Industry

Manufacturing Industry

The factors which give competitive strength to the Turkish manufacturing industry are the abundance of natural resources, its geographical proximity to the export markets, developments in infrastructure and telecommunication systems, the existence of a large domestic market and the liberal economic policies in force.

The manufacturing industry has achieved an annual average growth rate of 6% since 1990 and it accounted for 70.9% of total physical production in 1994. The textiles and clothing industries are the predominant manufacturing sectors. The food industry, chemicals and plastics, glass, iron and steel, motor vehicles and parts, electrical, non-electrical machinery, electronics, and furniture are also well established sectors. Exports of manufacturing industry accounted for 85.7% of the total exports in 1994.

Increasing the competitiveness of the industry in international markets has considerable importance in achieving a sustainable export performance, taking into consideration the factors which affect competitiveness other than price. Closing the technology gap with developed countries and increasing the quality of the products, developing trade marks acceptable in international markets, producing environment-friendly goods and diversifying both export products and markets are therefore all highly desirable.

Iron and Steel Industry

The iron and steel industry has an undeniable importance in a country's economic life since the related production and consumption figures are still accepted as an indication of industrialisation and development of the country. Therefore, it is a general characteristic tendency that the production and consumption of steel high in countries which are at the beginning of their industrialisation process.

The base of Turkish industrialisation was established in the 1930s. In 1932, Machinery and Chemical Industries Foundation (MKEK), the first steel mill of Turkey, came on stream in Kırıkkale. Turkey produced raw steel for the first time at Karabük in 1939. Today the Karabük Iron and Steel Works (KDÇİ) has a raw steel capacity of 700,000 tonnes per year.

In 1955, Mannessmann-Sümerbank Pipe Industries was established in Izmit (Kocaeli) for the production of welded steel pipes. Ereğli Iron and Steel Works (ERDEMİR) came on stream in 1965. Erdemir still the only flat rolled steel producer of Turkey and has a raw steel capacity of 2.8 million tonnes per year.

In 1977, Iskenderun Iron and Steel Works (İSDEMİR), Turkey's third integrated steel mill, came on stream to meet the increasing domestic demand for long product and semi-product demands for rolling mills. Isdemir has a raw steel capacity of 2.135 million tonnes per year.

Today, there are three integrated works located in Karabük (KDÇİ), Ereğli and İskenderun. These works have a total production capacity of nearly 5.6 million tonnes per year.

Turkey now has a raw steel capacity of 19.3 million tonnes of which 5.6 million tonnes belong to these integrated public establishments while 13.7 million tonnes to nearly 18 private arc furnace mills. Two million tonnes of the raw steel capacity is directed to flat products, 375,000 tonnes to special steels while the remaining is directed to long products.

There are approximately 1,000 foundries in the industry producing grey, malleable, spherical iron and steel castings with a total production of 700,000 tonnes in 1995. Turkish foundries are able to produce almost every kind of alloyed and unalloyed castings.

Steel production in Turkey has been increasing since 1981. In 1981 Turkey was producing only 2.6 million tonnes of steel and ranked 32^nd in the world. Production rose to 12.7 million tonnes by the end of 1995 and Turkey became the 12^th biggest steel producing country in the world. Turkey's share in world steel production rose from 0.3% to 1.7% and consumption rose from 74 kilograms per capita to 150 in the same period. According to classification in terms of the production processes, 67% of electric arc furnace steel, 28% of oxygen (BOF) steel, and 5% of siemens-martin steel were produced in 1995.

The iron and steel industry has become one of the major driving forces in the development of Turkish exports. Steel industry exports increased from $34 million and 50,468 tonnes in 1980 to $2.2 billion and 6.6 million tonnes in 1995. The share of steel products in total national exports rose from 1.9% in 1981 to 10.4% in 1995. After textiles the steel industry has become the second most important industry in Turkish exports.

Classified by product groups, flat rolled products accounted for 4.8% of the total steel exports in 1995. The share of speciality steels was 1.2% and the share of long products was 94% in total iron and steel exports.

In 1981, the product composition of Turkey's iron and steel exports was diversified as 25.2% tubulars, 23.4% bars and rods, 16.3% profiles and 15.6% ferro-alloys. This structure has improved in favour of bars and steel billets: 45.8% bars, 25.8% steel billets, 9.4% wire rods, and 6.7% tubulars in 1995.

In 1995, steel products were exported to more than 130 countries in the world. In the same year, major markets for Turkish steel exports were Hong-Kong, US, Italy, Germany, Singapore and the U.A.E.

In July 1996, Turkey signed an agreement with the European Coal and Steel Community (ECSC) to mutually abolish customs duties on steel trade. In accordance with the agreement, the EU will abolish customs duties on 630 items and Turkey on the other hand will abolish customs duties on flat products and special steels whose production are insufficient, stainless products and some special steels (498 products), which are not produced by the industry at all. Turkey gradually will abolish customs duties on the remaining 132 products (long products and special steels which are produced). Both the European Union (EU) and Turkey will freely determine customs duties on trade with the third countries, according to the agreement.

Chemicals Industry

The chemical is one of the main sectors that contributes to the development of Turkey. At the beginning of the 20^th Century, there were few chemical establishments in Turkey. Recently, the Turkish chemical industry which is based on modern technology has shown steady improvements.

The chemical industry benefited from the new economic policies which entered into force in 1980 and has also shown an impressive increase in exports. The State Planning Organisation's Economic Plan divides the chemical sector into three parts: petrochemicals, fertilisers and other chemicals.

The Turkish petrochemicals industry has been growing since 1970. Turkey has two petrochemical complexes, one in Yarımca-Kocaeli and the other in Aliağa-İzmir. In these complexes, a wide range of petrochemicals, all common plastics (HDPE, LDPE, PS, PVC, PP) aromatics, ethylene glycol, phallic anhydride, terephthalic acid, carbon black, synthetic rubber, acrylonitrile are produced.

Turkey has a strong fertilisers sector. There are 7 major companies producing fertilisers. Because of high domestic demand and export possibilities to neighbouring countries, Turkey still needs new investments in this sector.

The Turkish petroleum products industry which constitutes a major part of the chemical industry production, began production in 1955. TÜPRAŞ refineries account for 84.8% of Turkey's total production of petroleum products. TÜPRAŞ refineries produce LPG, naphtha, premium and regular gasoline, unleaded premium gasoline, jet fuel, gas oil, kerosene, lube oil, sulphur, fuel oils, asphalt and other products.

Pharmaceutical's, soaps and detergents, paints, soda, chromium chemicals, boron chemicals, sodium sulphate and fatty acids are other important production activities in the chemical industry.

The Pharmaceutical industry has become one of the leading sectors of the chemical industry and accounts for approximately 10% of the industry's production. There are about 100 manufacturers in the pharmaceutical's sector and 26 of these manufacturers produce raw materials.

Turkey has the largest soda factory in the Middle East. In addition to light and dense soda ash, refined sodium bicarbonate and sodium silicate are produce at the Mersin plant. Recently, an extremely rich trona (natural soda ash) deposit was explored near Ankara and Turkey expects to have a large potential for soda ash exports in the future.

Being among the top five countries supplying chrome ore to world markets, Turkey produces some of the most important chrome chemicals, such as sodium bichromate and basic chrome sulfate.

Turkey also enjoys a comparative advantage in boron chemicals (borax decahydrate, borax pentahydrate, boric acid and sodium perborate) due to the size of its reserves, the quality of minerals and proximity to the consumer markets. Boron chemicals are produced by the state owned company Etibank. In conjunction with recent industrial growth in Turkey, the consumption and production of many other chemicals grows rapidly and the number of chemicals produced increases every year.

In 1995 the chemical industry was the fourth major export sector within the total industrial exports, following textile and clothing, iron and steel products and agricultural products. In 1995 the value of chemicals industry exports reached $1.28 billion, or about 7% of the total exports of Turkey.

The major export products of the Turkish chemical industry are petrochemicals (especially aromatics, ethylene glycol, dimethyl terephthalate, polyethylene, and synthetic fibres and yarns), boron chemicals, borax, pentahydrate, boric acid sodium perborate and petroleum products (Fuel oil, jet oil, and HVGO).

In addition to the above mentioned products, fertilisers, chromium chemicals, soda, fatty acids, rose oil, soaps, detergents and paints are other important export items of the chemical industry. Overall 20% of the chemical industry's production in Turkey is exported.

The chemicals were exported mainly to European Union countries (35.3%), to East European countries (18.9%), to CIS countries (17.6%), to Middle East and Gulf countries (10.3%), to North African countries (4.8%) and finally to Far East and Asian countries (4.4%).

Glass Industry

The glass industry is one of the most important and highly developed industries in Turkey Historically, glass production dates back to the Seljuk Period. Furthermore, substantial improvements were achieved in the 17^th and 18^th Centuries during the Ottoman Empire.

Today, a group of companies, T.Şişe ve Cam Fab. A.Ş., accounts for approximately 80% of annual production and consist of twenty manufacturing establishments and two marketing companies. It his a highly intensive production technology and a vast accumulation of know-how. The high level of production capacity, good quality, wide sales services and other related activities have placed the firm fifth in Europe and ninth in the world. The company is the sole producer of flat glass in the industry.

The industry has shown an increasing trend in recent years and production was approximately 1,055 thousand tonnes in 1995. The major part of production is taken up with flat glass, including both float and sheet types. The second group of items is glass containers and the third is glass household articles, including approximately 5,000 kinds of products. Apart from these, tinted and untinted glass, sand blasted glass, safety glass, enamelled glass, oven glass, glass tiles and bricks, glass tissue, laboratory equipment and the like are produced by the industry.

Exports have been increasing continuously in recent years, from $121 million in 1986 to $241 million in 1995. Exports were 282,000 tonnes in the same year.

Glass household articles constitute the main part of exports. Flat glass ranks second and glass containers group ranks third in the total exports of the industry. By the end of 1995, the export figures of the above items were $ 129 million, $ 40 million and $ 10.6 million, respectively.

Turkish glass industry products are exported to about 100 countries in the world. The major destination countries are Germany, Italy, The United Kingdom, Egypt, France and Greece.

Ceramics Industry

Ceramics are amongst Turkey's oldest and best known products. The first notable ceramics from Tuerkish lands were the tiles and bricks covered with coloured glazes made in Anatolia for architectural purposes in the 13 th Century.

The history of Turkish ceramics can be traced back several thousand years. In the Seljuk and Ottoman periods, ceramic art acquired new dimensions and pieces of exquisite beauty were produced.

Commercial production of ceramics started in 1965 with the foundation of the first technological plant in this field. Today, there are about 30 establishments in the industry. Twelve of them produce ceramic wall and floor tiles, eight produce sanitary ware articles. In the ceramic household articles. In the ceramic household articles sub-sector, there are 6 major companies as well as 250 small workshops engaged in production.

There are two companies in the technical ceramics sub-sector. The total production of the industry was approximately 771,000 tonnes in 1994.

The major part of production belongs to ceramic wall and floor tiles. The second important group of items in the production is sanitary ware articles and the third is household articles.

Turkey ranks 6^th in the world and 4^th in European in the production of ceramic tiles. Turkey ranks 5^th in European in the production of sanitary ware articles. Exports of the ceramic industry have been increasing steadily. By the end of 1995 exports totalled 400,000 tonnes and $199.4 million.

Ceramic tiles constitute the major part of exports. Sanitary ware articles rank second and household articles and ornaments rank third in the total ceramics industry exports. In 1995, the export figures of the above given articles were $128.9 million, $48.2 million and $11.9 million, respectively.

Approximately 80% of exports are directed to EU countries. The major export countries are Germany, The United Kingdom, the Netherlands, the Russian Federation, the United States and France.

Furniture Industry

In Turkey, the furniture sector dates back to the 19^th Century, in the form of small workshops and artisan production. Generally, the small workshops play an important role in the production of hand carved and handmade furniture.

Furniture firms are situated mainly in Ankara, İstanbul, İzmir, Bursa, Adana, Eski_ehir and Kayseri. The largest furniture manufacturing city in Turkey is Ankara. There are about 5 important furniture manufacturers which have mass production capabilities in Ankara. The other firms are small ones which are labour intensive.

The second furniture production district is Istanbul including the region of Bolu-Düzce which is famous for its production of wood products. Izmir is also a furniture producing district which supplies furniture to the Aegean Region. The fourth important region in furniture manufacturing is the Inegöl-Bursa area.

Substantial growth was recorded in furniture exports during the period 1991-1995. Total furniture exports increased from $16 million in 1991 to roughly $64 million in 1995. Turkish furniture is exported mainly to EU countries, the Middle East, the Commonwealth of Independent States, the United States and Japan.

Machinery Industry

The initiation of the Turkish machinery industry dates back to the 1950s. In 1950, the first large-scale industrial investment in the Turkish Republic following its foundation in 1923, had come through MKEK (Machinery, Chemical Industry Institution), a completely governmental institution. The private firms in the sector evolved in the 1960s.

Machinery industry development accelerated especially during the second five year development plan period with the establishment of manufacturing plants for sugar processing machinery, pumps and diesel motors, boilers, ovens, hoisting and conveying machinery, storage tanks, pressurised tanks, and machine tools, by both state and private enterprises.

Turkey, with its qualified engineers and tradition of good workmanship, efficient infrastructure, advantageous labour costs and implementation of the new liberal economic policies, is attracting the interest of developed countries for investment purposes.

The product range of the Turkish machinery industry is made up of boilers and burners, building machinery, heavy industrial machinery, machine tools, lathes, milling machines, drilling machines, cutting and bending machines, woodworking machinery, pumps and compressors, hand tools, power turbines, air conditioning units, textile machinery, food processing machinery, hoisting and conveying machinery, sewing machines, refrigerators and washing machines (both domestic and industrial), valves, gears and bearings. The machinery industry is able to produce almost all of the parts and accessories for the above named items, with competitive prices and quality. The average local input content in the production stage is around 80-85%.

Although the machinery industry was established by state enterprises, currently private enterprises dominate the industry. The share of state companies is 6% in 360 companies in the sector with more than 25 employees.

A significant number of medium and large scale companies have "know-how" licence agreements with well-known international companies. Turkish companies welcome foreign investors through joint-ventures with a transfer of technology, making use of skilled and relatively cheap labour to be competitive in the world markets.

Turkish manufacturers are following European standards and the majority of them enclose the "CE" marking.

The machinery exports of Turkey increased from $331 million in 1992 to $363 million in 1993 and $548 million in 1994. In 1995, the export value of machinery industry was approximately $691 million. The machinery exports of Turkey are increasing steadily year by year. The most important items for export are electrical machinery and equipment, turbines, pumps and compressors, air conditioning machines, refrigerators and refrigerating installations, electrical water heaters, heavy industrial machinery, machinery for preparing, tanning or working hides, skins or leather; bearings and pistons.

In 1995, a breakdown of countries importing Turkish-made machinery shows that Germany is the biggest importer, with a share of 23.4%. Germany is followed by the United Kingdom, the United States, France, Italy and, the Russian Federation with shares of 7.4%, 7.3%, 5.4%, 4.5% and 4.4% respectively. Algeria, Romania, Spain the Netherlands, Tunisia and Kazakhstan are the other important markets for Turkish machinery exports.

Electronics Industry

The companies engaged in the manufacture of telecommunications equipment and consumer electronics have ample capacity to meet the local demand and even to export. Exports of the consumer products showed a substantial rise especially in 1989 and in 1990. The electronics industry also made substantial progress in the design and in the development of technology. Today, the local content in the manufacture of many kinds of electronic equipment has attained high levels.

The electronics industry in Turkey has developed sizeable capacity especially in two sub-sectors: consumer electronics and telecommunications. There are approximately 120 companies operating in the field of electronics. Most started business through foreign licence agreements. The licensers originate in the Netherlands, Germany, Japan, the USA, Canada, France, The United Kingdom, Denmark and Italy. A significant number of companies also have foreign capital.

The consumer electronics and telecommunications sectors are the driving force for other sub-sectors such as the components sector.

Consumer electronics and telecommunications equipment are the main export items. In 1992, the export value of electronics industry was $644 million. Between 1993 and 1995 there was a substantial growth in exports. The total value of exports of electronics increased from $629 million in 1993 to roughly 994 million in 1995. This is mainly due to improvements in the quality of Turkish electronics. Turkish manufacturers are taking elements of non-price competition such as quality and service into account.

The most important product in consumer electronics is the colour TV. Colour TV exports were $202 million in 1995, a rate of increase of 32% over the last year.

Approximately 84% of colour TV exports were destined for the countries of the European Union in 1995 and show an ever-increasing tendency to gain significant market shares. In addition, the export performance of empty and full video bands is striking owing to the high production technology and quality needed in the sector. In 1995, the export value of empty and full video bands was $83 million. The important export markets for this product are the Russian Federation, France, Germany, Italy, Belgium, the United Kingdom, Greece and the USA.

An increase is expected in the export of other consumer electronics in the near future with the introduction of new product lines such as high acoustic quality music sets using digital technology with remote control and CD players that are newcomers to the home market at the moment.

In the Turkish electronics industry, positive developments in the telecommunications sub-sector, such as intensive infrastructure investments by Türk Telecom were reflected in the telecommunications sub-sector exports. In 1995, the export value of the telecommunications sub-sector reached $365 million. Meanwhile, export of cables and wires in the telecommunications sub-sector showed a significant increase. Total value of exports of cables and wires rose to $331 million in 1995 compared with a 1994 value of $240 million. Turkey's foreign market share for the hi-tech cables sector is increasing gradually. The top foreign markets for Turkish cables and wires are Germany, Malaysia, Pakistan, Saudi Arabia, Italy, the United Kingdom and the Russian Federation. The other most important items displaying great export increases in the electronics sector are electric motors and generators, transformers and domestic appliances.

The export performance of the young but dynamic Turkish electronics industry is improving, especially over the last few years, through quality products at reasonable prices. Although present export values are still small on the global scale, it is believed that Turkish electronics will win significant market shares in foreign markets soon with a broader range of products achieved through exploiting the infrastructure in terms of skilled craftsmanship and quality engineering and close ties with liberal economies.

Recently, a large number of Turkish manufacturers have enclosed CE signs to their products for export to the European Union. At the same time, Turkish manufacturers are closely following developments in European standards.

Automotive and Autoparts Industry

The vehicle industry production in Turkey dates back to the mid-1950s and the industry gained momentum in the early 1960s. After manufacturing some prototype vehicles during the 1950s, the first vehicle assembly company was established in 1954 (Türk Willys Overland Ltd.) for jeep manufacturing. By 1955 trucks and by 1963 buses were being assembled in Turkey. Then passenger car assembly companies, namely TOFAŞ (FIAT), OYAK (RENAULT) and OTOSAN (FORD) started operations in the succeeding 3 years. In 1966 the industry also began to assemble its own cars (OTOSAN). The two major producers of cars, TOFAŞ and OYAK-RENAULT under Italian and French licenses, respectively established their production lines in 1971.

In Turkey, a core group of some 150-200 fairly efficient auto spare parts manufacturers has emerged over the last few years. These companies are not only likely to dominate the primary supply markets but will also capture an increasing share of the replacement market. At the same time for the still limited number of technologically advanced companies prospects are good for establishing themselves as exporters of autoparts. Their continued success in export markets, however, will critically hinge on close technical links with part makers in industrialised countries and the willingness of their foreign partners to integrate their Turkish counterparts into their production distribution networks as regular suppliers of high quality, low-cost components.

Today several assembly companies are manufacturing various types of vehicles, such as passenger cars, buses, trucks, tractors, pickups, mini and midibuses and trailers. The total annual vehicle production in a 1995 10-month period is 287,612 units. With regard to the foreign trade figures, the export and import values for 1995 were $437 million and $708 million, respectively.

Turkey's average autoparts industry exports over the last 3 years amounted to more than $486 million annually, the main export markets being Germany, The United Kingdom, Italy, France, Iran the Russian Federation, Saudi Arabia, the United States, Egypt, Belgium-Luxembourg, Pakistan, Syria and Austria.

Leather Industry

Since the 1970s, the leather and leather products industry has played an ever increasing role in Turkey's economy.

The leather industry is among the leading export sectors of Turkey. Its annual export value is approximately $650 million. In addition to this, an amount almost equal to half of Turkey's officially recorded leather exports comes from sales in the tourism sector.

Initial efforts to modernise the leather industry began in the 70s but significant progress on a real industrial scale only began in the mid-80s. The sector has developed very rapidly in the last years. The numbers of Organised Industrial Zones have increased. Waste water treatment plants have been completed. Technological advancement is growing rapidly.

Today average daily usage of leather in the industry is 600 tonnes and is expected to rise to 2,500 tonnes when production reaches full capacity in the Tuzla and Menemen Organised Leather Industry Zones. In these areas, production methods are being converted into modern techniques. Now the leather industry is capable of processing 20% sheep and goat skins of total quantity produced throughout the world.

Total exports of the leather industry were $590.7 million in 1995. Leather goods, footwear and accessories accounted for 31.2% of the total leather exports in 1995. The share of leather garments was 68.8% in the total exports.

The Turkish leather garments industry is in a strong position to export high quality products and the manufacturing companies are following the latest fashions in the world. In 1995, leather garments exports were $406.9 million. The majority of these garments went to Germany (42.7%) and France (16.2%). Other major markets for Turkish leather exports are the Russian Federation, the Czech Republic and Slovakia, the USA, Belgium, Austria, Italy, the Netherlands, The United Kingdom and Switzerland.

Turkish footwear exports have increased in recent years. Starting with $1.2 million in 1981, Turkish footwear exports have reached a figure of almost $114.5 million and 32.8 million pairs in 1995. The main markets for footwear exports are the Russian Federation, Kazakhstan, Poland, The United Kingdom and Saudi Arabia.

Turkey has one of the world's most advanced leather bag industries and its products are famous for their excellent materials, their superior styling and distinctive use of colour. Turkish bag exports reachde $34.8 million in 1995.

Carpet Industry

The art of carpet weaving has been a centuries-old tradition in Turkey for 3,500 years and is one of the oldest professions in the world.

Turkey has a long and distinguished history of carpet-making including classical products of bygone days and the current carpet styles which are very popular as export items. This traditional art form has been preserved in its original pure form, faithfully keeping the original designs and colour combinations of each production region using mostly local raw materials.

There are important carpet weaving centres in Turkey whose names reveal the value of their carpets. Each region produces its own unique style and design. The most well known of these include Hereke, Kula, Bünyan, Kayseri, Yahyalı, Milas, Uşak, Isparta, Yagcıbedir, Kars and Gördes carpets.

In 1994, Turkish carpet production included 3.7 million square meters of handmade carpets, 19.9 million square metres of machine-made carpets and 27 million square metres of tufted, felt carpets and kilims.

Turkish carpet exports reached $252.2 million in 1995 with handmade carpets at $108.6 million, machine-made carpets at $129.3 million and kilims at $12.8 million.

Germany is the most important export market and almost 26% of Turkish handmade carpets are sent there. Other major handmade carpet export markets include the USA, Switzerland, France, Japan, Italy and The United Kingdom.

Main export markets for machine made carpets include Saudi Arabia, the USA, the Russian Federation and Italy.

Gold Jewellery Industry

Turkey has a very great jewellery tradition. All the civilisations which have inhabited Anatolia have produced numerous objects both for religious and artistic purposes. Hittites, Urartians, Ionians, Romans, Byzantines, Seljuks and Ottomans all established rule in Anatolia and created their own jewellery styles.

In Istanbul the jeweller's art gained importance with the growth and prosperity of the Ottoman Empire. During and after the reign of Suleyman the Magnificent, Istanbul became one of the world's most prominent centres for jewellery.

Historical sources state that jewellery fairs were held in Istanbul during the reign of Suleyman the Magnificent.

Today, the Turkish jewellery industry reflects a rich cultural heritage combined with modern innovative designs and technology. The modern Turkish jewellery industry includes some techniques particular to Turkey. Some of these are filigree (telkari), niello (savat) and wickerwork (hasır).

In Turkey, gold has an emotional resonance. When it is given as a gift, it demonstrates the closeness of the relationship. It has a multifaceted traditional, emotional, financial and social personality.

Turkey annually imports about 110 tonnes of gold. At present there are about 40,000 jewellers in Turkey.

200-250 tonnes of gold are used in 6,000 gold-processing workshops per year. The centre for gold jewellery production is Istanbul. However, production in Ankara and İzmir is also extensive. Some cities in East Anatolia also produce gold jewellery. In 1989 and during 1990 jewellery fabrication peaked, and Turkey ranked 5^th in the world.

A gold stock exchange was established in September 1995 in Istanbul and there are plans to establish a gold refinery in the near future.

Domestic demand for gold jewellery is very high because most Turkish people buy it both for adornment and as a means of saving. $6.36 million was spent in Turkey in 1993 on the purchase of gold jewellery. Some 4,000-5,000 tonnes of gold is believed to be kept in houses in Turkey. In the world in personal gold investment.

The gold processing sector of Turkey has turned its attention to exporting its products in recent years. The saving habits of people have changed due to recent developments in the Turkish economy and they have started using another ways of investing as well as buying gold jewellery. And in 1993 the export and import restrictions on precious metals and stones were abolished.

Although gold jewellery is a new sector on the export scene of Turkey, its performance is quite good and export value has increased dramatically. By the end of 1995, exports totalled $60.4 million. The 1995 major destination countries for gold jewellery exports were Germany, the USA and Japan.

Textile and Clothing Industry

The industrialisation efforts of the 60's and 70's gave birth to the modern textile industry in Turkey. At the beginning, this sector was operating as small workshops. But the sector showed rapid development and during the 1970's began exporting.

Turkey's textile and clothing industry has grown very rapidly during the past decade and currently is one of the most important sectors in the Turkish economy in terms of GDP, employment and exports.

Today, Turkey is one of the important textile and clothing producers and exporters in the world. In 1993, Turkey had a market share of 3.3% in world clothing exports.

Turkey, as a traditional cotton grower, has a big advantage in the production of textiles and clothing. In 1995, the amount of cotton grown in Turkey was around 600,000 tonnes and with this amount, Turkey now ranks 6^th among cotton producing countries.

As a consequence of the availability of raw cotton in huge amounts, the Turkish spinning, weaving and knitting industries have also been developed. In 1995, the estimated amount of cotton yarn produced was 610,000 tonnes and estimated cotton fabric production was 1,275 million meters.

On the other hand, parallel to worldwide developments in usage and consumption and the production of man-made fibres and the finished products of man-made fibres has also developed in Turkey.

Turkey also has a strong woollen textile and clothing industry. Production volume of the Turkish clothing industry has increased in parallel to the increases in foreign demand. In 1995, the estimated production volume of clothing was 133,000 tonnes.

Textile and clothing manufacturers are mainly located in Istanbul, Izmir, Bursa, Denizli, Adana, Eski_ehir, Ankara, Çoru, Malatya, Gaziantep, U_ak and Kahramanmara_.

While total value of Turkish textile and clothing exports was $6.4 billion in 1994, it reached $8.3 billion in 1995 and the total value of clothing exports was $5.6 billion in 1995. With these figures, the Turkish textile and clothing sector had a share of 38% in total exports of the country and the clothing sector, with its share o 26%, was the most important sector in Turkey's exports.

Some major markets for Turkish clothing exports in 1995 were Germany, the USA, the Russian Federation, France, the United Kingdom, the Netherlands and Italy.

In 1995, the European Union accounted for 54% of total Turkish textile and clothing exports. The amount of Turkey's textile and clothing exports reached $5.3 billion in 1995. At the beginning of 1996 the Customs Union was established between Turkey and the EU and all the EU's quantity restrictions on Turkish textile and clothing were eliminated. It is expected that increasing trends of textile and clothing were eliminated. It is expected that increasing trends of textile and clothing exports into this market will continue in the future.

While Turkey's textile and clothing exports to the EU have been increasing steadily, the share of the EU has begun to decrease due to the increase in importance of other markets such as the USA, the Russian Federation, the Eastern European countries, the newly emerging states of the former Soviet Union, the Middle Eastern countries and Canada.

As a consequence of promotional events and efforts of Turkish textile and clothing sector through the US market, exports of Turkish products to this market show an increase as do Turkish textile and clothing exports to the Eastern European countries, the Russian Federation and newly emerging states of the former Soviet Union.

Today the Turkish textile and clothing industry has a good reputation in foreign markets and one of the main goals of the sector is to promote and market the products with its own brand names. Besides, this sector follows the international developments related to quality, environment, health and safety regulations and takes measurements to adapt itself to the changes.