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SMM Istanbul 2011 has plenty of support

from the Turkish Government

shipbuilding, machinery & marine technology trade fair

Istanbul, 26 to 28 January 2011

SMM I.2/ 9 November 2010

Following the announcement of support from SSM, Undersecretariat for Defence Industries (a part
of the Turkish Ministry of Defence) made in June this year for SMM Istanbul 2011, further
professional associations and institutions have announced their endorsement of SMM, which is
now making its way at full speed towards the new, modernised and expanded Lütfi Kirdar
Convention & Exhibition Centre (ICEC). These new supporters for the second SMM Istanbul, to be
held at the Bosphorus for the second time from 26 to 28 January 2011, include the Turkish Ship
Suppliers Association (TURSSA), the Istanbul Chamber of Industry (ISO), and the Ship Recyclers’
Association of Turkey, which is specifically targeting environment friendly modes of recycling. In
August, Turkey signed the UN Convention for the Safe and Environmentally Sound Recycling of
Ships. That sets an important sign, because Turkey is one of the world’s five major ship recycling
nations. C. Tanıl Küçük, Chairman of the ISO, believes that support for the shipbuilding fair on the
Bosphorus is only logical, because Istanbul is Turkey’s window on the global economy and
gateway to cultural exchange at a time of globalisation.

The supporters of the first SMM Istanbul are back on board again in 2011, including in particular
Turkish governmental organisations such as the Undersecretariat for Maritime Affairs, which
reports directly to Prime Minister Recep Tayyip Erdogan; the Turkish Small and Medium Industry
Development Organisation (KOSGEB), an institution of the Turkish Industry and Trade Ministry;
and the Turkish Shipbuilding Association GISBIR. The main German supporters for SMM Istanbul
2011 are the German Shipbuilding and Ocean Industries Association (VSM) and the German
Engineering Federation (VDMA). SMM Istanbul is able to attract such strong support as a
shipbuilding fair under the SMM brand name, held at the interface between the continents – it is
regarded as the meeting point for the shipbuilding industries of Europe and the Middle East. It
makes it easier for international maritime companies to gain access to the Turkish shipbuilding
market, and to the markets of the Arab countries and others in the region.

That is why the ICEC is already well booked. Apart from Turkish shipyards and ship suppliers and
service companies, there are also numerous internationally operating companies there, mainly
from Europe, Asia and North America.
International interest in SMM Istanbul is due to Turkish shipbuilding industry’s upward trend in
recent years, and its vicinity to the emerging markets in the Middle East. It is true that the Turkish
shipbuilding industry suffered particularly in the recent economic and financial crisis, but the
London broker and analyst Clarkson Research Services Ltd. puts Turkey in fifth position for
deliveries up to 1 October 2010, with 52 ships and 0.333 million CGT, following the People’s
Republic of China (833 newbuildings/13.3 million CGT), South Korea (384 / 12.0 million CGT),
Japan (364 / 7.4 million CGT) and the Philippines (21 / 0.4 million CGT). In terms of orders in hand,
Turkey takes 7th place. Most of the 119 newbuildings in the order books of Turkish shipyards at
the end of the third quarter 2010 are tankers, 70 of which are less than 10,000 dwt. Orders in
other main areas are 24 Handy Chemical Tankers (10-60,000 dwt) and 8 Handy Containerships in
the capacity range 1,000-2,000 TEU. The rest is divided among various ship types.

The Turkish shipbuilding industry is also helped by massive support from the Turkish Government,
which is making a big effort in naval shipbuilding. It has, for example, placed an order for six
submarines of a new type from HDW, and this is likewise intended to boost the business of Turkish
suppliers. It is also having a number of surface naval ships built at Turkish shipyards. The
Undersecretariat for Defence Industries is driving these projects forward, and is now also showing
increased commitment to merchant shipbuilding. All of this gives a bright outlook for the
shipbuilding market in Turkey.

That is also the approach of Binali Yıldırım, the Turkish Minister of Transport. At a recent
conference for the Turkish shipbuilding industry held by the Turkish Industrialists’ and
Businessmen’s Association (TUSĐAD), he outlined a new system of credit guarantees to help
shipyards which had to stop building ships as a result of financial problems. In this context he
called for the renewal of the Turkish coastal fleet. He noted that the Turkish merchant fleet was
well placed, and was currently number 16 in the world, with 16 million deadweight tonnes (dwt).
Turkish shipping companies have ordered newbuildings worth USD 10 billion. Turkish shipbuilding
should benefit from that, too.

Just how important the support of the Turkish Government is for the maritime industries is also
underscored by Başaran Bayrak, President of the Turkish Ship and Yacht Exporters’ Association,
which was set up in April this year. The Government was supporting build-up of know-how and
technology for healthy growth of the maritime sector, in order to help Turkish shipbuilding to
achieve healthy growth, in harmony with the neighbouring countries in the Middle East, with the
Arab countries, and also with African countries. “Our goal is to increase our market share,” said
Başaran Bayrak, who is also a Member of the Management Board and Director of ÇEKSAN
Shipyard. This also benefits foreign suppliers, who account for about 50% of any newbuilding at a
Turkish shipyard. The Turkish shipbuilding industry attaches great importance to quality, he added,
and could provide European partners with a better and faster service than companies in the Asia-
Pacific region. He had full support from the Undersecretariat for Defence Industries in this. And this
was also an advantage for SMM Istanbul.

Representatives of the SSM will speak at the accompanying conference, in a thematic block on
“Combining the forces of naval and merchant shipbuilding”. Another focal point of the conference is
“Green shipping”, addressed by leading international speakers such as John Aitken, Secretary
General of SEAaT, and Ceren Bilgin Güney of the Technical University of Istanbul. SEAaT is an
organisation set up by maritime industry companies in 2002 with the goal of promoting awareness
and acceptance of technical solutions for the reduction of pollutant emissions.

SMM Istanbul is organised by Hamburg Messe und Congress (HMC) and the Turkish partner Goca
Fuar Kongre ve Sergi Hizmetleri Ltd.Şti (Goca Exhibitions). The supporting programme offers
visitors to SMM Istanbul 2011 a range of other interesting activities such as visits to Turkish
shipyards, panel discussions, and various workshops. More than 150 exhibitors from about 30
countries are expected at SMM Istanbul, to be held at the centrally located, completely modernised
and enlarged Lütfi Kirdar Convention & Exhibition Centre (ICEC) from 26 to 28 January 2011.

Ed.: Angelika Schennen, Tel.: +49 (0)40 3569 2440, e-mail: