Interview with İKMİB Chairman of the Board Adil Pelister

We conducted a pleasant and highly significant interview for the sector with İKMİB Board Chairman Adil Pelister, discussing the chemical industry, its future, İKMİB's contributions to Turkish chemical industry and the work undertaken in this field.

Could you briefly tell us about yourself and your professional background?

I was born in Istanbul in 1962. I graduated from the Chemical Engineering Department at Istanbul Technical University. I am also married with two children. In 1987, I took my first step into the chemical sector by establishing BETA Chemical Industry and Trade Corporation. BETA Kimya A.Ş., one of the leading companies in the Turkish Chemical Sector with over 30 years of industrial experience and technological know-how, today ranks among Turkey's largest adhesive and glue producers. We export 70% of our products, produced in four state-of-the-art facilities operating in Istanbul, to 45 different countries. Since 2011, we have been proud to hold the title of Turkey's Export Champion in the "Adhesives" category for six consecutive years. Additionally, we rank among Turkey's top 250 companies investing most in R&D. Besides my role as İKMİB Board Chairman, I actively serve as a member of important institutions and organizations including the ISO Chemical Professional Committee, ISO – OSB Development Specialization Board, DEIK Turkey-Germany, United Kingdom and Iran Business Councils Executive Board, PAGDER, ASAD, İ.T.Ü. Chemical Engineering Advisory Board and Yalova University Central Research Directorate Board of Directors.

What would you like to tell our readers about İKMİB? Could you speak about the awareness İKMİB has brought to Turkish Chemical Industry?

The chemical sector, which ranks as the 3rd sector generating the most exports in our country, plays an important role both in production and foreign trade as an industrial branch that supplies intermediate products and raw materials to many sectors. The Istanbul Chemical Substances and Products Exporters Association İKMİB, established in 1991, organizes many activities aimed at contributing to increased exports of companies that guide Turkish Chemical Industry. We work to enable our member companies to establish strong international connections, access new markets and gain competitive advantage for their products. We support our exporters through international trade fair organizations, sectoral international competitiveness development projects, trade and purchasing delegations, seminars, workshops, projects, competitions, training and Turkish Trade Centers spreading worldwide. We also organize national participation in the most important international trade fairs. By maintaining close relations with all sub-sectors of the chemical sector, we closely monitor sector developments and innovations and participate in global organizations to acquire new international customers, continuing these organizations in Turkey as well. We serve Turkey and the Turkish Chemical Sector through organizations we conduct in almost every country in the world and our promotional efforts. The most important factor in increasing exports, which is one of the main factors in Turkey's growth, will be high value-added production.

We are understanding the importance of R&D activities increasingly. In this context, could you tell us about İKMİB's R&D Project Marketplace?

The most important factor in increasing exports, which is one of the main factors in Turkey's growth, will be high value-added production. At this point, R&D and innovation work are of great importance. Our growing chemical sector gains momentum by providing high value-added domestic alternatives to imported products and increasing export scale, also strengthening the Turkish economy. Research-Development activities and University-Industry Cooperation stand out to provide this momentum. In partnership with İKMİB and Mediterranean Chemical Substances and Products Exporters Association AKMİB and with TÜBİTAK support, we have been continuously conducting for seven years our largest innovation project, the "Chemistry R&D Project Marketplace" event, aimed at developing University-Industry Cooperation and producing high value-added output. Under the project, we award the owners of the top three projects receiving awards in 5 categories and provide support for the implementation of award-winning projects. In our R&D Project Marketplace event, which we implemented to make exports sustainable, we received over 900 innovative project applications in 7 years and distributed approximately TRY 700,000 in awards.

What are the projects you have undertaken? What factors do you take into account in determining projects?

As a new management, with our "Five in One" projects, we aim to rapidly resolve the fundamental problems of our sector. To bring permanent solutions to exporters' problems, we are establishing sectoral advisory committees and aim to implement many innovative projects such as reducing the green passport lower limit to USD 100,000, providing exporters with easy access to financing and a Digital Trade Platform.

For the chemical sector to achieve its goals, more effective work needs to be done on high value-added production, R&D and innovation.

In 2017, we aim to raise the Turkish Chemical Sector, which ranks as Turkey's third largest export sector, to second place. Additionally, due to market potential, we are planning for the chemical sector to be more active in Far East and North/South American countries. Furthermore, we will provide opportunities for our members to establish strong international connections and access new markets. In determining all these projects, we consider the sector's needs, listen to our exporters and develop solutions to their problems.

Could you tell us about the training İKMİB provides and the advantages this training offers to sector workers?

At İKMİB, we organize many seminar trainings and workshops to inform our members operating in the sub-sectors of chemistry. We organize "Country Information Seminars" to inform our members and sector workers about existing and new markets. This year, a People's Republic of China country information seminar was held, providing information on visa problems faced by exporters, customs difficulties and non-tariff barriers. In cooperation with the Turkish Medicines and Medical Devices Agency (TİTCK), on 28 February 2018, we organized the "PIC/S (International Pharmaceutical Inspection Cooperation Scheme) Membership and Sector Consultation Workshop" with the participation of approximately 200 sector representatives. Sector representatives were informed about membership that would increase the reputation and reliability of Turkey's pharmaceutical sector worldwide. Through the "Digital Currency Information Seminar" organized in December 2017, information was provided about digital currencies, which are coming to the forefront in a rapidly developing technological world, and participants' questions on the subject were answered. Through these seminars and workshops we conduct, we contribute to our sector and what needs to be done for workers, and serve as guides regarding current work. Additionally, as İMMİB, we have paid professional trainings in the field.

How do you define the Chemical Industry from the past to the present?

Global total foreign trade volume stands at approximately 16 trillion dollars. The chemical sector's total foreign trade volume is approximately 4 trillion dollars. In our country, where total trade volume is 160 billion dollars, 2017 chemical sector exports reached USD 16.1 billion. While the chemical sector captures 25% of global trade volume, the chemical sector holds a 10% share in Turkey's trade volume. From this perspective, it is clear that the chemical sector, which supplies intermediate products to almost every industrial branch, holds considerable weight in world trade. Turkey has significant growth potential to increase its share in global chemical trade. To achieve the desired growth, high value-added products must be produced and therefore technological developments and financing in production must be emphasized. Particularly plastic products, mineral fuels, inorganic and organic chemicals, pharmaceutical products, paints, cosmetics, soaps and cleaning products stand out among product groups in the chemical industry.

When discussing the chemical industry and its future, what are the leading topics that need to be examined in the chemical sector according to you?

When we speak of chemical industry and future, we can mention our 2023 targets. As the chemical sector, we set our 2023 target at USD 50 billion. The "Turkey Chemical Substances Sector Export Growth Strategy Report" prepared in cooperation with A.T Kearney will guide us in reaching this target. Report results show that to reach our USD 50 billion target, our exports need to grow by approximately 20% or more each year. In the roadmap we established to reach 2023 targets, our subject headings will be: updating the EU Customs Union agreement in Turkey's favor, securing raw material supply with new formulas, investing in specific specialty chemicals, sectoral clustering and creating economies of scale in R&D. Additionally, we are seeing significant business volumes in foreign trade conducted through e-commerce platforms in recent years. E-commerce offers our exporters the opportunity to easily reach new markets and thereby increase their exports. There are important state supports available for our exporter companies regarding membership in e-commerce sites. To facilitate learning e-commerce and rapidly adapt to today's changing business conditions, we aim to establish a "Digital Export Platform". With this platform, we will ensure our exporters' most effective presence in e-commerce platforms. Through our e-commerce trainings and financial support opening the way for digital transformation, we will make our members stakeholders in new trade trends. We aim to guide the future of our trade by enabling digital transformation across all our sectors.

What innovations will occur in the chemical industry in the globalizing world order in the coming years? What will be the impact of these innovations on Turkey and the world?

There is a trending change occurring worldwide. Industry 4.0, which transforms business methods and production models, holds an important place on the agenda. The sustainability of societies and economies is only possible by adapting to these innovations. To compete in international markets, we must follow and implement these innovations as a sector. We are in a period where machines speak to each other rather than people, and supply chain performance is much more important. The new era will dominate the world much faster than expected. Particularly developed countries like the US are giving important signals on this matter. As companies in Turkey, we need to rapidly adapt to this process, from shipping to production, from service providers to marketing. In newly established supply chain systems, machines rather than people now place orders for any product. Machines emerge as important determinants in time savings in all processes. Our industrialists will save significant amounts on storage and rental costs thanks to Industry 4.0. At this point, we must keep pace with the transformation required by the Industrial Revolution. The world, and therefore all our competitors, are moving in this direction. If we want to compete, we must definitely accelerate our efforts in this direction. High technology must be prioritized in all investment plans. In our R&D Project Marketplace event, which we implemented to make exports sustainable, we received over 900 innovative project applications in 7 years and distributed approximately TRY 700,000 in awards. As the chemical sector, we set our 2023 target at USD 50 billion. The "Turkey Chemical Substances Sector Export Growth Strategy Report" prepared in cooperation with A.T Kearney will guide us in reaching this target.

In what areas must the sector show sensitivity to make further progress in the chemical industry?

For the chemical sector to achieve its goals, more effective work must be done on high value-added production, R&D and innovation. Our most important deficiency in high-technology production is insufficient R&D investments to date. Our government provides important support on this matter. Our companies benefiting from these supports and conducting more work in R&D and innovation areas will greatly benefit sector development and closing the foreign trade deficit.

Do you have a message to convey to the sector?

Our chemical sector, which provides employment to approximately 300,000 people and makes considerable contribution to national economy, ranks as Turkey's 3rd largest export sector. We have taken action to comprehensively address all problems of our sector, provide permanent solutions and remove all difficulties facing our exporters, and carry our union into the future with our innovative projects. At İKMİB, together with our colleagues who have grown at the heart of chemistry and earned our sector's appreciation through their successes, we serve our chemical sector, Turkey's pride in exports. Especially with our global perspective and sustainable vision, we aim to raise our chemical sector, which is also the locomotive of our national economy, from export third place to second place and then to leadership in the long term.