Deutsche Messe, Hannover/Germany

Deutsche Messe, Hannover/Germany
Homepage>Company>Us>Metal Processing Worldwide
Metal Processing Worldwide

Interview with the President of Turkish Machinery

Mr. Kutlu Karavelioglu was interviewed on the situation of the Turkish engineering market while the HANNOVER MESSE 2019.

Turkish Machinery as a Marketing Institution to promote Turkish machinery abroad and supporting exports of Turkish machinery is facing a lot of challenges what kind of challenges do you see?

First, let me say: We are the highest level NGO to help Turkish machineries exports. We have more than 14.000 members who are the manufacturing industry and exporters. We have mo

Kutlu-Karavelioglu_2

We participate in more than 20 exhibitions worldwide, half of them are in Germany. Hannover Messe is one of the most important exhibitions for us. At the moment we are facing difficulties in the world trade and of course our manufacturers and exporters are affected by these circumstances. Coming back to your question: We do not have different problems than any of the other Machinery exporters in the world. These days what is our main concern? It is of course what we call Trade wars, protectional policies which are gaining weight in the foreign markets everywhere, affecting local manufacturers and domestic products, custom barriers and trade defense tools that governments are trying to put in life. This is our main problem. Turkish exporters have some difficulties and challenges in the Southeast also in North Africa coming from the lack of Free trade agreements. We don’t have enough free trade agreements.

How does Turkish Machinery industry especially TM handle the development of Industry 4.0 and how do you cope with the trends which are infused by Industry 4.0?

Just yesterday, this was our main issue that we discussed with our German partners. We have several partners like VDMA, Fraunhofer, technology institutes and many more. In this area, we need assistance and cooperation.

My personal view is, Industry 4.0, they call it revolution, but I see it as an evolution. There is information, automation, electronics, software inside, these are all already in our life since 30 years. These are not new things. It is not a total new world. It is a progress.

But what is improving is Computer technology, software and information technology they are improving fast. These improvements are giving new abilities to the machines and of course to sensor technologies and intelligence. In this new era we will work more efficiently and more integrated.

But we must realize something, this machinery sector, beyond the transformation of itself it will transform all the industries. We as Turkish Machinery also see it as our duty to help the companies with this transformation to the new era. (Hier 5 minuten weggelassen.)

Talking about the classic industry branches, like shipbuilding, automotive, consumer electronics, what is your expectation for the development of these classic industry branches in the next two years?

Turkey is an automotive country. The export of automotive sector of Turkey is around 18% of our total exports. So we are on the same level as Germany and Japan. The exports are also the same size. Presently the machinery sector is under its potential. The share of Turkish machinery is around 11 %, were it is 12% in the United States, 18% in Germany, 17% in Italy, 19% in China. The Turkish Machinery sector should reach 15% in a short time, this is our target. Automotive, I guess, it is at its potential. It is far ahead of Machinery and Electronics regarding our total exports.

Kutlu-Karavelioglu_3

More potential I see for white goods, also a branch of machinery, very well equipped and very successful. The world market ratio is around 5 %. These are serially produced, investment goods, big capital business.

The rest, where we are developing production technologies, there we have more potential; we are keen on developing it. This is giving us the ability to collaborate with the German industry. Most investments coming to Turkey are also in this fast developing SME business.

Talking about close cooperation between Turkey and Germany: What would be your recommendation for German companies investing in Turkey or looking at the Turkish market and not knowing exactly how they should enter the Turkish market?

I always think I should be a foreign investor in Turkey, it is just the time. We are really offering what is needed to invest, this is not an advertisement (laughs).

You are investing in Poland, Spain, Hungary, Bulgaria, Romania. The energy is cheap, they give incentives, have tax refunds, nearly 100%.

But we are offering more as a public. Industry is becoming more and more difficult. The young people in Europe do not want to work in the industry anymore; they want to work as white collar. We have hard working laborers. Social infrastructure is strong, living standards in the big cities are high.

But you should better ask this question to a German investor in Turkey. All the important German companies are already here: Bosch Rexroth, ABB, Siemens. They all have very good experiences and are good successful members of our association.

One other thing that should be considered:

Similar like Mexico for the US, Vietnam for China, Korea for Japan, Turkey is the production base for Germany, that is why you should be here.