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P6<br />
Monthly Economic Newspaper<br />
<strong>March</strong> - April 2017<br />
ww.img.com.tr<br />
IKMIB represented<br />
<strong>Turkey</strong> <strong>in</strong> Italy<br />
P8<br />
Hes - a new breath<br />
for clean<strong>in</strong>g<br />
P9<br />
Turkish bank<strong>in</strong>g supports<br />
real economy<br />
P11<br />
<strong>Turkey</strong>’s great projects<br />
make up major parts of<br />
modern Silk Road<br />
President Recep Tayyip Erdogan: <strong>Turkey</strong>’s giant projects are the<br />
modern version of the Silk Road. <strong>Turkey</strong> is ready to embark on<br />
full cooperation to achieve the ECO’s 2025 vision.<br />
President<br />
Recep Tayyip<br />
Erdogan<br />
Speak<strong>in</strong>g at the<br />
13th Economic<br />
Cooperation<br />
Organization<br />
(ECO) Summit, Turkish<br />
President Recep<br />
Tayyip Erdoğan emphasized<br />
that <strong>Turkey</strong><br />
has accomplished many<br />
great <strong>in</strong>frastructural and<br />
transportation projects<br />
<strong>in</strong> recent years, which he<br />
described as the cont<strong>in</strong>uation<br />
of the ancient Silk<br />
Road that controlled<br />
trade between Asia and<br />
Europe for centuries.<br />
Referr<strong>in</strong>g to the mega<br />
projects that <strong>Turkey</strong> has<br />
implemented <strong>in</strong> recent<br />
years, Erdoğan said, “We<br />
<strong>in</strong>augurated the Yavuz<br />
Sultan Selim Bridge as<br />
well as the Marmaray<br />
and Eurasia tunnels<br />
which connect Asia to<br />
Europe. We <strong>in</strong>augurated<br />
the Osmangazi Bridge<br />
which runs <strong>in</strong> the northbound<br />
and southbound<br />
directions across the Sea<br />
of Marmara. We attach<br />
tremendous importance<br />
to the Edirne-Kars highspeed<br />
railway and the<br />
Baku-Tbilisi-Kars railway<br />
projects, which are<br />
under construction, as<br />
well as the 1915 Çanakkale<br />
Bridge which will<br />
be built on the Dardanelles.”<br />
Def<strong>in</strong><strong>in</strong>g these<br />
<strong>in</strong>vestments as constituents<br />
of the modern version<br />
of the historic Silk<br />
Road, Erdoğan noted<br />
that he believes that Ch<strong>in</strong>a’s<br />
new Silk Road project,<br />
known as One Belt,<br />
One Road (OBOR), is<br />
of great importance <strong>in</strong><br />
this regard. | Page 2<br />
Automechanika<br />
Istanbul 2017<br />
arouses great<br />
<strong>in</strong>terest more<br />
than ever<br />
P2<br />
<strong>Turkey</strong> may become an<br />
energy exporter <strong>in</strong> next<br />
10 years<br />
<strong>Turkey</strong> may become an energy exporter <strong>in</strong><br />
a decade’s time, Turkish Energy M<strong>in</strong>ister Berat<br />
Albayrak has said. “<strong>Turkey</strong>, which spends<br />
$50 billion <strong>in</strong> energy and m<strong>in</strong>eral imports<br />
every year, may turn <strong>in</strong>to an energy exporter<br />
<strong>in</strong> the next 10 years,” Albayrak said Feb. 22<br />
<strong>in</strong> a ceremony <strong>in</strong> Ankara to mark the 15th<br />
anniversary of the found<strong>in</strong>g of sector regulator<br />
Energy Market Regulatory Authority<br />
(EPDK), an event held by the Association of<br />
Energy Experts. | Page 8<br />
Norwegian<br />
<strong>in</strong>vests<br />
$1B <strong>in</strong><br />
<strong>Turkey</strong><br />
New<br />
<strong>in</strong>vestments<br />
<strong>in</strong> <strong>Turkey</strong><br />
from P&G<br />
P5<br />
P10<br />
<strong>Turkey</strong>’s top bus<strong>in</strong>ess organization’s<br />
new board members meet Prime<br />
M<strong>in</strong>ister B<strong>in</strong>ali Yıldırım<br />
P11
EconomicNewspaper<br />
<strong>March</strong><br />
2 Please mention<br />
April<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />
2017<br />
Letter From<br />
The Editor<br />
Mehmet Soztutan Editor-<strong>in</strong>-Chief<br />
Gear<strong>in</strong>g up to boost<br />
Turkish exports!<br />
The Turkish economy has shown<br />
remarkable performance with its steady<br />
growth over the last decade. A sound<br />
macroeconomic strategy <strong>in</strong> comb<strong>in</strong>ation<br />
with prudent economic policies<br />
and major structural reforms <strong>in</strong> effect<br />
s<strong>in</strong>ce 2002 has <strong>in</strong>tegrated the Turkish<br />
economy <strong>in</strong>to the globalized world, while<br />
transform<strong>in</strong>g the country <strong>in</strong>to one of<br />
the major recipients of Foreign Direct<br />
Investment <strong>in</strong> its region.<br />
Despite the global imbalances and the<br />
regional turmoil, the Turkish economy<br />
susta<strong>in</strong>s its strong position on the path<br />
of susta<strong>in</strong>able growth. As for <strong>Turkey</strong>’s exporters,<br />
they wish to relentlessly <strong>in</strong>vest,<br />
manufacture and export.<br />
This strategy has a long term perspective<br />
rather than focus<strong>in</strong>g on short<br />
term targets. In order to reach the long<br />
term targets, the new strategy encompasses<br />
both production and export<br />
components. In this respect, the exports<br />
strategy of <strong>Turkey</strong> establishes a production<br />
plan based on the export performance.<br />
Basic elements of this strategy<br />
are shift<strong>in</strong>g production from low technology<br />
sectors to high value added areas<br />
and achiev<strong>in</strong>g new <strong>in</strong>vestments <strong>in</strong> hightech<br />
sectors.<br />
To sum up, “<strong>Turkey</strong>’s Export Strategy<br />
for 2023” aims modern and flexible<br />
export structure that is based on advanced<br />
technology and R&D to respond<br />
the demands of today’s and future’s<br />
bus<strong>in</strong>ess environment by moderniz<strong>in</strong>g<br />
the structure of exports.<br />
As known, we convey the messages of<br />
the Turkish exporters by participat<strong>in</strong>g <strong>in</strong><br />
a series of <strong>in</strong>ternational fairs and exhibitions.<br />
Automechanika Istanbul 2017 arouses<br />
great <strong>in</strong>terest more than ever<br />
Letters to the Editor turkey@ihlas.net.tr<br />
Trump’s economics<br />
Tax cuts, deregulation and more<br />
federal spend<strong>in</strong>g advocated by the<br />
<strong>in</strong>com<strong>in</strong>g Trump adm<strong>in</strong>istration<br />
are a classic remedy for economic<br />
stagnation and long unemployment<br />
l<strong>in</strong>es.<br />
But that medic<strong>in</strong>e may be too<br />
strong for an economy that has<br />
grown for eight years, with wages<br />
now ris<strong>in</strong>g and the jobless rate near<br />
what many economists consider<br />
“full” employment.<br />
An analysis of regional jobs data<br />
and historic trends suggests that<br />
stimulus could boost demand for<br />
workers <strong>in</strong> areas where labor is<br />
already tight. That <strong>in</strong> turn, could<br />
stoke <strong>in</strong>flation, force the Federal<br />
Reserve to raise rates faster than<br />
expected, and make recession a<br />
<strong>Turkey</strong>’s Lead<strong>in</strong>g International<br />
Trade Fair for the Automotive<br />
Industry Automechanika Istanbul<br />
2017 closed with record numbers:<br />
1,217 exhibitors met with 43,874<br />
visitors from all around the world<br />
dur<strong>in</strong>g 6-9 April 2017.<br />
The dynamic Turkish automotive<br />
market requires good preparation<br />
and smooth entry conditions.<br />
If you would like to enter this<br />
rapidly grow<strong>in</strong>g market or if you<br />
would like to expand your exisit<strong>in</strong>g<br />
bus<strong>in</strong>ess <strong>in</strong> <strong>Turkey</strong>, Automechanika<br />
Istanbul is the right platform for<br />
you. Br<strong>in</strong>g<strong>in</strong>g the major players <strong>in</strong><br />
the Turkish and European <strong>in</strong>dustries<br />
together, this fair has become<br />
a meet<strong>in</strong>g po<strong>in</strong>t, for <strong>Turkey</strong> as well<br />
as for the surround<strong>in</strong>g regions.<br />
Tayfun Yardım, Manag<strong>in</strong>g Director<br />
of Messe Frankfurt Istanbul,<br />
greater threat. G. Krten/ Basel<br />
Trump’s power base<br />
What the country needs now,<br />
labor economists and Fed officials<br />
say, is small-bore surgery - policies<br />
focused on depressed regions <strong>in</strong> its<br />
rural areas and <strong>in</strong>dustrial heartland,<br />
which fell out of sync with the<br />
global economy and emerged as<br />
Donald Trump’s power base, help<strong>in</strong>g<br />
him w<strong>in</strong> the presidency.<br />
True to his bus<strong>in</strong>ess roots,<br />
Trump says he believes regulation<br />
stifles economic growth. He<br />
signed an order to expedite<br />
environmental reviews on highpriority<br />
construction projects. He<br />
followed that with another order<br />
direct<strong>in</strong>g agencies to elim<strong>in</strong>ate two<br />
rules for everyone new one they<br />
issue. He promises to roll back<br />
the co-organizer of the fair said<br />
“Automechanika Istanbul has<br />
become Eurasia’s most popular<br />
trade fair of its k<strong>in</strong>d. It gathers the<br />
automotive <strong>in</strong>dustry of the OEM<br />
and Aftermarket, professionals<br />
at the crossroads of Europe, the<br />
Middle East and the Central Asia<br />
region. Follow<strong>in</strong>g Frankfurt and<br />
Shanghai, Automechanika Istanbul<br />
is the 3rd biggest trade fair for the<br />
automotive <strong>in</strong>dustry”.<br />
Alexander Kühnel, General<br />
Manager of Hannover Fairs <strong>Turkey</strong><br />
po<strong>in</strong>ted out: “Automechanika<br />
Istanbul shows significant growth<br />
<strong>in</strong> many ways. <strong>Turkey</strong> is among the<br />
top 5 countries <strong>in</strong> Europe show<strong>in</strong>g<br />
a performance of produc<strong>in</strong>g<br />
over 1 million vehicles <strong>in</strong> the last 3<br />
years. Be<strong>in</strong>g a part of this success<br />
makes us happy. Automechanika<br />
the Dodd-Frank Act on f<strong>in</strong>ancial<br />
reform, the health-care plan known<br />
as Obamacare and Obama’s clean<br />
power plan. Lets wait and see. H.<br />
Hawk/ Berl<strong>in</strong><br />
Trumponomics<br />
Government debt experts<br />
expressed alarm, with former<br />
Obama Treasury official Brad Setser<br />
call<strong>in</strong>g Trump’s comments “lots<br />
of very loose talk on a subject<br />
where there shouldn’t be loose<br />
talk.” Though he often ref<strong>in</strong>anced<br />
the debt on his own projects and<br />
forced creditors to take losses,<br />
do<strong>in</strong>g so with U.S. debt would be<br />
difficult. It would <strong>in</strong>volve issu<strong>in</strong>g<br />
new bonds, most likely at higher<br />
<strong>in</strong>terest rates, which would offset<br />
any ga<strong>in</strong>s from buy<strong>in</strong>g back old<br />
debt. It could also place the U.S.’s<br />
credit rat<strong>in</strong>g and its stand<strong>in</strong>g with<br />
Istanbul, which has been organized<br />
for 9 years, is now held <strong>in</strong> April<br />
every year <strong>in</strong> accordance with the<br />
demand of the <strong>in</strong>dustry. <strong>Turkey</strong><br />
is quite successful <strong>in</strong> production<br />
and Automechanika Istanbul<br />
contributes a lot to the success of<br />
exports. Last year, br<strong>in</strong>g<strong>in</strong>g 44,469<br />
trade visitors from 123 countries,<br />
we succeded our role for <strong>Turkey</strong>’s<br />
performance to reach the 2023<br />
targets. In addition, <strong>in</strong> 2014 the<br />
fair was organized <strong>in</strong> 34,791 m²<br />
net area where 1,475 participants<br />
took place from 40 countries. This<br />
year, to <strong>in</strong>crease these numbers we<br />
decided to organize the fair <strong>in</strong> 14<br />
halls with 2 additional new halls.<br />
This year, hav<strong>in</strong>g a long wait<strong>in</strong>g list<br />
of companies wish<strong>in</strong>g to participate<br />
the fair is quite pleas<strong>in</strong>g. We<br />
are expand<strong>in</strong>g our efforts to move<br />
forward each year.”<br />
<strong>in</strong>vestors<br />
at risk. K.Rony/<br />
Frankfurt<br />
Strong dollar<br />
Trump likes to call himself the “k<strong>in</strong>g<br />
of debt,” and made waves when he<br />
suggested he’d try to ref<strong>in</strong>ance the<br />
$20 trillion federal debt by buy<strong>in</strong>g<br />
it back at a discount on the open<br />
market.<br />
If Trump heats up the economy<br />
with tax cuts and government<br />
spend<strong>in</strong>g, as he promises, the Fed<br />
may need to raise <strong>in</strong>terest rates<br />
more aggressively than planned,<br />
attract<strong>in</strong>g more dollar <strong>in</strong>vestors<br />
anwd driv<strong>in</strong>g the greenback ever<br />
higher. Even Trump can’t jawbone<br />
capital back across the border,<br />
which is why presidents try to<br />
avoid talk<strong>in</strong>g about the currency.<br />
M. Rager/ Paris
<strong>March</strong><br />
April<br />
2017<br />
Monthly Economic Newspaper<br />
ww.img.com.tr<br />
EconomicNewspaper<br />
Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />
3<br />
<strong>Turkey</strong>’s great projects make up<br />
major parts of modern Silk Road<br />
President Recep Tayyip Erdogan:<br />
<strong>Turkey</strong>’s giant projects are the<br />
modern version of the Silk Road.<br />
<strong>Turkey</strong> is ready to embark on full<br />
cooperation to achieve the ECO’s<br />
2025 vision.<br />
<strong>Turkey</strong>’s manufactur<strong>in</strong>g<br />
<strong>in</strong>dex signals ‘broad<br />
stabilization’<br />
Underl<strong>in</strong><strong>in</strong>g that the Istanbul New Airport,<br />
which will be the largest airport <strong>in</strong> the world<br />
upon completion, will make tremendous<br />
contributions to the region, Erdoğan stated<br />
that <strong>Turkey</strong> is actualiz<strong>in</strong>g all these projects<br />
for both itself and the more than 400 million<br />
“brothers” who live <strong>in</strong> the ECO Region.<br />
<strong>Turkey</strong> ready <strong>in</strong> full<br />
cooperation for ECO’s 2025<br />
vision<br />
Dur<strong>in</strong>g his speech<br />
at the summit <strong>in</strong> the<br />
Pakistani capital<br />
of Islamabad, the<br />
president underl<strong>in</strong>ed<br />
that <strong>Turkey</strong> is ready<br />
to achieve the goals<br />
of the 2025 Vision<br />
which will be addressed<br />
dur<strong>in</strong>g the summit.<br />
Stress<strong>in</strong>g energy as one<br />
of the key areas requir<strong>in</strong>g<br />
further consolidation of the ECO,<br />
Erdoğan said <strong>Turkey</strong> will provide support<br />
for any <strong>in</strong>itiative that will make the energy<br />
issue an important element of cooperation.<br />
Erdoğan noted, “Certa<strong>in</strong>ly, we must use<br />
the organization’s platforms <strong>in</strong> the fields of<br />
agriculture, environment and tourism more<br />
effectively. We attach great importance to the<br />
2025 Vision. We believe that this vision will<br />
effectively lead our cooperation efforts for<br />
the next 10 years.”<br />
Erdoğan stressed that the establishment of<br />
the Vision Implementation Fund is important<br />
for the implementation of the official<br />
vision, add<strong>in</strong>g that the establishment of the<br />
fund should be made with<strong>in</strong> the body of the<br />
ECO Trade and Development Bank <strong>in</strong> order<br />
for it to operate <strong>in</strong> an effective and efficient<br />
way. He also noted that Ecobank, which is of<br />
critical importance <strong>in</strong> terms of project and<br />
trade f<strong>in</strong>anc<strong>in</strong>g, must be<br />
strengthened and its activities<br />
must be diversified.<br />
ECO’s share <strong>in</strong> world trade<br />
rema<strong>in</strong>s low compared to<br />
its population<br />
Erdoğan noted that even though<br />
the ECO region’s share <strong>in</strong> the world population<br />
was 6.2 percent, its share <strong>in</strong> world trade<br />
was merely 2 percent <strong>in</strong> 2015, stress<strong>in</strong>g that<br />
it is essential to take steps to boost <strong>in</strong>tra-regional<br />
trade and said: “Therefore, it is crucial<br />
to implement the Economic Cooperation<br />
Organization Trade Agreement (ECOTA).”<br />
Po<strong>in</strong>t<strong>in</strong>g to the fact that the ECO encapsulates<br />
a population of more than 400 million<br />
with<strong>in</strong> an area of nearly 8 million square<br />
kilometers (3.1 square miles), Erdoğan said,<br />
“This organization, which we are proud<br />
of be<strong>in</strong>g a member of, also represents our<br />
common values, deeply rooted history and<br />
brotherhood.” He def<strong>in</strong>ed the summit as<br />
an important opportunity for assess<strong>in</strong>g the<br />
overall picture of the organization, evaluat<strong>in</strong>g<br />
it and identify<strong>in</strong>g its deficiencies to further<br />
strengthen its vision accord<strong>in</strong>gly.<br />
Erdoğan: ECO Trade agreement must be<br />
implemented<br />
Erdoğan stressed that current figures<br />
clearly demonstrate that the organization<br />
cannot sufficiently mobilize its potential, assert<strong>in</strong>g:<br />
“Although the ECO region’s share <strong>in</strong><br />
the world population was 6.2 percent <strong>in</strong> 2015,<br />
its share <strong>in</strong> world trade was merely 2 percent.<br />
We have to take steps to boost <strong>in</strong>tra-regional<br />
trade. Therefore, the actualization of ECO-<br />
TA is crucial.”<br />
Invit<strong>in</strong>g member states to fulfill the necessary<br />
requirements to activate the project, Erdoğan<br />
stressed that the ECO should upgrade<br />
the quality of air, land and railroad l<strong>in</strong>ks to<br />
boost trade and contacts among member<br />
countries. Accord<strong>in</strong>g to Erdoğan, the ma<strong>in</strong><br />
theme of the summit was, “Connect<strong>in</strong>g l<strong>in</strong>es<br />
of transportation, communication and trade<br />
for the welfare of the region,” reveal<strong>in</strong>g the<br />
organization’s needs <strong>in</strong> this regard. “The<br />
effective implementation of the framework<br />
agreement on transit transport will contribute<br />
to the further transportation corridors across<br />
the region,” 200 x he 270 added. mm<br />
ISTANBUL-A key manufactur<strong>in</strong>g<br />
<strong>in</strong>dex has po<strong>in</strong>ted to a<br />
broad stabilization <strong>in</strong> <strong>Turkey</strong>’s<br />
manufactur<strong>in</strong>g sector, as manufactur<strong>in</strong>g<br />
output <strong>in</strong>creased<br />
s<strong>in</strong>ce previous months and output<br />
<strong>in</strong>dex rose to the highest<br />
level s<strong>in</strong>ce January 2016.<br />
The latest PMI <strong>in</strong>dex from<br />
the Istanbul Chamber of Industry<br />
(İSO) and IHS Markit was<br />
registered at 49.7 <strong>in</strong> February,<br />
up from 48.7 <strong>in</strong> January. The<br />
latest figure was above the<br />
2016 average of 48.8. Any<br />
figure greater than 50 <strong>in</strong>dicates<br />
overall improvement <strong>in</strong> the<br />
sector.<br />
“The Turkish PMI rose to<br />
49.7 <strong>in</strong> February, signal<strong>in</strong>g<br />
a near-stabilization of the<br />
Turkish manufactur<strong>in</strong>g sector.<br />
Encourag<strong>in</strong>gly, output rose<br />
dur<strong>in</strong>g the month and job<br />
creation resumed. The latest<br />
survey results also signaled<br />
weaker <strong>in</strong>flation than <strong>in</strong> recent<br />
months, although price pressures<br />
rema<strong>in</strong>ed strong overall,”<br />
said Trevor Balch<strong>in</strong>, senior<br />
economist at IHS Markit.<br />
The rise <strong>in</strong> the headl<strong>in</strong>e<br />
PMI <strong>in</strong> February was primarily<br />
<strong>in</strong>fluenced by the seasonally<br />
adjusted output and employment<br />
<strong>in</strong>dices both register<strong>in</strong>g<br />
above 50, and also an uptick <strong>in</strong><br />
the new orders <strong>in</strong>dex (though it<br />
rema<strong>in</strong>ed below 50). There was<br />
also a mildly positive contribution<br />
from the suppliers’ delivery<br />
times <strong>in</strong>dex. The volume of<br />
new export bus<strong>in</strong>ess rose for<br />
the fifth time <strong>in</strong> seven months<br />
<strong>in</strong> February. Employment <strong>in</strong><br />
the goods-produc<strong>in</strong>g sector<br />
also <strong>in</strong>creased. This was the<br />
sixth time <strong>in</strong> seven months that<br />
the manufactur<strong>in</strong>g workforce<br />
has expanded.<br />
The recent depreciation <strong>in</strong><br />
the Turkish Lira, however, cont<strong>in</strong>ued<br />
to exert upward pressure<br />
on manufactur<strong>in</strong>g <strong>in</strong>put<br />
prices <strong>in</strong> February. The rate of<br />
<strong>in</strong>put price <strong>in</strong>flation rema<strong>in</strong>ed<br />
sharp, but eased for the second<br />
month runn<strong>in</strong>g to a four-month<br />
low. Meanwhile, output prices<br />
charged by manufacturers cont<strong>in</strong>ued<br />
to rise, but at a weaker<br />
rate than <strong>in</strong> December and<br />
January.<br />
The W<strong>in</strong>ner showcases<br />
<strong>Turkey</strong> establishes organized<br />
<strong>in</strong>dustrial zone <strong>in</strong> Iran<br />
Iran Chamber of<br />
Commerce, Industry,<br />
M<strong>in</strong><strong>in</strong>g and Agriculture<br />
(ICCIMA) Chairman<br />
Muhs<strong>in</strong> Celalpur has<br />
said the Istanbul Chamber<br />
of Industry (ICI)<br />
will establish an organized<br />
<strong>in</strong>dustrial zone<br />
(OIZ) made up of 140<br />
units <strong>in</strong> Iran. Speak<strong>in</strong>g<br />
to Iran’s official news<br />
agency IRNA, Celalpur<br />
said <strong>in</strong> the first phase<br />
of the establishment<br />
of the OIZ, $10 billion would<br />
be <strong>in</strong>vested, 85 percent of the<br />
labor force <strong>in</strong> the zone would<br />
be Iranian and the 15 percent<br />
would be Turks. Moreover,<br />
Celalpur said construction of<br />
the <strong>in</strong>dustrial units would start<br />
<strong>in</strong> the second half of this year.<br />
In addition, the vice chairman<br />
of the ICCIMA, Ali Yezdani,<br />
underl<strong>in</strong>ed that this is the first<br />
Erdal Bahçıvan<br />
ICI Chairman<br />
Muhs<strong>in</strong> Celalpur<br />
ICCIMA Chairman<br />
time a foreign state would establish<br />
an OIZ <strong>in</strong> Iran, despite<br />
foreign actors tak<strong>in</strong>g various<br />
roles <strong>in</strong> <strong>in</strong>dustrial zones <strong>in</strong> the<br />
country. Yezdani also said they<br />
held negotiations with other<br />
countries, such as Ch<strong>in</strong>a and<br />
Russia, to start OIZ construction<br />
work <strong>in</strong> the regions<br />
of Jask and Bam. Yezdani<br />
also reported that they came<br />
up with an offer to the ICI<br />
regard<strong>in</strong>g the found<strong>in</strong>g<br />
of an <strong>in</strong>dustrial zone<br />
and a special economic<br />
zone <strong>in</strong> the prov<strong>in</strong>ces<br />
of Markazi, Ardabil,<br />
Semnan and Hamadan,<br />
say<strong>in</strong>g that their offer<br />
was accepted. Yezdani<br />
drew attention to the<br />
offer they made to the<br />
ICC, which <strong>in</strong>volves<br />
construction of seven<br />
<strong>in</strong>dustrial and special<br />
economic zones, which<br />
are very close to energy<br />
transmission l<strong>in</strong>es, the airport<br />
and other l<strong>in</strong>es of transportation.<br />
Regard<strong>in</strong>g the issue, ICI<br />
Chairman Erdal Bahçıvan<br />
made a written announcement,<br />
say<strong>in</strong>g they are start<strong>in</strong>g<br />
the necessary work to establish<br />
a labor commission, and they<br />
hope the project leads to qualified<br />
collaborations.
EconomicNewspaper<br />
4 Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />
<strong>March</strong><br />
April<br />
2017<br />
Experience a fragrance beyond the<br />
senses with Seluz Fragrance Company<br />
Ozturk, “Although the fragrance is my bus<strong>in</strong>ess, it is also a passion for me. S<strong>in</strong>ce we have great number of fragrance developed <strong>in</strong><br />
our company, I can smell very few of them. However, I still try to smell and experience some of the works <strong>in</strong> my day-to-day rout<strong>in</strong>e.”<br />
Seluz Fragrance Company tra<strong>in</strong>s <strong>Turkey</strong>’s best<br />
perfumers<br />
The most basic criterion of Seluz Fragrance Company<br />
is to be among the first to come to m<strong>in</strong>d <strong>in</strong> the<br />
<strong>in</strong>ternational essence sector by follow<strong>in</strong>g the chang<strong>in</strong>g<br />
conditions of today and tomorrow, serv<strong>in</strong>g a wide<br />
range of customer satisfaction-oriented portfolio<br />
without sacrific<strong>in</strong>g reliability and quality. Seluz meets<br />
customer needs by closely follow<strong>in</strong>g the trends <strong>in</strong> the<br />
world markets <strong>in</strong> the basic categories that make up<br />
the essence sector and be<strong>in</strong>g a solution partner beyond<br />
be<strong>in</strong>g a supplier for the customer with <strong>in</strong>novation<br />
and development, and be<strong>in</strong>g the locomotive of<br />
the essence sector constitutes. In our <strong>in</strong>terview with<br />
Murat Ozturk, the CEO of Seluz Fragrance Company,<br />
we learn about the journey of the <strong>in</strong>ner world<br />
of the fragrance, the markets which have reached<br />
beyond the cont<strong>in</strong>ents and what is be<strong>in</strong>g done at the<br />
Company’s Internal Parfumer Academy ...<br />
What are the most important values that lead<br />
Seluz Fragrance Company to success?<br />
“Seluz Fragrance Company is a very young establishment,<br />
today it became one of the most important<br />
players <strong>in</strong> the region <strong>in</strong> a short span of time. Our<br />
determ<strong>in</strong>ation to work and perfectionist approach<br />
have a great part of our success. Perfectionism, on<br />
the one hand, shapes our bus<strong>in</strong>ess processes and on<br />
the other hand constitutes our quality philosophy,<br />
which we can claim to have one of the most sensitive<br />
protocols <strong>in</strong> the world. However, if you ask what is<br />
the most important value that makes us, I can say<br />
that the understand<strong>in</strong>g of transparent and s<strong>in</strong>cere<br />
cooperation that we have. In my op<strong>in</strong>ion, it is our<br />
righteousness that forms strong cooperation with<br />
our customers and bus<strong>in</strong>ess partners.”<br />
Can you tell us about your development <strong>in</strong> human<br />
resources <strong>in</strong> this 10-year period?<br />
“Our philosophy on quality and bus<strong>in</strong>ess excellence<br />
have never changed s<strong>in</strong>ce the day of establishment<br />
of our company. We cont<strong>in</strong>ue to <strong>in</strong>vest <strong>in</strong> the<br />
field of human resources to reflect this excellence to<br />
our production. We have 6 senior perfumers <strong>in</strong> our<br />
company, each of which is considered as one of the<br />
best <strong>in</strong> the global arena. I f<strong>in</strong>d that very important<br />
<strong>in</strong> terms of creativity. In this area which is new for<br />
<strong>Turkey</strong>, unfortunately, it is very difficult to f<strong>in</strong>d a<br />
well-tra<strong>in</strong>ed perfumer that has reached a certa<strong>in</strong><br />
level of experience. Due to this reason, we selected<br />
our perfumers among the important names who<br />
have made names for themselves abroad. The good<br />
po<strong>in</strong>t is that when we first posted a job advertisement<br />
abroad to recruit perfumers, 80 foreigners applied<br />
to our company. That leads us to great happ<strong>in</strong>ess<br />
and is an important success for us. In addition,<br />
it is a problem to junior perfumers <strong>in</strong> <strong>Turkey</strong> and<br />
as a solution-oriented company we have developed<br />
a program called ‘Internal Perfumer Academy’ to<br />
provide opportunities for our employees who want<br />
to f<strong>in</strong>d a solution, tra<strong>in</strong> and develop themselves.<br />
In addition, our company has a project named ‘I<br />
Have an Idea’. Our employees present their ideas to<br />
the assess<strong>in</strong>g authority. We take <strong>in</strong>to consideration<br />
any self-improvement program <strong>in</strong> the areas they<br />
feel <strong>in</strong>competent and want to participate <strong>in</strong>, and we<br />
br<strong>in</strong>g these programs <strong>in</strong>to life as soon as possible to<br />
satisfy our employees <strong>in</strong> their bus<strong>in</strong>ess life.<br />
Just like our company, our employees are young,<br />
dynamic, professional <strong>in</strong> their fields. One of our<br />
strengths that dist<strong>in</strong>guishes us from our competitors<br />
are to act as ‘Seluz Family with a team spirit’. I can<br />
speak proudly that; <strong>in</strong> Seluz Fragrance Company,<br />
there is not ‘me’ but ‘us’ and every one of us knows<br />
that a cha<strong>in</strong> is no stronger than its weakest l<strong>in</strong>k.<br />
Now we have approximately 120 employees.”<br />
Who should receive tra<strong>in</strong><strong>in</strong>g and what k<strong>in</strong>d of<br />
tra<strong>in</strong><strong>in</strong>g program is given <strong>in</strong> “Internal Perfumer<br />
Academy”?<br />
“All of our friends who get tra<strong>in</strong><strong>in</strong>g at the<br />
Seluz Internal Perfumer Academy are here because<br />
they want to be a perfumer <strong>in</strong> the future.<br />
However, this academy is an <strong>in</strong>ternal tra<strong>in</strong><strong>in</strong>g<br />
<strong>in</strong>stitution. Therefore, follow<strong>in</strong>g the detailed<br />
evaluations of our Human Resources Department,<br />
suitable people with the chemical technical<br />
<strong>in</strong>frastructure <strong>in</strong>cluded <strong>in</strong> the Seluz team<br />
are taken to the tra<strong>in</strong><strong>in</strong>g program. Although<br />
some of the technical specifications are considered,<br />
we can say that the ma<strong>in</strong> criterion is the<br />
passion and development potential on fragrance.<br />
This tra<strong>in</strong><strong>in</strong>g at Seluz Internal perfumer academy<br />
beg<strong>in</strong>s by learn<strong>in</strong>g basic scent families and raw<br />
materials. Then, perfumer candidates start to design<br />
simple formulas by learn<strong>in</strong>g basic scents of raw materials<br />
from different scent families. Next, they are<br />
be<strong>in</strong>g tra<strong>in</strong>ed how to design scents for more complex<br />
structures such as personal care and home care<br />
products that vary <strong>in</strong> their technical characteristics.<br />
The fact that our young colleagues <strong>in</strong> our Internal<br />
Perfumer Academy are tra<strong>in</strong>ed by master perfumers<br />
who are, beyond any doubt, among the best <strong>in</strong> their<br />
field all over the world, is very important for the<br />
development of both technical skills and creative<br />
approaches.”<br />
Would you briefly talk about technology and<br />
company growth <strong>in</strong> the last 10 years?<br />
“From the establishment to the present day, we<br />
have <strong>in</strong>vested 40 million USD and we cont<strong>in</strong>ue to<br />
grow and <strong>in</strong>vest. We will establish a new production<br />
and R&D facilities with<strong>in</strong> a few months. It is a project<br />
that we have started by expand<strong>in</strong>g our company<br />
boundaries right next to our current factory. Our<br />
17.000 m2 wide area will reach up to 23.000 m2 with<br />
this <strong>in</strong>vestment. The production and <strong>in</strong>tegration process<br />
of all of our high-tech mach<strong>in</strong>es for <strong>in</strong>vestment<br />
are <strong>in</strong> progress. When we open our new production<br />
facility, our yearly capacity will be 15 – 20 thousand<br />
tons. Not only <strong>in</strong> the field of production, but we also<br />
consider that R&D is an important po<strong>in</strong>t for our<br />
company. Due to the <strong>in</strong>vestments we have made so<br />
far, we have a unique laboratory that can rarely be<br />
seen <strong>in</strong> the world. Work<strong>in</strong>g and manufactur<strong>in</strong>g with<br />
cutt<strong>in</strong>g-edge technology are crucial for us to be able<br />
to stand beh<strong>in</strong>d our perfectionist approach. Us<strong>in</strong>g<br />
this technology allows us to get fast and reliable<br />
results. We also manufacture our products <strong>in</strong> accordance<br />
with the European Cosmetic Regulation, ISO<br />
9001 and GMP quality systems.<br />
This cosmetic regulation is used as a base by our<br />
M<strong>in</strong>istry of Health. We do not use any prohibited<br />
raw materials. We manufacture our products <strong>in</strong><br />
accordance with the prohibitions and restrictions<br />
imposed by IFRA.<br />
We ma<strong>in</strong>ta<strong>in</strong> cont<strong>in</strong>uity of the product quality<br />
with the analyzes carried out at the end of production<br />
phase.<br />
“We comb<strong>in</strong>e our perfect bus<strong>in</strong>ess<br />
understand<strong>in</strong>g with high-technology<br />
laboratories and production facilities and<br />
produce accord<strong>in</strong>g to the quality standards.<br />
As Seluz, we consider protect<strong>in</strong>g our nature<br />
and our employees as our primary duty,<br />
and work for a susta<strong>in</strong>able green future<br />
with our waste control system and<br />
other modern environmental<br />
policies.”<br />
We<br />
have<br />
major<br />
<strong>in</strong>vestments<br />
not only <strong>in</strong> the<br />
company but also<br />
abroad. In recent years, we opened two offices <strong>in</strong><br />
Dubai and Tehran as part of our growth policies <strong>in</strong><br />
the Middle East. These two countries are important<br />
centers known as key po<strong>in</strong>ts <strong>in</strong> the Middle East<br />
“We blend the most<br />
special fragrances <strong>in</strong><br />
the nature with our<br />
everlast<strong>in</strong>g passion<br />
<strong>in</strong> our dynamic and<br />
<strong>in</strong>novative world."<br />
market. At the end of 2016, we also <strong>in</strong>vested for a<br />
“Creative Center” <strong>in</strong> Zurich Canton of Switzerland,<br />
which will enhance our activity <strong>in</strong> the European<br />
market and support our creative perfume efforts.<br />
We believe that open<strong>in</strong>g such a center <strong>in</strong> the heart<br />
of the essence sector and employ<strong>in</strong>g perfumers are<br />
significant <strong>in</strong>vestments to be proud not only for our<br />
company but also for <strong>Turkey</strong>.<br />
These <strong>in</strong>vestments that we have made for all<br />
of our resources have changed the dynamics for<br />
both company and essence sector <strong>in</strong> the region.<br />
These achievements that strengthen our motivation<br />
provide us happ<strong>in</strong>ess, strength and determ<strong>in</strong>ation to<br />
work.”<br />
In which sectors are the essences produced <strong>in</strong><br />
your company used?<br />
“We can say that the essences we produce as<br />
Seluz are basically used <strong>in</strong> 3 areas. The first category<br />
is f<strong>in</strong>e fragrance namely perfume sector which is<br />
the locomotive of our bus<strong>in</strong>ess. The second basic<br />
category is the personal care segment consist<strong>in</strong>g of<br />
several sub-groups such as hair care, sk<strong>in</strong> care, baby<br />
care, wet wipes and so forth. The f<strong>in</strong>al segment is<br />
home care consist<strong>in</strong>g of detergent, surface cleaner,<br />
air freshener etc. These are actually the ma<strong>in</strong> usage<br />
areas of our essences. However, with the develop<strong>in</strong>g<br />
technology, we can say that various <strong>in</strong>novative usage<br />
areas from textiles to chemistry have emerged for<br />
essence.”<br />
How many essences do you have <strong>in</strong> your<br />
fragrance library? In what areas are these<br />
essences used?<br />
“At the moment, we have over 15,000 essences<br />
<strong>in</strong> our fragrance library. Our perfume creation<br />
and R&D teams develop approximately 1,500 new<br />
fragrances each year. There are different scents from<br />
the most popular brands of Europe, the Middle East<br />
and many other markets <strong>in</strong> the library. If an essence<br />
leads our customer’s brand and product to success,<br />
then we consider ourselves successful. In this regard,<br />
I can say that there are thousands of successful<br />
products used <strong>in</strong> perfume, cosmetics or home care<br />
products <strong>in</strong> different parts of the world. The ma<strong>in</strong><br />
reason beh<strong>in</strong>d our success is that we use high quality<br />
raw materials. We attach particular importance<br />
to supply each of nearly 1500 raw materials from<br />
countries with the highest quality production <strong>in</strong> the<br />
world.”<br />
How do you set your market<strong>in</strong>g strategies?<br />
“Although we carry on our bus<strong>in</strong>ess with the<br />
B2B (Bus<strong>in</strong>ess to Bus<strong>in</strong>ess) model, our market<strong>in</strong>g<br />
strategy is based on understand<strong>in</strong>g the preferences<br />
of end user as well as our customer’s need. In<br />
other words, we are follow<strong>in</strong>g a strategy that will<br />
capture the attention of target group of that<br />
brand by consider<strong>in</strong>g ourselves as our customer.<br />
Our market<strong>in</strong>g team deeply analyzes trends and<br />
consumer expectations throughout the world,<br />
from perfume to personal care and home care,<br />
where our essences are used, and develops<br />
creative ideas and concepts for our customers<br />
with these <strong>in</strong>ferences. We are work<strong>in</strong>g on the<br />
scents that have engaged with <strong>in</strong>novations and fit<br />
these concepts, enabl<strong>in</strong>g our customers to create<br />
new products that will <strong>in</strong>crease sales <strong>in</strong> the market.<br />
In other words, we are follow<strong>in</strong>g not only customer<br />
demands, but also the trends, and we offer a route<br />
map to our customers.”<br />
How do you feel with perfumes? Do you <strong>in</strong>volve <strong>in</strong><br />
perfume design process? Which fragrances do<br />
you prefer <strong>in</strong> your perfume?<br />
“Although the fragrance is my job, it is also a<br />
passion for me. S<strong>in</strong>ce we have great number of odors<br />
developed <strong>in</strong> our company, I can smell very few of<br />
Murat Ozturk,<br />
CEO of Seluz Fragrance Company<br />
them. However, I still try to smell and experience<br />
some of the works <strong>in</strong> my day-to-day rout<strong>in</strong>e.<br />
The <strong>in</strong>gredients of the perfume that I use now are<br />
bergamot, oakmoss, patchouli and a rich blend of<br />
wood. It has a calm amber effect both at the middle<br />
note and the base note that I like very much. I can<br />
say that the tonka bean, balsamic and leathery components<br />
<strong>in</strong> the base note determ<strong>in</strong>e the dist<strong>in</strong>ctness<br />
of the fragrance.”<br />
We can speak of selective perception accord<strong>in</strong>g to<br />
the <strong>in</strong>terests of people. How do your perceptions<br />
that are emerged from your profession affect you<br />
on your travels?<br />
“Fragrance means variation, diversity, change and<br />
movement... There is no room for stability <strong>in</strong> the<br />
world of fragrance... The essences are be<strong>in</strong>g used <strong>in</strong><br />
so many areas, lots of new products are show<strong>in</strong>g up<br />
that travels are really good opportunities for us to<br />
follow. Some brands offer special products for different<br />
regions. It is very important for us to smell them,<br />
get them and do the necessary checks on them.<br />
Improv<strong>in</strong>g our perfectionism means <strong>in</strong>creas<strong>in</strong>g<br />
our creativity and diversity. In addition to the<br />
product review, when I travel to a new geography,<br />
it is very important for me to discover the natural<br />
contents of that region ... This allows me to discover<br />
the natural plants and flowers that grown on the<br />
soil and <strong>in</strong> the climate while giv<strong>in</strong>g clues about the<br />
people liv<strong>in</strong>g <strong>in</strong> that region and their cultures. Especially<br />
spices and flowers are an <strong>in</strong>dispensable field of<br />
<strong>in</strong>terest for me and every new th<strong>in</strong>g that I discover is<br />
an opportunity to understand the <strong>in</strong>f<strong>in</strong>ite world that<br />
we work on.”<br />
Would you speak of your company’s vision and<br />
mission?<br />
“The basic criteria that form the vision of Seluz<br />
Fragrance Company are; to be one of the first<br />
companies that come to m<strong>in</strong>d <strong>in</strong> the <strong>in</strong>ternational<br />
fragrance sector by serv<strong>in</strong>g a wide and customer-oriented<br />
portfolio focused on reliability and quality by<br />
follow<strong>in</strong>g the current and future chang<strong>in</strong>g conditions<br />
and sector understand<strong>in</strong>g; to closely follow the<br />
trends <strong>in</strong> global markets and anticipate customer<br />
needs and become a solution partner beyond be<strong>in</strong>g<br />
a supplier for our customers; and to be the locomotive<br />
of the essence sector with its <strong>in</strong>novations and<br />
contributions.<br />
The criteria that constitute our mission are; team<br />
work focused on creat<strong>in</strong>g customer loyalty; service<br />
understand<strong>in</strong>g that will set an example for the sector;<br />
cont<strong>in</strong>uous personal and professional development;<br />
respect for nature and environment; price - product<br />
consistency; quality and service consistency; to value<br />
our employees and their op<strong>in</strong>ions; hav<strong>in</strong>g world class<br />
health and hygiene standards; to follow technological<br />
developments and <strong>in</strong>novations, and to establish<br />
honest, attentive and constructive relations with the<br />
third parties that work together.”<br />
Is there a say<strong>in</strong>g that you embrace as a company?<br />
“We have a say<strong>in</strong>g that we own as a company and<br />
that describe ‘us’ and our values clearly and we repeat<br />
on all occasions; As Seluz Fragrance Company,<br />
we blend the most special fragrances <strong>in</strong> the nature<br />
with our everlast<strong>in</strong>g passion <strong>in</strong> our dynamic, <strong>in</strong>novative<br />
and creative world. Though consumer demands<br />
and market facts underlie our strategies, we use our<br />
creative th<strong>in</strong>k<strong>in</strong>g to go beyond our clients’ expectations.<br />
We comb<strong>in</strong>e our perfect bus<strong>in</strong>ess understand<strong>in</strong>g<br />
with high-technology laboratories and production<br />
facilities, and swiftly produce accord<strong>in</strong>g to the quality<br />
standards. As Seluz, we consider protect<strong>in</strong>g our<br />
nature and our employees as our primary duty, and<br />
work for a susta<strong>in</strong>able green future with our waste<br />
control system and other modern environmental<br />
policies.”
<strong>March</strong><br />
April<br />
2017<br />
Monthly Economic Newspaper<br />
ww.img.com.tr<br />
EconomicNewspaper<br />
Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />
5<br />
Norwegian sovereign wealth fund<br />
<strong>in</strong>vests $1B <strong>in</strong> <strong>Turkey</strong> <strong>in</strong> 2016<br />
Norway’s state sovereign<br />
wealth fund, which is the<br />
world’s largest asset fund at<br />
approximately $900 billion,<br />
<strong>in</strong>vested around $1 billion<br />
<strong>in</strong> <strong>Turkey</strong> by the end of<br />
2016.<br />
The total value of the<br />
fund’s <strong>in</strong>vestment <strong>in</strong> <strong>Turkey</strong><br />
reached $936 million at<br />
the end of December 2016,<br />
accord<strong>in</strong>g to the <strong>in</strong>formation<br />
that Anadolu Agency<br />
compiled from Norges Bank<br />
data, which manages the<br />
Norwegian sovereign wealth<br />
fund.<br />
The <strong>in</strong>vestment portfolio<br />
of the fund <strong>in</strong>cludes shares<br />
from five Turkish energy<br />
companies, namely Tüpraş<br />
<strong>Turkey</strong> Petroleum Ref<strong>in</strong>eries<br />
Inc., Enka Construction<br />
and Industry Inc., Petkim<br />
Petrochemical Hold<strong>in</strong>g<br />
Inc., Ereğli Iron and Steel<br />
Factories and Aksa Energy<br />
Production Inc. The<br />
fund’s share <strong>in</strong> the said five<br />
companies was recorded as<br />
$112.112 million.<br />
At the end of last year,<br />
the fund made the biggest<br />
energy <strong>in</strong>vestment <strong>in</strong> Ereğli<br />
Iron and Steel Factories<br />
with $48.207 million, followed<br />
by Tüpraş <strong>Turkey</strong> Petroleum<br />
Ref<strong>in</strong>eries Inc. with<br />
an <strong>in</strong>vestment of $46.136<br />
million.<br />
<strong>Turkey</strong>’s Garanti Bank<br />
received the largest share<br />
of the Norwegian sovereign<br />
wealth fund’s <strong>in</strong>vestments<br />
<strong>in</strong> <strong>Turkey</strong>, worth a total of<br />
$1 billion. The fund, which<br />
has a 1.23 percent stake <strong>in</strong><br />
Garanti Bank, had a total<br />
<strong>in</strong>vestment of $112.63 million<br />
<strong>in</strong> the bank.<br />
The share of Pınar Süt<br />
Mamülleri Sanayii A.Ş.,<br />
which is a Turkish dairy<br />
company where<strong>in</strong> the fund<br />
has the largest share <strong>in</strong> its<br />
Turkish portfolio with 4.99<br />
percent, was traded at the<br />
Borsa Istanbul (BIST).<br />
In other words, the total<br />
amount of <strong>in</strong>vestment <strong>in</strong> the<br />
company’s stocks has exceeded<br />
$10 million. Moreover,<br />
the fund’s partnership<br />
<strong>in</strong> Pınar Süt Mamülleri<br />
Sanayii A.Ş. also attracted<br />
attention as the 20th largest<br />
<strong>in</strong>vestment of the fund’s<br />
global <strong>in</strong>vestments. The<br />
fund has been mak<strong>in</strong>g small<br />
<strong>in</strong>vestments <strong>in</strong> <strong>Turkey</strong> s<strong>in</strong>ce<br />
2001, but as of 2008 has<br />
been substantially expand<strong>in</strong>g<br />
its <strong>in</strong>vestments.<br />
Furthermore, the Norwegian<br />
government can use<br />
4 percent of fund revenues<br />
while the rema<strong>in</strong><strong>in</strong>g 96<br />
percent is accumulated.<br />
Norway’s <strong>in</strong>vestments<br />
comprise around 9,000 companies<br />
<strong>in</strong> 77 countries with<br />
the 96 percent accumulated<br />
money, and the revenue<br />
obta<strong>in</strong>ed is spent while<br />
the money of the country<br />
rema<strong>in</strong>s constant. Moreover,<br />
the Norwegian wealth<br />
fund is also <strong>in</strong>terested <strong>in</strong> the<br />
shares of large companies<br />
operat<strong>in</strong>g <strong>in</strong> the pharmaceuticals,<br />
bank<strong>in</strong>g, food,<br />
communication services,<br />
transportation and white<br />
goods sectors <strong>in</strong> <strong>Turkey</strong>.<br />
Turkish tourism<br />
‘expected to improve’<br />
<strong>in</strong> 2017 after tough year<br />
Tourism M<strong>in</strong>ister Nabi<br />
Avcı told that he expected<br />
better visitor numbers <strong>in</strong><br />
2017 after a “difficult year.”<br />
“Last year was a difficult<br />
year <strong>in</strong> terms of Turkish<br />
tourism. But a serious bottleneck<br />
has been passed,” Avcı<br />
said, add<strong>in</strong>g that the <strong>in</strong>dustry<br />
was recover<strong>in</strong>g and the<br />
number of tourists com<strong>in</strong>g<br />
to <strong>Turkey</strong> so far this year had<br />
<strong>in</strong>creased about 50 percent.<br />
He particularly noted that<br />
the Russian market had<br />
shown a serious recovery.<br />
Hakan Duran, the chair of<br />
Professional Hotel Managers’<br />
Association, said on<br />
<strong>March</strong> 30 that his members<br />
expected to host around<br />
3.5 million Russian and 1.5<br />
million Ukra<strong>in</strong>ian tourists<br />
<strong>in</strong> the southern prov<strong>in</strong>ce of<br />
Antalya this year. He said<br />
there had already been a<br />
rise <strong>in</strong> numbers so far this<br />
year. The number of Russian<br />
tourists visit<strong>in</strong>g <strong>Turkey</strong><br />
soared around 96 percent <strong>in</strong><br />
February compared to the<br />
same month of 2016, although<br />
arrivals from Europe<br />
cont<strong>in</strong>ued to decl<strong>in</strong>e, official<br />
data recently showed.<br />
Accord<strong>in</strong>g to prelim<strong>in</strong>ary<br />
data released by the Tourism<br />
M<strong>in</strong>istry on <strong>March</strong> 30,<br />
some 39,261 Russians visited<br />
<strong>Turkey</strong> <strong>in</strong> February. In 2016,<br />
the number of arrivals from<br />
Russia <strong>in</strong>to <strong>Turkey</strong> fell to just<br />
866,256 overall, a 76.2 percent<br />
drop from the previous<br />
year amid a political crisis<br />
between the two countries.<br />
However, arrivals from<br />
Europe to <strong>Turkey</strong> cont<strong>in</strong>ued<br />
to drop <strong>in</strong> February 2017,<br />
with 453,300 people from the<br />
cont<strong>in</strong>ent visit<strong>in</strong>g – a yearon-year<br />
decrease of around<br />
19 percent. Avcı claimed<br />
that arrivals from Europe<br />
would recover “if European<br />
politicians ease their negative<br />
discourse about <strong>Turkey</strong>.”<br />
Scientists will carry out<br />
pre-feasibility studies to<br />
establish <strong>Turkey</strong>’s first<br />
base <strong>in</strong> the cont<strong>in</strong>ent<br />
ISTANBUL-A group of Turkish scientists<br />
started their journey from Istanbul to Antarctica<br />
to set up <strong>Turkey</strong>’s first scientific research base <strong>in</strong><br />
Antarctica. Before their departure, the director of<br />
the Istanbul Technical University Polar Research<br />
Center (also known as ITU PolReC) told reporters<br />
at Ataturk Airport that they will work to realize<br />
a scientific base <strong>in</strong> Antarctica. Burcu Ozsoy said<br />
n<strong>in</strong>e scientists are start<strong>in</strong>g the journey to conduct<br />
pre-feasibility studies <strong>in</strong> Antarctica. “Our target<br />
is to set up a research base to open our studies to<br />
Turkish scientists,” she stressed, hail<strong>in</strong>g the work as<br />
a contribution to <strong>Turkey</strong> mov<strong>in</strong>g from its observer<br />
status to consultative party status on the cont<strong>in</strong>ent.<br />
Ozsoy highlighted that consultative party status<br />
was important as only such countries have vot<strong>in</strong>g<br />
power relat<strong>in</strong>g to Antarctica. The scientists will<br />
try to determ<strong>in</strong>e the best location for the planned<br />
research base. In April last year, <strong>in</strong> a historic first,<br />
a team of 14 Turkish researchers, <strong>in</strong>clud<strong>in</strong>g medical<br />
doctors, botanists, survey and geological eng<strong>in</strong>eers,<br />
and oceanographers from seven Turkish universities<br />
went to Antarctica on a scientific mission to<br />
study the impact of climate change.<br />
Antarctica serves as a scientific preserve s<strong>in</strong>ce<br />
the Antarctica Treaty was signed <strong>in</strong> Wash<strong>in</strong>gton<br />
<strong>in</strong> 1959, of which <strong>Turkey</strong> is a party. The cont<strong>in</strong>ent<br />
is considered the coldest on earth. The lowest<br />
temperature there was recorded <strong>in</strong> 1983 at m<strong>in</strong>us<br />
89 degrees Celsius. In the summer, the temperatures<br />
rises to m<strong>in</strong>us 15 degrees Celsius or m<strong>in</strong>us 5<br />
degrees Celsius. <strong>Turkey</strong>’s first polar research center<br />
PolRec was established <strong>in</strong> 2015.<br />
The mission of the center is to carry out research<br />
on the Antarctic and develop <strong>Turkey</strong>’s visibility <strong>in</strong><br />
the <strong>in</strong>ternational scientific community.<br />
İbrahim Küpeli<br />
ibnahim.kupeli@img.com.tr<br />
Confidence<br />
and stability<br />
favored<br />
Hav<strong>in</strong>g been on the Turkish agenda<br />
for long years, f<strong>in</strong>ally the purposed<br />
constitutional amendment <strong>in</strong>clud<strong>in</strong>g<br />
some of the articles has been approved<br />
by the Turkish people with a<br />
referendum held 16 th April.<br />
Thus, a new white page has been<br />
opened <strong>in</strong> front of the country. So, the<br />
two-headed adm<strong>in</strong>istration - which<br />
<strong>in</strong>volved President and Prime M<strong>in</strong>ister<br />
System that has been <strong>in</strong> the force for<br />
decades <strong>in</strong> the country - was ended.<br />
The new system will be completely<br />
enter<strong>in</strong>g <strong>in</strong>to force <strong>in</strong> 2019. Previously<br />
the constitutional amendment had<br />
been brought on the agenda via civil<br />
presidents from time to time, but it<br />
was rema<strong>in</strong>ed unresolved.<br />
The reason of constitutional<br />
amendment pr<strong>in</strong>cipally was to be<br />
removed the two-headed govern<strong>in</strong>g<br />
system. Because of decision mak<strong>in</strong>g<br />
processes could not advance swiftly.<br />
In order to solve this h<strong>in</strong>drance,<br />
remedy was to change at least some<br />
of the articles of the constitution.<br />
Despite suggestion and drafts have<br />
been prepared and offered to the<br />
Grand National Assembly for mak<strong>in</strong>g<br />
the amendment, somehow success<br />
was not obta<strong>in</strong>ed until this verdict of<br />
<strong>Turkey</strong>’s grand national assembly.<br />
But this time, the efforts of the<br />
rul<strong>in</strong>g party achieved to get rid of a<br />
bulky system. With this new system<br />
no longer the country will face coalition<br />
governments.<br />
So, stability management system will<br />
be <strong>in</strong> the force. Checks and balances<br />
system will be justly <strong>in</strong> implementation.<br />
In accordance with this new system,<br />
as soon as one of the presidential candidates<br />
is won the election, the w<strong>in</strong>n<strong>in</strong>g<br />
president will also constitute the<br />
council of m<strong>in</strong>isters out of the grant<br />
national assembly.<br />
This new govern<strong>in</strong>g system will also<br />
attract more foreign direct <strong>in</strong>vestment.<br />
From now on <strong>in</strong>vestors will<br />
trust more <strong>in</strong> our country to make<br />
<strong>in</strong>vestment regrad<strong>in</strong>g stability.<br />
Thanks to this new adm<strong>in</strong>istration<br />
system the gears of economy will<br />
work better without fac<strong>in</strong>g any h<strong>in</strong>drance.<br />
Production, distribution and consumption<br />
cha<strong>in</strong> will also operate <strong>in</strong> a<br />
stabile way. Solv<strong>in</strong>g this crucial problem<br />
Ak Party has played important<br />
role regard<strong>in</strong>g experienc<strong>in</strong>g the old<br />
system handicapped.<br />
Hav<strong>in</strong>g been <strong>in</strong> the office as a s<strong>in</strong>gle<br />
party advantage s<strong>in</strong>ce 2002, rul<strong>in</strong>g Ak<br />
Party has brought radical solutions <strong>in</strong><br />
other issues as well.<br />
Its decisive stance has played positive<br />
role <strong>in</strong> overcom<strong>in</strong>g the challenges<br />
arisen both from the home and<br />
abroad to date. Nearly 15 years ago<br />
exist<strong>in</strong>g high <strong>in</strong>flation and <strong>in</strong>terest<br />
rates and other economic troubles <strong>in</strong><br />
the country have been solved pretty<br />
much through <strong>in</strong> its period.<br />
Meanwhile, per capita <strong>in</strong>come has<br />
risen over threefold. The country exports<br />
have also surged over fourfold.<br />
In this period, huge <strong>in</strong>vestments<br />
were made and entered <strong>in</strong>to force. We<br />
believe that positive developments<br />
will <strong>in</strong>creas<strong>in</strong>gly boost with this new<br />
system more. Regard<strong>in</strong>g these positive<br />
acquisitions most of the Turkish people<br />
have approved this new system.
EconomicNewspaper<br />
6 Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />
<strong>March</strong><br />
April<br />
2017<br />
MG International Fragrance<br />
Company’s newest plant sets off<br />
an <strong>in</strong>spir<strong>in</strong>g 21st century trend<br />
MG International Fragrance Company, the world’s first <strong>in</strong>tegrated fragrance<br />
production plant, boast the title for the world’s highest-capacity fragrance plant<br />
under one roof. As the regional leader <strong>in</strong> fragrances, it is also pioneer<strong>in</strong>g by<br />
<strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>Turkey</strong>’s first synthesis and natural extraction facility located with<strong>in</strong> this new<br />
complex.<br />
Established <strong>in</strong> 1961<br />
MG International Fragrance Company, supplier of fragrances to well-known<br />
<strong>in</strong>ternational brands, was founded by Gülçiçek family <strong>in</strong> 1961. It manufactures fragrance<br />
formulations export<strong>in</strong>g to 72 countries. Through recent <strong>in</strong>vestments <strong>in</strong> R&D and an<br />
expanded production capacity, it aims to grow <strong>in</strong>to one of the worlds’ top ten companies<br />
with<strong>in</strong> its sector <strong>in</strong> the next decade.<br />
The new $65-million facility consist<strong>in</strong>g of a 45,000 m2 plant, built on a 20,000 m2 plot,<br />
a 5,000 m2 area has been dedicated to <strong>in</strong>novation, organic synthesis and natural extract<br />
research. With<strong>in</strong> the next five years, it plans to substantially <strong>in</strong>crease the number of raw<br />
materials it manufactures. A dedicated subsidiary unit, MG International Ingredients, is<br />
currently launch<strong>in</strong>g the first of these <strong>in</strong>gredients to global markets.<br />
State-of-the-art Production Facility<br />
Currently well over 200 employees work at MG International Fragrance Company’s new site. Quality fragrance production<br />
is a hallmark of this new facility where implementation of technologically advanced dos<strong>in</strong>g robots, well-tra<strong>in</strong>ed employee<br />
experience, streaml<strong>in</strong>ed production management, and speedy order fulfillment is paramount. One of its most important assets<br />
is the newly established state-of-the-art production facility equipped with a wide range (grams to tons) of “hands free” dos<strong>in</strong>g<br />
robots currently capable to handle 35,000 metric tons of fragrance production per year from over 4000 <strong>in</strong>ventoried liquid and<br />
powder raw materials. When its bus<strong>in</strong>ess vision, labor force experience, fast order fulfillment, R&D staff, and fully automated<br />
production technology is considered, the factory can be described as one of the world’s largest <strong>in</strong>tegrated fragrance production<br />
facility of its k<strong>in</strong>d under one roof.<br />
Technology and R&D<br />
With a fully-automated production capacity of 65 tons per day, MG International Fragrance Company is capable of respond<strong>in</strong>g<br />
all the needs of its bus<strong>in</strong>ess partners <strong>in</strong> very short time frame. The production is handled by hands-free automated dos<strong>in</strong>g<br />
robots capable of simultaneously process<strong>in</strong>g three different production batches up to 600 kg each with scales that are capable<br />
of handl<strong>in</strong>g low milligram precision.<br />
MG also spends considerable amounts of its yearly budget for R&D. In addition to its state of the art <strong>in</strong>strumentation used for<br />
its rout<strong>in</strong>e analytical chemistry and material characterization and quality control programs, there is a concerted effort made <strong>in</strong><br />
synthetic chemistry areas for optimization of exist<strong>in</strong>g chemical synthesis methods and also areas of research conducted for the<br />
production and discovery of new and novel<br />
aroma-molecules. Other prom<strong>in</strong>ent areas of research <strong>in</strong>clude ongo<strong>in</strong>g efforts made for optimiz<strong>in</strong>g longevity of fragrance<br />
formulations and study<strong>in</strong>g the mechanisms of different evaporation rates of fragrance raw materials <strong>in</strong> different consumer end<br />
products.<br />
MG by Numbers<br />
Established <strong>in</strong> 1961.<br />
World leader <strong>in</strong> terms of production capacity with<br />
fragrance creation, R&D, adm<strong>in</strong>istration and other<br />
bus<strong>in</strong>ess operations be<strong>in</strong>g <strong>in</strong> a s<strong>in</strong>gle site.<br />
Ranks among <strong>Turkey</strong>’s Second 500 Largest Industrial<br />
Enterprises.<br />
46,500 m2 mostly ‘hands-free’ automated production<br />
area.<br />
20,000 m2 of environmentally conscious and<br />
susta<strong>in</strong>able physical plant area.<br />
5,000 m2 of organic synthesis center <strong>in</strong>clud<strong>in</strong>g state-ofthe-art<br />
automated natural extraction and purification<br />
<strong>in</strong>strumentation.<br />
Extensive MS-based and other chemical and physical<br />
analytical <strong>in</strong>strumentation for identification and<br />
characterization of start<strong>in</strong>g raw materials and f<strong>in</strong>ished<br />
products.<br />
28 km long chemically <strong>in</strong>ert metal pipel<strong>in</strong>es feed<strong>in</strong>g 2 small scale and 2 large scale allautomated<br />
dos<strong>in</strong>g robots.<br />
15 <strong>in</strong>ert mix<strong>in</strong>g tanks each with capacity rang<strong>in</strong>g from 1 mt to 10 mt.<br />
More than 4,000 <strong>in</strong>ventoried natural and synthetic raw materials.<br />
7,500 metric tons of production capacity per year.<br />
More than 200,000 <strong>in</strong> house developed fragrance formulas for all types of consumer good<br />
products such as soaps, detergents, toiletries, air fresheners, and even for garbage bags<br />
and asphalt!<br />
An unprecedented collection of 12,000 natural and synthetic raw materials from around<br />
the world.<br />
Diverse <strong>in</strong>ternational world expert perfumers.<br />
24 <strong>in</strong>dividual junior perfumer work stations.<br />
12 isolated ‘bl<strong>in</strong>d-test’ evaluation.<br />
Accumulated fragrance production for nearly 70,000 Turkish and worldwide<br />
<strong>in</strong>ternationally recognized brands.<br />
More than 4,700 worldwide customers <strong>in</strong>clud<strong>in</strong>g <strong>Turkey</strong>.<br />
Film screen<strong>in</strong>g of “Brave and Beautiful”<br />
“Brave and Beautiful” (Cesur ve Güzel) film screen<strong>in</strong>g<br />
still cont<strong>in</strong>ues at the facility with its brilliant storyl<strong>in</strong>e,<br />
starr<strong>in</strong>g Kıvanç Tatlıtuğ, Tuba Büyüküstün, Tamer Levent<br />
and Erkan Avcı.<br />
MG Garners 2 Awards <strong>in</strong> 1 Year; Environmental and<br />
Sectoral Performance<br />
In a testament to its commitment to the environment, MG<br />
has <strong>in</strong>vested 1.8 million USD <strong>in</strong> environmentally-friendly<br />
<strong>in</strong>frastructure and projects <strong>in</strong> its new facility, and for<br />
these efforts it received the prestigious Sehabett<strong>in</strong> Bilgesu<br />
Environmental Award given out every two years from the<br />
Kocaeli Chamber of Industry.<br />
As it cont<strong>in</strong>ues to extend its global presence, follow<strong>in</strong>g<br />
the open<strong>in</strong>g of their new facility, MG International w<strong>in</strong>s<br />
a second prestigious award <strong>in</strong> less than a year, from the<br />
Chemical Industry Sector.<br />
Global Brand Activities <strong>in</strong> the Dream Facility<br />
The market<strong>in</strong>g and sales team of Giorgio Armani Beauty, a<br />
beauty and care brand with<strong>in</strong> the L’Oreal Luxe group, chose<br />
the new MG production facility for its first tra<strong>in</strong><strong>in</strong>g of the<br />
year with an energetic start. A dynamic tra<strong>in</strong><strong>in</strong>g day covered<br />
2017 trends with presentations and comments from its<br />
employees. The tra<strong>in</strong><strong>in</strong>g session also featured Slyvian Cara,<br />
one of the perfumers at the MG International Fragrance<br />
Company. He had the L’Oreal group <strong>in</strong>volved <strong>in</strong> fun-andgames<br />
which had the participants smell the essential scents<br />
used <strong>in</strong> fragrances and guess what they were.
EconomicNewspaper<br />
<strong>March</strong><br />
8 Please mention<br />
April<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />
2017<br />
<strong>Turkey</strong>’s top<br />
bus<strong>in</strong>ess<br />
organization’s<br />
new board<br />
members<br />
meet PM<br />
Yıldırım<br />
New board members of<br />
the Turkish Industry and<br />
Bus<strong>in</strong>ess Association (TÜ-<br />
SİAD) met Prime M<strong>in</strong>ister<br />
B<strong>in</strong>ali Yıldırım.<br />
At the meet<strong>in</strong>g, a number<br />
of key topics were discussed,<br />
<strong>in</strong>clud<strong>in</strong>g the current<br />
economic and <strong>in</strong>vestment<br />
climate, relations with<br />
the European Union, the<br />
Customs Union deal, the<br />
participation of women <strong>in</strong><br />
the labor force, the Industry<br />
4.0, digital transformation,<br />
youth and educational<br />
issues, a follow-up press<br />
release stated.<br />
“We have seen an amaz<strong>in</strong>gly<br />
rapid technological<br />
and economic transformation<br />
across the world.<br />
The public-private sector<br />
cooperation has become of<br />
great significance <strong>in</strong> ensur<strong>in</strong>g<br />
democracy, susta<strong>in</strong>able<br />
economic development and<br />
social development <strong>in</strong> <strong>Turkey</strong><br />
<strong>in</strong> the globalized world.<br />
We made a fruitful meet<strong>in</strong>g<br />
with our prime m<strong>in</strong>ister.<br />
We have seen<br />
a highly <strong>in</strong>tensive<br />
agenda ahead to<br />
be jo<strong>in</strong>tly followed<br />
to make <strong>Turkey</strong><br />
more competitive,”<br />
said<br />
TÜSİAD<br />
Chair<br />
Erol<br />
Bilecik.<br />
Prime M<strong>in</strong>ister<br />
B<strong>in</strong>ali Yıldırım<br />
<strong>Turkey</strong> expands<br />
‘halal certification’<br />
to boost tourism sector<br />
<strong>Turkey</strong> may become an energy<br />
exporter <strong>in</strong> next 10 years<br />
<strong>Turkey</strong>’s automotive<br />
production up by 31 pct<br />
for Jan.<br />
Automotive production <strong>in</strong> <strong>Turkey</strong><br />
surged 31 percent year-on-year <strong>in</strong> the<br />
first month of 2017, accord<strong>in</strong>g to an<br />
Automotive Manufacturers’ Association<br />
(OSD) report released.<br />
The OSD said automakers manufactured<br />
128,000 vehicles -- <strong>in</strong>clud<strong>in</strong>g automobiles,<br />
light commercial vehicles and<br />
tractors <strong>in</strong> January 2017 , while automobile<br />
production advanced 61 percent to<br />
stand at 94,000 <strong>in</strong> the same period.<br />
The overall auto sales market (<strong>in</strong>clud<strong>in</strong>g<br />
light trucks and other vehicles)<br />
<strong>in</strong>creased seven percent to 36,000 compared<br />
to same month of last year.<br />
OSD report also revealed automotive<br />
<strong>in</strong>dustry exports rose 35 percent on a<br />
dollar basis to $2.08 billion <strong>in</strong> January<br />
compared to the same period <strong>in</strong> 2016.<br />
The export value of the automobile<br />
sector <strong>in</strong>creased excessively by 143<br />
percent year-on-year to $913 million, the<br />
report added.<br />
ANKARA-<strong>Turkey</strong> may<br />
50 percent. We will all<br />
become an energy exporter<br />
<strong>in</strong> a decade’s time,<br />
to shoulder. From now<br />
work together shoulder<br />
Turkish Energy M<strong>in</strong>ister<br />
on, we will look for more<br />
Berat Albayrak has said.<br />
resources, and we will do<br />
“<strong>Turkey</strong>, which spends<br />
the regulations and the<br />
$50 billion <strong>in</strong> energy and<br />
open ground for the <strong>in</strong>vestors,<br />
be<strong>in</strong>g supportive <strong>in</strong><br />
m<strong>in</strong>eral imports every<br />
year, may turn <strong>in</strong>to an energy<br />
exporter <strong>in</strong> the next<br />
We will produce nucle-<br />
a triple w<strong>in</strong>-w<strong>in</strong> outlook.<br />
10 years,” Albayrak said<br />
ar power and domestic<br />
Feb. 22 <strong>in</strong> a ceremony <strong>in</strong><br />
coal. We need to develop<br />
Ankara to mark the 15th<br />
resources with richer<br />
anniversary of the found<strong>in</strong>g<br />
of sector regulator<br />
calorific values. <strong>Turkey</strong><br />
is import<strong>in</strong>g 50 billion<br />
Energy Market Regulatory<br />
Authority (EPDK), an<br />
dollars of energy every<br />
Energy M<strong>in</strong>ister Berat Albayrak year, for energy, will start<br />
event held by the Association<br />
of Energy Experts.<br />
pay<strong>in</strong>g less,” he added.<br />
“We aim at br<strong>in</strong>g<strong>in</strong>g energy to the public<br />
Azerbaijani President<br />
with better quality and price. Beyond that,<br />
İlham Aliyev welcomed Albayrak ahead of<br />
a big <strong>Turkey</strong> should now be an actor <strong>in</strong><br />
a m<strong>in</strong>isterial meet<strong>in</strong>g on the Southern Gas<br />
a wider picture that has a say <strong>in</strong> energy, Corridor project <strong>in</strong> the country’s capital,<br />
which is an important raw material today, Baku.<br />
<strong>in</strong> regional and global means. We need to Azerbaijan aims to f<strong>in</strong>alize the Southern<br />
Gas Corridor by 2020. The project<br />
build this,” he said.<br />
<strong>Turkey</strong> produces 49.3 percent of its <strong>in</strong>cludes the South Caucasus Pipel<strong>in</strong>e,<br />
power needs from local resources, he said, Trans-Anatolian Natural Gas Pipel<strong>in</strong>e<br />
stress<strong>in</strong>g on the importance of local and (TANAP) and Trans-Adriatic Pipel<strong>in</strong>e<br />
renewable resources.<br />
(TAP). The TANAP project aims to<br />
“In the next 10 years, we need to br<strong>in</strong>g natural gas, produced <strong>in</strong> Azerbaijan’s<br />
Shah Deniz II gas field and other<br />
<strong>in</strong>crease the share of domestic resources<br />
<strong>in</strong> electricity generation to at least twothirds.<br />
We have to carry this ratio to over <strong>Turkey</strong>, but also to Europe via the<br />
areas of the Caspian Sea, primarily to<br />
TAP.<br />
The Turkish<br />
Standards<br />
Institution<br />
(TSE) has<br />
issued “Halal<br />
Food Certification”<br />
s<strong>in</strong>ce 2011,<br />
and has so far<br />
given “Halal”<br />
certifications to 327<br />
firms <strong>in</strong> 18 different product<br />
l<strong>in</strong>es, <strong>in</strong> collaboration with<br />
the Presidency of Religious<br />
Affairs of <strong>Turkey</strong>. Cont<strong>in</strong>u<strong>in</strong>g<br />
<strong>in</strong>vestment <strong>in</strong> diversification<br />
of the tourism sector, <strong>Turkey</strong><br />
aims to be a favored holiday<br />
dest<strong>in</strong>ation for tourists from<br />
Muslim countries, by support<strong>in</strong>g<br />
“Halal Certification.”<br />
Conduct<strong>in</strong>g research for halal<br />
certification regard<strong>in</strong>g food<br />
products and places serv<strong>in</strong>g<br />
food, teams of specialists also<br />
provide services from firms<br />
operat<strong>in</strong>g abroad.After apply<strong>in</strong>g<br />
to TSE, a team of specialists<br />
from the Presidency<br />
of Religious Affairs and TSE<br />
arrive at the production site<br />
to make exam<strong>in</strong>ations.<br />
Dur<strong>in</strong>g this<br />
process, the<br />
product or<br />
the <strong>in</strong>stitution<br />
requested to<br />
be certified<br />
with the TSE<br />
standards is<br />
exam<strong>in</strong>ed <strong>in</strong><br />
accordance with<br />
Islamic standards. Products<br />
or the <strong>in</strong>stitutions found<br />
suitable are granted TSE’s<br />
Halal Food Certification.<br />
Thus far, 327 firms have been<br />
given halal certification. Until<br />
recently, only hotels could<br />
obta<strong>in</strong> halal certifications.<br />
However, follow<strong>in</strong>g recent<br />
studies, other <strong>in</strong>stitutions can<br />
now also obta<strong>in</strong> halal certification.<br />
Another important<br />
topic with<strong>in</strong> the scope of halal<br />
certifications is the studies<br />
conducted on cosmetics. The<br />
products which can receive<br />
halal cosmetic certification<br />
cannot conta<strong>in</strong> animal products<br />
which are prohibited <strong>in</strong><br />
Islam or <strong>in</strong>clude any substances<br />
hazardous to human health<br />
made from such animals.<br />
IKMIB represented <strong>Turkey</strong> with 37<br />
Turkish cosmetics companies <strong>in</strong> Italy<br />
Cosmoprof Bologna, considered one of the<br />
biggest cosmetic and personal care products<br />
fair <strong>in</strong> the world, opened its doors to the<br />
cosmetic <strong>in</strong>dustry for the 50th time. The fair,<br />
which welcomes hundreds of thousands of<br />
visitors from all over the world, was also very<br />
colorful this year. Representatives of the Turkish<br />
cosmetic sector, which <strong>in</strong>creased its growth<br />
momentum every year, represented our<br />
country <strong>in</strong> the fair. A total of 37 Turkish companies,<br />
18 of which were national participants,<br />
participated <strong>in</strong> the fair, which was organized<br />
by the National Association of Exporters of<br />
Chemical Materials and Products (İKMİB) for<br />
the tenth time.<br />
The Turkish cosmetics sector will be exhibited<br />
at the Cosmoprof Worldwide Bologna<br />
Fair held <strong>in</strong> Bologna, Italy, this year between<br />
17 and 20 <strong>March</strong> 2017; From perfume to color<br />
cosmetics, from hair styl<strong>in</strong>g to wet wipes, the<br />
fair br<strong>in</strong>gs together cosmetic sector companies<br />
and potential buyers s<strong>in</strong>ce 50 years. The fair is<br />
important due to it is the platform <strong>in</strong> which the<br />
cosmetics sector meet with the giants and the<br />
new trends <strong>in</strong> the sector are exhibited first.<br />
The Turkish cosmetics sector has realized<br />
$ 1.05 billion worth of exports last year. Top<br />
10 countries <strong>in</strong> cosmetic exports were Iraq,<br />
Iran, the United K<strong>in</strong>gdom, Russia, Germany,<br />
France, Saudi Arabia, United Arab Emirates,<br />
the Netherlands and Romania. Soap, hair<br />
care products, wet wipes <strong>in</strong> the first group of<br />
products <strong>in</strong> the world, such as the cosmetics<br />
sector <strong>in</strong> the world of color cosmetics,<br />
so-called makeup products are ris<strong>in</strong>g to an<br />
ambitious position. Turkish cosmetics sector<br />
exports <strong>in</strong> 2017 with an <strong>in</strong>crease of 10 percent<br />
1 billion 155 million dollars is targeted to<br />
export. Colombia, Chile, Ecuador, Paraguay,<br />
Great Brita<strong>in</strong>, Vietnam, Cambodia, Indonesia,<br />
Thailand, Ch<strong>in</strong>a, India, Kenya and Nigeria are<br />
listed as potential markets for the sector.<br />
Stat<strong>in</strong>g that the Turkish cosmetics sector has<br />
shown a rapid growth especially <strong>in</strong> the last 10<br />
years Murat Akyuz, Chairman of the Board<br />
of Directors of the Association of Exporters<br />
of Turkish Chemical Materials and Products<br />
(IKMIB) said, “Our cosmetics exports have <strong>in</strong>creased<br />
170 percent <strong>in</strong> the last 10 years, while<br />
our sector companies have been able to export<br />
to over 190 countries. The Turkish cosmetics<br />
sector can compete with <strong>in</strong>ternational brands<br />
both <strong>in</strong> the domestic market and <strong>in</strong> <strong>in</strong>ternational<br />
markets with quality and competitive<br />
Murat Akyuz<br />
Chairman of IKMIB<br />
Istanbul Chemicals and Chemical Products Exporters' Association<br />
prices. While our sector companies closely<br />
follow<strong>in</strong>g the developments <strong>in</strong> the world<br />
are mov<strong>in</strong>g rapidly, and also they are tak<strong>in</strong>g<br />
important steps to <strong>in</strong>crease their product<br />
types. Our firms, which have been export<strong>in</strong>g to<br />
Europe for many years, have a good reputation<br />
for quality production, production <strong>in</strong> EU<br />
and <strong>in</strong>ternational standards. Our proximity<br />
to European markets also gives advantage to<br />
exports to this region. At the same time, the<br />
demand for our products from Europe <strong>in</strong>creases<br />
the perception of our firms <strong>in</strong> Far East and<br />
African markets as well.”
<strong>March</strong><br />
April<br />
2017<br />
Monthly Economic Newspaper<br />
ww.img.com.tr<br />
EconomicNewspaper<br />
Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />
9<br />
Hes Deterjan of Moher Kimya, has<br />
entered the new structur<strong>in</strong>g process<br />
quickly. Hes Deterjan has a wide range<br />
of products from powder detergent to<br />
fabric softener, from liquid detergent<br />
to general clean<strong>in</strong>g fluid, from laundry<br />
bleach to dishwash<strong>in</strong>g detergent and<br />
gel detergent, powder, clean<strong>in</strong>g liquids<br />
and liquid soap products. Serkan<br />
Topsakal, Hes Deterjan Moher Kimya<br />
Brand Sales and Market<strong>in</strong>g Executive<br />
Board Member shares activities of the<br />
company…<br />
Can you talk about Hes Deterjan’s new<br />
brand<strong>in</strong>g process?<br />
“The whole process of Hes Deterjan<br />
is managed by Moher Kimya<br />
brands. Hes Deterjan an established<br />
brand and a great value for <strong>Turkey</strong>.<br />
So we decided to update our brand to<br />
move this value to the highest po<strong>in</strong>t.<br />
As new management, we have taken a<br />
new path by rely<strong>in</strong>g on our experience<br />
<strong>in</strong> the clean<strong>in</strong>g and hygiene sector.<br />
Our biggest mission is to ensure that<br />
people use top-level products. In l<strong>in</strong>e<br />
with this mission; together with our<br />
professional staff, we have made the<br />
contents of the products suitable for<br />
today’s needs. In parallel, our logo,<br />
our packag<strong>in</strong>g and our communication<br />
strategy was completely restructured.<br />
Along with the last quarter of 2016, we<br />
started to reach the end user.”<br />
Hes Deterjan brand is an established<br />
brand, how do you asses past days<br />
with these days of the brand?<br />
“The brand has been operat<strong>in</strong>g<br />
for the past quarter century. We talk<br />
about a brand that has caught great<br />
momentum <strong>in</strong> certa<strong>in</strong> periods and often<br />
ma<strong>in</strong>ta<strong>in</strong>s its standards. Preserv<strong>in</strong>g<br />
the positive values of the past <strong>in</strong> this<br />
direction, we have also worked hard<br />
to make its values to a higher level<br />
and we are still work<strong>in</strong>g. Obviously we<br />
know that the expectation from us is<br />
great and we are try<strong>in</strong>g to act accord<strong>in</strong>gly.<br />
In order to meet the expectations<br />
<strong>in</strong> a positive way, we carry out all our<br />
processes with professional teams.”<br />
Hes - a new breath for clean<strong>in</strong>g<br />
You also brought a new breath for the<br />
brand with the motto of... “Hes - a new<br />
breath for clean<strong>in</strong>g”<br />
“We are work<strong>in</strong>g the slogan together<br />
with the present communication<br />
professionals. It was a slogan that<br />
came out as a result of a few long<br />
meet<strong>in</strong>gs. We should have told our<br />
people that well, such a creative slogan<br />
emerged at the end of<br />
the day. We are aware<br />
of the importance of the<br />
brand<strong>in</strong>g slogan. It was <strong>in</strong>dispensable<br />
to emphasize<br />
that we are <strong>in</strong>novative <strong>in</strong><br />
this context. I th<strong>in</strong>k we<br />
made a slogan that is ambitious,<br />
self-confident and challeng<strong>in</strong>g<br />
standards. With our designs, it<br />
was our priority to add value<br />
and power to our products.<br />
We know very well that<br />
brands need to appeal<br />
to their consumers, to<br />
enter their hearts and to<br />
survive. While design<strong>in</strong>g<br />
our designs, we aimed to<br />
create a unique <strong>in</strong>fluence<br />
by call<strong>in</strong>g out to feel<strong>in</strong>gs<br />
and emotions. Because<br />
<strong>in</strong>creas<strong>in</strong>g brand value<br />
can be done by redef<strong>in</strong><strong>in</strong>g<br />
consumer’s attitude towards brand and<br />
attitude correctly. “<br />
We are expand<strong>in</strong>g our range of<br />
products to meet the needs of every<br />
day <strong>in</strong> the global market ...<br />
“As Hes Deterjan brand, we offer<br />
products from powder detergent to<br />
fabric softener, from liquid detergent<br />
to general clean<strong>in</strong>g fluid,<br />
from laundry bleach to dishwash<strong>in</strong>g<br />
detergent and gel detergent,<br />
powder, clean<strong>in</strong>g liquids and<br />
liquid soap products for our<br />
customers carefully and safely.<br />
As Hes Deterjan family, with<br />
its product range and our past<br />
experience and power to expand<br />
with each pass<strong>in</strong>g day, we<br />
reach more po<strong>in</strong>ts. We export<br />
to many countries of the world<br />
such as Russia, the Caucasus,<br />
Turkic Republics, Middle East,<br />
Iran, Africa countries, and<br />
we reach the Balkans and<br />
Europe countries and to<br />
South America. We are<br />
mov<strong>in</strong>g with our ideals,<br />
our goals and our strategy<br />
to make Hes Deterjan<br />
a world brand. With<br />
our enthusiasm, we see<br />
every new step and product<br />
as an excit<strong>in</strong>g experience we share<br />
with our consumers.”
EconomicNewspaper<br />
10 Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers Monthly Economic Newspaper ww.img.com.tr<br />
<strong>March</strong><br />
April<br />
2017<br />
<strong>Turkey</strong>’s Sabancı Hold<strong>in</strong>g<br />
to <strong>in</strong>vest $1.3 bln <strong>in</strong> 2017<br />
New <strong>in</strong>vestments <strong>in</strong> <strong>Turkey</strong> from P&G<br />
GEBZE-The U.S.-based Procter<br />
and Gamble (P&G) has made its<br />
250 million-Turkish lira ($70 million)<br />
<strong>in</strong>vestment <strong>in</strong> the northwestern<br />
prov<strong>in</strong>ce of Kocaeli’s Gebze<br />
district onl<strong>in</strong>e and signaled new<br />
<strong>in</strong>vestments.<br />
The fresh <strong>in</strong>vestment <strong>in</strong> Gebze<br />
aims at <strong>in</strong>creas<strong>in</strong>g local production<br />
<strong>in</strong> baby and women outputs and<br />
thus enhanc<strong>in</strong>g diversification <strong>in</strong><br />
export markets, accord<strong>in</strong>g to top<br />
representatives from the company.<br />
“We will <strong>in</strong>crease local production<br />
with our new <strong>in</strong>vestment,” said<br />
the company’s <strong>Turkey</strong> and Caucasia<br />
chair, Tankut Turnaoğlu, add<strong>in</strong>g<br />
that the company is work<strong>in</strong>g on a<br />
new <strong>in</strong>vestment <strong>in</strong> dish detergent<br />
area, which is slated to become<br />
onl<strong>in</strong>e <strong>in</strong> the next 18 months.<br />
Turnaoğlu noted that now some<br />
60 percent of P&G products sold<br />
<strong>in</strong> <strong>Turkey</strong> are domestically made <strong>in</strong><br />
the country, while the share was 55<br />
percent ahead of the new <strong>in</strong>vestment<br />
<strong>in</strong> Gebze. “We want to reach<br />
more than 10 export markets. We<br />
ANKARA - Turkish conglomerate<br />
Sabancı Hold<strong>in</strong>g has plans to<br />
make $1.25 billion of <strong>in</strong>vestments<br />
<strong>in</strong> 2017, the group’s CEO said Feb.<br />
24. The hold<strong>in</strong>g has plans to <strong>in</strong>vest<br />
4.5 billion liras <strong>in</strong> <strong>Turkey</strong> throughout<br />
2017, up 0.4 billion liras ($110<br />
million) or 10 percent from last<br />
year, Zafer Kurtul said at a Sabancı<br />
Group annual brief<strong>in</strong>g meet<strong>in</strong>g<br />
where last year’s f<strong>in</strong>ancials were<br />
announced. Kurtul said nearly 80<br />
percent of this amount would be<br />
channeled <strong>in</strong>to expand<strong>in</strong>g production<br />
capacity while the rema<strong>in</strong>der<br />
would be set aside for technology<br />
<strong>in</strong>vestments. He said they expect<br />
calmer market conditions <strong>in</strong> <strong>Turkey</strong><br />
and a recovery <strong>in</strong> other macro-economic<br />
figures. “Thanks to measures<br />
<strong>in</strong>troduced <strong>in</strong> the last quarter of<br />
2016, our GDP growth forecast<br />
was 2.6 percent for the last year,”<br />
Kurtul said. “We expect 2017 to be<br />
a better year than 2016 <strong>in</strong> exchange<br />
rate volatility, economic growth<br />
and recovery <strong>in</strong> unemployment,” he<br />
said. Kurtul said the better part of<br />
the announced <strong>in</strong>vestment amount<br />
would be used to expand capacity<br />
<strong>in</strong> cement, tire and textile factories.<br />
One-and-a-half billion liras ($410<br />
million) would be allocated to energy<br />
sector <strong>in</strong>vestments. Apart from<br />
expand<strong>in</strong>g production capacity <strong>in</strong><br />
exist<strong>in</strong>g factories, $280 million is to<br />
be used for technological enhancements.<br />
believe that our exports to Germany,<br />
Czech Republic and Poland<br />
would start,” he added.<br />
The company has already exported<br />
some 20 percent of its <strong>Turkey</strong>-made<br />
products to more than<br />
10 countries <strong>in</strong> the Central Asia,<br />
Middle East and Balkans regions.<br />
Turnaoğlu also said that <strong>Turkey</strong><br />
gave the highest contribution to the<br />
company’s growth across Europe.<br />
Zafer Kurtul<br />
P&G’s global chief David Taylor<br />
said that some advanced production<br />
capabilities have been brought<br />
<strong>in</strong>to <strong>Turkey</strong>, <strong>in</strong> a speech at the<br />
launch ceremony.<br />
The company has two factories<br />
<strong>in</strong> <strong>Turkey</strong> and made around 2 billion<br />
liras of <strong>in</strong>vestments <strong>in</strong> <strong>Turkey</strong><br />
s<strong>in</strong>ce its entrance to the market<br />
some 30 years ago.<br />
Humor<br />
Democracy is a device that ensures<br />
we shall be governed no better than<br />
we deserve.<br />
A new manager spends<br />
a week at his new office<br />
with the manager he is<br />
replac<strong>in</strong>g. On the last day<br />
the depart<strong>in</strong>g manager<br />
tells him, “I have left three<br />
numbered envelopes <strong>in</strong><br />
the desk drawer. Open an<br />
envelope if you encounter<br />
a crisis you can’t solve.”<br />
Three months down the<br />
track there is a major<br />
drama, everyth<strong>in</strong>g goes<br />
wrong - the usual stuff<br />
- and the manager feels<br />
very threatened by it all.<br />
He remembers the part<strong>in</strong>g<br />
words of his predecessor<br />
and opens the first<br />
envelope. The message<br />
<strong>in</strong>side says “Blame your<br />
predecessor!” He does<br />
this and gets off the hook.<br />
About half a year later, the<br />
company is experienc<strong>in</strong>g<br />
THE ECONOMIST<br />
What is your advise for<br />
President Trump?<br />
a dip <strong>in</strong> sales, comb<strong>in</strong>ed<br />
with serious product<br />
problems. The manager<br />
quickly opens the second<br />
envelope. The message<br />
read, “Reorganize!” This<br />
he does, and the company<br />
quickly rebounds.<br />
Three months later, at his<br />
next crisis, he opens the<br />
third envelope. The message<br />
<strong>in</strong>side says “Prepare<br />
three envelopes”.<br />
A man goes <strong>in</strong>to a pet<br />
shop to buy a parrot.<br />
The shop owner po<strong>in</strong>ts<br />
to three identical look<strong>in</strong>g<br />
parrots on a perch and<br />
says, “the parrot on the<br />
left costs 500 dollars”.<br />
“Why does the parrot<br />
cost so much,” asks the<br />
man.<br />
Well!!!<br />
THOUGHT OF THE<br />
MONTH<br />
The shop owner says,<br />
“well, the parrot knows<br />
how to use a computer”.<br />
The man then asks about<br />
the next parrot to be told<br />
that this one costs 1,000<br />
dollars because it can do<br />
everyth<strong>in</strong>g the other parrot<br />
can do plus it knows<br />
how to use the operat<strong>in</strong>g<br />
systems.<br />
Naturally, the <strong>in</strong>creas<strong>in</strong>gly<br />
startled man asks about<br />
the third parrot to be told<br />
that it costs 2,000 dollars.<br />
Needless to say this begs<br />
the question, “What can<br />
it do?”<br />
To which the shop owner<br />
replies, “to be honest I<br />
have never seen it do a<br />
th<strong>in</strong>g, but the other two<br />
call him boss!”<br />
Try not to become a man of<br />
success but rather to become<br />
a man of value.<br />
Döşemelik Kumaş, Ev Tekstili<br />
Ev Eşyaları, Züccaciye<br />
Hediyelik Eşya<br />
Aydınlatma<br />
Ç<strong>in</strong> Ürünleri Fuarı<br />
Kumaş, Hazır Giyim ve Aksesuarları<br />
800 Seçk<strong>in</strong><br />
Üretici Firma<br />
Sergilenecek<br />
B<strong>in</strong>lerce Ürün<br />
Hırdavat, El Aletleri<br />
1 - 3 Haziran 2017<br />
İstanbul Fuar Merkezi<br />
Yeşilköy<br />
Ç<strong>in</strong> ürünler<strong>in</strong><strong>in</strong> doğrudan tedarik edildiği<br />
Dünya’nın en geniş kapsamlı ticaret platformu<br />
Onl<strong>in</strong>e Kayıt<br />
www.ch<strong>in</strong>ahomelifeturkey.com<br />
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<strong>Turkey</strong> determ<strong>in</strong>ed to<br />
strengthen tourism <strong>in</strong><br />
all aspects<br />
<strong>Turkey</strong> is determ<strong>in</strong>ed to strengthen its<br />
central position <strong>in</strong> all aspects of tourism,<br />
Turkish Prime M<strong>in</strong>ister B<strong>in</strong>ali Yıldırım<br />
told a world tourism conference <strong>in</strong> Istanbul.<br />
Speak<strong>in</strong>g at the World Tourism Forum,<br />
Yıldırım said that <strong>Turkey</strong>’s tourism sector<br />
cont<strong>in</strong>ues to grow at a fast speed and will<br />
work to ensure that all cities throughout<br />
the country attract tourists.<br />
Yıldırım said that the total number<br />
of tourists visit<strong>in</strong>g <strong>Turkey</strong> <strong>in</strong> 2002 was<br />
around 13 million, whereas 40 million<br />
people visited the country <strong>in</strong> 2016, almost<br />
a three-fold <strong>in</strong>crease.<br />
“<strong>Turkey</strong>’s tourism revenue rose from<br />
12 billion dollars to 30 billion dollars”<br />
Yıldırım said. The prime m<strong>in</strong>ister highlighted<br />
that tourism does not only provide<br />
economic benefits, but also contributes to<br />
global peace and friendship.<br />
“As countries of the world, we must<br />
take necessary precautions and cooperate<br />
<strong>in</strong> tourism” Yıldırım said.<br />
Referr<strong>in</strong>g to the recent terror attacks<br />
throughout the world, Yıldırım said that<br />
all countries are threatened by terrorism,<br />
but this should not stop people from travel<strong>in</strong>g<br />
as it will only benefit the terrorists<br />
who want to spread fear and paralyze<br />
daily life.<br />
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H. Ferruh Işık<br />
Mehmet Söztutan<br />
(mehmet.soztutan@img.com.tr)<br />
Prof. Dr. Ismail Kaya<br />
Assoc. Prof. Mehmet Ali Özbudun<br />
Ibrahim Kupeli<br />
Recep Arslantaş<br />
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İsmail Gürbüz<br />
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<strong>March</strong><br />
April<br />
2017<br />
Monthly Economic Newspaper<br />
ww.img.com.tr<br />
EconomicNewspaper<br />
Please mention<br />
“<strong>Made</strong> <strong>in</strong> <strong>Turkey</strong>” when writ<strong>in</strong>g to advertisers<br />
11<br />
Turkish bank<strong>in</strong>g sector supports real<br />
economy, not deposits money<br />
The chairman of the Banks<br />
Association of <strong>Turkey</strong> (TBB)<br />
and Ziraat Bank General Manager<br />
Hüsey<strong>in</strong> Aydın evaluated<br />
the country’s economy and<br />
its bank<strong>in</strong>g sector at the TBB<br />
Board Members meet<strong>in</strong>g.<br />
Referr<strong>in</strong>g to President Recep<br />
Tayyip Erdoğan’s call on banks<br />
to avoid keep<strong>in</strong>g money <strong>in</strong> the<br />
bank and sitt<strong>in</strong>g on it, Aydın<br />
said criticism of this issue addressed<br />
the general practice.<br />
Suggest<strong>in</strong>g that convert<strong>in</strong>g<br />
deposits collected by banks <strong>in</strong>to<br />
loans would contribute to employment<br />
and economic growth,<br />
Aydın said the Turkish bank<strong>in</strong>g<br />
system has converted all deposits<br />
that it collects <strong>in</strong>to loans,<br />
add<strong>in</strong>g that if there were banks<br />
that failed to do so, they should<br />
not let the money sit idly at the<br />
bank deposits but br<strong>in</strong>g it <strong>in</strong>to<br />
the economy.<br />
Say<strong>in</strong>g that the Turkish<br />
bank<strong>in</strong>g system achieved credit<br />
growth <strong>in</strong> the first n<strong>in</strong>e months<br />
<strong>in</strong> the last quarter of last year,<br />
along with other measures,<br />
regulations and risk appetite,<br />
Aydın noted that with regard<br />
to deposits and liquidity, the<br />
Central Bank of the Republic of<br />
<strong>Turkey</strong> (CBRT) and the Bank<strong>in</strong>g<br />
Regulation and Supervision<br />
Agency (BDDK) are mak<strong>in</strong>g<br />
efforts to provide them with<br />
significant opportunities.<br />
“When we f<strong>in</strong>d this opportunity,<br />
we convert the deposit<br />
<strong>in</strong>to loans. We should not sit on<br />
the money. We are on the same<br />
page with Mr. President,” Aydın<br />
said.<br />
The ‘Fitch effect’<br />
In response to a question on<br />
the effect of reduc<strong>in</strong>g the risk<br />
ratio applied to foreign currency-denom<strong>in</strong>ated<br />
required<br />
reserves held by the banks at the<br />
CBRT from 50 percent to zero<br />
on their capital adequacy ratios,<br />
Aydın noted that it will contribute<br />
roughly 70 basis po<strong>in</strong>ts.<br />
Meanwhile, Garanti Bank<br />
General Manager Ali Fuat Erbil<br />
said the BDDK’s decision will<br />
contribute 10 basis po<strong>in</strong>ts to the<br />
bank when evaluated together<br />
with the effect of Fitch.<br />
Erbil stressed that due to<br />
the reserve option mechanism<br />
implemented by the CBRT for<br />
the last few years, Turkish banks<br />
have started to hold foreign exchange<br />
obligations much higher<br />
than normal amount of reserves.<br />
“There have been ongo<strong>in</strong>g<br />
talks between the Basel Committee<br />
and the BDDK. Dur<strong>in</strong>g<br />
these negotiations, the BDDK<br />
notified the bank that these<br />
weights should be taken as zero,<br />
like they used to be. The effect<br />
of Fitch comes to us as a m<strong>in</strong>us,<br />
and the f<strong>in</strong>al arrangement<br />
comes as a plus,” Erbil said.<br />
Faik Açıkalın, general manager<br />
of Yapı Kredi also stated<br />
that follow<strong>in</strong>g Fitch’s decision,<br />
the BDDK issued a letter say<strong>in</strong>g<br />
that it would accept a rat<strong>in</strong>g<br />
from a rat<strong>in</strong>g agency <strong>in</strong> the Gulf.<br />
“However, the acceptance of<br />
a Japanese or a Canadian rat<strong>in</strong>g<br />
agency was also <strong>in</strong> question.<br />
Therefore, each bank will evaluate<br />
the credit rat<strong>in</strong>g agencies on<br />
its own,” Açıkalın said.<br />
“If Fitch’s decision affects us<br />
by about 100 units, some of it<br />
comes from currency reserves<br />
and some from Eurobonds.<br />
Nearly 30 percent of the 100<br />
units rema<strong>in</strong>ed above the balance<br />
sheets, and 70 percent was<br />
recovered with the f<strong>in</strong>al decision<br />
of the BDDK,” Açıkalın said,<br />
add<strong>in</strong>g that this decision has<br />
been discussed for a long time<br />
between the BDDK and the Basel<br />
Committee and add<strong>in</strong>g that<br />
the BDDK made this decision<br />
<strong>in</strong> order to lower the weight of<br />
risks on the bank<strong>in</strong>g system by<br />
us<strong>in</strong>g an <strong>in</strong>itiative.<br />
15 pct growth target for 2017<br />
After the bank<strong>in</strong>g sector recorded<br />
an approximate <strong>in</strong>crease<br />
of 44 percent <strong>in</strong> profit thanks<br />
to certa<strong>in</strong> one-time ga<strong>in</strong>s such<br />
as the <strong>in</strong>terest rate cuts <strong>in</strong> 2016,<br />
the sale of certa<strong>in</strong> assets and the<br />
reduction of reimbursements for<br />
wages and commissions. However,<br />
currency-adjusted growth<br />
expectation for sector loans was<br />
set at 15 percent and a similar<br />
profitability growth IS not expected<br />
<strong>in</strong> 2017.<br />
TBB Secretary General<br />
Ekrem Kesk<strong>in</strong> said <strong>Turkey</strong>’s<br />
bank<strong>in</strong>g sector will cont<strong>in</strong>ue<br />
to support the susta<strong>in</strong>ability of<br />
f<strong>in</strong>ancial stability and growth,<br />
announc<strong>in</strong>g the loan, total assets,<br />
deposits and equity growth<br />
expectations for 2017 as 15 percent,<br />
13 percent, 13 percent and<br />
12 percent, respectively.<br />
EU’s security depends on<br />
<strong>Turkey</strong>’s stability<br />
<strong>Turkey</strong>’s top bus<strong>in</strong>ess<br />
organization’s new board<br />
members meet PM Yıldırım<br />
ANKARA -New board<br />
members of the Turkish Industry<br />
and Bus<strong>in</strong>ess Association<br />
(TÜSİAD) met Prime M<strong>in</strong>ister<br />
B<strong>in</strong>ali Yıldırım. At the meet<strong>in</strong>g,<br />
a number of key topics were<br />
discussed, <strong>in</strong>clud<strong>in</strong>g the current<br />
economic and <strong>in</strong>vestment climate,<br />
relations with the European<br />
Union, the Customs Union<br />
deal, the participation of women<br />
<strong>in</strong> the labor force, the Industry<br />
4.0, digital transformation, youth<br />
and educational issues, a follow-up<br />
press release stated.<br />
“We have seen an amaz<strong>in</strong>gly<br />
rapid technological and economic<br />
transformation across<br />
ANKARA-Hungarian M<strong>in</strong>ister<br />
of Foreign Affairs and<br />
Trade Peter Szijjarto has said the<br />
security of the European Union<br />
depends on <strong>Turkey</strong>’s stability.<br />
Speak<strong>in</strong>g to <strong>Turkey</strong>’s state-run<br />
Anadolu Agency on the eve of<br />
the <strong>Turkey</strong>-Hungary 5th Jo<strong>in</strong>t<br />
Economic Commission meet<strong>in</strong>g,<br />
Szijjarto said Hungary respects<br />
<strong>Turkey</strong> for hous<strong>in</strong>g the refugees.<br />
He said Hungary <strong>in</strong>sists the<br />
EU pay the agreed bill for the<br />
refugees as part a refugee deal<br />
signed <strong>in</strong> <strong>March</strong> 2016, which<br />
aims to discourage irregular<br />
migration through the Aegean<br />
Sea by tak<strong>in</strong>g stricter measures<br />
aga<strong>in</strong>st human traffickers and<br />
improv<strong>in</strong>g conditions for nearly<br />
3 million Syrian refugees <strong>in</strong><br />
<strong>Turkey</strong>.<br />
The deal <strong>in</strong>cluded a 6 billion<br />
euro ($6.8 billion) aid package<br />
to help <strong>Turkey</strong> care for millions<br />
of refugees hosted <strong>in</strong> the country.<br />
However, <strong>Turkey</strong> has so far<br />
received only 677 million euros<br />
($716 million).<br />
As part of measures aga<strong>in</strong>st<br />
refugees, Hungary has re<strong>in</strong>forced<br />
its borders with soldiers<br />
and police with the support of<br />
the Visegrad Group partners —<br />
a cultural and political alliance<br />
that also <strong>in</strong>cludes the Czech<br />
Republic, Poland and Slovakia<br />
country change terrorism laws <strong>in</strong><br />
exchange for visa-free travel for<br />
Turks.<br />
the world. The public-private<br />
sector cooperation has become<br />
of great significance <strong>in</strong> ensur<strong>in</strong>g<br />
democracy, susta<strong>in</strong>able economic<br />
development and social<br />
development <strong>in</strong> <strong>Turkey</strong> <strong>in</strong> the<br />
globalized world. We made a<br />
fruitful meet<strong>in</strong>g with our prime<br />
m<strong>in</strong>ister. We have seen a highly<br />
<strong>in</strong>tensive agenda ahead to be<br />
jo<strong>in</strong>tly followed to make <strong>Turkey</strong><br />
more competitive,” said TÜSİ-<br />
AD Chair Erol Bilecik.<br />
“We are expect<strong>in</strong>g a s<strong>in</strong>cere<br />
approach from the EU while<br />
we have been s<strong>in</strong>cerely work<strong>in</strong>g<br />
to fulfill the criteria <strong>in</strong> our EU<br />
accession process,” he said.