Construction and Mining Machinery - Turkey Contact Point

© Republic of Turkey - Ministry of Economy, 2014 0

CONSTRUCTION AND MINING MACHINERYConstruction is one of the key sectors in Turkey, being one of the main drivers of privateand public investments. As a result of economic reforms, Turkey has established a largeand strong construction industry in a short time.Apart from the Middle East and North African market in which Turkish contractors have agreat share of civil engineering and electromechanical erection work, the former USSRand some European countries have opened their construction market to Turkishcontractors. Today, Turkish contractors work in four continents and over 40 countries,using all the financial, managerial and technological instruments of internationalcontracting standards.The development of construction industry has resulted in a large and diversified productioncapacity in building materials sector, a dynamic contracting and engineering services anda young but well-established construction and mining machinery sector.Growth of the construction and mining machinery sector closely depends on thedevelopment of the construction sector. Today, Turkish construction and engineeringcompanies are able to design, erect, build and operate almost all kinds of civil andindustrial projects such as: dams, hydroelectric and thermal power plants, industrial plants,airports and seaports, large scale petroleum and natural gas pipelines, fertiliser plants,petrochemical complexes and refineries, motorways, tunnels, bridges, large housingprojects, hotels and all kinds of sophisticated buildings. Since 1970, Turkish contractorshave completed about 7.371 projects in 103 countries. Total value of the projectsundertaken by Turkish contractors abroad has reached $274 billion.Turkey is among the world’s richest countries in minerals. Excluding petroleum and coal,there are approximately 4.400 mineral deposits in Turkey while 53 different minerals areproduced. Turkey is a major producer of boron minerals, feldspar, marble, barite, celestite,emery, limestone, magnesite, perlite, pumice, copper and chromite. Modern productionequipment as well as new technologies and methods has been very important factors inthe development of the mining sector in Turkey. Improvements in the mining sector,especially in marble production, have accelerated the growth of the mining machinerysector.PRODUCTIONTurkish construction and mining machinery industry manufactures and exports variouskinds of construction and mining machinery including; pulley tackles, hoists other than skiphoists, winches, capstans, jacks, derricks, cranes, straddle carriers, works trucks fitted witha crane, forklift trucks, other work trucks fitted with lifting and handling equipment, lifting,handling, loading and unloading machinery, self propelled bulldozers, graders andexcavators, moving, grading, scraping and boring machinery for earth, stone and mineralelements, spare parts of construction machinery, special purpose motor vehicles forpersons and goods, work trucks and lifting equipment for factories and airports.Turkish construction and mining machinery sector has produced lifting machinery,especially cranes, since 1970. Bridge and tower cranes, cranes designed for mounting onroad vehicles and cranes used in the iron and steel sector have an important share in theproduction of cranes. Small and medium-sized companies dominate the crane industry.© Republic of Turkey - Ministry of Economy, 2014 1

Approximately, 50 companies are operational in the crane sector. Some of thesecompanies have specialized in the production of certain models by means of massproduction. For instance, the production of a special type of high capacity cranes isperformed successfully by 10 big companies.In Turkey, there are a few big companies producing small-capacity machines calledforklifts, backhoe loaders, hammers and excavators. Backhoe loaders and excavators areamong the fast developing products in the sector. At present, the share of backhoe loadersin the total sales of construction and mining machinery is about 40% while that ofexcavators is about 30%. This tendency for backhoe loaders and excavators is expectedto continue.Turkish construction and mining machinery industry is composed of about 500 companies,with medium and small-sized companies dominating the industry. About 100 of these aremanufacturing companies 10 of which are large-sized companies. Manufacturing sites aremainly located in the Marmara, Central Anatolian and Aegean Regions of Turkey. Istanbul,Konya and Ankara are the major cities in construction and mining machinery and spareparts production.EXPORTSOne of the most promising subsectors of the Turkish machinery industry in exports isconstruction and mining machinery. Turkish construction and mining machinery producerscompete with world-wide well-known producers in domestic as well as foreign markets.Total exports of the sector reached US $1,6 billion in 2013. Main exports products are;machinery spare parts, machinery for sorting, screening, separating, washing, crushing,grinding, mixing or kneading earth, stone, ores or other mineral substances, lifting,handling, loading and unloading machinery, special purpose motor vehicles for personsand goods, self propelled bulldozers, graders and excavators, moving, grading, scrapingand boring machinery for earth, stone and mineral elements, derricks and cranes. Amongthe product groups; construction and mining machinery spare parts and machinery forsorting, screening, separating, washing, crushing, grinding, mixing or kneading earth,stone, ores or other mineral substances are the most traded items. Total share of thesegroups in the total exports of construction and mining machinery is about 90%. Otherimportant export products, namely lifting, handling, loading and unloading machinery,account for 10 % of the total exports in the sector.Turkish-made construction and mining machinery were exported to over 150 countries inthe world in 2013. Major export markets were Germany, Romania, Iraq, England and Iran.© Republic of Turkey - Ministry of Economy, 2014 2

Turkey’s Exports of Construction and Mining Machinery (Value: Millions of US$)HS Products 2009 2010 2011 2012 20138425Pulley tackles, hoists other than skiphoists, winches23,5 21,4 23,5 20,5 21,68426 Derricks, cranes 53,4 47,6 47,4 75,9 87,08427 Forklift trucks 8,1 9,0 13,2 13,3 17,0842884298430Lifting, handling, loading and unloadingmachinerySelf-propelled bulldozers, angle dozers,graders and excavatorsMoving, grading, scraping and boringmachinery for earth, stone and mineralelements77,0 73,9 118,1 139,5 156,673,5 75,9 102,0 127,3 162,218,1 29,5 49,8 37,0 38,68431 Spare parts 288,2 453,7 696,8 577,8 553,4847487058709Machinery for sorting, screening,separating, washing, crushing, grinding,mixing or kneading earth, stone, ores orother mineral substancesSpecial purpose motor vehicles forpersons and goodsWork trucks and lifting equipment forfactories, airports248,4 255,7 346,6 385,4 407,6136,1 95,6 107,6 188,3 149,21,3 1,5 1,3 1,8 1,2Total 927,5 1063,8 1506,3 1566,9 1594,4Source: Republic of Turkey, Ministry of Economy Data SystemConstruction and Mining Machinery Exports by Countries (Value: Millions of US$)Countries 2009 2010 2011 2012 2013Share(2013) %Iraq 61,9 86,9 98,3 142,0 153,0 9,6%Russia 37,4 34,3 73,0 106,0 138,5 8,7%Azerbaijan 33,3 34,7 62,5 108,0 110,9 7,0%Germany 81,6 91,4 108,9 113,1 89,8 5,6%Turkmenistan 26,4 33,3 23,4 35,6 57,2 3,6%UK 22,0 49,7 90,9 68,1 55,0 3,4%Saudi Arabia 35,5 26,2 37,6 36,3 48,0 3,0%Iran 37,4 75,4 88,4 68,5 46,7 2,9%Algeria 65,2 44,9 70,2 69,3 46,3 2,9%USA 17,1 21,0 33,7 50,2 41,9 2,6%Libya 59,8 61,1 8,7 17,5 41,3 2,6%Belgium 11,9 22,0 30,1 29,9 36,2 2,3%Italy 40,4 43,6 63,7 46,9 34,2 2,1%UAE 9,8 11,9 8,1 16,1 27,2 1,7%Kazakhstan 9,9 19,5 16,3 35,3 21,9 1,4%France 11,0 13,6 23,3 24,1 21,7 1,4%Georgia 21,1 17,9 28,2 31,4 20,1 1,3%Egypt 14,8 15,7 14,5 23,5 19,6 1,2%Netherlands 22,6 18,0 37,1 24,5 19,1 1,2%© Republic of Turkey - Ministry of Economy, 2014 3

Nigeria 11,2 7,8 8,1 5,4 17,9 1,1%Tunis 8,6 10,4 59,0 26,3 17,0 1,1%Israel 12,1 7,0 10,3 19,0 16,6 1,0%Brazil 0,5 1,4 5,3 10,8 14,8 0,9%Uzbekistan 6,9 5,0 4,3 7,0 14,8 0,9%Morocco 12,9 6,7 7,1 18,5 14,6 0,9%List Total 671,3 759,4 1010,9 1133,1 1124,3 70,5%Grand Total 927,5 1063,8 1506,3 1566,9 1594,4 100Turkish construction and mining machinery manufacturers and exporters follow Europeanand international standards and norms. The obligation to affix the “CE Mark” was imposedon the Turkish market in 2002.TRADE FAIRSDetailed information about trade fairs organized in the construction and mining machinerysector is given at “http://www.fuarrehberi.org.tr” which is the official website of the Union ofChambers and Commodity Exchanges of Turkey (TOBB).USEFUL LINKS• Central Anatolian Exporter Unionswww.oaib.org.tr• Machinery and Accessories Exporter Unionswww.makinebirlik.com• Turkish Machinery Promotion Groupwww.makinetanitimgrubu.com.tr• Turkish Quality of Machinerywww.turqum.com• Istanbul Minerals and Metals Exporters’ Associationswww.immib.org.tr• Construction Equipment Distributors and Manufacturers Unionwww.imder.org.tr© Republic of Turkey - Ministry of Economy, 2014 4

© Republic of Turkey - Ministry of Economy, 2014 5