EQUİPLAST Chemical News, a specialized digital publication and renowned provider of information on the plastic sector.
"Plastic industry is important for Turkey's competitiveness, sustainable development, innovation,
and for a low-carbon economy"
YAVUZ EROGLU PRESIDENT OF TURKISH PLASTICS INDUSTRY FOUNDATION (PAGEV)
Mr Eroglu, you have a long career as a plastic entrepreneur in your country. How would you describe this sector in Turkey?
Plastics industry is one of the youngest and most rapidly growing industries in Turkey. With 6500 operating companies contributes to the Turkish economy. The production of plastics end products, which was 8.3 million tons and 35.2 billion dollars in 2013, has annually increased on average by 3.7% in the last 5 years and it has reached 9.6 million tons in 2017. Turkish plastics industry shares 2.7 % of total world plastics production which makes Turkey the 6th biggest producer in the world and 2nd in Europe. The primary industries shaping the domestic consumption are packaging and construction materials as it is in the world and the EU. The consumption ratios are about 40 % for packaging, 22 % for construction whereas the other industries hold a ratio between 4-10 %.
Do you receive a lot of foreign investment in this sector? Does the Turkish industry invest in other countries?
Turkish plastics industry is a potential investment area in terms of foreign direct investment. Between 2002 - 2017 period, about 1 billion 629 million dollars of direct foreign capital investment has been made in the Turkish plastics industry. This amount of investment constitutes 1% of all foreign investments in Turkey and 5% of the foreign direct investments in manufacturing industry.
By the end of 2017, there are 389 foreign capital venture companies in Turkish plastics industry, 202 of which are of European origin sharing 52% of total. Syria shares 14% of total foreign capital venture companies while Germany shares 12%, Italy 8% and Iran 7%. French and Dutch companies have a share of 6% respectively.
In the period 2013-2017 an average of 850 million dollars of machinery and equipment investment has been realized in Turkish plastics industry. The investment of machinery equipment in the plastics industry was 932 million dollars in 2017. With the same trend, it is estimated that the machinery and equipment investment of industry will exceed 1 billion dollars in 2018.
You chair the Turkish Plastics Industry Foundation. Who does this organization represent and what are its main objectives?
PAGEV is the umbrella organization of the Turkish plastics industry . It was established in 1989 and has 1750 related companies and 600 trustee members. It represents all plastic value chain consisting of 11.000 companies which include: packaging, automotive, construction, white goods, consumer electronics, toy, medical; resin producers, plastic machine and mold producers, recycle companies.
PAGEV is a prestigious organization representing the Turkish Plastics Industry both in Turkey and abroad as a reference point for local and overseas companies. It is a member of PlasticsEurope, EuPC, Assocomaplast, WFO and CIPAD. In line with developments worldwide, PAGEV aims to meet the organizational needs of the rapidly growing Turkish plastics industry. It strongly devotes to the education aim by pioneering in plastics educational infrastructure investments and constructing schools devoted to plastics education. PAGEV has met the skilled and qualified employee needs of the sector by supporting the job-based educational system in 2 schools. It also develops plastics business activity in Turkey by guiding its members in improving their technology, quality, productivity and competitiveness.
PAGEV organizes Plasteurasia Istanbul Fair. It also participates in international fairs and organizes tours to present the technical and competitive power of the Turkish plastics industry in global markets. PAGEV carries out business surveys studies and research projects in all aspects of the plastics processing industry, publishes technical books, industry reports and introduces Turkish plastics industry to the world by connecting the experts, entrepreneurs and investors in Turkish plastics industry technological congresses. PAGEV executes the presidency of Union of Chambers and Commodity Exchanges of Turkey, Plastics, Composite and Rubber Assembly. Istanbul Plastics Submit has been organised by PAGEV in 2015.
Besides, PAGEV, as the "Unifying Power" of the Turkish Plastics industry, is planing several important projects to develop the industry. Plastics Center of Exellence and International Regional Plastic Manufacturing Center (Integrated Plastıc park.
PAGÇEV, the Recycling Economic Enterprise of PAGEV, which is a non- profit-oriented establishment, has been established to collect packaging waste separately at source and to provide recycling. PAGÇEV, was tasked to operate for all types of packaging by the Ministry of Environment and Urbanism and also accredited 3rd Organization on January 3, 2014. As a Green Dot Company of Turkey, PAGÇEV reached to a population of 10 million and recycled 220 000 tons of packaging: 37% of this waste was paper / cardboard, 41% plastic, 10% glass, 5% metal, 3% wood and 4% composite in 2017.
PAGÇEV practices responsible care seeking to align with society's expectations and aspirations for economic, social and environmental sustainability. Responsible Care reflects PAGÇEV's fundamental value of responsibility. PAGEV and PAGÇEV value the safety and well-being of co-workers, communities and the environment in Turkey. The goal of sustaining them for the future is a cornerstone of PAGEV and PAGÇEV's culture.
What is the most important message about the relationship between plastics and the environment?
Plastics are solutions for future challenges . For example, plastics products currently on the Europan market have enabled energy savings equivalent to 53 million tonnes of fossil fuels which would be enough for heating and hot water provision to 94 million people for an entire year. Using plastics results in annual energy savings equivalent to 60% lower greenhouse gas emissions and 57% lower energy consumption.
Scientific approaches should be essential. With emotional and non-analytical approaches, we say that we are benefiting the environment, but we do exactly the opposite. We have to practice responsible care seeking to align with society's expectations and aspirations for economic, social and environmental sustainability. The goal of sustaining them for the future must be cornerstone of associations representing plastics industry. We must first look at operations and challenge ourselves each day to achieve a strong performance record in safety, health, and environmental protection and security. What we really need to do is to solve the side effects while benefiting from plastic by right waste management, instead of destroying the positive contribution of plastic to human life.
What is being done in Turkey to solve the problem of marine litter?
Marine debris is an international and borderless problem. For example 53% of the floating debris found in seas surrounding Turkey are from other countries. Waste Free Oceans project started in 2012 in Büyükada with a boat whith a special net developed by French fishermen Thomazeau, setting off from the pier for Waste Free Oceans. Waste collected from sea surface off Büyükada by WFO boat was sent to recycle.
PAGEV, joined on the Meeting of the Black Sea Commission.The Black Sea is bordered by six countries, including EU Member States Bulgaria and Romania. The EU is committed to maritime issues in the region and has obtained observer status for the Black Sea Commission. It also launched an initiative for regional cooperation with and between countries surrounding the Black Sea.
WFO Turkey Project continued on 7th of August in Istanbul with The Municipality of Besiktas in 2014. In May 2015, analysis of microplastics in the Marmara Sea were the result of a collaboration between TUBITAK The Scientific and Technological Research Council of Turkey and WFO Turkey.
The Environment and Sea Festival was organized by PAGCEV and WFO Turkey on the World Environment Day when was commemorated each year on the 5th June. Training of waste and recycling was given to the approximately 200 children of various schools, then the competitions of sea-themed photograph annd stories were regulated. Gifts were given to the winners of the each categories. The mayor of Besiktas, member of the Board of PAGEV and 20 more people dived into the Istanbul Strait and collected waste under the water.
The Environment and Sea Festival was organized by PAGCEV and WFO Turkey on the World Environment Day when was commemorated each year on the 5th June. Training of waste and recycling was given to the approximately 200 children of various schools, then the competitions of sea-themed photograph annd stories were regulated. Gifts were given to the winners of the each categories. The mayor of Besiktas, member of the Board of PAGEV and 20 more people dived into the Istanbul Strait and collected waste under the water.
On 21st of November we had a chance to present WFO Turkey at the 2nd International Plastic Packaging Technologies Congress which was held by PAGEV with the main theme of Circular Economy.
PAGEV, joined on behalf of WFO an event organized by the Commission for the Protection of the Black Sea Against Pollution (Black Sea Commission). The event was planned around the Celebration of the Black Sea Day. WFO Turkey and Union of Municipalities of the Marmara Region (MBB) organized a workshop together with the theme of "The Impact of the Danube River of the Pollution of the Black See and Marmara See" on 13 April, 2016 at Bursa.
What is your opinion on the European plastics strategy approved by the European Union at the beginning of the year?
It will protect the environment from plastic pollution whilst fostering growth and innovation, turning a challenge into a positive agenda for the Future of Europe. There is a strong business case for transforming the way products are designed, produced, used, and recycled in the EU and by taking the lead in this transition new investment opportunities and jobs will be created. Under the new plans, all plastic packaging on the EU market will be recyclable by 2030, the consumption of single-use plastics will be reduced and the intentional use of microplastics will be restricted.
Do you think that the plastics industry is better positioned than others to start a transition to the circular economy?
Productivity and unemployment are main problems that need priority solution for Turkey. In order to overcome these problems, it is necessary to increase industrial share in GDP to over 15% by 2020.
Plastics are important factors for the supply chains of a wide range of economic sectors such as health, energy, air and space, automotive, maritime, construction, electronics and packaging. Plastic industry is an important tool for Turkey's competitiveness, sustainable development, to increase innovation and more for a low-carbon economy to take the right path.
Turkish plastics industry is growing rapidly and having greater share in global plastics industry, The 2023 export vision of the industry is to realize at least $ 17 billion of the export goal of $ 50 billion targeted for the chemical sector, It is extremely difficult to reach 17 billion dollars of exports in the current situation, As a matter of fact, apart from solving the increasing problems parallel to the growth of the sector, it is necessary to take measures to increase unit export prices which is below $ 3/Kg to the developed countries average of 4,5 $/Kg as well as to maximize the investment incentives is required.
The basic industrial vision of the plastics industry is "to bring the plastics industry to the first place in the European countries with the plastic processing capacity as a leading industry which is producing technology accepted by global markets, in 2023 ", The basic strategic objectives and policies of the industry for the realization of this vision are: reducint the import dependency on raw materials; investing in technologies with added value; increasing competition; improving the educational infrastructure of the sector; establishing economic infrastructure for the development of the industry and attracting foreign capital investments.
Plastics industry is the youngest and most developing industry in Turkey as on the world. Plastic is the pioneer in the transformation of industrial development of Turkey as in all developed economies. Plastics have been started to be used in the industry in 1930s, in defence industry in the 1940's, in textiles, fashion, toys industries, in 1960s and 1070s in colouring and design. In 1980s and 1990s high performance plastics, in 2000s nano technology have been introduced. After 2010 plastics fit for the future with examples such as bullet proof polymer, plastic blood, plastic solar cells, implantable polymers, flexible plastic screens and driverless cars.
TURKISH PLASTIC INDUSTRY QUICK FACTS
- 35 billion dollars of production value
- 250.000 people employed
- 14 billion dollars of added value
- More than 12 billion dollars of direct and indirect exports by supplying products and semi-products to the main exporter industries
- Share of 4% in GDP
- Ranking 10th in biggest exporter industries
- Ranking 1st in total chemical exports with a share of 35%
