12 March 2014 14:09 [Source: ICIS news]
MADRID (ICIS)--Turkey is the second largest producer of plastics processing capacity in Europe and the seventh biggest globally, having reached 8.1m tonnes in 2013, a senior industry executive said on Wednesday.
The country's high output is supported by its emerging growth potential, according to Mehmet Fatih Karakaya, vice general manager of Petkim and commercial director at SOCAR Turkey, in a paper at the ICIS 9th World Olefins Conference.
Turkey’s strong position in plastics processing is supported by its young population, where more than half of the population are under 30 and population growth rates are 1.2% in Turkey, exceeding EU countries.
In addition, healthy annual GDP growth rates and the expectation that this is likely to continue is another supporting factor for healthy domestic plastics processing and demand, said Karakaya, who referred to the annual growth rate in Turkey of 5.2% between 2002-2012 and forecasts by the IMF (International Monetary Fund) that the Turkish economy is expected to grow annually by 3.9% in 2014 and 2015.
A growing population and economy means increasing demand and most domestic thermoplastic consumption rose between 2000-2013, with accelerated growth rates for polyvinyl chloride (PVC), high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP).
The exception was low density polyethylene (LDPE) demand which remained flat over this period.
On top of socio-economic factors, Turkey is also well-placed strategically between the “demand-rich west” and the supply rich east”, with Karakaya referring to the country’s central position adjacent to Europe, the Balkans, the Aegean, Black Sea, Caucasus-Caspian Basin and Central Asia.
Thanks to Turkey’s geographic location, the country also benefits from a good energy supply from its natural gas pipeline network, which has increased by 164% between 2002-2011, stretching over 12,500km (7,767 miles).
With these socio-economic and resource benefits, Turkey’s plastic processing capacity and demand are expected to be further boosted. This is illustrated by growth expectations ranging from 4.5-7.2% for main plastic products between 2012-2020, according to ChemSystems data in 2013.
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