TURKEY

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TURKEY

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TURKEY

• 70 million Population
• 35 of the population is less than 18 years old
• 52 of the population is less than 30 years of
  age
  
• If joined EU, 2nd largest population in Europe
  after Germany
  
• Turkey is one of the fastest growing economies
  in OECD
  
• Attracted an FDI inflow of approximately 20
  billion in 2006

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TURKEY

• Strategically located between the markets that
  cover over one billion consumers, including
  
• a growing domestic market (approx. 70 million)
  
  
• high-income European markets (approx. 600
  million)
  
• emerging Russian, Caucasian and Central Asian
  markets (approx. 250 million)
  
• diverse and expanding Middle East and North
  Africa markets (approx. 160 million).

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ECONOMY - 2006

• GDP Approx. 400 billion
• Per Capita Income Approx. 5,500
• GDP Growth Rate 6.0
• Inflation 9.7
• (2007 estimate 5)
• (2008 estimate 4)
• Total Imports139 billion
• Total Exports86 billion

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Main U.S. Competitors Import Market Share

• Russia 12.8 (mostly gas imports)
• Germany 10.5
• China 7.0
• Italy 6.2
• France 5.1
• U.S.A. 4.5
• EU 42.5

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U.S. and Turkey

• US 6th Largest Trading Partner of Turkey
• Imports from US Approx. 6 billion in 2006
• Exports to US Approx. 5 billion in 2006
• Turkey is NATO ally since 1952
• Signed Reciprocal Promotion and Protection of
  Investments in 1985
  
• Signed Avoidance of Double Taxation in 1996

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Advantages of Doing Business with Turkey

• Average Tariff on Industrial Goods 5
• Customs Union with the European Union
• Strategic Location for Regional Markets
• 70 Million Consumers
• Well-Developed Infrastructure
• Educated Workforce Young Population
• 100 Ownership Allowed
• Strategic U.S. Ally and Partner (Member of NATO)

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MINING SECTOR IN TURKEY

• A very rich country in diversity of mine and
  potential of mining
  
• Large steel industry, which imports coking coal
  from the U.S., Russia, Australia and South Africa
  
  
• Turkey holds 60 of the worlds boron reserves
  where its share in world boron market is only
  23.
  
• Turkey holds 1 of the worlds chromium
  reserve, where 9 of worlds chromium production
  takes place in Turkey.

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MINING SECTOR IN TURKEY

• Turkey has the 2nd largest Trona (natural soda
  ash) reserves after the reserves in Wyoming, USA
  
• Turkey has large lignite reserves (both open pit
  and underground)
  
• Turkey has an iron mine potential of over 1
  billion tons
  
• Turkey has an important marble reserve with 650
  different colors and different qualities of
  marble.
  
• Turkeys copper, zinc and lead reserves are by
  order of approximately 2.28, 2.29 and 0.86
  million tons.

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MINING SECTOR IN TURKEY

• Turkeys gold reserve comes up in the first ten
  European countries
  
• The potential of gold mining is estimated as
  6500 tons.
  
• There are more than 1175 tons of gold reserves
  known and 240 tons of ready-for-operation
  reserves in Turkey.
  
• Turkey produces 30 million tons of silver
  mineral ore, resulting with 150 tons of metal
  silver production.

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MINING SECTOR IN TURKEY

• Turkish steel producers import coking coal
• Turkish cement producers import steam coal for
  cement production.
  
• Total imports of steam coal expected to increase
  30 by the end of 2008.
  
• In 2008, steam coal consumption will be 7
  million tons.
  
• Imports will account for 3.5 million tons.
• Steam coal imports expected to increase to 12
  million tons by 2010.

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MINING SECTOR IN TURKEY

• Coal is used for both as a fuel and a raw
  material in cement production.
  
• In 2 years, 10 million tons of clinker capacity
  to be added.
  
• Main competitors for coking coal and steam coal
  are Russia, South Africa and Australia.
  
• Imported coal is also used for power
  generation.
  
• Turkish homes also depend on clean coal for
  winter heating. Approx. 8.5 million tons of coal
  imported for this purpose.
  
• Turkish importers have been paying 120 -
  130/ton

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MINING ELECTRIC POWER SECTOR IN TURKEY

• Several new imported coal type power plant
  projects are underway by the private sector.
  
• Several of these companies are Alarko, Enka
  Energy, Sabanci, etc.
  
• Demand for electricity growth is 8.
• This summer, because of the drought, Turkey had
  a hard time meeting the electricity demand.
  
• As hydroelectric meets 30 of the generation,
  the gap for additional power generation will grow
  due to global warming.

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MINING ELECTRIC POWER SECTOR IN TURKEY

• Turkey has large lignite deposits in Afsin
  Elbistan 40 of Turkeys 8.3 billion tons of
  proven lignite reserves.
  
• Turkish Government is seeking for private
  investors to operate these mines and establish
  2X1200 MW power plants.
  
• Turkish Government also tendered operation of
  several other coal mines on the condition that
  the winners will have to establish power plants
  and sell the electricity to GOT.

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MINING ELECTRIC POWER SECTOR IN TURKEY

• The new private sector investors will be
  requiring new mining and power generation
  equipment.
  
• Due to high sulfur lignite reserves, air
  pollution is a major problem in power
  generation.
  
• Clean coal technologies need to be used.
• New tenders consider fluidized bed type of
  boilers.
  
• Flue Gas Desulphurization (FGD) systems will be
  required.

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Market Entry Strategies What Works?

• Product
• Price
• Packaging
• Patience
• Persistence
• Partnership
• Perform Due Diligence

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How Can We Help?

• Provide in-depth, value-added counseling to
  first-time and experienced exporters
  
• Assist firms to enter and secure market share
• Produce customized market research on industry
  sectors, company profiles, and special
  opportunities
  
• Provide information on Federal Trade Finance
  Programs

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Products Services

• Gold Key Service
• Market Research Reports
• Customized Market Analysis
• International Partner Search
• International Company Profile
• Video Conference

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Gold Key - Executive Appointment Service

• Customized Program offering appointments and
  pre-screened contacts matching your interests and
  objectives
  
• Reduces your risk and expenditure of time and
  money
  
• Customized market and industry briefings
• Spend less time on logistics. We take care of
  details so you can focus on business

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Customized Market Analysis

• Providing detailed decision-making information
  re
  
• Sales Potential
• Competitors
• Distribution Channels
• Pricing
• Customer Preferences
• Market Barriers
• Representatives Buyers
• Potential Licensing and Joint Venture Partners
  

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International Partner Search

• Helps you find right distribution channel
• Identifies up to six pre-qualified potential
  agents, distributors, or representatives to your
  specifications
  
• At a fraction of the cost of conducting similar
  research on your own

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International Company Profile

• Take a gamble out of exporting to new customers
• Up-to-date information on potential clients
• Bank trade references
• Principals, key officers managers
• Product lines
• Number of employees
• Financial data
• Sales volume
• Reputation
• Market outlook

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How to Contact Us

• Serdar Cetinkaya, Senior Specialist
• James Fluker, Commercial Counselor
• U.S. Commercial Service
• U.S. Embassy,
• 110 Ataturk Bulvari,
• 06100 Ankara, Turkey
• Serdar.cetinkaya_at_mail.doc.gov
• James.Fluker_at_mail.doc.gov
• Tel [phone] or 457-7278
• Fax[phone]
• www.buyusa.gov/turkey/en
• www.csturkey.com