Chemical Sector Aims for Sustained Top Ranking

Chemical Sector Eyes Sustained Leadership Following its rise to second place in exports in 2019, the chemical sector has set its sights on leadership. In 2022, it achieved a record export of USD 33.6 billion, becoming Turkey's largest exporting sector and reaching the top position. The chemical sector, which achieved 32 percent growth in exports compared to the previous year and increased its share in Turkey's total exports to 13.2 percent, has now turned its focus to sustained first place. İKMİB Chairman Adil Pelister stated that they are targeting USD 36 billion in exports for 2023 and, in line with their Vision 2030 strategy, will expand the scale of exports to reach their USD 50 billion export target through a sustainability-based production model, bringing the chemical industry to a new threshold. The chemical sector, which achieved 92 percent growth in exports over the past five years and secured the top position with a record USD 33.6 billion export in 2022, continues to be Turkey's rising star in exports. Having achieved the export championship in 2022, the chemical sector, while growing by 4.2 percent in volume for chemical substances and products exports, saw per-kilogram export value exceed the USD 1 threshold, rising 30 percent to USD 1.16. According to 2022 data, the chemical sector exported to the highest number of countries and regions among all sectors with 232 countries and regions; the top 10 destinations for chemical exports were the Netherlands, the United States, Italy, Romania, Lebanon, Russia, Germany, Spain, Iraq, and South Africa. While 40 percent of the sector's total exports went to EU countries, exports to South Africa under the Far Countries Strategy announced by the Ministry of Commerce increased by 270 percent, reaching record levels. In chemical exports in 2022, the "Plastics and Plastic Products" category ranked first with 13.82 percent growth and USD 10.22 billion in exports, holding a 30.4 percent share of total sector exports. "Mineral Fuels, Mineral Oils and Products" ranked second with 73.93 percent growth and USD 9.85 billion in exports, while "Inorganic Chemicals" ranked third with 57.73 percent growth and USD 3.26 billion in exports. Other major product groups exported in 2022 chemical exports were "Essential Oils, Cosmetics and Soap," "Rubber and Rubber Products," and "Pharmaceutical Products."  

Pelister: "We will take strategic steps in exports to achieve our USD 50 billion 2030 target"

  İKMİB Chairman Adil Pelister, noting that they are fulfilling another of their promises during their second term of office and taking justified pride in becoming the export champion, stated: "With our 16 sub-sectors, we are a large chemical family in direct supplier positions to 27 main sectors and of strategic importance. As we promised our chemical exporters, we first reached sustained second place. Now, despite global challenges, we have reached the top with USD 33.6 billion in exports achieved in 2022, and we will now take new steps toward our goal of sustained first place. Our per-kilogram export unit prices were USD 0.89 in 2018. They were USD 0.92 in 2021 and rose to USD 1.16 in 2022, exceeding the USD 1 threshold. This picture shows us that we are growing qualitatively in chemical exports. Now, within the framework of our Vision 2030 strategy, we are focusing on scaling up on the basis of sustainability, aiming to increase our chemical exports to USD 36 billion in 2023 and USD 50 billion in 2030. Eight of the world's 10 largest economies are leaders in chemical production and exports. Therefore, the chemical sector carries strategic importance for our country's economic development and the future of our exports. We continue our work with this awareness and want to be among the game changers of the new era in the chemical future. The world is undergoing a new ecopolitical transformation, and we are approaching radical changes that will directly affect the future of our exports. Regarding the new era, we have important issues in chemicals to which we must rapidly adapt: sustainable production, digital transformation, high-value-added innovative products, the EU Green Deal, carbon border adjustment, the Supply Chain Due Diligence Law adopted in Germany, and Chemical Registration regulations. As İKMİB, we continue to work to scale up through our projects that will take our chemical sector and exports to the next level, in line with our sustainability and digitalization strategy."  

Pelister: "We will bring together global actors in the chemical sector in Turkey with the International Chemical Congress"

  Pelister stated that as İKMİB, they have reached the final stages of the Chemistry Technology Center project and wish to take another first step in the medium term by establishing the Turkey Chemical Agency. "We have completed the company establishment for our Chemistry Technology Center project. With the support of the Ministry of Industry and Technology, we have secured a plot for our center building in the Technology Valley and have reached the contract stage with the Istanbul Development Agency regarding our support grant of TRY 25 million. In the final stage, we are awaiting budget approval from the Ministry of Commerce for the investment cost. With the CTM project, we aim to establish a new ecosystem focused on high technology and high value-added products. As another step in our future vision, we also want to organize an International Chemical Congress in our country. We aim to bring together global actors in the sector, public institutions, company CEOs, academics, and all stakeholders of chemistry to prepare our sector's export strategy document to reach the level of countries earning high income from chemicals. Additionally, our Turkey Chemical Agency project, which will also be a first, aims for the Turkish chemical sector to increase its global market share from 0.5 percent to above 1 percent."  

Pelister: "We will organize 22 national participation trade fair exhibitions in 21 target countries on our exporters' radar"

  Adil Pelister, noting that İKMİB in 2022 conducted 10 national participation organizations in 21 different countries post-pandemic, 8 info stands, 13 trade fair visits, 1 Turkey promotion stand, 6 sectoral trade delegations, 1 preliminary delegation, and 5 Ur-Ge projects, stated: "To ensure our chemical exporters gain a larger share of world trade, we will continue to participate with national participation organizations in trade fairs in target markets this year. In 2023, we plan to organize 22 trade fair national participations, 6 info stands, and 6 trade delegations in 21 different countries including the United Kingdom, the Netherlands, Saudi Arabia, Panama, Germany, Russia, the United States, Italy, the UAE, Hong Kong, Kenya, Nigeria, South Africa, Switzerland, Spain, Singapore, Brazil, Argentina, France, the Philippines, and Colombia. In addition to EU countries, the South America region, African countries, Russia, Saudi Arabia, and the United Arab Emirates, Far East countries such as China, Vietnam, and Thailand are also on our export radar."