Brief information about Turkish machinery market by 2018, including growth, foreign trade, main companies and market outlook

1. Foreign Market Consulting Ltd. Sti
Istanbul
August 2018
Machinery Industry in Turkey

2. FMConsulting prepares market snapshot reports from selected trusted sources in Turkey which
are regularly updated. These reports are brief presentations overviewing available facts &
figures on major industries in Turkey. If you need a specific research on different segments,
please contact with our Head of Market Research Department Mrs. Berna Gurleyen
(b.gurleyen@fmcgroup.com ). We would be happy to support you.

3. Contents
© 2018 Foreign Market Consulting Ltd. Sti.
A Manufacturers & Products Page 04
B Market Volume Page 08
C Foreign Trade Page 10

4. 4
• 11,501 manufacturers in 2018, employing more than 163 thousand people.
• Manufacturers are mostly SMEs: 85% of the manufacturers with less than 20
employees, only 50 companies with more than 250 employees
A. Manufacturers & Products
Overview
9,792 , 85%
1,484 , 13%
175 , 2% 50 , 0%
Distribution of Machinery Manufacturers By
Number of Employees
1-19 employees 20-99 employees
100-249 employees 250+ employees
Source: Social Security Institution, 2018

5. 5
A. Manufacturers & Products
Largest Players
Company Net Sales (TRY mn, 2017)* Product Groups
Turk Traktor ve
Ziraat Makineleri
4,305.4 Tractors and agricultural equipment
Federal Mogul
Powertrain Otomotiv
1,179.7 Pistons, liners, rings
Hidromek-Hidrolik
ve Mekanik Makina
1,147.1
Backhoe loaders, wheeled excavators, crawler excavators,
special purpose excavators, motor graders, wheel loaders
Durmazlar Makina 846.0
CNC bending centres, press breaks, laser cutting, guillotine
shears, punch presses, plasma cutting, plate roll, profile
bending, iron workers, corner notching, angle processing
centres
Bosch Rexroth
Otomasyon
760.5
Assembly technology, electric drives and controls, gear
technology, industrial hydraulics, linear motion technology,
mobile hydraulics, molding and casting technologies,
pneumatics, welding technology, tightening technology
Tumosan Motor ve
Traktor
579.5 Tractors, engines, agricultural equipment, forklifts
Ortadogu Rulman 573.5 Bearings
CW Enerji
Muhendislik
418.4
Photovoltaic modules, off-grid & on-grid products, solar
connection equipment, solar irrigation, solar power box
Erkunt Traktor 378.0 Tractors
*EUR 1 = TRY 4.120 in 2017
Source: Istanbul Chamber of Industry and company web sites, 2018

6. 6
• High collaboration and integration with the European machinery industry.
• 117 R&D centers, which is the highest number of among all sectors in Turkey, and
22 design centers (Source: Ministry of Science, Industry and Technology, and Turkish Machinery Federation (MAKFED),
2018)
• 288 machinery companies are located in technology development zones. (Source:
Ministry of Science, Industry and Technology, and Turkish Machinery Federation (MAKFED), 2018)
• High level of engineering skills.
A. Manufacturers & Products
Technology & Skills
Availability of Qualified Engineers (0: Not Available, 10: Available)
Turkey 6.86
Poland 6.76
Czech Rep. 6.42
Slovak Rep. 6.24
Romania 6.23
Russia 6.02
Hungary 5.74
Ukraine 5.21
Bulgaria 5.00
Source: IMD World Competitiveness Yearbook (Taken from the web site of Investment Support and Promotion Agency of Turkey, 2018)

7. 7
• Food processing machines
• Packaging machines
• Flour milling machines
• Feed processing machines
• Agricultural and woodworking
machinery
• Material handling and lifting machines
• Construction and mining machinery
• Paper and printing machines
• Washing, drying and dry cleaning
machines
• Textile machinery
• Leather processing machinery
• Rubber and plastic processing
machinery
• Metal working machinery & machine
tools
• Rolling mill, foundry machines and
moulds
• Office machinery
• Industrial air conditioning units
• Industrial furnaces
• Reactors, boilers and burners
• Power turbines
• Pumps and compressors
• Engines and spare parts
• Turbines, turbojets, hydraulic cylinders
• Valves
• Bearings
A. Manufacturers & Products
Main Product Groups Manufactured Domestically

8. 8
B. Market Volume
Sales
Source: Turkish Statistical Institute (TUIK) and Turkish Machinery Federation (MAKFED), 2018
• Between 2013 and 2017, the sales volume of the Turkish machinery industry has
grown by a CAGR as high as 17%, because of the increase in exports and foreign
exchange rate.
41,190
47,908
54,758
60,398
77,490
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2013 2014 2015 2016 2017
Sales Volume of the Machinery Manufacturers (TRY mn)

9. 9
B. Market Volume
Domestic Market
Source: Turkish Statistical Institute (TUIK) and Turkish Machinery Federation (MAKFED), 2018
• In 2017, the total
market volume of
the machinery
industry has
decrased by -3% to
USD 32.0 bn,
down from USD
33.0 bn in 2016, in
dollar terms, due to
the depreciation in
TRY.
• Nevertheless, the
market volume
figures show an
increase in the
leading segments,
such as engines&
turbines,
construction&
heavy duty,
agriculture&
forestry, and
pumps&
compressors.
3,247
2,977
2,761
2,763
2,507
2,601
2,666
2,015
1,526
1,457
1,268
1,155
730
764
4,590
3,397
2,990
2,863
2,740
2,559
2,542
2,508
2,083
1,608
1,412
1,260
1,152
571
330
3,944
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Engines& Turbines
Construction& heavy duty
Agriculture& forestry
Cooling& ventilation
Pumps& Compressors
Metal working& machine tools
Lifting& piling
Taps& Valves
Textile
Packaging, paper& plastics
Food processing
Bearings
Metallurgy
Kilns, furnaces& boilers
Other
2016
2017
USD mn

10. 10
• Machinery exports / total exports of Turkey: 6.2% in 2017.
• Machinery imports / total imports of Turkey: 8.4% in 2017.
• EU’s share in Turkish machinery foreign trade (HS: 84): 51% in exports, 56% in
imports in 2017.
• Between 2013 and 2017, the imports of machinery have decreased by a CAGR of -
3%, due to the slowdown in investments.
C. Foreign Trade
Exports& Imports
9,363 9,936
8,658 8,582
9,719
22,152
20,320
18,659
20,361 19,617
0
5000
10000
15000
20000
25000
2013 2014 2015 2016 2017
Foreign Trade of Machinery (USD mn)
Exports Imports
Source: Turkish Statistical Institute (TUIK) and Turkish Machinery Federation (MAKFED), 2018

11. 11
C. Foreign Trade
Foreign Trade by Segments
Source: Turkish Statistical Institute (TUIK) and Turkish Machinery Federation (MAKFED), 2018
• Exports are led by the segment of industrial air-conditioners& refrigerators, whereas
imports are led by pumps& compressors, closely followed by construction& mining
machinery.
Industrial
air-
conditioners
&
refrigerators
, 1,616
Construction
& mining,
932
Pumps&
compressor
s, 818
Metal
working&
machine
tools, 721
Agricultural ,
624Textile, 598
Food
processing,
588
Reactors&
boilers, 519
Valves, 504
Other, 2,799
Exports, USD mn, 2017
Pumps&
compressor
s, 2,125
Construction
& mining,
2,056
Turbine,
turbo jet&
hydraulic
cylinder,
1,761
Metal
working&
machine
tools, 1,703
Textile,
1,448
Load lifting,
carrying&
piling, 1,201
Valves,
1,184
Industrial
air-
conditioners
&
refrigerators
, 1,002
Agricultural ,
641
Other, 6,496
Imports, USD mn, 2017

12. Confidentiality
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information to be handled confidentially, especially regarding the sources used.
Liability
FMConsulting receives information and data from third parties and presents the gathered data to its
customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
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