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steel exports by 22.7% on an annual basis to 1.9mn tonnes in the month. Local steel producers shipped $1.4bn worth of steel to export markets in April, a 9.8% y/y rise from a year ago, the TCUD added. In April, Turkey’s steel imports plunged 20.4% to 1.2mn tonnes, reflecting the impact of the devaluation of the local currency. The sharp decline in imports was also related to weaker domestic economic activity, particularly in the construction industry. Across the first four months of this year, the country's crude steel output declined 10.5% on an annual basis to 11.2mn tons. The latest figures do not reflect the effects of the US decision last month to reduce tariffs on Turkish steel. Steel production and exports probably increased after the US slashed its 50% tariff to 25%. The Trump administration doubled tariffs on Turkish steel and aluminum imports amid a diplomatic row last year between the Nato allies. Turkey retaliated by doubling tariffs on US cars, alcohol and tobacco imports. Ankara cut tax on some US imports in response to Washington’s move to halve tariffs on Turkish steel imports. Turkey’s crude steel production edged down 0.6% y/y in 2018 to 37.3mn tonnes. The country is one of the largest steel producers in the world, producing some 2% of steel. The 37.3mn tonnes of output made Turkey the world’s 8th largest producer last year.
Two Turkish provinces, Istanbul and Kocaeli, provided some 70% of Turkey’s $8.7bn worth of chemical exports in the first five months of the year, state-run news service Anadolu Agency reported on June 23. Citing data from the Turkish Exporters’ Assembly, it said chemical and chemical product shipments recorded a 24.5% y/y increase in January-May. That made the chemical industry Turkey’s second largest export sector after automotive, with a share in the country’s overall exports of 11.3% in the five months, compared to the automotive sector’s $13 bn, or 17% of revenues. In May alone, chemical and chemical product exports stood at $1.94bn, up 33% y/y. Chemicals exports from Istanbul-based companies amounted to $3.98bn, the highest figure among all provinces, in the five months, marking a 25% y/y increase. Exports from the northwestern province of Kocaeli, home to large companies, such as refiner Tupraş, chemicals company Hayat Kimya and tyre manufacturers Brisa and Pirelli, soared 62% y/y to $2.12bn. Izmir, which hosts companies that produce oil and oil products, detergents, soap, paints, and chemicals used in drug production, came third for chemical exports with $669mn worth. Chemicals exports from the capital Ankara and the southeastern province of Gaziantep in the first five months of the year amounted to $486mn and $355mn, respectively, the report said.
An Uzbek-Turkish cluster for the production of leather and shoes is to be launched in Uzbekistan’s Jizzakh region by the end of this year, Trend has reported citing Uzbek media. Head of the economic planning department of the Uzcharmsanoat Association Dilobar Zufarova reportedly said the cluster creation project was in an active stage of development. "The company has already received the necessary loans, and construction is now under way. By the end of 2019, leather production will be launched with shoe production to be adjusted afterwards. It is planned to master the production of leather goods at the next stage," Zufarova was cited as saying. An investment cooperation agreement was signed in Istanbul in 2017 by representatives of the Turkish Leather Industrialists Association and the Uzbekcharmpoyabzali Association of Leather and Shoe Enterprises. The cluster is to boast three industrial complexes including factories for leather processing, shoe manufacturing, and leather goods. The plan is to export a substantial proportion of the goods produced to CIS countries and Europe.
9.2 Major corporate news 9.2.1 Automotive corporate news
● Ford Otosan
80 TURKEY Country Report July 2019 www.intellinews.com