Plastics Sector Holds Strong Presence in ISO 500 List

Ömer Karadeniz, Chairman of the Board at Plastik Sanayicileri Federasyonu (PLASFED), commenting on the 2020 Turkey's 500 Largest Industrial Enterprises report published by İstanbul Sanayi Odası: "When we reviewed the report, the most striking aspect we observed was that the plastics sector and other related eco-conscious industries have left their mark on the list," he said. Highlighting that the growth rate of plastic enterprises on the list was well above the average of other sectors, Ömer Karadeniz stated: "While the revenues of companies on the ISO 500 list showed a 15.3% increase, we see that the revenues of plastic product manufacturers on the list increased by 28.9%. Of course, these figures do not fully convey the true impact of the plastics sector. As you know, the automotive and white goods sectors, which rank at the top of the list, benefit greatly from the plastics sector's contributions. For example, an average vehicle uses around 200 kg of plastic, which significantly reduces fuel consumption and lowers our carbon footprint. We continue to support the food industry, which also forms a significant share on the list, through our packaging production," he said.

Strategic Importance for All Manufacturing Industry

Stating that the plastics sector holds strategic importance for all manufacturing industry, Ömer Karadeniz said: "The plastics sector supplies intermediate inputs to more than 30 sectors, and in this context, developments in our sector affect all of our manufacturing industry in a domino effect manner. For example, the high price levels we have experienced since the last quarter of 2020 have caused input costs to increase not only for our plastic product manufacturers but for all industrial branches. For this reason, it is important that the public gives the necessary attention to the plastics sector, encourages investments in this field, and takes steps to eliminate the long-standing and now entrenched import dependency in raw materials. Particularly, adding new investments to the petrochemistry investments to be implemented in the Yumurtalık region of Adana will be a critical move in making the sector more resilient against global supply shocks," he said.

Plastics: The Sector of the Future

Noting that plastics are used in many different fields thanks to their flexible properties, Karadeniz stated: "Especially thanks to developments in the field of engineering plastics, plastics are rapidly replacing traditional materials. As a result of this, the plastics sector, which continues its rapid growth trend, is projected to increase its production approximately threefold by 2050. The main driving force behind this increase is that plastics are the material best suited to the goals of the circular economy concept, which we have begun hearing about more frequently in recent years. Nearly every type of plastic is more easily recyclable compared to alternative materials, and thanks to technological advances in chemical recycling, the products obtained are of primary product quality. In the period ahead, as plastics increase their market share, the fastest growing area will be the recycling sector," he said.

The Sector's Weight on the List Will Continue to Increase!

Expressing his belief that the plastics industry, which supplies intermediate inputs to more than 30 sectors including automotive, white goods, packaging, agriculture, electrical-electronics and construction, and which is one of the most strategic sectors due to this structure, will continue to grow above average in the coming period, Ömer Karadeniz said: "Despite all the structural problems and shortcomings of our country's plastics sector, we project that it will grow above average compared to other manufacturing industries. This is because one of the most important problems facing humanity is global warming, and to prevent this problem, we absolutely must reduce our carbon footprint. Considering that approximately 20% of our carbon emissions come from transportation and logistics, it is clear that lighter materials will be needed both in vehicle production and in packaging. It is at this point that plastics contain the greatest potential, and therefore we can foresee that they will continue their rapid growth both globally and in our country in the coming years, and as a result, the sector will continue to increase its weight within the ISO 500," he said.