Turkey's plastics industry continues growth despite coup attempt

Düsseldorf, Germany — Leaders of Turkey’s plastics industry, the second-largest processing base in Europe, told a K 2016 audience that the industry is growing this year, with little apparent immediate impact from the attempted coup in July.

In an Oct. 21 news conference at the fair, the Turkish Plastics Industry Foundation, or Pagev, gave an update on the industry and issued a statement headlined that the local plastics industry was growing “despite coup attempt.”

“Concerns that the recent failed coup attempt will affect the rising momentum in Turkey’s plastic industry are not reasonable,” said Pagev President Yavuz Eroglu in a statement.

“We strongly believe that the likely short-term effects of this failed [coup] attempt will not be accompanied by any deterioration in the major economic indicators and further reinforce Turkey’s commitment to structural reforms,” he said.

Pagev, in Istanbul, estimated that the industry’s production output will grow to 9 million metric tons of plastics products this year, up from about 8.6 million in 2015. Turkey says it’s the second-largest plastics processing base in Europe, after Germany.

Pagev reviewed ongoing industry developments, including a $23 million Center of Excellence it announced this year which is designed to increase the productivity and innovation in the country’s processing sector.

Turkey’s plastics processing sector is heavily dependent on imports, bringing in 85 percent of the resin it needs and 70 percent of the plastics machinery from other countries.

In an Oct. 22 interview at the fair, Eroglu did point to one negative from the political difficulties — slowing down of long-term business investment as companies wait out uncertainties like how much Turkey will be involved in fighting in neighboring Syria and the aftermath of the attempted military coup.

“The only concern for business is the long-run investments,” he said. “I see our members, they do investments on machinery, renewing things, but if you are talking about investments for new factories, big things, they are all postponed.

“Nobody stops their investments, but they postpone it for some time to see what happens,” Eroglu said.

His comments were echoed by some Turkish exhibitors.

Ersin Cug, sales engineer at Turkish screw and barrel maker Enformak Plastik Teknolojileri A.S., said the falling Turkish lira has helped exports, even as analysts say it hurts the ability to buy from international markets. Companies are cautious.

“There is no crisis, but companies are trying to step carefully,” Cug said.

Turkey had 114 exhibiting companies at the fair, and more than 1,000 Turkish business people attending, Pagev said.