public authorities is to support the manufacturing industry for our country's sustainable development. If we want to achieve the targets set out in the recent Medium-Term Programme, we have no other way out. Reducing the cost burden on manufacturing industry will create a multiplier effect in other sectors and our country will enter a rapid growth path."

Effects of Sharp Inflation Observed

Emphasizing that, as the umbrella organization PLASFED Plastic Manufacturers Federation, the businesses in our sector that make important contributions to our country need to be supported, Ömer Karadeniz stated, "In 2022, ISO 500's net sales from production increased by 119 percent, rising from TRY 2.05 trillion to TRY 4.48 trillion. On one hand, this data also reflects the sharp inflation experienced in 2022. Looking at the distribution according to the 10-sector grouping created by ISO, we see that nearly 75 percent is concentrated in 5 sector groups. These companies are connected to our sector: 101 from the food products industry, 96 from the basic metals and machinery manufacturing industry, 71 from the chemical products, plastics and rubber products industry, 56 from the electrical equipment and electronic products industry, and 50 from the land and sea vehicle component industry. According to 2022 data, these five sectors account for 85 percent of net sales from production. We would like to thank the ISO Board of Management for sharing this valuable information that illuminates our entire sector and industry through the ISO Top 500 report. In conclusion, I congratulate our businesses that create added value and provide important contributions to our country in terms of economy and employment, and I hope these successes will continue for many years to come," he stated.