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Made in Turkey / March-April'17

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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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Elektrikli Ev Aletleri<br />

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/Ch<strong>in</strong>aHomelifeTr<br />

/Ch<strong>in</strong>ahomelifeturkey<br />

+Ch<strong>in</strong>ahomelifeturkey<br />

<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 />

Monthly Economic Newspaper<br />

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İç ve Dış Ticaret Ltd. Şti. Adına sahibi<br />

Sorumlu Genel Yayın Müdürü<br />

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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Enes Karadayi<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.

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