BUSINESS Corporate News from Turkey

Azelis is to acquire Turkey’s Ekin Kimya. Luxemburg based Azeliş SA, a leading international distributor of specialty chemicals and food ingredients, has signed an agreement with Ak-taş Dış Ticaret A.Ş. (“Aktaş”) and individual shareholders to acquire 100% shares of Ekin Kimya, a well-established Turkish pharma, food ingredients and lab chemicals distributor Ekin Kimya Ticaret A.Ş.

Azelis provides a diverse range of innovative products and value-added services to more than 43,000 customers, serving both Life Sciences and Industrial Chemicals. With over 3,000 formulations and an extensive network of 60 laboratories and research centres, its global reach is built upon a regional focus on creating formulations that meet specific local demands. Azelis currently employs 2,000 people in more than 40 countries.

Azelis is already established in Turkey through its Azelis TR Kimya company, which represents a large number of renowned world-class specialty pharmaceutical, food ingredients and lab chemicals manufacturers who have a strong strategic fit with Azelis’ principal and customer base. Azelis entered into Turkish market by acquiring Tara Kimya in 2007, when its main business lines were coatings, chemicals and plastic additives. Azelis Turkey moved into the life sciences business in 2009 first through food and health and then personal care services. The pharma business unit was added in 2014, and homecare and industrial cleaning in 2016.

Ekin Kimya was founded in 1995 by Dr. Murat Çıtıroğlu, who owns the company together with Prof. Dr. Ekrem Ekinci and Aktaş, a leading distributor and trader of bulk petrochemicals. Ekin Kimya employs over 70 people. Award-winning Ekin Kimya serves almost all major pharmaceutical producers in Turkey and has long-term partnerships with some of the world-leading principals in this field.

Azelis’ acquisition of Ekin Kimya, which is expected to be completed in three months, will enable Azelis  to become a leading specialty chemicals and food ingredients distributor in Turkey. In addition to Azelis’ three laboratories in Turkey in personal care, homecare and food, Ekin Kimya will be bringing a modern pharmaceutical lab to the new set-up and therefore provide more added value services to Azelis’ existing customer base and help to further grow the business.

The following comments were made by those officials attending the signing of the purchase agreement:

Anna Bertona, Azelis Chief Executive Officer & President, EMEA, comments:

“The pharmaceutical market in Turkey is very attractive from a distributor's perspective for a number of reasons: local production and consumption of pharmaceutical products have been steadily growing in Turkey; the Turkish government has been heavily investing in pharma industry as it wants the country to become a major pharmaceutical producer, exporter and R&D hub; and Turkey, of course, is among the 20 largest economies in the world. Azelis Turkey has more than doubled its turnover in the last four years thanks to our focus and undisputed commitment to our customers and principals as well as the innovation and formulation support we have brought to them. The acquisition of Ekin Kimya is a transformational one for us as Ekin Kimya has an excellent track record with its principals and an outstanding market connect, particularly in the pharmaceutical sector. We are thrilled to welcome them on-board and we are confident that this acquisition will open up many new exciting opportunities for us.”

Mr. Muharrem Aktaş, Chairman of Ekin Kimya, highlights:

"This acquisition, which comes at a time when we are preparing to celebrate the 25th anniversary of Ekin Kimya’s establishment, will play a key role in the company carrying its existing healthy and sustainable growth trend into the future. We take pride in the fact that with this investment, Azelis, one of the world’s leading specialty chemicals distributors, is showing a great level of confidence in our brand and our country. I express my best wishes for all involved."

Dr. Murat Çıtıroğlu and Ms. Gamze Çıtıroğlu, Founders of Ekin Kimya, add:

“We are very proud to have built a well-established business and an enviable principal and customer base in Turkey, thus attracting and retaining some of the industry’s best professionals in our echelons. We now need to ensure further specialisation, guarantee new ingredient sourcing platforms, access to new industries and secure the growth of our export business. Joining a reputable global player such as Azelis will provide exactly that. It will also enable us to attract new principals as we combine our food and pharma customer bases and it will open up ample cross-selling opportunities. Next to a perfect strategic and cultural fit, we share focus on and passion for exemplary application support to customers and innovation. We are clearly very excited about this new chapter in our company’s history and all the new growth opportunities it will bring for us and our stakeholders.”

Sertaç Sürür, Managing Director of Azelis Turkey, says:

“Whilst Azelis Turkey has achieved a significant presence in food & health, personal care, home care and since recently CASE (coatings, adhesives, sealants and elastomers) and performance chemicals markets, we have been looking to expand our pharmaceutical activities. Ekin Kimya brings a fantastic market reach and reputation for its strong technical support; only in the last three years they have held training sessions and workshops for 300 customers. Last but certainly not least, the fact that Dr. Çıtıroğlu, who holds a PhD in pharmaceutical chemistry, still lectures at various universities will bring new access to young talent in Turkey, while Ms. Çıtıroğlu, an award-winning and recognized leader, will provide mentoring to the teams to ensure a successful integration.”

 

 

International water management systems company Metito has acquired majority shares in Turkish chemicals company Info Group.

Metito, with its headquarters in the Middle East, is active in 46 countries globally, has undertaken more than 3,000 projects, and currently employs around 3,000 personnel. Metito was founded some 60 years ago and is now becoming one of the leading and most dynamic global providers of water and wastewater treatment solutions. UAE based Gulf Capital, World Bank’s International Finance Corporation, and Mitsubishi are shareholders of Metito. In addition to fields of chemistry, Metito plans to make more investment in Turkey in other fields such as engineering, supply, construction and alternative energy.

 

Info Group Endüstriyel Da. Ve Tic. A.Ş. provides water management consulting services to prestigious companies in Turkey to ensure efficient use of their water systems.

The insurance giant Talanx Group has acquired Turkish insurance company ERGO Sigorta through its Turkish subsidiary HDI Sigorta A.Ş. The Talanx Group, with its headquarters in Hanover, Germany, was founded by a number of German industrial companies as a liability insurance cooperative in 1903. Talanx is the 3rd largest insurance group of Germany and has operations in 150 countries around the world. The major shareholder of Talanx is HDI International AG with a 79% shareholding.

Following the incorporation of ERGO, HDI Sigorta has risen from 11th to 7th place among non-life insurance companies in Turkey, as based on 2018 yearend data. HDI Sigorta had started operations in Turkey with its purchase of İhlas Sigorta, a Turkish insurance company, in 2006. In early 2018, HDI Sigorta took over Liberty Sigorta with the merger of the two companies being completed in only five months.

 

Germany’s global mobility provider Flixmobility GMBH, better known as Europe's leading bus operator FlixBus, has officially applied to Turkey's competition watchdog to acquire Kamil Koç, the country's second-largest bus company. FlixBus said in a statement that it had agreed on the sale with Kamil Koç's current owner private equity firm Actera Group.

FlixBus said in its statement that "The company will be gradually integrated into FlixBus' extensive network which already offers more than 350,000 daily connections to over 2,000 destinations in 28 European countries and the USA. The deal will come into effect following approval by the relevant authorities and is expected to finalize in the coming weeks."

Established in 1926, Kamil Koç is the oldest Turkish bus company still in operation. A family business, Kamil Koç strengthened its market position in the early 2000s and was sold to Actera Group in 2013 for USD 65 million. The company has a fleet of 1,100 buses, operates 861 ticketing offices in 271 districts in 61 provinces in Turkey, and employs some 8,000 people. In 2018, the company served nearly 20 million passengers. It is listed among the top 500 firms in Turkey.

FlixBus was established in 2013 after the deregulation of the bus market in Germany, where intercity travel was long dominated by state-run Deutsche Bahn trains. It soon expanded to other European countries that also carried out similar deregulation moves. The company now offers services in 30 countries, including Germany, Italy, France, the Benelux states, and Poland, where it is the market leader. FlixBus carried 45 million passengers in 2018 in Europe and in the US.

The acquisition signals a relief for Turkey's giant intercity bus market, which has lost a significant portion of its passengers to the country's booming aviation sector and developing high-speed train network over recent years. Though the Turkish bus sector has made great strides forward in terms of comfort, including free refreshments and in-car entertainment, it has suffered in recent years from deteriorating safety, logistics and service standards.  Rising fuel prices have also put a great strain on costs.

Varan and Ulusoy, two renowned companies of the Turkish bus market providing luxury services, went bankrupt in 2016 and 2019, respectively. Another prominent coach company, Pamukkale, was also declared bankrupt earlier this year. However, both Ulusoy and Pamukale have since been permitted to resume operations.

CMA CGM Group, a world leader shipping conglomerate, is to purchase Turkish Botros&Levente maritime company.

Botros & Levante Taşımacılık ve Ticaret A.Ş., which is owned by the Botros family, was established as a shipping and forwarding company in the port of Mersin, Turkey, by İskender Botros during the 1950’s. The company started by transporting cotton from the surrounding region for storage in warehouses in Mersin before being loaded on to vessels for export. Over the years, the company expanded in to all types of shipping activities, with a presence in all Turkish ports. During the years from 2013 to 2016, the company was the leading corporation and income taxpayer in Mersin.

CMA CGM Group is a gloabal maritime transport and logistics company offering shipping and cargo solutions. Present in over 160 countries through 755 agencies, 750 warehouses and 110,000 employees and a diverse fleet of 509 vessels. CMA CGM serves 420 of the world's 521 commercial ports and operates on more than 200 shipping lines, and has an annual turnover of USD 23.5 billion.

 

Technology investor Naspers’ global fintech firm PayU has purchased Turkish digital payments company Iyzico for USD 165 million. With the acquisition of Iyzico, Turkey will be the second largest market for PayU in Middle East, Africa and Europe after Poland. Mario Shiliashki, head of payments at PayU, said the company made the deal in line with their objectives to consolidate their position in local markets and to be the No. 1 payment provider in all the fast-growing markets in which they operate. Indeed, the deal will expand the Dutch unit’s exposure to Turkey’s e-commerce market, which is growing at more than 10% a year. According to Barbaros Ozbugutu, chief executive officer and co-founder of Iyzico, Turkey is an attractive area for payments because only a fraction of the 3 million or so small and medium-sized businesses in the country use digital payments and e-commerce infrastructure, and that high internet penetration and a young population provide a large potential for growth.

PayU has invested more than USD 500 million in the industry since 2016 as the firm positions itself to profit from rising internet adoption and e-commerce in emerging economies. Its focus on payments, one of the fastest growing areas in finance, puts the company in a position to take a share of an industry that is expected to produce USD 1 trillion in new revenue through 2027. PayU is focused on faster growing markets such as Russia, India and African countries where online payments are in their infancy. In addition to the Iyzico acquisition, its largest to date, the company has also invested in the Indian payments sector as well the Intercontinental Exchange Inc.’s cryptocurrency venture.

Iyzico was founded in 2013 and has been providing payment infrastructure for more than 30,000 Turkish e-commerce sites such as sahibinden.com and for global giants operating in Turkey including Amazon.com and Nike, Inc. Iyzico’s founders will have a small, minority stake in the new combined Turkish business.

The acquisition must still be approved by regulators and is expected to close in the next few months.

 

True Value capital Partners, a Swiss based equity capital investment company, has purchased Sabancı Group’s Temsa Ulaşım Araçları San.ve Tic.A.Ş.company for TL 182.7 million. Temsa was nominally valued at TL 825 million (USD 140 million). The sale was made however based on a value of TL 375 million after adjusting for debt and cash holdings, and includes the 49% stake owned by Sabancı Holding and the remaining 51% owned by shareholders including the Sabancı family, which owns the holding company.

The Temsa plant in Adana, Turkey has an annual production capacity of 11,500 vehicles, including 4,000 buses, coaches and midi-buses and 7,500 light trucks. Temsa has exported over 15,000 vehicles to 66 countries to date. With a total of 5,000 buses and coaches in France alone, Temsa's presence in Europe spans important markets that include Germany, the U.K., Italy, Austria, Sweden, Lithuania and the Benelux countries. Temsa has over 1,100 branded vehicles on North American roads and it aims to increase its current market share of nearly 10% in coaches through Temsa North America.  

The sale comes during a difficult period for Turkish manufacturers, who have suffered due to a rise in costs driven by the steep decline of the lira since the beginning of 2018. The lira dropped by 39% against the dollar that year, and it has been subject to large fluctuations this year.

 

German United Initiators is to purchase Hidrojen Peroxit A.Ş., a manufacturer of peroxide with its factory in Balıkesir, in the north-western province of Bandırma. Hidrojen Peroxit is a Garipoğlu Group company, owned by the once famous businessman Hayyam Garipoğlu, and was founded in 2001, with Eti Maden having a 28.2% shareholding and Garipoğlu Group a 71.8% shareholding. Last year, Garipoğlu purchased Eti Maden’s shareholding and thereby became the sole owner of the company. The factory has a 40,000 ton production capacity, is the world’s 8th largest peroxide manufacturer and exports to more than 70 countries.

German United Initiators is a global and leading producer of peroxide-based initiators and specialty chemicals and offers a broad range of organic peroxides, persulfates and selected speciality chemicals. The company has several production facilities in Europe, North America and the Asia‐Pacific region.

 

Japan’s Nippon Paint (NIPSEA Group) has purchased Turkish paint manufacturer Betek Boya, of which its best known brand is Filli Boya. Betek Boya was expected to record sales of TL 1.6 billion (USD 303 million) in 2018. The value of the deal, managed by financial services firm Ünlü & Co., has not been disclosed. According to Turkish regulatory filings, the German firm DAW holds nearly 25% of Betek’s shares, while the majority stakeholder is the Turkish Akpinar family.

Nippon Paint, a paint and coatings specialist, has over 22,000 employees with 77 manufacturing facilities and operations in 16 geographical locations with its headquarters in Singapore.

 

GS Yuasa’s joint venture with Turkish İnci Holding, İnci GS Yuasa, has opened its third factory in Manisa, Turkey with an investment of some TL 120 million, which brings the joint venture’s total investment to TL 250 million over its four years of partnership. This latest investment has increased the joint venture’s closed manufacturing area by 18,000 sqm to 47,000 sqm and its automotive battery manufacturing capacity from 5 to 7 million pieces annually. The new factory was founded in September 2017 and was built on 98,000 sqm of land.

The opening ceremony of the new factory at the Manisa Organized Industrial Zone was attended by Turkey’s Industry and Technology Minister Mustafa Varank, Manisa Governor Ahmet Deniz, İzmir Metropolitan Mayor Tunç Soyer, Japanese Ambassador for Turkey Akio Miyajima, the Japanese İstanbul Consul General Hisao Nishimaki, as well as a number of other Japanese and Turkish officials and businesspeople.

İnci GS Yuasa exports around 60% of the batteries produced in Turkey to more than 80 countries in 6 continents, and produces advanced technology start/stop vehicle batteries as well as new generation batteries at the highest quality standards for automotive key industry suppliers.  

The joint venture’s Japanese partner GS Yuasa is a major world manufacturer of batteries. Its business currently includes batteries, power supply systems, lighting equipment, and other electrical devices. GS Yuasa is aware that in addition to the usage of energy, energy storage technologies have become increasingly diversified, and that there is a great need to develop new products, such as photovoltaic power and lithium-ion batteries, that can be utilised in the new energy fields.

The battery manufacturing and flagship company of İnci Holding, the Turkish partner in the joint venture, is İnci Akü A.Ş., which was established by its founder Cevdet İnci in 1984 in the Manisa Organized Industrial Zone. İnci Akü started to work closely with the Turkish automotive sector in 1985, producing a calcium (Ca) battery alloy lead in 2007, and the NanoGold, nano technology closed system battery in 2009. The company also established its R&D centre in 2009, a first for the battery sector. With its amalgamation with the Japanese battery giant GS Yuasa, the company’s name was changed to İnci GS Yuasa Akü Sanayi ve Ticaret A.Ş.

US power management company Eaton Corporation has purchased an 82.275% stake in switchgear maker Ulusoy Elektrik of Ankara, Turkey.  Shares purchased belonged to Sait Ulusoy, Kubilay Hakki Ulusoy, Enis Ulusoy and Akgul Ulusoy, all members of the Turkish company's founding Ulusoy family. The purchase price for the shares is roughly USD 214 million, on a cash and debt-free basis. Eaton plans to file an application to launch a tender offer for the remaining shares.

Ulusoy Elektrik, founded in 1985, has about 780 employees and operates manufacturing facilities in Turkey and Indonesia. The company's products include medium-voltage switchgear, medium-voltage distribution transformers, substation kiosks and medium-voltage cable connection systems. Revathi Advaithi, president and chief operating officer for Eaton's electrical sector, said in a statement that the acquisition of Ulusoy Elektrik "complements Eaton's IEC portfolio and strengthens our ability to provide tailored medium-voltage solutions that span the full range of requirements. In addition, it adds a competitive, high-capability manufacturing base and provides us with additional access to the medium-voltage market in Europe, the Middle East and Africa."

Eaton Corporation , which is based in Dublin, Ireland, and has its North American headquarters in Beachwood, posted sales of USD 21.6 billion in 2018, has about 99,000 employees worldwide, and sells its products in more than 175 countries.

Japanese automotive manufacturer giant Honda has today issued a formal written statement that it will be terminating its automobile manufacturing operations in Turkey in 2021 following the completion of the existing production of the Civic Sedan model. Honda’s intentions to close its Turkey car factory were previously announced on February 19th, 2019.

The statement, prepared in the name of Honda Turkey Chairman Takuya Tsumura, revealed that the decision was made because of developments in the electrification field in the global automotive industry and the necessity of ensuring the appropriate production capacity based on these developments. In the statement Tsumura added that :

"Having successfully maintained its automobile production activities in Turkey for 22 years, Honda Turkey is proud to have reached all of its goals in this period. Honda's impressive performance in the last few years is the most important evidence of the company's great confidence in the Turkish market. Therefore, Honda Turkey will continue to offer sales and after-sales operations beyond 2021 with high quality services that it offers to its customers. In this respect, automobile operations consisting of the import and distribution of vehicles in Turkey will continue without interruption. Honda Motorcycle operations will not be affected by this decision."

Tsumura also stated that they will provide all kinds of support, including re-employment, to employees affected by the decision. Currently, the company employs approximately 1,100 people.

 

 

As of April 1st 2019, Facebook will now 18% charge value-added tax (VAT) on all advertising services provided to Turkish-based advertisers, including those without a valid Turkish value-added tax (VAT) identification number. 

Due to a recent change in Turkish tax law, Facebook Ireland Ltd is now registered for VAT as a non-established entity in Turkey.

 

 

The European Bank for Reconstruction and Development (EBRD) has been become increasingly involved in Turkey in recent years. The following is an entry on its website on February 18th, 2019 :

The Bank is a leading institutional investor in Turkey and has invested over €11 billion in 283 projects in Turkey since 2009, with a focus on investment in sustainable energy, improving infrastructure, strengthening the competitiveness of the private sector, deepening capital and local currency markets, and promoting regional and youth inclusion and gender equality. The overwhelming majority of EBRD investments in Turkey are in the private sector. Last year alone the EBRD invested over €1 billion in Turkey, of which one-third - €331 million – was extended in local currency.”

On March 27th, 2019, EBRD made an announcement that it would steadily increase its lending over the next three years, despite the fact that its 2018 profits had more than halved to Euros 340 million from Euros 772 million in 2017. The bank, which invests in 38 economies from Morocco to Mongolia, stated that the fall in profits was due to “adverse conditions across equity markets and currency depreciations in a number of the emerging economies where the EBRD is active." It added that "Provisioning charges rose on the back of developments in Turkey, where the economy slowed sharply amid a significant currency decline."

On April 4th, 2019, Arvid Tuerkner, the EBRD managing director for Turkey, announced that the bank, if asked, was ready to help Turkey tackle the growing level of unpaid and problem loans in its banking sector. EBRD is clearly aware that non-performing bank loans are likely to remain at high levels as the Turkish economy remains blighted by recession, a weak lira and depleted foreign currency reserves.

It is not clear how EBRD will help, but we must assume that it will increase its investment in Hayat Varlık, a former Lehman Brothers subsidiary and leading non-performing loan purchasing and collection company in Turkey. EBRD is a 12% shareholder in Hayat Varlık and on February 18th, 2019, lent Varlık TL 100 million to help the NPL management company buy more NPLs from local banks and other financial institutions EBRD had previously invested a total of TL 76 million in seven issuances of bonds issued by the company. The Bank had also provided the company with TL 120 million in loans, half of which it had syndicated to ICBC Turkey.  

The Turkish banking sector, often considered a key anchor of the country’s economy, is under stress following the lira’s depreciation and a sharp slowdown of the economy. EBRD is aware that an increase in NPLs can affect banks’ cost of funding, profitability, and may impair their capacity to lend to the real economy. The bank believes that boosting Hayat Varlik’s ability to acquire and manage NPLs will help clean up the banks’ balance sheets and free up their capacity for new lending. It will also contribute to a strong and efficient NPLs market in the country.

The announcement by EBRD on April 4th offering to help relieve the pressure on Turkish banks was partially responsible for a small recovery in the Turkish lira and the stock market that day. This was accepted as positive news, but there is little EBRD can do in fact in face of the magnitude of the potential loan problem in Turkey. It cannot be expected to directly bail out companies which will inevitably go bankrupt. The bank will no doubt simply help buy out NPL’s from the banking system. These will be at knock down prices on which it intends to make a profit.  

 

British engine maker Rolls-Royce Holdings Plc has announced that it had curtailed efforts to join a Turkish program to build a new fifth-generation fighter jet with Turkey's Kale Group.

 

The British company said that talks with Kale ran into problems last year because of a dispute about the sharing of intellectual property and the involvement of a Qatari-Turkish company.

 

In 2017, Kale Group said it would set up a joint venture with Rolls-Royce to develop aircraft engines after the UK and Turkey had signed a defence deal worth more than Psd Stg 100 million (USD133 million) to develop Turkish fighter jets. Rolls-Royce has been in talks with the Turkish government for several years about the project in which it would share expertise and intellectual property rights with the Turkish partners.

 

U.S. Army General Curtis Scaparrotti, the head of U.S. forces in Europe and the NATO Supreme Allied Commander Europe, said during a Senate Armed Services Committee hearing on March 5th that he would recommend that the United States not sell Lockheed Martin Corp F-35 jets to its NATO ally Turkey if Ankara does not drop its plans to buy S-400 surface-to-air missile defence systems from Russia.

 

General Scaparrotti said that "My best military advice would be that we don't then follow through with the F-35, flying it or working with an ally that's working with Russian systems, particularly air defence systems, with what I would say is probably one of most advanced technological capabilities,"

 

Turkish President Recep Tayyip Erdoğan has repeatedly said Ankara is committed to buying the Russian system, despite claims from NATO that the S-400s cannot be integrated into its air defence system. In February, Erdoğan said that

"We have made the S-400 deal with Russia, so it is out of question to take a step back. The job is done. When it comes to the Patriots, we are open to buying them. However, this purchase needs to serve the interests of our country."

 

US  officials have said that if Turkey proceeds with the S-400 purchase, Washington will withdraw its offer to sell a USD 3.5 billion Raytheon Co Patriot missile package. In August 2018, the Trump administration approved a defence budget law delaying delivery of F-35 jets to Turkey, citing Turkey's purchase from the Russians, and two months later, a Pentagon report said Turkey could face expulsion from the F-35 program if it goes ahead with the purchase.

 

Turkey had signed the deal with Russia in December 2017 for the USD 2.5 billion purchase of two batteries of the S-400 system, Russia's most advanced long-range anti-aircraft missile system. If the deal goes ahead, Turkey will be the first NATO member country to acquire the system.

 

Turkey has been in the F-35 program since 1999, and the Turkish defence industry has taken an active role in the production of aircraft and investing some USD 1.25 billion in the aircraft's development. Turkey had planned to purchase 100 F-35 fighter jets, of which 30 had been approved, and took delivery of its first F-35 fighter jet at a ceremony in Fort Worth, Texas, on June 21st, 2018. Two more F-35s are expected to be delivered by March 2019.

One of Israel’s largest banks Bank Hapoalim has announced that it is looking to sell its 70% majority stake holding in Bank Pozitif, a Turkish investment bank.

 

Bank Hipoalim had declared its intention to sell its shareholding some 4 years ago, but no agreement was achieved at that time.

 

 

International tourism conglomerate TUI has started negotiations to purchase Turkey’s Doğuş Group’s D-Resort Grand Azur Hotel in Marmaris, on Turkey’s Aegean coast through its Turkish company TT Hotels.

 

TT Hotels owns and runs some 14 hotels in Turkey. These are Pegaso World Hotel (Manavgat), TUI Familiy Life Pascha Bay Hotel (Alanya), TUI Fun & Sun Club Belek Hotel (Belek), TUI Day & Night Connected Club Hydros Hotel (Kemer), TUI Magic Life Waterworld Hotel (Belek), Pegasos Club Hotel (Alanya), Pegasos Resort Hotel (Alanya), Pegasos Royal Hotel (Alanya), Hotel TUI Sensimar Seno Resort & Spa (Dalaman), Bodrum Imperial Hotel (Bodrum), Holiday Village Turkey Hotel (Dalaman), TUI BLUE Marmaris (Marmaris), Hotel TUI Family Life Tropical Resort (Dalaman) and TUI Magic Life Sarıgerme Hotel (Dalaman).   

 

 

 

Turkish conglomerate Yıldız Holding has agreed to sell its Godiva chocolatier business in four far eastern countries to MBK Partners, which is an Asian private equity company. The four countries concerned are Japan, South Korea, Australia and New Zealand. As part of this agreement, Yıldız will also be selling the Godiva factory in Brussels, Belgium which produces for and supplies these four countries. It would appear that Yıldız Holding’s financial debts have forced the conglomerate’s hand to sell investments. On the other hand, the Godiva chocolate business is seen as a profitable and expanding business and Yıldız holding may be trying to cash in on the added value of the business since its purchase towards the end of 2007.

Japanese carmaker giant Honda has announced that it will cease the production of Civic Sedan model vehicles in Turkey in 2021. Honda has a plant in the north-western province of Kocaeli, near Istanbul, where the company started to produce its Civic Sedan models at the end of 1997. This plant has an annual production capacity of 50,000 units, but currently produces some 38,000 units per year and employs some 1,100 people.

 

Honda announced that this decision was taken as a part of its plan to restructure its global manufacturing network, but that it would continue with its automotive operations in Turkey. The company has at the same time decided to close it UK plant in Swindon in 2021 which produces some 150,000 cars per year with a workforce of some 3,500 people.

 

Austrian RHI Magnesita NV company, a global leader in refractories, has signed an exclusivity agreement with Turkish conglomerate Yıldız Holding as part of negotiations for its purchase of Kümaş Manyesit Sanayi A.Ş. A figure of USD 500 million as a possible purchase price has been mentioned. 

 

Kümas Manyesit produces and supplies to the industrial minerals market sinter magnesia, fused magnesia, fused oxychrom and calcined magnesia, which are derived from high quality macro-crystalline natural magnesite ore which it mines itself. Kümaş Manyesit also produces magnesia, dolomite and alumina based refractory brick and mortars in its integrated refractory plant. The company’s annual production capacity is 300,000 tons of sinter magnesia, 120,000 tons of bricks, and 60,000 tons of mortar. Reserves are 127 million tons of magnesia and 112 million tons of dolomite.

Japanese technology giant SECOM and Turkish financial technology company Aktif Bank, a subsidiary of Çalık Holding, have jointly announced the establishment of Secom Aktif Yatırım A.Ş., a 50:50 partnership that will offer end-to-end security solutions to companies and individual users with its turn-key project models.

Investment Office (ISPAT) President Arda Ermut said that “As of 2018, trade volume between the two countries stood at USD 4.6 billion. Japan's total FDI in Turkey is around USD 3.2 billion, and during 2011-2017, 45 M&As by Japanese companies took place around Turkey. Today, there are over 200 companies with Japanese capital in Turkey."

SECOM President Yasuo Nakayama said; “In line with our road map, we were in search of a potential country to which we could take our international operations. We ended up with Turkey as our 19th overseas destination as Turkey stands out not only with its geopolitical significance but also with the advancement in its economic growth potential stemming from the rise of its working population.”

Aktif Bank is the financial technology arm of Çalık Group and the largest private investment bank in Turkey, and Secom is Japan’s largest and one of the world's leading integrated security providers with advanced technology and expertise.

The following information is available about Secom on its website:

“SECOM was founded in 1962 as the first security company in Japan. In 1966, we developed the first on-line security system for commercial use in Japan and built a country-wide infrastructure. In 1981, we launched Japan’s first home security system and established a home consumer market. Currently, we maintain contracts with 1,055,000 corporations and 1,308,000 households for a total of about 2,363,000 clients (as of September 30, 2018). The Social System Industry was announced in 1989. Centering around our security services, the SECOM Group has expanded to include Fire protection services, Medical services, Insurance services, Geospatial information services, BPO·ICT services as well as Real estate development and sales. Based on a security network that fosters safety, we are tackling the creation of a new social infrastructure that wholly supports systems and services for security, convenience and comfort. In addition, our international operations have established offices in 18 countries and territories overseas, expanding into Taiwan, Korea, China, Thailand, Malaysia, Singapore, Indonesia, Vietnam, Myanmar, the Philippines, India, Turkey, the United Kingdom, Sweden, Belgium, Australia, New Zealand, and the United States.

Japanese automotive giant Toyota marked the commencement of its new Corolla hybrid model’s mass production at its Sakarya plant in Turkey at a ceremony honoured by the Turkish Vice President Fuat Oktay, Industry and Technology Minister Mustafa Varank, Investment Office (ISPAT) President Arda Ermut, Toyota Turkey CEO and General Manager Toshihiko Kudo, and Toyota Motor Europe President and CEO Dr. Johan van Zyl. 

During his address at the opening ceremony, Vice President Fuat Oktay said that Turkey is determined to boost the production of hybrid and electric vehicles since it is vital for Turkey to develop low-consumption, environmentally friendly auto technologies. “The support packages includes land allocations and considerable tax reductions of up to 50% for hybrid vehicles, among other incentives, and we are prepared to introduce new incentives when necessary.” He added that the use of hybrid and electric cars in Turkey was at a very early stage with only 4,000 hybrid cars and 155 electric cars sold in Turkey last year, compared to total automobile sales of 486,000..

Johan van Zyl, the CEO of Toyota Motor Europe, said the company had produced more than 2.4 million cars since it started production in Turkey, and so far invested over Euros 1.8 billion in its production operations in Turkey. He noted that Toyota had started producing its first Turkish-made seventh-generation Corollas in 1994, had launched its first hybrid vehicle, the C-HR, a sport utility vehicle (SUV), in Turkey in October 2016, and was now launching first time globally the 2019 Corolla Saloon Hybrid, the model's 12th generation.

 

 

 

Anadolu Isuzu,  a joint venture between Turkish conglomerate Anadolu Holding, Isuzu Motors and Itochu Corporation, has decided to cut production for a total of 26 days between January 14th and April 13th, 2019, due to weak demand in the domestic automotive market in Turkey. The company announced that production will be suspended for six days in January, eight days in February, eight days in March and four days in April.

 

Anadolu Isuzu produces and sells commercial vehicles such as light trucks, trucks, midi-buses, buses and pick-ups.

 

AG Anadolu Grubu Holding owns 55.5% percent of the joint venture, while Isuzu Motor and Itochu Corporation hold 17% and 12.7% stakes in the company, respectively.

 

In 2018, sales of cars and light commercial vehicles in Turkey were 620,937 units, 35.1% lower than the figure for the previous year. Sales of cars decreased 32.7% to 486,321 units, and sales of light commercial vehicles decreased 42.3% to 134,616 units.

 

At an inauguration attended by the Turkish President Recep Tayyıp Erdoğan, USA based International beverage and food company PepsiCo opened its new factory at Manisa, near Izmir, Turkey. The factory is estimated to have cost USD 150 million.

 

PepsiCo Turkey President Levent Yüksel said in an interview with journalists that the factory will especially increase the production of PepsiCoʼs famous snacks, declaring that 30% of all Doritoʼs corn chips produced in the newly opened factory will be exported to European markets. The new factory is also expected to have a 25-30% share in PepsiCo’s total production volume in Turkey. Yüksel praised the Manisa Organized Industrial Zone for providing the perfect environment and resources for the new factory, which will operate in accordance with Industry 4.0.

 

The new Manisa factory is Pepsi’s sixth factory in Turkey. PepsiCo also operates three beverage factories in Izmir, Corlu and Adana, and currently two food factories in Kocaeli and Mersin. The company provides in Turkey more than 3,000 direct and more than 40,000 indirect employment opportunities, including production, R&D, and sales activities.  The new factory, which has been established in an area of more than 100,000 square metres, with 35,000 square metres of closed factory space, will employ some 350 people in the initial phase, with this number expecting to increase to more than 500 by 2022.

 

 

Prometeon, one of the top industrial tyre manufacturers in the world, has announced its plan to invest USD 115 million in its plant in Turkey. This investment will be implemented until 2020, by which time the annual tyre production capacity at the Turkish plant will have increased by 75% and exports to foreign markets would have almost doubled, providing a significant contribution to Turkey trade balance.

 

The investment announcement was given by Prometeon’s Chief Operating Officer Gregorio Borgo at a press briefing in Istanbul on November 6th, 2018. Borgo said that “Almost one third of Prometeon Tyre Group’s annual turnover is realised in the region managed by our Turkey office and more than 50% of the tyres that we manufacture in Turkey are exported.” Turkey is the management base of the group’s offices in 75 countries in the Middle East, Russia and Central Asia region.

 

Prometeon has a production plant in Turkey’s north-western province of Kocaeli which has been operating under the name of the well-known Pirelli brand name since 1960. This plant currently has an annual capacity of 1 million units and exports tyres with a value of USD 125 million. The company’s additional investment in Turkey is expected to add 150 to the current total workforce of 2,000 employees.

 

Prometeon has 4 factories (two in Brazil, one in Egypt and one in Turkey), employs over 7,300 people and has a commercial presence in over 160 countries. TP Industrial Holding is the controlling company of Prometeon Tyre Group, and is in turn 100% controlled by Marco Polo International Holding Italy Spa, the company formed for the partnership between CNRC (with 65%), Camfin (with 22.4%) and Long-Term Investments Luxemburg (with 12.6%)%), which also owns Pirelli. CNRC is the tyre and rubber subsidiary of ChemChina Group.

Taiwan Cement Company (TCC), one of the Far East’s largest cement manufacturers, has purchased a 40% stake in OYAK Çimento A.Ş., which was a 100% affiliate of Turkey’s OYAK Holding. The purchase price was USD 640 million, 40% of the company’s worth of USD 1.6 billion.

 

TCC was founded in Taipei, Taiwan in 1946 and privatised in 1954. TCC engages in the production and marketing of cement, cement products, furnace powder and ready-mixed concrete. Its products are used in general engineering and construction projects such as dams, road repair works, tunnels, bridges, sewers, and offshore construction works. The Koo family which controls TCC, has investments in the tourism, health, energy and chemical sectors. TCC recorded revenues of USD 3.2 billion in 2017. With a total of 23 factories and a total of 76 million tons of cement production capacity (Taiwan 11 million tons and China 65 million tons), the company is one of China’s largest cement manufacturers.

The State Oil Company of the Azerbaijan Republic (SOCAR) today opened its giant new oil refinery in the Aliağa district of İzmir, Turkey. The new Star Refinery, built at a cost of some USD 6.3 billion, is the first new oil refinery to be built in Turkey in 30 years and will, by boosting Turkish refining capacity by over 30%,  help cut Turkey’s dependence on imported refined oil products.

 

In an opening ceremony attended by Turkish President Recep Tayyip Erdoğan and his Azeri counterpart President Ilham Aliyev, Erdoğan said that the new refinery “will take brotherly strategic ties to the next level” between the two countries, adding that the “refinery will enable Turkey to make USD 1.5 billion in savings in its import bill on an annual basis” and that more than 1,100 jobs will be created at the refinery.

 

The Star Refinery is located in the industrial zone of Aliağa, Izmir, where the Tüpraş oil refinery, a container port, and the petro-chemical plant of Petkim, a company in which SOCAR also has a large stake, are located. The refinery, which started construction in 2011, when fully operational, will have the capacity to process about 10 million tons per year (200,000 barrels per day) of crude, thereby increasing Turkey’s total refining capacity by over 30% to reach 40 million tons per year.

 

The refinery is expected to produce 1.6 million tons of naphtha and 420,000 tons of xylenes. It will produce about 4.8 million tons of diesel, as well as jet fuel, petroleum coke, reformate, sulphur and liquefied petroleum gas (LPG).

 

Timed to coincide with the opening of the refinery, a presidential decree was issued which announced that the refinery had been classified as the first special industrial zone in Turkey,

 

 

At a ground-breaking ceremony on October 19th, 2018, the Turkish-French joint venture automotive manufacturer Oyak-Renault laid the foundation for its new high-pressure aluminium injection moulding plant in Turkey’s province of Bursa. At the plant, which will be built at a cost of Euros 100 million (USD 115 million), aluminium blocks will be produced for the company’s high-tech new generation engines for hybrid vehicles.

 

The ground-breaking ceremony was attended by Turkey’s Industry and Technology Minister Mustafa Varank who announced that the plant investment was to be made under Turkey’s project-based incentive system. He stated that the engines would be exported, thereby not only contributing to employment but also helping to improve Turkey’s trade balance, and that parts for the engines will be produced and supplied by domestic manufacturers. The ceremony was also attended by Renault Senior VP and Chairman of Groupe Renault Eurasian Region Nicolas Maure.

 

Oyak-Renault, founded in 1969, annually produces 360,000 cars and 750,000 engines, and some automotive parts.

 

Japan's IHI Corporation and Turkey's Dalgakıran Kompresör have opened Turkey's first and only compressor factory at the IMES Organized Industrial Zone in the north-western province of Kocaeli, Turkey. IHI Dalgakıran was founded in 2017, and the investment was the culmination of nearly a decade’s work. The company has been involved in the installation of 40 compressors to date and its R&D centre is to open within a short time. Efforts are also being made to reduce the imported components used in production, and it is the company’s aim to export turbo compressors. The company’s management announced that in 2019 an additional 50,000 sqm compressor factory unit will be opened near to the existing facilities.

 

Global automotive conglomerate Mercedes-Benz has opened a new research and development (R&D) centre at its truck factory in Turkey's central province of Aksaray. This centre is the only one of Mercedes-Benz which provides truck road tests and engineering services worldwide. Other R&D centres are in Germany, the United States, Brazil, India, China and Japan.

 

The construction of the new R&D centre, the foundation of which was laid down last year, was completed at a cost of Euros 8.4 million euros, covering a 40,000 sqm area, of which 8,000 sqm is closed and the remainder open area.  251 Turkish engineers will work in the centre.

 

The Aksaray Truck Factory is the largest source of employment in the region with more than 2,000 employees and its sub-industry. In 2016, the Mercedes-Benz had announced the investment of Euros 113 million to boost the production and employment capacities of the Aksaray facilities.

 

WABCO, a leading global supplier of vehicle control systems which improve the safety, efficiency, and connectivity of commercial services, launched its first distribution centre with an investment of around USD 17 million in Hadımköy, Istanbul. At the opening ceremony, Invest in Turkey President Arda Ermut expressed his wish that WABCO, emboldened by its new logistics centre investment in Turkey, will in the future consider investing in production facilities in Turkey.,

 

WABCO, which has its global headquarters in Brussels Belgium, recorded USD 3.3 billion in sales in 2017, employs 15,000 people in 40 countries, and has manufacturing locations in 4 continents.  

Dutch port terminals operator APM Terminals, which is a subsidiary of the Danish A.P.Moller-Maersk A/S corporation, has decided to leave Turkey. APM Terminals won the contract in 2012 to operate for 28 years the Petlim port terminal, which is located in Aliağa. Izmir and is owned by Petkim. APM Terminals is one of the world’s largest terminal operators, operating terminals in 50 countries around the world and employing some 22,000 people.

 

APM Terminals has agreed to sell its Petlim franchise to the Azerbaijan state energy company Socar.

 

Petlim Limancilik Ticaret A.S was founded on November 22nd, 2010 as a 100% subsidiary of Petkim to carry out the development of Petlim Port. The aim was to operate the port more  economically and make it the largest integrated port of the Aegean region. The port has a capacity of 1.5 million TEU, and has a total of 48 hectares of logistics space, 6 hectares of which is for support services and 42 of which is for container storage.

 

 

 

Lohmann, a leading international supplier of adhesive solution providers,  opened its first Turkish manufacturing facility in the Gebze Plastikçiler Organized Industrial Zone., near Istanbul. Speaking at the opening ceremony, Lohmann CEO Elmar Boeke said that the company will benefit from Turkey’s strategic location as a regional centre and an export hub. The company has been operational in Turkey with a sales office since 2011.

In Lohmann’s website, the following entry was given regarding its new investment in Gebze, near Istanbul :

“Lohmann opens new production plant in Turkey

Lohmann, pioneer in adhesive bonding, today offers adhesive high-tech solutions around the globe.

On October 8th, Lohmann´s new production site in Gebze (province of Kocaeli), on the outskirts of Istanbul, was inaugurated with many guests.In February 2011 Lohmann opened a sales office in Istanbul. Seven years later, it proves to have been the right decision: Lohmann has built a new production site. On approx. 3.100m², different state-of-the-art converting machines now produce adhesive high-end products primarily for the local customers. Altogether, the team in Turkey successfully developed customer relationships, expanded business with existing customers and attracted new ones in the home appliance, furniture, profile manufacturing and automotive sectors. Long-term Lohmann distribution-partner "Matis Matbaa" in Izmir is also in the loop. Together with the Lohmann team they have successfully developed the market in the graphics sector, which is a focus market for Lohmann. With this new presence in Turkey, Lohmann is able to provide better service directly to local customers. Furthermore, the company wants to expand alongside other international companies who are using Turkey’s strategically strong position as hub for the Middle East.”

Lohmann, with its headquarters in Neuwied Germany, employs 1,600 people worldwide, has 29 international sites and exclusive partners in over 60 countries.

 

Italian international construction conglomerate Astaldi SpA is selling its 33% stake in a venture that controls the Third Bosphorus Bridge linking Europe and Asia, one of the world’s widest suspension bridges, and its connecting toll roads. Talks with China Merchants Group consortium had been held up by the onset of the economic recession in Turkey which had caused the Turkish Lira to become very volatile. Sparked by US sanctions, the Turkish Lira  went into free-fall in August resulting in turmoil in the markets.

 

Negotiations with the Chinese investor group for the sale of its stake have gathered pace in recent weeks and Astaldi hopes to have an agreement by the end of the year. Astaldi, Italy’s second-largest construction company, is relying on cash from the deal to help meet its liquidity needs and repay debt. It was forced to file for credit protection on debts of Euros 2.5 billion euros (USD 2.9 billion) to the bianco concordato court in Rome on September 28th, 2018. The company must present a new payment plan to its debtors by December 16th, 2018. Astaldi’s share value fell more than 50% from Euros 1.30 in the middle of September to Euros 0.60 as of October 1st, 2018

 

The total equity value of the Third Bosphorus Bridge was previously shown as much as USD 1.4 billion. Astaldi’s local partner IC Yatırım Holding may also be interested in selling part of its stake. Astaldi values its stake at about Euros 350 million.

 

International coffee and tea retailer Jacobs has purchased Of Çaysan Tarım Ürünleri Entegre Tesisleri Sanayi ve Ticaret A.Ş.

 

Of Çaysan started operations in 1985, and comprises 5 tea factories and 2 packaging facilities.

 

Jacobs Douwe Egberts is an international corporation with a coffee and tea portfolio which goes back more than 265 years and is available in over 140 countries around the world through iconic household names including Jacobs, Tassimo, Moccona, Senseo, L’OR, Douwe Egberts, Super, Kenco, Pilao & Gevalia. Jacobs is one of its billion-dollar brands and traces its beginnings to 1895 in Germany, which was when 26-year-old Johan Jacobs opened a speciality coffee shop in Bremen. Jacobs coffee is now sold throughout Europe and the Middle East, and is a market leader in Germany, Austria, Latvia, Lithuania, Poland, Romania and Ukraine.  Available in roast and ground, whole beans, soluble crystals, capsules, coffee pods and flavoured mixes, Jacobs continues to set the industry standard for delicious coffee. Jacobs Douwe Egberts is in turn majority owned by Acorn Holdings, a subsidiary of JAB Holding Company which is a privately held German conglomerate, headquartered in Luxembourg, that includes investments of companies operating in the areas of consumer goods, forestry, coffee, luxury fashion, and fast food, among others.

 

Jacobs is represented in Turkey by Jacobs Douwe Egberts TR Gıda Ticaret Sanayi A.Ş., which is now awaiting approval of the purchase by Turkey’s Competition Authority.

 

Swiss based international heating and ventilation solutions company Zehnder has opened its new Euro 20 million facility in Turkey’s Manisa province on September 27th, 2018.

 

As displayed on its website, Zehnder’s company profile is as follows :

“Group Overview

Zehnder Group provides everything you need to create a comfortable and healthy indoor climate.

Zehnder Group develops, produces and markets radiators and ventilation systems.

Products and systems are sold under various popular brand names.

Zehnder Group is among the market leaders in its segments.

Its principal sales region is Europe. The Europe segment is made up of a total of 34 production, sales and management companies in 13 European countries. The largest sites are located in Germany, France, the UK and Switzerland.

In addition, Zehnder Group operates in China and North America. The China & North America segment is made up of a total of 8 production, sales and management companies in China and the USA.

Its products are manufactured in modern factories in Europe and worldwide.

Zehnder Group employs approximately 3,200 people worldwide.”

 

Bupa, the giant insurance company with its head office in the UK, announced on its web site on 17.08.2018 that it has agreed to buy out Acibadem Sigorta, a specialist Turkish health insurance company with both corporate and individual customers.

 

Acibadem, which is headquartered in Istanbul, has over 500 employees and covers 600,000 lives. With a generated gross written premiums of TL 913 million in 2017, it is the second largest health insurance company in the Turkish market. The purchase is subject to regulatory approval by the Competition Board in Turkey. Acıbadem Sigorta is currently wholly-owned by Avicennia Capital, a Malaysia-based financial holding company. From 2013 to 2017, Acıbadem Sigorta increased its GWP market share from 12% to 18% and became the number one Turkish health insurer in corporate business and number two overall. Acıbadem Sigorta is managed by an experienced executive team – each member of the senior management team has over 20 years of experience in the industry. Acıbadem Sigorta is the largest health insurer in the Turkish Corporate PMI segment with a 27% share of GWP. In the individual PMI segment it is the third-placed player with a 9% market share.

 

Bupa is expected to benefit from Acıbadem Sigorta’s local market knowledge, and Acibadem’s customers and employees will in turn benefit from the strength of Bupa’s expertise and experience.

 

Simeon Preston, CEO of Bupa International Markets, said: "We’re delighted to announce Bupa’s agreement to acquire Acıbadem Sigorta. Its impressive growth, first-class management team and customer focus make it an excellent choice for market entry. We have been watching the Turkish market for several years and we believe it offers excellent prospects for growth. We see this acquisition as a long-term strategic investment for us. Bupa and Acıbadem Sigorta have a shared commitment to putting customers first, and we look forward to welcoming the team into the Bupa family.”

 

Gökhan Gürcan, CEO of Acıbadem Sigorta added: “We’re very much looking forward to becoming part of the Bupa family. Together we have a shared commitment to helping our customers live longer, healthier, happier lives. Bupa has a strong record of developing and growing the businesses it acquires and has the resources and expertise to help us build on the successes of the past 26 years. Together we can support the continued development of the Turkish health insurance market.”

 

Bupa has no shareholders, sees its customers as its total focus point, and reinvests its profits into providing more and better healthcare. It serves 15.5 million health insurance customers, provides healthcare to over 14.5 million  people in its clinics and hospitals and looks after over 22,900 aged care residents. Bupa directly employs over 78,000 people, principally in the UK, Australia, Spain, Poland, Chile, New Zealand, Hong Kong, the USA, Brazil, the Middle East and Ireland. It also has associate businesses in Saudi Arabia and India. Health insurance accounts for the majority of its business. In some markets it also operates clinics, dental centres, hospitals, and care homes and villages.

 

 

 

 

The Industrial and Commercial Bank of China (ICBC) has been authorized as the lead regulator to refinance the USD 2.7 billion current loan for Turkey's two mega-projects, the Yavuz Sultan Selim Bridge and the Northern Marmara Highway Project. It has been agreed that ICBC Turkey will organise financing for the projects, currently funded through the Turkish banking system, from international markets with more favourable terms.

 

ICBC Turkey signed the letter of authorization for the refinancing at the One Belt, One Road Investment and Financial Cooperation Summit in Ankara. Among the signatories were ICBC Turkey Chairman Gao Xiangyang and IC Holding Board Member Serhat Çeçen. The Energy and Natural Resources Minister Fatih Dönmez and ICBC Chairman Yi Huiman were present at the signing.

 

This refinancing project will be an important step towards sealing a closer strategic and economic relationship between Turkey and China, and is especially significant in light of the two countries’ shared One Belt, One Road vision.

 

The IC İçtaş-Astaldi Consortium (ICA) designed and built the Yavuz Sultan Selim Bridge and the Northern Marmara Highway Project as a private developer and currently operates them. The Yavuz Sultan Selim Bridge, Istanbul's third bridge linking the European and Asian sides of Istanbul, opened in August 2016, and the North Marmara Highway, currently still under construction, will connect Turkey's Asian and European lands via Istanbul's third bridge, while providing an alternative transit route bypassing the city's congested traffic. The project, which has a total length of 430 kilometres (172 km on the European and 258 km on the Asian side), is expected to be fully operational in 2019.

 

 

 

Turkey’s Treasury and Finance Minister Berat Albayrak announced that the Industrial and Commercial Bank of China (ICBC) has provided a USD 3.6 billion loan package for the Turkish energy and transportation sector. Albayrak has just returned from what he referred to as a “fruitful” visit to China, where he had talks with a number of institutions, including ICBC.

 

ICBC, which bought out a local bank, Tekstilbank, in 2015, is the first Chinese bank to operate in Turkey. The entry of ICBC into the Turkish financial sector has and will help expand China's investments and business operations in Turkey in other sector such as energy, logistics, tourism, transportation, infrastructure and e-commerce. ICBC's operations in Turkey fall within the scope of China's "Belt and Road Initiative" (BRI), an infrastructure development project designed and launched by Chinese President Xi Jinping in 2013 and spanning over 65 countries.

 

 

The Italian Sabaf company, one of the leading manufacturers of components for household gas appliances in the world, has purchased the Turkish Okida company for USD 27 million ( some TL 135 million). 

 

The history of Sabaf, which has Its head office is in the town of Brescia, in the Lombardy province of Italy, goes back to 1950. Sabaf was quoted on the Italian stock market in 1988, and with the purchase in the year 2000 of the Faringosi company, a world leader in its field, it started to produce hinges for white goods manufacturers. Sabaf employs more than 1,000 people, and in addition to Italy and Turkey, has a factory in Brazil. 

 

The Okida company was established in 1987 and has a manufacturing area of 4,000 sqm in Istanbul. It designs and manufactures electronic modules for the white goods sector, and its area of expertise includes oven clocks, chimney hoods, and oven control modules. Okida employs more than 80 people, most of which are engineers, and exports to more than 20 countries. 

 

Sabaf operates under its Turkish affiliate company name Sabaf Beyaz Eşya Parçalaraı in Manisa, Turkey where it established a factory in 2011. Its purchase of Okida shows that it has decided to expand its business activities in Turkey.

 

Sabaf’s factory in Manisa was built at a cost of TL 30 million, and the company now holds a 50% market share in Turkey.

 

.


 

One of the world’s largest energy companies, the French Total company, has in recent years started to sell off its assets in Turkey. In 2016, the company sold its petrol station business, together with its supply and logistic facilities, for around euro 325 million to the Demirören Group, and some of the tanks relating to its odourless LPG production to Ipragaz.

 

Total has now started negotiations with Ipragaz to sell its shares in the filling and storage company Bütangaz. Ipragaz has applied to Turkey’s competition board for approval of this purchase. If the deal goes through, with the exception of mineral oils, Total will have cleared all its assets in Turkey.

 

Bütangaz has a gas terminal at Marmara Ereğli, a town in the Tekirdağ province of northwest Turkey with spherical and cylindrical LPG tanks with 5,000 cubic metres capacity.

 

Total, employing over 100,000 people worldwide, is one of the world’s biggest petrol and gas companies, and is the world’s second largest enterprise in the sun energy sector with its Sunpower brand. Before its sale to the Demirören Group, Total was one of the top five petrol and gas sales operators in Turkey with 440 petrol stations and a 5.5% market share.

 

İpragaz was formed in 1962 under the name of Eureka Metal and established the first storage facility and distribution stations for LPG and the first tube filling operation in Turkey. With the intervention of Türkiye Petrolleri Anonim Ortaklığı (TPAO) these operations continued under the name of Ipragaz in 1966. Ipragaz was privatised in 1992 with its sale to the world’s biggest LPG distribution company, the Dutch SHV Energy company, which presently has operations in 28 countries, a workforce of 15,000, and a turnover of over euro 6 billion, Ipragaz currently operates 10 tube regional sales offices, 3 tube field offices, 8 bulk gas regional sales offices, 5 bulk gas offices, 9 liquid fuel and automobile gas regional sales offices, 15 LPG filling facilities, 3 storage terminals, and 4 tube depos and 1 commodity depo throughout Turkey. Ipragaz has some 1,000 employees, and a network of close to 4,000 tube gas, automobile gas, liquid fuel, and automobile kit conversion dealers in Turkey.

 

German chemical giant Evonik announced in its website on June 29th that it is to invest in a new production line at its Adapazarı factory. Evonik established  a joint venture named Egesil in 2002 with Ege Kimya, one of Turkey’s first chemical companies. Egesil, 51% owned by Evonik and 49% owned by Ege Kimya, was founded to produce precipitated silica for the tire industry, this product being an essential ingredient in tires with reduced rolling resistance. With increasing demand for this product, Evonik has decided to add another production line at its Adapazarı Egesil factory.  Egesil will increase its annual production capacity for precipitated silica at the existing site in Adapazari (Turkey) by 40,000 metric tons with an investment sum in the lower double-digit million euro range. Start-up of the new production complex is scheduled for 2020. In addition to producing ULTRASIL® rubber silica, it will also serve the growing needs for precipitated silica. 

Andreas Fischer, head of the Silica Business Line. Said that Evonik is implementing this expansion in Adapazari to support the high level of demand for the highly dispersible (HD) silica used in producing Green Tires, particularly from customers in south-eastern Europe and the Middle East. Thanks to a significantly reduced rolling resistance, Green Tires save a considerable amount of fuel compared to traditional vehicle tires. 

Evonik is one of the world leaders in specialty chemicals. Evonik is now focusing on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture as a lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees. In fiscal 2017, the enterprise generated sales of euro 14.4 billion and an operating profit (adjusted EBITDA) of euro 2.36 billion. 
  

 

The Pietro Fiorentini company, one of Italy’s oldest manufacturers of energy equipment, was founded in 1940. The company produces equipment in the distribution of natural gas and petrol, and has eleven facilities in countries from Europe to Asia. Pietro Fiorentini entered the Turkish market in 1991 under the name of Fio Gaz, which sold equipment for medium and high pressure pipelines. This firm also set up regional distribution stations and in 2013 merged with the Odogaz fim which was distributing LPG. 

 

Pietro Fiorentini has now purchased Turkish energy equipment manufacturer Gemsat Gaz Ekipmanları, which was founded in Bursa in 1993 on a plot of 75 sq.metres by Nihat Uçar, who was an engineer who worked in Iraq. Gemsat, which now operates both in Turkey and internationally, Gemsat is working with energy sector companies such as Boru Hatları ile Petrol Taşıma A.Ş. (BOTAŞ), İGDAŞ, Bursagaz, İzgaz, İzmirgaz, Kırgaz, Başkentgaz, Diyargaz and Akmercan Gaz, and groups with energy investments such as HABAŞ, Zorlu Holding and Çalık Group. Gemsat also has projects in Azerbijan and Georgia. Gemsat’s main line of business is manufacturing for and running pressure reduction and measuring stations.

Pietro Fiorentini has purchased 100% of Gemsat’s shares, and the sales formalities have been completed.

 

Germany’s Thyssenkrupp Elevator opened an escalator production facility in Kocaeli, near Istanbul as part of a Euro 20 million investment. The factory will have an initial annual capacity of 1,200 units. Use of domestic materials will at first be 50%  and move up to 90% at later stages to minimise dependency on imports. Thyssenkrupp has prior to this investment been operating for many years via its sales office in Turkey.  

 

 

Dubai’s Emirates NBD bank is to purchase Turkish Denizbank from Russia’s Sberbank, as announced in a joint statement by NBD and Sberbank. Sberbank is Russia’s largest bank and will sell its entire 99.85% stake in Denizbank, Turkey’s fifth largest private bank. In the statement, the value of Denizbank was calculated as TL 14.6 billion (USD 3.1 billion) as of October 31st, 2017, from which date Emirates NBD will pay interest until the date of transaction transferring Denizbank to itself.

 

Emirates NBD was formed on October 16th 2007 from a merger in 2007 between Emirates Bank International (EBI) and the National Bank of Dubai (NBD), the second and fourth largest banks in the United Arab Emirates (UAE). As of  June 30th 2015, total assets were AED 388.1 billion. The Group has operations in the UAE, Egypt, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, and representative offices in India, China and Indonesia. Currently, more than 9,000 people, representing 70 nationalities, are employed by Emirates NBD, making it one of the largest employers in the UAE. On November 8th 2017, it opened a branch in Mumbai, India., its fifth international branch outside of its UAE network.

 

 

Turkey’s national flag carrier Turkish Airlines (THY) announced that it would buy engines from GE Aviation to be fitted into its order of 30 new Boeing B787-9 Dreamliner planes which it confirmed on March 12th. GE’s engines to be used are its GEnx-1B74/75 model. The 787-9 Dreamliner will meet THY’s wide-body aircraft needs for long-haul flight.

 

THY will be adding a total of 60 wide-body aircraft to its fleet in the next six years.  Of these planes, 50 are firm purchases and the remaining 10 are optional. Six are to be delivered in 2019, 14 in 2020, 10 in 2021, 12 in 2022, 11 in 2023 and seven in 2024. A total of 30 B787-9 aircraft, of which 25 are firm and five optional, will be purchased from Boeing and a total of 30 A350-900 aircraft, of which 25 firm and five optional will be purchased from Airbus. The deal with Airbus was signed in January in Paris, during Turkish President Recep Tayyip Erdoğan’s official visit to France. The A350s will be powered by Rolls-Royce Trent XWB engines. In September 2017, THY had announced a commitment to purchase 787-9 Dreamliner aircraft from Boeing.

 

 

Turkey’s national flag carrier Turkish Airlines (THY) announced that it would buy engines from GE Aviation to be fitted into its order of 30 new Boeing B787-9 Dreamliner planes which it confirmed on March 12th. GE’s engines to be used are its GEnx-1B74/75 model. The 787-9 Dreamliner will meet THY’s wide-body aircraft needs for long-haul flight.

 

THY will be adding a total of 60 wide-body aircraft to its fleet in the next six years.  Of these planes, 50 are firm purchases and the remaining 10 are optional. Six are to be delivered in 2019, 14 in 2020, 10 in 2021, 12 in 2022, 11 in 2023 and seven in 2024. A total of 30 B787-9 aircraft, of which 25 are firm and five optional, will be purchased from Boeing and a total of 30 A350-900 aircraft, of which 25 firm and five optional will be purchased from Airbus. The deal with Airbus was signed in January in Paris, during Turkish President Recep Tayyip Erdoğan’s official visit to France. The A350s will be powered by Rolls-Royce Trent XWB engines. In September 2017, THY had announced a commitment to purchase 787-9 Dreamliner aircraft from Boeing.

 

 

Maysan Mando is to produce power steering systems for the automotive sector in Turkey for the first time with an investment which will total some USD 120 million.

 

Maysan Mando is owned 50% by the South Korean automotive conglomerate Mando Corporation, which is a global original manufacturer and supplier to Ford, Chrysler, Chevrolet, Nissan, Kia Motors Company, Fiat, Volkswagen, BMW, Suzuki, Hyundai Motor Company and many other global automobile distributors. It has an annual profit of around USD 7 billion. Mando has three main areas of business: steering parts, brake parts, and suspension parts. It is a major supplier to Tesla's autonomous vehicles project. It was reported that the Tesla roadster American businessman Elon Musk sent to outer space also had shock absorbers made by Mando. Since sub-components of the parts required for the shock absorbers and other brake tools for the Tesla vehicle sent to Mars were produced in 24 different Mando factories, including the factory in Turkey where the shaft component of a shock absorber, there is a good chance that Maysan Mando also contributed parts to the Tesla electric car sent out into space.

 

In an interview given to Turkish language daily newspaper Dünya, Maysan Mando General Manager Anıl Yücetürk gave details about his company and the new investment in power steering. He said that  Maysan, which was founded in 1969, was one of the first Turkish companies to produce shock absorbers in the country. It was later named Maysan Mando in 1997, when South Korea's Mando Corporation acquired a 50% stake in the company. Exporting to more than 70 countries, Maysan Mando produces shock absorbers for the Turkish Armed Forces as well as for global automotive giants like Tofaş, Ford Otosan and Renault. Yücetürk said that the company had almost doubled its turnover through investments made over the past few years and plans to become one of Turkey's top 500 companies by posting a turnover of over TL 400 million (USD 98 million) this year.

 

Yücetürk said that the location of the new factory would be announced soon and that the investment was supported by incentives from the Turkish government. He added that agreements have already been signed with some local automotive companies to supply them with power steering systems, and that others were being discussed. The investment is expected to be completed by 2019 and that it will contribute USD 150 million to annual turnover. The first shipment will be made to Hyundai Assan at the end of 2019.

 

This investment will realise the first domestic power steering production in Turkey, with such systems currently being imported from the Czech Republic or Poland. The two main components of the power steering system are the electronic unit and the engine, and discussions are underway with suppliers to ensure domestic production of these components. Yücetürk said that according to an analysis made by the Association of Automobile Parts and Components Manufacturers (TAYSAD), 80% of the domestic automobile project will be manufactured in Turkey, and that this percentage will increase to 85% with Maysan Mando’s new investment.

 

 

 

Siemens has won a contract for 10 high speed Velaro trains from the Turkish State Railways (TCDD) worth around Euro 340 million, including maintenance, repair and cleaning of the trains for a period of three years, as announced in a bulletin published by Siemens on April 13th, 2018.

 

This contract will be the third contract signed between Siemens and TCDD in recent years. In May 2013, TCDD ordered from Siemens a total of 7 trains. First a contract was made for a Velaro D high-speed train-set which was procured from Siemens’ production line and refitted to meet TCDD’s requirements. The train was delivered within 180 days and went into service between Ankara and Konya in May 2015. The second contract was for the remaining 6 eight-car high-speed trains, termed by Siemens as the 6HST Turkey Velaro project, for which the train was designed as a pure 25 kV single system vehicle with adjustments to interior design again in accordance with TCDD’s requirements. The seven trains in operation connect Ankara with Konya and Eskişehir and have already covered over five million kilometres in passenger service. The first two agreements also contained up to a seven-year maintenance agreement including spare parts and the delivery of a driving simulator.

 

With the new contract, the Turkish Velaro fleet will grow to 17 trains.

 

The Velaro high-speed eight-car train has a top speed of 300 km/h, is 200 metres long, and has more than 500 seats. The aerodynamically optimised and energy efficient Velaro train also has a comprehensive entertainment and information program. Passengers in Velaro Turkey trains receive e-books, online browser games, news tickers and IPTV (Internet Protocol Television) in addition to music, videos and travel information. Touch displays are integrated in the seats in first and business class. Connection of mobile devices brought by the passengers to WLAN (Wireless Local Area Network) allows their users access to these offerings and information. A satellite connection for data transmission to and from the landside and UMTS (Universal Mobile Telecommunications System) are available in order to provide powerful and interruption-free communication.

 

 

Anadolu Motor, a subsidiary of Turkey’s Anadolu Group, and Italian Argo Tractors’ joint venture Anadolu Landini  has started production of tractors at its factory at Şekerpınar in the Turkish province of Kocaeli. Anadolu Landini was established in 2017. The ceremony held on April 13th 2018 to inaugurate the start of production at the factory was attended by Turkey’s Science, Industry and Technology Minister Faruk Özlü

 

Anadolu Group Chairman Tuncay Özilhan, in his speech at the ceremony, said that  "By combining Anadolu Group's 68 years of experience with the 134 years of expertise of our Italian partner in tractor design and manufacturing, we are pleased to invest in Turkey and to contribute to our national agriculture, exports and employment." He added  that they intended to increase the ratio of domestic production of tractors sold under the Landini name in Turkey to 85% by the end of 2019, and to 100% for some models in the long term.

 

Argo Tractors Chairman Valerio Morra said that Turkey ranks first in Europe in agricultural production, and that this investment therefore has strategic importance for them. He added that their successful work with Anadolu Group since 2012 had impacted their decision.

DFDS, a Danish shipping and logistics company,  has agreed to buy Turkish freight shipping operator U.N. Ro-Ro from a consortium of Turkish private equity firms Actera Group and Esas Holding for Euro 950 million (USD 1.17 billion) on a debt-free basis. The transaction, which was announced on April 12th, 2018,  is expected to be closed in June 2018 after approvals from the Turkish, Austrian and German competition regulators as well as Italian authorities, in relation to the transfer of the Trieste terminal, considered a strategic asset, and operated by U.N. Ro-Ro.

 

U.N. Ro-Ro, with its fleet of 12 large Ro-Ro ships carrying 202,000 freight units in 2017, currently operates five freight shipping routes between Turkey and the EU, connecting the Turkish ports of Pendik, Ambarlı and Mersin with Trieste and Bari in Italy, Toulon in France and Patras in Greece, and is the operator of  the Trieste and Pendik port terminals. U.N. R0-Ro is considered a profitable organisation and had predicted revenue of Euro 240 million (USD 297 million) and an EBITDA of Euro 97 million in 2018.

 

The consortium of Actera and Esas Holding had acquired their 98.8% stake in U.N. Ro-Ro from private equity firm KKR & Co for an undisclosed sum in 2014. KKR & Co had paid Euro 910 million in 2007. U.N. Ro-Ro had originally been established by 48 Turkish transport companies in 1994, in the height of the armed conflict in the former republics of Yugoslavia, in order to by-pass the Balkans and reach European markets with an initial route to Italy's Trieste.

 

Actera is well known in Turkey for investments in such companies as Mey, a spirits manufacturer and distributor, and Kamil Koç, a coach operator. Esas Holding is best known for its ownership of Turkey’s largest private airline Pegasus.

 

The acquisition of U.N.Ro-Ro by DFDS will allow the latter to expand its route network to include the fast growing transport market between Turkey and the EU. DFDS, which operates mainly in the North Sea, sees important similarities between this business market and that as operated by U.N. Ro-Ro in Turkey with its port terminals handling a high number of trailer units and containers for reloading to rail transport in the ports, and with the types of goods it transports. DFDS is also familiar with the ships operated by U.N. Ro-Ro as they were all built at the Flensburg Shipyard in Germany, where DFDS has also been building modern ships of similar design.

 

After the announcement of the deal, shares in DFDS rose 4.5%.  DFDS also changed its financial forecast for 2018 as a consequence of the deal and DFDS now expects revenue to grow by 8% and EBITDA before special items to be between Danish crowns 3.0 and 3.2 billion. DFDS’s board has decided to terminate the company’s current share buyback program and suspend a planned dividend, and will be recommending a share issue of Danish crowns 1 billion (USD 166 million) as part of the financing structure which otherwise consists of committed term loan financing.

 

The Lauritzen Foundation, which holds 42 percent of DFDS’s share capital, has confirmed its intention to participate pro rata in a share issue.

 

DFDS announced that it expects the ratio between its net interest bearing debt and its core profit (EBITDA) to rise to around 2.5 after the deal and the share issue, and that this would be in line with its targeted ratio of between 2.0 and 3.0.

 

Turkish President Recep Tayyip Erdoğan and Russian President Vladimir Putin attended a symbolic ground-breaking ceremony for Turkey’s first nuclear plant at Akkuyu in Turkey’s Mersin province on the Mediterranean coast on April 3rd 2018.

 

Erdoğan and Putin attended the ceremony by means of video teleconference from Ankara. After speeches were delivered by the two leaders, Turkish Development Minister Lütfi Elvan pressed the button to lay the foundation of the nuclear power plant which is to be built by Russia’s Rosatom for an investment cost of some USD 20 billion in accordance with the agreement signed between the Turkish and Russian governments back in 2010.

 

There are however still some big obstacles to the conclusion of the agreement relating to the power plant. Permissions required for the project to go ahead and identification of a new Turkish partner for Russian Rosatom have not yet been finalised.  Rosatom holds a majority share in the plant with 51%, and the remaining 49% stake was originally planned to be divided between a Turkish consortium made up of three contractors under the name Cengiz-Kolin-Kalyon (CKK). However, Kolin and Kalyon recently decided to pull out of the project, claiming that they were unable to come to an agreement on commercial terms. Rosatom has stated that it is now engaged in talks with the Turkish state electricity producer EÜAŞ as a new shareholder in the project.

 

The Turkish Atomic Energy Authority (TAEK) granted the country’s first nuclear power plant, Akkuyu Nuclear Power Plant (NPP), a construction license on Monday April 2nd which would allow it to build a unit of the plant.

 

The Akkuyu nuclear power plant is planned to have a capacity of 4,800 megawatts with four units of 1,200 megawatts each, and a working life of 8,000 hours per year. In the first phase of the construction, two units with a capacity of 2,400 megawatts are planned. The first reactor is expected to become operational by 2023, while the plant is expected to be up and running at full capacity by 2025. The Akkuyu NPP will produce 35 billion kilowatts of electricity at full capacity, which will meet about 10% of Turkey's electricity needs.

 

German engineering international conglomerate ThyssenKrupp is the main contractor in the project to construct six 214 type submarines for the Turkish navy. The project was signed in 2009 between the Turkish government and the German contractor and was originally intended to be completed within ten years. Construction was to be done at the Gölçük Shipbuilding yard near Bursa in the north-western region of Turkey using local resources and assistance. The sub-contractors are prominent Turkish defence companies, including Aselsan, Havelsan, Ayesaş, Milsoft, Koç and STM.

 

The first submarine TCG Piri Reis was started in 2015. The third submarine Murat Reis’s inaugural welding ceremony was attended today by the Turkish Prime Minister Binali Yıldırım. There have been significant delays in the construction progress and Yıldırım requested that the process be speeded up.

 

Turkey has in recent years been pushing very hard to develop its own indigenous defence industry. The completion of this project will mean that an important step has been taken in this direction. The Turkish navy needs to bolster its presence and operations in the Aegean Sea and the Mediterranean especially. Tensions with Greece over territorial claims in the Aegean islands and the on-going stand-off with Greek southern Cyprus requires more patrolling and response capability. Other areas also requiring supervision and monitoring by the Turkish navy are the Black Sea with which Turkey has a long coastline, the international shipping lanes which pass through the Çanakklae straits, the Marmara Sea and the Istanbul Bosphorus straits.

 

 

 

Socar , Azeri state energy company, has declared in an interview with Reuters on February 22, 2018 that its oil refinery, located within the Petkim Aliağa complex on the Aegean coast, will become operational in the third quarter of 2018.

 

This refinery, which is the first to be built in Turkey within 30 years, is being constructed at a cost of USD 6 billion together with its partner Turcas. The refinery will have capacity to process about 10 million tons per year (200,000 barrels per day) of crude and will boost Turkey’s refinery capacity by some 30%. The plant is expected to produce 1.6 million tons of naphtha and 420,000 tons of xylenes. It will also produce about 4.8 million tons of diesel, alongside jet fuel, petroleum coke, reformate, sulphur and liquefied petroleum gas (LPG). The refinery will thereby largely meet Petkim’s need for light and heavy naphtha and will meet a substantial part of Turkey’s imports of ultra- low sulfur diesel, liquid gas, aviation fuel, xylene and other oil products.

 

Tüpraş, Turkey’s only refining firm, has four plants across the country with combined processing capacity of 28 million tons (560,000 bpd).

 

The SOCAR-Turcas refinery project was initiated after the acquisition of the controlling shares of Petkim by SOCAR-Turcas in 2008.In December 2009, the Environmental Impact Assessment was approved and in 2010 the licensing process was finalised by the Turkish Energy Market Regulatory Authority.


 

 

Mitsubishi starts production at new factory in Manisa, Turkey 

 

Mitsubishi Electric Corporation has announced that its Turkish subsidiary, Mitsubishi Electric Turkey Klima Sistemleri Üretim A.Ş., has started production of air conditioners today at its new factory in Manisa. Turkey, as part of its plans to expand its activities in Turkey and Europe.

 

The new plant is located in the Manisa Organized Industrial Zone and covers an area of approximately 60,000 m2 with a floor area of approximately 40,000 m2. Annual production is expected to reach 500,000 sets (indoor and outdoor units) and a total workforce of 400 employees are envisaged by the fiscal year ending in March 2021. Value of this new investment is TL 382.5 million.

 

 

According to an article by Habertürk, the UK has recently issued an open general export license to allow for the transfer of materials, software and technology to be used in Turkey’s national fighter jet TF-X project. This general umbrella license eliminates the need for separate licenses for parts used in the production of the aircraft.

 

This general export license will enable the maximum use of domestic facilities as is envisaged by the project’s partners Turkish Aerospace Industries (TAI) and the UK giant BAE Systems. It also allows for collaboration in various fields, and more importantly allows for sales of the jet aircraft to third countries. It is envisaged that the new jet fighter will be ready to replace Turkey’s ageing F-16 jets from 2020 onwards.

 

Rolls Royce has established a joint venture with the Turkish Kale Group with the specific purpose of manufacturing  the jet engines for the Turkish TF-X fighter. It is expected that the tender for these engines will be given to Rolls Royce.

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A.Schulman, a US international company manufacturing high performance plastic compounds, composites and polymer, has opened a factory in the Çerkezköy Organized Industrial Zone, located in the Tekirdağ region of northwest Turkey. The factory has an annual manufacturing capacity of 17,500 tons and will service Turkey as well as Middle East and North Africa markets.

 

A.Schulman’s principal product lines comprise proprietary and custom-formulated engineered plastic compounds, engineered composites, colour concentrates and additives that improve the appearance, performance or ability to process plastics in a number of specialised applications.

Austrian firm Hamburger Containerboard, part of the Austrian Prinzhorn Group and one of the leading producers of high-quality corrugated case material in Europe, has announced that it will invest Euro 300 million in a new paper mill in Turkey’s western province of Kütahya.

 

The new paper mill will manufacture fully recycled paper,generate 500 jobs, and is planned to be operational in 2012. 50-60% of the financing will be provided from the firm’s equity while the rest will be secured from foreign banks. The investment will benefit from government incentives such as corporate tax reduction, unlimited employer support for social security and value added tax (VAT) exemption since it is registered in a 5th Investment Incentive Region.

 

Hamburger Containerboard started its operations in Turkey in 2013 through the acquisition of Dentaş Kağıt A.Ş., a leading player in the cardboard packaging production market in Turkey.

 

 

 

Rolls Royce signs contract for supply of engines for Turkish built harbour tugs. Rolls Royce gave the following press statement on August 15th regarding this contract :

 

“Rolls-Royce and Sanmar Shipyards in Turkey have signed a contract for the delivery of eight MTU Series 4000 engines for four new terminal tugs, including an option for a further four engines. The tugs will each be fitted with two 16V 4000 M73L MTU engines, each delivering an output of 2,700 kW (at 1,850 rpm). The MTU brand is part of Rolls-Royce Power Systems.

 

Ali Gürün, Projects Director of Sanmar Shipyards, commented: “We were impressed by MTU’s technical support, the service and the reliability of the MTU engines, which is why we will also be equipping our new Robert Allen/ Rastar 2900sx tugs with MTU engines.”

 

Sanmar and MTU have been working closely together since 2009. Knut Müller, Head of the Marine and Government Business Division at MTU, said: “This is the first time high-speed engines are being used to power harbour tugs in this power class. To date, it has only been possible to use medium-speed engines for harbour tugs with a bollard pull of over 85 tonnes. We are delighted that we have now been successful in entering this market.”

 

The speed of the engine has been reduced to 1,850 rpm specifically for this application in order to provide the Shipyards with direct control of the propeller without an intermediate gearbox. The Robert Allen/ Rastar 2900 SX terminal tugs, with a length of just under 30 metres, will be added to the fleet operated by the Danish towage company Svitzer as of 2018. The powerful tugs are to be used in the Tanger-Med Port in Morocco, the operators of which have now signed a 20-year contract with Svitzer for terminal towage services.

 

MTU and Sanmar have signed an additional contract for the delivery of four 16V 4000 M63 engines, each delivering 2,000 kW of power for two tugs with a 70-tonne bollard pull. These new contracts now bring the number of tugs built by Sanmar to date and fitted with MTU engines to 16. Half of the tug types currently available from Sanmar Shipyards are fitted with MTU engines.”

 

Rolls Royce operates across five businesses: Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power Systems. Rolls-Royce Power Systems is headquartered in Friedrichshafen in southern Germany and employs around 10,000 people. The product portfolio includes MTU-brand high-speed engines and propulsion systems for ships, power generation, heavy land, rail and defence vehicles and for the oil and gas industry.

      

Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.

    

Annual underlying revenue was £13.8 billion in 2016, around half of which came from the provision of aftermarket services. The firm’s order book stood at £80 billion at the end of 2016. In 2016, Rolls-Royce invested £1.3 billion on research and development. Rolls-Royce employs almost 50,000 people in 50 countries. More than 16,500 of these are engineers.


 

Eight consortia, including four large German conglomerates, participated in the Turkish Energy Ministry’s 1,000 megawatts (MW) wind power project tendered on July 27th.

 

The bidding consortia were: the consortium of Denmark’s Vestas and Turkey’s Enerjisa, Germany’s Siemens and Turkey’s Türkerler and Kalyon consortium, Germany’s Enercon and Turkey’s Polat and Limak consortium, Germany’s Nordex and Turkey’s İklim Electric Investment, MKS Marmara and Zorlu consortium, Germany’s Senvion and Turkey’s IC Energy consortium, Chinese Goldwind and Turkey’s Akfen and Beyçelik consortium, the USA’s General Electric and Turkey’s Fina Energy consortium, and Chinese MingYang and Turkey’s İlk Construction consortium.

 

The winning consortium will make more than a USD 1 billion investment in the project. Gradual use of locally produced wind turbines is stipulated, and, for this purpose, a turbine plant requiring an investment of nearly USD 100 million is to be built in Turkey. A minimum of 65% local output and an engineering team to be composed 80% of Turks are also stipulated. With the completion of the planned wind power project, Turkey’s existing 6,000 MW of installed wind power capacity will increase by 17%. 

 

The winning consortium was announced as the  German energy conglomerate Siemens and Turkey’s Türkerler and Kalyon Enerji holdings on August 3rd. The consortium had offered the lowest price to the state with USD 3.48 cents per kilowatt hour.  

 

The tender came at a time when Turkish economy officials were making every effort to tone down a recent row with Germany and assure that German investments in Turkey were safe, reiterating that a “communication mistake” was behind reports an anti-terror probe against hundreds German companies in the country was to be pursued. 


    
 


 

IFM Investors, an Australian global investment managing fund, has purchased a 40% stake in the Mersin port on the Mediterranean coast of Turkey from Turkey’s Akfen Holding. The value of the investment was USD 869 million.

 

Akfen’s share was reduced to 10%. Akfen had previously invested USD 1.2 billion in the Mersin Port with its partner Singapore’s PSA International in 2007 when they bought the operational rights from Turkey’s privatisation authority for USD 755 million for a 36 year period.

 

 

LM Wind Power, a subsidiary of GE Renewable Energy, announced on July 13th the start of production at its new wind turbine blade factory in Turkey. 

 

The company’s factory, which required an investment of USD 50 million and will employ 450 technical personnel, will manufacture and distribute wind turbine blades with an anticipated annual output capacity of 500 megawatts.  The factory has a potential capacity of 1.5 gigawatts.    

 

As of the end of June 2017, Turkey’s wind capacity totals 6.1 gigawatts, and it is targeted to increase this capacity to 20 gigawatts by 2023.

 

Brazil’s Votorantim Cimentos, one of the world’s leading cement producers, opened a mega plant with an investment value of USD 140 million, in Turkey’s central Anatolian province of Sivas on July 5th.

 

This is reported to be the largest industrial investment which has ever been made in Sivas, The investment was carried out through the modernisation of the existing cement factory which was founded in 1938 and was the first plant built by the state after the Turkish Republic was founded. 

 

The company, which already has production plants across Turkey, plans a further TL 35 million (Euro 8.5 million) investment in Turkey in 2017 to further boost its growth in the region. Its investment in Sivas was its largest outside the Americas. Votorantim Cimentos has operations in a total of 14 countries with an annual production capacity of 57.5 million tons. 

 

With the new investment in Sivas, the company’s production capacity in Turkey will increase by 40 % to 3.6 million tons. It currently has more than 780 people operating 4 cement plants in Hasanoğlan, Yozgat, Çorum and Sivas, 2 grinding mills in Nevsehir and Samsun, 16 ready-mix plants in the Ankara, Cappadocia and the Black Sea Regions and 2 aggregate plants in Ankara-Lalahan and Kayseri-Bünya.

 

Russia’s state-owned nuclear energy conglomerate Rosatom agreed to sell a 49% stake in its nuclear project in Turkey southern province of Mersin to Turkish nvestors in a preliminary agreement on June 19th on the sidelines of a nuclear conference in Moscow.

 

The stake in the Akkuyu project was sold for an undisclosed sum to the three Turkish companies Cengiz, Kolin and Kalyon, known as the CKK consortium. These companies, which are active in the construction and energy sectors, will each have an equal stake. The shareholders’ agreement will be signed by the end of the year, at which time the sum of the deal is expected to be revealed.

 

Turkey and Russia signed an intergovernmental agreement to build and operate the Akkuyu nuclear power plant in 2010. According to the agreement, Russian companies would own a minimum 51% stake in the nuclear power plant.

 

Construction on the nuclear plant is expected to start this year. Turkey’s energy watchdog the Energy Market Regulatory Authority (EPDK) has given a power generation licence to Akkuyu Nuclear JSC for a 49-year period starting as of June 15th. This follows a preliminary licence of three years which has expired.

 

The USD 20 billion Akkuyu project is expected to be completed by 2023 and meet 6 to 7% of Turkey’s electricity demand once completed. Power from the project’s four 1,200 megawatt reactors is planned to be sold mostly to the state with a small amount to be offered on the open market.

 

At the nuclear conference in Moscow, Rosatom representatives announced that the project will be financed by Rosatom and its partners and will involve loans from export-import agencies and banks. They also stated that Rosatom’s overseas order book stood at USD 133 billion for the next 10 years, with almost three times more foreign orders than in 2011. 

Dubai-based Mirage Cargo B.V. is to acquire MNG Cargo, one of the largest companies in the Turkish cargo service sector, subject to the approval

of Turkey's Competition Authority.

 

Founded in 2009 in order to take advantage of Dubai’s position as an important air traffic hub for air traffic through the middle east, Mirage Cargo

Services operates worldwide in the transport and logistics sectors.

 

MNG Cargo, with 815 branches and over 9,000 employees, is one of Turkey's leading cargo companies with over 600,000 daily deliveries.

 

 

 

France’s Aeroports de Paris (ADP) signed an agreement today with Turkey’s Akfen Holding for the latter to sell its remaining 8.12% stake

in TAV Airports for USD 160 million, as announced in a joint statement by Akfen Holding and TAV.

 

ADP, the operator of the Charles de Gaulle and Orly airports in Paris,  plans to expand into new markets in the Middle East, Central Asia,

Europe and Africa as well as new areas within Turkey along with TAV. With this acquisition, ADP’s stake in the Turkish airport operator

TAV will increase to 46%, cementing its position as TAV’s largest shareholder. 

 

Turkey’s Akfen Holding plans to use the revenue from the sale of its shares in TAV to help finance its TL 6.7 billion (USD 1.9 billion)

investment program in Turkey focused on hospitals and energy projects. The two other shareholders in TAV, Tepe Construction and Sera

Yapı, both expressed their support for this transaction.

 

TAV Airports’ equity is now valued at around USD 2 billion or TL 19.2 per share. TAV Airports’ shares were up 3.2% on the announcements. 

ADP announced that they had no plans to buy a further stake in TAV Airports. 

 

TAV operates 14 airports in Turkey and around the world, including Istanbul’s Atatürk airport, home base of Turkish Airlines and one of

Europe’s busiest airports.

 

TAV Airports’ CEO Sani Şener said that TAV would be interested in Istanbul’s Sabiha Gökçen Airport, in the event that Malaysia Airports,

as has been inferred, wanted to sell some 30 or 49% of its stake in that airport.  

 

A consortium, including TAV Airports and the Al Rajhi Group, was awarded on June 8th, by the General Authority of Civil Aviation (GACA)

of Saudi Arabia, with the contract to operate the Yanbu, Qassim and Hail international airports for 30 years.

 

Şener said the company would likely finance some 20% of their total planned investment of USD 400 million for these airports through their

own equity capital, with the remainder to be met through loans from Saudi banks.

Rolls Royce to set up joint venture with Turkish Kale Group to develop jet engines. At a press meeting held on May 8th, representatives from the Rolls Royce and Kale Group companies announced that they are to establish a joint venture to manufacture civilian and fighter aircraft engines, including Turkey’s planned TF-X fighter jet which is being developed by Turkish Aerospace Industries (TAI).

 

The new joint venture will be named “TAEC Aircraft Engine Industry Corporation” and Kale Group and Rolls-Royce will own 51% and 49% of the company, respectively. It has been announced that intellectual property and technologies generated by TAEC will remain with Turkey and that Turkish products and equipment would be used wherever possible.

 

This partnership follows on from an earlier agreement in January during a visit to Ankara by UK Prime Minister Theresa May where it was agreed that BAE Systems would assist Turkish Aerospace Industries (TAI) with designing the TFX, which will replace the F-16 fighter fleet.

 

The agreement follows months of sustained bilateral consultation between Turkey and the U.K to manufacture engines. In October of last year, Rolls-Royce officials, including its CEO Warren East, visited Turkey and met with top Turkish government officials to discuss areas of collaboration. At the time, it was believed that Rolls-Royce offered Turkey the EJ200 with a measure of co-production and transfer-of-technology. Turkey’s requirement for export licenses, a key need for Ankara’s ambition to control and commercially benefit from the TFX, were also discussed.

 

Though generally considered to be ambitious, 2023 has been given as the target date for a maiden test flight of TFX. Serial engine production is planned for 2030. Initially, some 350 Turkish engineers will be hired by the joint venture and sent to the Rolls-Royce headquarters in the UK to get the required engineering training.

 

Kale Group is a provider of structural components, assemblies and kits to the aerospace and defence industry, through its four companies in this field. The company is already in partnership with the US Pratt & Whitney to manufacture, assemble and repair the key parts of the F-135 engine of Lockheed Martin’s F-35 fighters, and is also the contractor for the Turbojet engine development project to produce domestic aircraft engines. Kale entered the defence and aerospace industry in 1987, and is a supplier to many global defence and aerospace companies.


 

Al Aboud Holding, a Saudi / Egyptian owned company, has acquired a solat plant in the south-west

Anatolian province of Burdur, Turkey, from Tekno Ray Solar, a joint venture between Italy’s Enerray

SPA and Turkey’s Tekno Group of Companies.   

 

This acquisition is in line with Al Aboud’s commitment to investing in more than 50 MW of installed

capacity in Turkey by 2018. The 6.6 MW Burdur solar plant, covering an area of 125,000 square

metres and with a capacity of up to 11 million kilowatt hours of electricity, went online in late 2016.

The plant is also deigned to prevent emissions of some 6,700 tons of carbon dioxide emissions per

annum.

Sephora, France’s international cosmetic conglomerate, is to acquire 19 stores of Turkish cosmetic Retail chain Tekin Acar. The purchase is awaiting the approval of Turkey’s Competition Board.

 

The deal was previously announced by the Competition Board as the "The acquisition of Tekin Acar Kozmetik Mağazacılık Tic. A.Ş. by Sephora Cosmetics Inc.", but has since been changed to the transfer of 19 stores. Tekin Acar has a total of 79 stores throughout Turkey.

 

Acar Tekin has for some time admitted that it faced difficulties, resulting in delays in paying salaries and rents. The company has claimed that the environment of uncertainty in the Turkish economy was a major reason for its problems.

 

Sephora is a French chain of cosmetics stores founded in 1969. Operating nearly 300 brands along with its own private label, Sephora offers beauty products including makeup, skincare, body, fragrance, nail colour and haircare. It is owned by LVMH, a French multinational luxury goods conglomerate with its headquarters in Paris. Sephora has been operating in Turkey for seven years.


 

The Netherlands based travel fare aggregator website Booking.com has halted all reservation transactions in Turkey on March 30 following a court decision the previous day to block the website in the country. 

 

The company said it would appeal the court decision of the Istanbul 5th Court of First Instance ordering the suspension of Booking.com to market and mediate stationed hotel and accommodation facilities in Turkey on its own website and on other addresses, based on a lawsuit opened by the Association of Turkish Travel Agencies (TURSAB) claiming unfair competition.

 

The company was quoted by the Associated Press as saying “As an e-commerce and technology company, we are convinced that we contribute to healthy competition in the market by offering Turkish consumers a transparent and easy platform to compare and book accommodation all over the world”  Booking.com pointed out it helped some 13,000 Turkish businesses offer accommodation to consumers.

 

The Coca-Cola İçecek (CCI) company said in a statement on March 30th that it plans to open its 10th plant in Turkey, in the southern province of Isparta, with a TL 110 million (USD 30.1 million) investment. 

 

The plant is expected to be fully operational in the second quarter of 2017, according to the statement.This production facility will have an annual capacity of 220 million litres - around 40 million unit cases, will have two lines capable of producing ice tea, juice and sparkling products in can and PET packages, and will provide direct and indirect employment to approximately 300 people. 

 

The company is 50.3% owned by Anadolu Efes, 20.1% by the Coca Cola Export Corp., 3.7% by Özgörkey Holding, and the remaining 25.9% publicly traded on the Turkish stock market.

 

According to CCI’s statement, the company operates in 10 countries with 24 plants and 10,000 employees, reaching out to 380 million consumers, and is the fifth largest bottler in the Coca Cola system in terms of volume and second in terms of population.

 

Kühne-Nagel, a Swiss-based German company, one of the largest logistics companies in the world, has made an official application to the Turkish authorities to purchase Zet Farma, a Turkish logistics company.

 

Founded in 1992, Zet Frama has approximately 400 employees and sizx warehouses in Istanbul, and is especially strong in the Pharmaceutical sector, with customers such as Abdi Ibrahim and Mustafa Nevzat.  

 

Kühne-Nagel was founded in Bremen in 1890, and is one of Germany’s oldest logistic companies.With Its headquarters in Switzerland, the company has over 70,000 employees and 1,200 offices in more than 100 countries around the world. Listed as one of the largest companies in the world in maritime transport, the company also has a strong position in air and land transport activities.

 

 

France’s AccorHotels has entered into a strategic partnership with Turkey’s Rixos Hotels. The Agreement signed between the two companies allows for a joint management company to be established with each of the two comanies owning a 50% shareholding. This management company will be responsible for developing and managing Rixos-branded resorts and hotels around the world.

 

It has been agreed that AccorHotels will integrate 15 Rixos hotels located in Turkey, the United Arab Emirates, Egypt, Russia and Europe into its network. In addition, it is envisaged that Rixos’s 5 city hotels will be run under the  AccorHotels brand.

 

Antalya-based Rixos Hotels has 16 resort hotels in Turkey, the UAE, Egypt, Russia and Europe, and is set to soon add new investments to its portfolio in Dubai, Abu Dhabi and Maldives. AccorHotels runs more than 4,000 hotels and other amenities around the world.

 

OMV, the energy group with its headquarters based in Austria, has announced the sale of its Turkish subsidiary Petrol Ofisi to Vitol, a Swiss oil trading company, for Euros 1.368 billion (USD 1.45 billion).

OMV, which employs 24,500 people, though having recently announced a Euro 3 million net profit for 2016, recorded a net loss of Euro 1.15 billion in 2015, which forced the company to relieve itself of non-core assets to raise cash. OMV considered Petrol Ofisi one of its non-core investments. Turkey has very high fuel prices as a result of tax levels, and the petrol distribution sector in Turkey is highly regulated. Government interference is one of the matters which was of great concern to OMV. The weakness of the Turkish lira in recent years had also greatly effected profits from OMV’s Turkish investment.

The sale transaction is expected to be finalised by the third quarter of 2017 after regulatory approval has been received.

 

Turkey’s Competition Authority approves Migros’s acquisition of Tesco Kipa. Turkey’s Competition Authority has approved Migros Ticaret A.Ş.’s acquisition of 95.5% of the shares of Tesco Kipa. The agreement had been signed in June 2016. 

 

As a result of the share transfer, Migros will acquire a net sales area of approximately 320,000 square meters in assets, including 26 shopping malls, 48 hypermarkets, 48 supermarkets and 72 express stores from Kipa, which is active mainly in the Marmara, Aegean and Mediterranean regions. 

 

The share transfer is planned for March 1, 2017. 
 

Souter Investments, a UK based company, which has a 30 % shareholding in the Istanbul Fast Ferries company (IDO), has applied to an arbitration court in Washington, USA, to dispute the discount given on tolls of the Osmangazi Bridge at the beginning of ths year. The Osmangazi Bridge, operated by Otoyol A.Ş., is in direct competition with IDO which operates ferries across the Gulf of Izmit.

 

Souter Investments says that the toll should be USD 42 and claims that the discount which reduced the toll to USD 18 was inconsistent with contracts signed relating to the IDO privatisation tender. The British company also included other issues, such as IDO’s permission to allow other firms to use its most profitable routes, in its petition to the arbitration court.

 

Tepe-Akfen Group is IDO’s main shareholder, and the Tepe-Akfen-Sera joint venture group won the privatisation tender of IDO in 2011 with a bid of USD 861 million. The Orhangazi-Izmir highway project was put out to tender in 2009 based on the build-operate-transfer model. The tender for the construction and operation of the highway between Gebze and Bursa was won by NOMAYG, a joint venture formed by five Turkish companies (Nurol, Özaltin, Makyol, Yüksel and Göçay) and one Italian company Astaldi, for USD 11 billion. The cost of the bridge was reported to be around USD 1.1 billion.

 

 

The Bank of China has been given permission by the Banking Regulation and Supervision Agency (BDDK), to open a deposit bank against an initial share infusion of USD 300 million. The Bank of China will have a 99.99 % direct shareholding in the new banking entity, with the remaining 0.01 % shares being distributed among Best Stream, Maxon, Well Ocean and Union Favour companies which are owned by Bank of China Group Investment Ltd, a subsidiary of the Bank of China. 

 

A joint venture between BRF S.A. (a Brazilian food processor) with 60 % and Qatar Investment Authority with 40 % will take a 79.5 % stake of Turkish poultry producer Banvit’s total paid capital. The deal covers the full purchase of Banvit’s shares, the remaining portion of which will be offered to tender in due course. The value of Banvit was established at USD 470 million. 

 

Banvit, operational since 1968, is the biggest poultry company in Turkey in terms of sales and is listed on Borsa Istanbul stock exchange. Banvit is a pioneer food company with fully integrated production facilities, and is sensitive to public health and the environment. 

 

BRF is one of the world’s largest food companies, with more than 30 brands which include Sadia, Perdigão, Qualy, Paty, Dánica, Bocatti and Confidence. Its products are marketed in more than 150 countries on five continents. BRF employs more than 105,000 employees, has production units in seven countries (Argentina, Brazil, the United Arab Emirates, Holland, Malaysia, UK, and Thailand) and exports to over 150 countries.

 

BRF’s purchase of Banvit is part of the group’s strategy to move into the helal market. Banvit will Integrate into OneFoods, a BRF subsidiary dedicated to helal food. 

 

Hitachi has announced that it is to acquire a 75 % stake in Kurt & Kurt, a Turkish healthcare company. Through this acquisition, Hitachi will gain a platform which will enable it to strengthen its operation services for hospital imaging centres to help it expand its global business in this field. The new subsidiary in Turkey is its fifth strategic centre. Kurt & Kurt, established in 1977, has been acting as a distributor for a wide range of Hitachi products, including its diagnostic systems, for over 30 years.

 

Vodofone Turkey has announced a 17.5 % increase in its revenues from services during the first half of its 2016-2017 financial year compared to the same period last year. Revenues were TL 4 billion (USD 1.23 billion) in the six month period April – September 2016. Profits before interest, tax and depreciation were TL 1.1 billion (USD 338 million), an increase of 30 % on the same period for the previous year. The mobile operator has maintained double-digit growth for the last seven years, and has recently benefitted from the introduction of 4.4G in April 2016.

 

Tesco’s Turkish subsidiary Tesco Kipa sold to Migros. Tesco’s subsidiary in Turkey, Tesco Kipa, has been sold to its rival supermarket chain Migros for TL 302.3 million (USD 104.2 million), Migros purchased 95.5% of Tesco Kipa’s shares.

 

Tesco Kipa has 173 Kipa stores in Turkey and recorded a TL 574 million loss for the 2014-2015 financial year.

 

After the sale was announced, Tesco Kipa’s shares fell 19% on Borsa, the Istanbul stock Market, whereas Migros’s shares increased 6% in the morning session.  

 

Tesco has been determined to sell its Turkish subsidiary for some time. It had failed to adapt to the Turkish market, always trying to impose its own system. Large shopping centre malls became common place in every city, but Tesco never wanted to take part in this conecpt. It prefered to open its own large supermarkets in cities around Turkey. Supermarkets, whether in AVM’s or independent, are a very competitive sector. No one can afford to make bad strategic decisions. 

 

Tesco has had very bad experiences in many of its investments overseas. It made costly exits from Japan and the United States, and has had to reduce its exposure in China. Last year, Tesco sold its South Korea business for USD 6.1 billion, and the ompany now only has investments left in Thailand, Malaysia, Central Europe and Ireland.

 

The low price obtained from Migros for its Turkish subsidiary reflects Tesco’s desperation to exit the Turkish market. Indeed, the sale will yield Tesco proceeds of only USD 43.4 million (PSD STG 30 million), a veritable discount for an unprofitable company, calculated as some 5% of its market value. 

 

The sale of Tesco Kipa still needs to be approved by Turkey’s Competition Authority.


 

France’s pharmaceutical company Servier has decided to move some of its production operations from France and Ireland to Turkey. The company plans to move the production operations of around 21 million medicine packages to Turkey in the next 18 months and increase its annual production capacity through Abdi İbrahim and İlko İlaç in Turkey to 32 million packages by 2018. The company aims to export to Turkey’s neighbouring countries to market this new capacity. Servier sells cardiology, psychiatry, diabetes and oncology medicines in Turkey.

The Health Ministry has announced that it wanted to support pharmaceutical production activities more in Turkey in a bid to decrease the foreign trade deficit in this sector. The Health Ministry has started a comprehensive program with a budget of Turkish liras 2.5 billion to support local pharmaceutical  production through incentives and by strengthening infrastructure facilities. The Ministry is especially interested in luring biotechnological manufacturing to Turkey and is prepared to offer long-term purchasing guarantees in some areas.  

According to data from the Pharmaceutical Industry Employers Union (İEİS), around Turkish liras 9.82 billion worth of medicines were imported by Turkey in 2015 with a 15.8 % of increase from the previous year. Turkey’s pharmaceutical sector’s market volume was Turkish liras 16.87  billion in 2015.

Turkey’s Health Ministry has announced that it has launched an investigation into allegations that a drug-maker, which it did not name, secured USD 85 million in business advantages through bribery. This company has since been identified as the Swiss company Novartis which, it is claimed, secured advantages worth an estimated USD 85 million by paying bribes through a consulting firm. The consulting company was apparently paid the equivalent of USD 290,000 plus costs during 2013 and 2014 before the Turkish Social Security Institution started an investigation in 2015 which led the drug-maker to cease its association with the consulting company. The allegations, which were reported in the press, were previously the subject of an internal investigation at the company. The allegations were found to be unfounded. Indeed, the company in a statement said that the Labour Ministry had launched an investigation concerning the allegations in 2014 and “concluded that all the allegations were completely unfounded and the ministry did not see it as necessary to take any action.”

HSBC Turkey has announced a TL 331.5 million loss for the year 2015. The bank’s loss for 2014 had been TL 55.9 million. In 2015, the bank’s net interest income had fallen by 9% to TL 1.12 billion. Commission income had fallen by 22.7% to 477.4 million. HSBC had decided to sell its Turkey operations in June 2015, but has since retracted due to the fact that it had been unable to obtain acceptable offers.  

OMV, the energy group with its headquarters based in Austria, has decided to sell off its Turkey operations. OMV owns the Petrol Office (POAŞ) which is the leading petrol distribution firm in Turkey. In its announcement, OMV said that it was no longer able to continue in Turkey and that state interference in the sector was the major reason for fall in its profits. POAŞ has 785 distributors in Turkey and last year sold 10 million tons. OMV had paid Euro 1 billion to Doğan Holding in 2010 for 54.17% of the company.

Tesco’s subsidiary in Turkey has decided not to sell some of its stores to Beğendik, a rival supermarket chain. The British retailer has 173 stores there but made a net loss of Turkis liras 574 million (USD191 million) in the 2014-2015 financial year. The reason not to sell may have been as a result of improved performance in 2015

CarrefourSA supermarket stores has finalised its amalgamation with the Kiler supermarket chain. As of January 4th, 2016, shares of both supermarket chains will be quoted under the single CarrefourSA name. CarrefourSA’s analgamation with with the Kiler supermarket chain had been announced in May 2015 and the transfer was carried out on July 8th, 2015.

This is the third purchase by CarrefourSA in 2015. The other two purchases were Ismar (26 stores) and Antalya 1e1 (29 stores).

HSBC Turkey has announced a TL 170.7 million loss for the third quarter of 2015 and a TL 226.3 million loss for the first 9 months of 2015.

Vodafone announced its income for the first half of 2015 as TL 4.4 billion, and that it had a 35.9 % share of the Turkish mobile telephone sector.

The National Bank of Greece (NBG), Greece’s largest lender, has long let it known of its intentions to sell part or all of its stake in its Turkish subsidiary Finansbank. This sale has now become more urgent as a result of NBG’s need to raise cash to meet new capital requirements included in Greece’s debt bailout. 
 
The leading bidder is Qatar National Bank, and there is also news leaked that Hüsnü Özyeğin, the founder of Finansbank and the current owner of Fibabank, has also submitted an offer. Finansbank is currently valued at around Euro 3 billion.
The European Bank for Reconstruction and Development (EBRD) has announced that it has acquired a minor shareholding in Turkish cruise port operator Global Ports Holding (GPH), one of the world’s largest port operating companies. The bank disclosed that this investment will be used to finance GPH’s expansion in Turkey and abroad where EBRD has investments. GPH became the world's largest cruise port operator following its acquisition of Spanish operator Creuers a year ago.
  
EBRD began investing in Turkey in 2009 and currently has offices in Istanbul, Ankara and Gaziantep. In 2014, Turkey became the bank’s leading investment recipient, receiving €1.4 billion ($1.57 billion). The bank funds projects in numerous sectors, including infrastructure, energy, agribusiness, industry and finance.
Turkey’s Yıldız Holding has announced its decision to sell 90% of its shareholding in beverage companies to Japan’s Dydo DRINCO for TL 335 million. Brands which will be transferred to Dydo DRINCO are Cola Turka, Çamlıca, Saka Su, Sunny, Maltana, Eskipazar, Florez and Link.
 
DyDo DRINCO was founded in 1975 and is now one of Japan’s most important players in the beverage sector. It is the third argest firm in sales of non-alcoholic drinks in Japan. The firm concentrates its sales through automatic vending machines of which it has over 280,000 in Japan.
 
Yıldız Holding last year bought United Biscuits making it the world’s third largest biscuit manufacturer
Turkish food retailer Beğendik announced plans to buy 10 stores from rival retailer Tesco Kipa this year. Domestic players like Beğendik have benefited as international chains have pulled back from the country’s highly competitive retail market. Last year, Beğendik bought 12 stores from the German food retailer Metro AG. It is not known how much Beğendik will be paying Tesco for its stores. Tesco Kipa is cutting back in Turkey where the British retailer has 173 stores but made a loss of TL 574 million (USD 191 million) in the 2014-2015 financial year. 
 
Beğendik runs 46 supermarkets and 13 hypermarkets throughout Turkey. It aims to almost treble sales to TL 1.5 billion (USD 500 million) this year, with a target of TL 2 billion next year. The company announced that it is in talks with foreign investors, including funds from Iran, and that an initial public offering could follow. 
Sources close to the media have revealed that Tesco intends to sell its Turkey operations,  the profitability of which has been of concern to Tesco for some time. Tesco bought the Izmir based Kipa retail outlets some 9 years ago and since expanded its retail outlets  throughout Turkey. It is estimated that the Turkish company is worth some USD 1.9 billion. On the leakage of the news to sell, the value of Tesco-Kipa shares on the Turkish stock  market rose 6 %.
Total, in a written statement, has announced that it has signed an agreement to sell its service tation network and commercial sales, supply and logistic assets located in Turkey to the Demirören Group for Euro 325 million. Total will maintain a petroleum product marketing presence in Turkey  through its lubricant activities, including a blending plant in Menemen and odourless LPG operations.  The Demirören Group is involved in a variety of fields, from manufacturing and construction to  tourism, education and media. Demirören’s Milangaz company is the country’s leading LPG supplier.
The Turkish Competition Authority has decided to open an investigation into a claim that Mey İçki San. ve Tic. A.Ş. “violated articles 4 and 6 of the Act no 4054 on the Protection of Competition by means of preventing the sale of compteing  products through creating pressure on points of sale, practicing exclusivity in favor  of its own products and complicating its competitors’ activities.” Mey is affiliated to the Diageo Group.

Sierra Nevada Corporation is to produce Turkey’s first regional jet. U.S. based aerospace and aviation technologies company Sierra Nevada Corporation, owned by Turkish businessman Fatih Özmen, announced that it has formed a new Turkish company called TRJet, which will produce Turkey's first regional jet. The aircraft to be Turkey’s first domestically-built passenger aircraft will be the TRJ328, a modernized version of the Dornier 328 (D328).

Cargill is to acquire 51 % shareholding in Ekol Gıda.The U.S.-based food giant Cargill announced that it has agreed on terms to acquire a 51 percent stake in Ekol Gıda, which operates in the premixes and animal feed additives market in Turkey, in line with its growth strategy in the animal nutrition business.

Total aims to sell its fuel distribution business in Turkey. French Total company has asked Societe Generale to lead the potential sale.

 
Turkey’s net minimum wage has been raised 26.05% to TL 2,020 (USD 381) as of 01.01.2019       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate drops to 9.26% in September 2019       Turkey’s unemployment rate increases to 14% in August 2019       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 82,003,882 as of 2018 yearend       Number of foreigners visiting Turkey in 2018 increases by 21.8% to 39.5 million       Turkey’s private sector foreign debt is USD 225.8 billion as of 2018 yearend       Turkey’s economy contracted by 2.6% in the first quarter of 2019       Turkey shows surplus of USD 538 million in its 12 month rolling current account balance in June 2019