# Presentation: 436485

## TURKEY				

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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).

- U.S. Commercial Service           U.S. Department of Commerce

## 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 Imports:$139 billion
- Total Exports:$86 billion

- U.S. Commercial Service           U.S. Department of Commerce

## 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%

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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)

- U.S. Commercial Service           U.S. Department of Commerce

## 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 world’s boron reserves where it’s share in world boron market is only 23%.
-   Turkey holds 1% of the world’s chromium reserve, where 9% of world’s chromium production takes place in Turkey.

- U.S. Commercial Service           U.S. Department of Commerce

## 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.
-  Turkey’s copper, zinc and lead reserves are by order of approximately 2.28, 2.29 and 0.86 million tons.

- U.S. Commercial Service           U.S. Department of Commerce

## MINING SECTOR IN TURKEY				

-  Turkey’s 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.

- U.S. Commercial Service           U.S. Department of Commerce

## 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.

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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.

- U.S. Commercial Service           U.S. Department of Commerce

## MINING & ELECTRIC POWER SECTOR IN TURKEY 			

-  Turkey has large lignite deposits in Afsin Elbistan: 40% of Turkey’s 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.

- U.S. Commercial Service           U.S. Department of Commerce

## 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.

- U.S. Commercial Service           U.S. Department of Commerce

## Market Entry Strategies: What Works?

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

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## Products & Services

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

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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

- U.S. Commercial Service           U.S. Department of Commerce

## 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@mail.doc.gov](mailto:Serdar.cetinkaya@mail.doc.gov)_
- _[James.Fluker@mail.doc.gov](mailto:James.Fluker@mail.doc.gov)_
- Tel: 90-312-457-7203 or 457-7278
- Fax:90-312-457-7302
- _[www.buyusa.gov/turkey/en](http://www.buyusa.gov/turkey/en)_
- _[www.csturkey.com](http://www.csturkey.com/)_

- U.S. Commercial Service           U.S. Department of Commerce