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Ccme October 2017 Turkey Report
Ccme October 2017 Turkey Report
42 October 2017
And the
twain
have met
It is widely believed that Turkey’s strategic location, at the
crossroads of Europe and Asia, and its skilled workforce
constitute a winning formula for its HVACR industry
October 2017 43
COUNTRY REPORT Turkey
S
▶ ISunset over the Blue Mosque, Turkey
traddling Europe and
Asia, Turkey is widely
regarded as being able
to offer the best of
Serdar Kumbaraci both worlds, in terms of culture. HVACR
manufacturers in the country are proving
to be no different with regard to the
products they are purveying, and this
characteristic, in many ways, seems to be
the reason for the sector’s resilience in the
midst of global economic challenges.
“While the HVAC&R market in Turkey
shrank by five per cent in 2016, 2017 has
already seen some improvement and a
Ganim Dokuyucu positive trend in growth rates,” says Serdar
Kumbaraci, Director General-UAE, Turkish
Trade Center (TTC). “In the third and the
fourth quarters of 2017, this trend is likely
to continue, and we expect a growth
rate of 4-5% by the end of the year.”
Kumbaraci says that in 2016, the export
volume of the sector had reached USD 3.6
billion and that the overall expectation for
2017 is USD 4 billion. reliable investment environment, which has
Serkan Uzun Ganim Dokuyucu, General Manager, supported the growth of the HVAC sector.
Mechanical Engineer for Ulpatek, echoes “HVAC producers are very pleased with
this buoyant view, saying that the HVAC the situation, because this positive air has
sector has gained good momentum increased the presence of Turkish companies
for an increase in recent years. “In the in foreign markets,” he says.
January-August period of 2017, Turkey has Elaborating on Uzun’s words, Dokuyucu
exported about USD 2.5 billion [worth of says that Turkey is in the 24th place, in terms
products], an increase of eight per cent, of HVAC sector exports to all over the world
compared to the same period and that the sector has set a target for USD
of 2016.” 25 billion by 2023. “The HVAC sector is one
Serdar Tümen Touching on the dynamic nature of of the fastest growing markets in our country
Turkey’s HVACR industry, Kumbaraci in recent years,” he adds. “The fact that this
emphasises that there has been a 10%
increase in export figures in the first six
months of the year and that the TTC is
optimistic that the trend will continue in
the second half of the year.
On the other hand, he says, most of
the products manufactured by the sector
are the so-called comfort products. As a An annual growth
Serkan Altintel result, political instabilities and economic
recessions could result in a dramatic rate of 4-5% is
decrease in trade volume, he adds.
In the face of such difficulties,
only possible by
however, Kumbaraci stresses that a careful selling products,
analysis of the Turkish market will reveal
that foreign exchange rates have been and especially
stabilising and “last year’s hardships
have been overcome, which secured an
technological
atmosphere of stability”. products abroad
Kadir Akpinar Adds Serkan Uzun, Export Sales
Director of Üntes: “Despite the slowdown
of the global real estate market in the
last 10 years, Turkey has provided a
44 October 2017
market is constantly developing has recently
attracted the attention of producers in
Europe.”
Kumbaraci adds that the buoyant
atmosphere, aside from attracting more
foreign investors, is resulting in higher
sales figures and the construction of new
facilities. “The Turkish HVAC-R market
has grown rapidly, and many companies
around the world, having witnessed these
developments, have invested in Turkey,”
he says. “Currently, a great number of
firms are manufacturing in Turkey. The
subsequent technological investments, and
the competitive environments [have] resulted
in considerable improvements in terms of
product quality. The Turkish HVACR sector
exports a remarkable portion of its products
to European countries. This is another
indicator of the quality of Turkish
HVACR products.”
Kumbaraci says that Turkey’s growing
attractiveness to investors is largely owing
to the support measures available for
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Allied has grown into one of the leading Engineering and Project Management
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(Egypt, United Arab Emirates, Kingdom of Saudi Arabia).
The company is a multidisciplinary consulting firm and has a track record and
specialization in Buildings, Industrial Works and District Cooling and Power
Generation Plants.
October 2017 45
COUNTRY REPORT Turkey
▶ Istanbul, Turkey
of leading global companies in the sector
have made Turkey a production base through
partnerships or purchase of firms. Kumbaraci
names the Atlantic Group, Baymak, Bosch,
Carrier, Daikin, Ferroli, Grundfos, Johnson
Controls, KSB, LG, Ross, Schako, S&P,
Systemair, Vaillant, Viessmann and Wilo as
among those who have a strong presence in
the country.
A GLOBAL MODEL
The positive trajectory of the country’s
HVACR sector is apparently a result of
the growth model adapted by Turkish
manufacturers, which puts a strong
emphasis on export. “The only way to create
a country that is able to sell its products
abroad and secure foreign currency inflow
is to manufacture quality products, in
accordance with the legal provisions and
needs of purchasing countries and sell these
products through the right channels,” says
Kumbaraci. This, Kumbaraci adds, means that
manufacturers take into consideration not
only the European Union standards, but also
the specific rules and regulations of other
countries.
“An annual growth rate of 4-5% is only
possible by selling products, and especially
technological products abroad,” he stresses.
“I am happy to say that we have travelled
a long distance towards this objective.
Turkish products are now sought after and
preferred in many markets across the globe.”
The biggest importers of Turkish products,
Kumbaraci says, include Germany, Britain,
Iraq, Italy and Romania, adding that a
significant portion of the country’s export
goes to Member States of the European
Union, in addition to Turkey’s bordering
neighbours.
Docuyuku believes that the ability
of Turkish manufacturers to adapt to
international standards is a positive feature
that makes it stronger in the market. “We
have a chance to learn innovations instantly,”
he says. “The standards that are published
in Turkey about our sector do not pose
any problem for adaptation, because the
directives are based on these international
standards. The existence of these standards
is actually an opportunity for companies that
do their job properly.”
Manufacturers have seconded this,
with many noting that a bulk of their
clients is abroad. Serdar Tümen, Business
Development of Friterm, shares that 45%
of the company’s sales comes from Europe.
Serkan Altintel, Project Sales Manager of
Frigo Mekanik, says that his company is
46 October 2017
Adds Sadath Hussain, Senior Sales of labour is only a third of what it is in the
Engineer, TTC: “If you compare Turkish rest of Europe. This gives the country’s
companies, in terms of quality, they are manufacturers flexibility in terms of the
on par with the other international brands. solutions they are able to offer.
When it comes to pricing, they have an Further, the country’s strategic location
advantage, because it is better than that of also lessens transport costs. “Turkey is
other manufacturers.” playing an active role in the market because
Sadath Hussain Tümen adds to this by saying that of its connection to Europe, Asia and the
energy-wise and in terms of labour costs, African continent as a location,” says
Turkey has an advantage over many other Ertuğrul Koçak, Project Engineer, Korkmaz
European countries. As Mohit Kumar, Senior Panel. “Being close to big markets
Sales Engineer, TTC, points out, the cost opens the way for companies to sell.
Mohit Kumar
Ertuğrul Koçak
October 2017 47
COUNTRY REPORT Turkey
48 October 2017
Altintel says that Frigo Mekanik is and across the Gulf,” he says, adding that
looking towards exploring the potential this is the reason that he, along with fellow
going with Freon-based equipment, and of the UAE market, owing to the Turkish manufacturers have joined the TTC,
if it is a sizeable project then we advise country’s position as a global business which has recently opened its base in the
ammonia refrigeration.” Hussain admits hub. He adds that he expects to see a UAE.
that there is a challenge when it comes higher demand for cold storage in the “We are trying to promote all these
to going for ammonia refrigeration, GCC region. “Storage is life,” he says. developments by means of sectoral
as some are wary of its hazardous “Outside, it’s about 38-40 degrees C, associations and Turkish HVAC-R exporters
properties, but that they are also aiming and in here, you are comfortable. It is (İSİB),” says Kumbaraci with regard to the
to educate people that technologies do important to ensure thermal comfort goals of the TTC. “To be frank, we have to
exist to avoid such mishaps. for food, meat, poultry, fruit, vegetables admit that we have not been fully successful
and dairy. Everything has to be under in advertising these developments in the GCC
WHAT DOES THE control.” Hussain says that Turkey has [region] countries. Additionally, thanks to the
TURKISH GROWTH also observed massive developments Turkish HVAC-R Trade, which has opened in
STORY MEAN FOR THE within the hospitality sector with a large Dubai, we as a sector will be able to share all
GCC REGION? number of new hotels coming up in the these developments with the GCC [region]
With Turkish manufacturers aiming to UAE. “It means,” he says, “there will be countries in a more effective way.”
address global standards, it is evident huge scope in the storage sector.”
that they are leveraging their competitive Tümen adds that Friterm has been
advantage, in terms of quality and selling to the Middle East, though
pricing, to GCC region countries and indirectly, with many of the contractors HAVE YOUR SAY!
making a proactive move to enter the buying products for installing in cold We welcome your views on the article.
market. “The Gulf region is very close to store projects they are involved in. “We Write to editor@cpi-industry.com
my country as a location,” Koçak says. want to expand our business in the UAE
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October 2017 49