Turkish machine industry determined its vision for 2019.
International competitive power should be increased in the woodworking machines.
İTO’s / İstanbul Chamber of Commerce’s professional committees within the area of machine industry determined ‘Turkish Machine Industry Vision for 2019”. AİMSAD Chairman of the Board of Directors Mustafa Erol attended the meeting and said that the association’s competitive power in the international market should be increased. Deputy Minister of Industry and Technology Hasan Büyükdede mentioned about the incentive for domestic machine purchases.
Istanbul Chamber of Commerce (İTO)’s Machine and Equipments Professional Committee and Machine Tools and Automation Professional Committee organized “Turkish Machine Industry 2019 Vision Sectoral Meeting”. Besides ITO’ s assembly members who are getting engaged in machine industry, industrialist associations which are acting within the scope of the sector’s various areas gathered in this Vision Meeting. AİMSAD was represented by the Chairman of the Board of Directors and General Secretary Arif Onur Kaçak at the meeting. The opening speech was made by İTO/İstanbul Chamber of Commerce Deputy Chairman of the Board of Directors Dursun Topçu at the meeting. Deputy Minister of Industry and Technology Hasan Büyükdede listened the sectoral representatives therein.
İTO/İstanbul Chamber of Commerce Deputy Chairman of the Board of Directors Dursun Topçu, in his speech, stated that the machine sector is the “power indicator” of the economy.
Increase of introduction and incentives will carry the sector onward
Reminding that the companies within the sector generally consists of SMEs / small and medium sized enterprises, Topçu shared: “ This have both the advantages and disadvantages. Small and medium scaled machine producers have flexibility operationally. But, on the other hand, our SMEs have been suffering in the fields of access to finance, restricted budgets of Research and Development and employment of raised and qualified personnel.”
Recording that the investment incentives are laying important role for the development of the machine sector, Topçu added; increase of introductions and finance incentives for the sector shall improve the opportunities which will carry the sector onward in the next year.
İTO Assembly Member Oğuz Akyüz; in his speech, objected against the consideration which Turkey is thought to be the 17th biggest economy in the world, and added;” China’s population is bigger than us for 18 times whereas India’s population is for 17 times. Russia ad Saudi Arabia have million dollars of petroleum income. I am the one using the most expensive energy. There is an disproportionate power herein, I say. If Turkey is capable of achieving these despite such disadvantages, then we should consider we are in the first 10”.
Our priority target should be to achieve export- import balance
Touching on Turkey’s exports target for 2023, Akyüz continued: “Turkey, which ih capable of achieving exports- imports balance shall be a magnificent country.
This should be our priority target, instead of importing foreign goods, it is important to choose the domestic product which is produced in Turkey. The goods produced by the foreign company which is located in Turkey are also being considered as Turkish origin- goods. This is how domestic production should be assessed.”
At the meeting, Akyüz explained a project which has been prepared for the development of the industry and Turkey and stated they wish to create 100 giant brand name. Akyüz stated;” “for creating 100 giant brand names, we need 30 million meter square area and an investment around 15 billion Euro. We provided this for the construction of the airport. There are much more land in İstanbul. We can achieve this for industrial production”.
Sector’s international competitive power should be increased
AİMSAD Chairman of the Board of Directors Mustafa Erol made a speech in Turkish Machine Industry Vision Meeting for 2019 and shared his solution offers for woodworking machine sector.
Reminding that woodworking machine sector’s worldwide volume is 20 billion dollars but Turkey’s share in this volume is 400 million dollars, Mustafa Erol said ;“Therefore, there is an incredible way to go forward” and he added that the support should be increased to overcome the problem of economies of scale which the sector faces up. AİMSAD Chairman Mustafa Erol continued;
“As Turkish woodworking machine manufacturers, we should not compare ourselves with foreign companies. Our biggest company is even unable to wave a flag against them. So what should we do? We should conglomerate as a sector. Based on this conglomeration organization, we wish to receive all the production power of all companies acting in the sector and we wish to establish a structure which is capable of competing with the world companies upon our government’s support and our sectoral power.”
Mustafa Erol expressed that; as acting with the capacity of Non-Governmental Organizations, they are trying to support the members for their foreign marketing actions, however, today a competing company in Europe has such figures even 10 fold of our national figures, and he said; ”one of our most important problems we are facing up as the sector is the global economies of scale, and we hereby need our government’s moral and material support in this respect.
We aim to double the exports in 3 years
Expressing the association’s expectations from the government, Mustafa Erol continued;
“Government represents for the foreign advertisement ‘You should do everything, I shall pay the money later on. In fact, it should be the opposite. Conglomeration structure should be approached different. We hereby aim to establish a structure which is capable of reaching a turnover amounting to 200 million euro within 3 years, capable of executing Research and Development studies commonly and which can create common production and purchase centers. In some sectors, it is impossible to provide such an unity, however we possess an unity which we have gathered 80 percent of them around our association in fact and we wish to supply a synergy from here …”
At the end of his speech, AİMSAD Chairman Mustafa Erol called out to the Deputy Minister Hasan Büyükdede and expressed that the enterprises acting within the scope of the sector are not able to supply goods as they are unable to provide loan sources in the domestic market thus the stocks have risen. Mustafa Erol claimed from the Depurty Minister Büyükdede that legislation relevant with lease of the machines in the stocks should be regulated as far as possible so that the stoppage in the sector could be overcome.
At the meeting, İstanbul Thought Academy (İDA) Researcher Dr. Can Gürlesel displayed the current situation of the industry in his presentation and said;” “2019 shall be year in which we will execute the works in controlled manner. However, next year we can spare more time to the technologic innovation in our companies ”.
An advantage of 25 percent shall be applied on the purchase of domestic machine.
At the meeting, Deputy Minister of Industry and Technology Hasan Büyükdede listened the claims of the representatives of 22 different associations and said that they have team, which consists of 200 persons, in charge of making market surveillance and observation in 81 provinces regarding the access of unqualified products into the domestic market and engagement of incompatible companies in machine production .
Büyükdere said that they wish to revive the machine tools production and continued; “It is our priority to support the domestic production. We are planning to implement a price advantage of 25 percent for domestic machine purchases. We introduced 10 percent and 25 percent system on foreign machines and domestic machines respectively. An area of 15 percent has been created in between”. Stating that they would make new steps on standards and certification issue, Büyükdede expressed;” We shall convert TSI into an international structure and shall enable it to implement more qualified test and values system .”