The armature sector, which contributes uninterruptedly to Turkey’s total exports, set sail for the new period targets. The developments in the sector, the evaluation of 2022, the future vision of the sector and Turkish exporters in 2023 and beyond were announced at a press conference. The production-oriented sector, which closed last year with 3.5 billion dollars in exports, reached 3 billion 656 million dollars in January-November 2022, an increase of 9 percent compared to the previous year. Stating that they expect an export approaching 4 billion dollars at the end of the year, Armatür, Valve, Faucet, Plumbing Equipment and Valve Industrialists Association (ARMATÜR) Chairman of the Board Gökhan Turhan stated that they foresee the sector’s exports to exceed 5 billion dollars in 2023.
“Capacities decreased”
Stating that the export performance has started to decline and lose speed, Turhan said, “There is a need for new instruments, new systems and new industrial policies that will pave the way for exports. Now we have come to the point where we can reach the point with the existing system. It is very difficult to carry our exports to the points we target with the existing structures and systems. “With the recession felt in our main European export region, there has been a decrease in capacities. We see that reaching export targets can now be achieved with important actions.” said.
“The total size of the sector has exceeded 10 billion dollars”
Stating that bilateral trade relations should be reconsidered, especially with countries with very high foreign trade deficits, Turhan noted that it is necessary to turn to new initiatives that will rapidly increase trade with Turkic Republics, Middle East and African countries, Europe and the USA. Stating that companies are struggling with serious problems in the current situation, Turhan stated that the increase in raw material prices, cost increases, increases in energy costs, uncertainties in the exchange rate, exporters and manufacturers do not have access to finance in proportion to these increases, and that manufacturers and exporters need serious support in terms of financing. Stating that the total size of the Turkish armature industry has reached 5.5 billion dollars and exceeded 10 billion dollars with imports included, Turhan said, “Our goal is for each of our member companies to provide maximum benefit from the projects and activities carried out, and to ensure a sustainable export increase with more value-added production for each of our companies.” said.
“Our manufacturing companies that take the responsibility should be given priority”
Emphasizing that a 100% domestic and national condition should be introduced in mass housing projects, all supplied materials and fixtures, Gökhan Turhan said, “Our country’s companies that create value should be prioritized and positive discrimination should be made. Priority should be given to our producer companies that take the responsibility. Thus, our national projects will gain much more meaning. ‘ he said.
“Land-land barrier to new investment”
Stating that the biggest obstacles to the investment environment in Turkey are the factory construction costs and especially the land-land costs, Turhan said, “There is a need for places where the infrastructure is ready, where we have no difficulty in finding transportation and employees, where the land is provided by the state. We should not spare that much money for the land and the building, “Our capital should go directly to technology and employees. We can cooperate with TOKİ with the support of our state to solve the land and building problem of the industrialists, and by producing similar projects, we can enable our capacities to grow.”
“Russia creates an opportunity for Turkey”
Stating that important investment news has started to come from energy-rich countries such as Saudi Arabia, United Arab Emirates and Qatar, Turhan said, “Turkey is taking steps to establish diplomatic relations with Egypt, one of the countries with which it has the most problems in the geography. As a result, for example, Egypt is the locomotive of its sector. “We are excited to invest in this country,” he said. Stating that the Russia-Ukraine war is the first item of the global economy as well as world politics, Turhan said, “The withdrawal of international companies from Russia by selling their assets of millions or even billions at a loss creates an opportunity for Turkish companies and Turkey. “The only state in the country is the Republic of Turkey. Persuasion tours should be made for them to come to Turkey. We have to create new strategies in this regard,” he said.
“Withholding and VAT rates should be updated”
Emphasizing the need to update the withholding and VAT rates, which have become gangrenous, Gökhan Turhan said, “It is of great importance to distribute the tax burden in a fair and balanced way and to develop effective control mechanisms. We continue to work on these issues before the Ministries.” Referring to the problems of the sector, Turhan said, “The production of raw materials used in the sector is not sufficient, and in this context, we think that the export of scrap, which is imported more expensively and exported at a lower cost, should be banned or restricted. Another problem is that our sector is very divided. Our exports pass through 5 different unions. We continue our efforts to bring all the export activities of our industry under the roof of a single union and gather them there.”