According to the Turkish Trade Association, a series of problems in the global economy and major export markets may limit the development of the plastic industry in Turkey.
Turkey is the second largest producer of plastic products in Europe. Turkey's plastic industry could grow 5.5 to 7.4 percent this year if global economic and political challenges are not taken into account, according to the Istanbul-based Turkish Plastics Industry Association. Turkey is the second largest producer of plastic products in Europe, second only to Germany. Apart from exporting plastic products to the Middle East, Turkey is also Europe's largest producer of electrical appliances and automobiles, two extremely important end markets leading the Turkish plastic industry to global trade.
Eroglu said business today is suffering from a variety of adverse effects around the world, such as shrinking global trade, falling commodity prices and hostility in major export markets. However, despite the difficulties, the plastics industry will still try to achieve double growth in production and export.
In 2016, Turkey's production of plastic products reached 9 million tons, with direct exports worth more than $4 billion. This figure does not include plastic parts for automobiles and electronic products.
In a report, the Turkish Plastics Industry Association showed that the US dollar and the eurozone's economic performance were important factors affecting the Turkish plastic industry.
At the same time, the report also stressed that domestic demand will gradually increase in 2017, in the country of 75 million people, domestic sales will increase by 7%. The constraints on global economic growth in 2015 and 2016 will continue, new and developing economies will continue to face challenges, and geopolitical tensions will exacerbate global economic difficulties.
Eroglu says Turkey's plastic industry will take steps to improve, as the global R&D center was set up to make the industry more competitive. The Turkish Plastics Industry Association has also called on local processors to reduce their dependence on imported raw materials and equipment, which now account for 85% of total imports. It also favoured the reduction of import tariffs on raw materials, arguing that producers should be encouraged to reduce production and investment costs rather than imposing additional import tariffs on raw materials.