こんにちはMERHABA

İZMİR,SMARTEST CHOICE FOR YOUR NEXTINVESTMENT

WHO WE ARE
WHAT WE CAN DO FOR YOU

Who We Are?

KEY FUNCTIONS

••
•
•
•

Preparing Regional Development Plans & Strategies
Providing Financial Support
City Marketing as a touristic destination
Promoting investment and business opportunities in İzmirGiving consultancy to new investors

What We Can Do For You!
One Stop Shop providing extensive andconfidential services, free of charge:
Providing the necessary information for your finaldecision
Site selection
Facilitating legal procedures such as:• permit & license procedures• establishing business operations• incentive applications
To create your business network & coordination with
relevant governmental institutions

The Top Investment Promotion Agency ofEast Europe and Asia (2016),
Site Selection MagazineİZMİR,
SMARTEST CHOICE FOR YOUR NEXTINVESTMENT

Strong Economy:
Second Largest Commercial Center in Turkey

Share of Exports & Imports
by country of origin and sector (2017)
COUNTRYEXPORT ($)%

COUNTRY

IMPORT ($)%

Germany

1,015,605,139

12.0

China

959,298,003

10.7

USA

741,875,095

8.8

Germany

883,001,187

9.9

England599,994,906

7.1Russia Fed.

724,370,466

8.1

Spain

561,774,061

6.6

USA

522,971,851

5.8

Italy

488,215,975

5.8

Italy

508,555,327

5.7

Main Export Items: Knitted Clothing, Food &beverage, agriculture & farming, Machinery, Motor
Vehicles, Tobacco, Plastics and Plastic Products

Main Import Items: Chemicals, machinery,
petro chemicals, metal products, motor vehicles,
food & beverage, agriculture & farming, electricalmachinery and equipment, waste, medical
devices
Turksat, 2018

LOCATION & LOGISTICS

Putting you at the center of Europe, Asia and Africa…

At the center of a market of a population of 1.6 billion, $23.5 trillion GDP, $7.1
trillion trade

A natural distribution center
Intersection point ofEurope, Central Asia andMiddle East.

A Logistic Hub: İzmir International Airport

Direct flights from 28 countries and 70 destinations
18 km from the city center
Capacity of 25 million passengers

Amsterdam
Atina
Bakü
Barselona
Basel
BerlinBillund
Birmingham
Bratislava
BremenBrüksel
BudapeşteCharleroi
Cidde
DortmundDublinDüseldorf
Frankfurt
GöteburgHahn

A Logistic Hub: Ports of İzmir•

26% of Turkey’s total exports and 20% of totalDİKİLİ

imports•

Total handling capacity of 2.50 m TEU•

Targeted capacity of 9.15 m TEU•

Alsancak Port has the 2nd largest containerALİAĞAhandling capacity in Turkey•

Cruise Port: 2.5 m visitors (2010-2015)
ALSANCAK•Aliağa Port: 12 private docksÇEŞME•

Çeşme Port: Roro transportation

HUMAN CAPITAL & COMPETITIVE PRICESHigh Living Standards:
Attractive environment for the labor pool

Young and Dynamic Population with Qualified Workforce
8 Universities: 20,000 graduates annually► 130 Research Centers► Bilingual Education System

42 Vocational Training Schools► 204 Vocational High Schools►4Million Population►

42%

Below 30 years
oldRare but Good Match:
High quality and cost friendly living environment!
►Education– 25% cheaper than those in İstanbul►

Household appliances– 6% cheaper than those in Ankara,– 2% cheaper than those in İstanbul►

Rent, electric, water and gas expenses– 18% lesser than those in İstanbul►

Health service and product prices– 7% lower than those in Ankara,– 1% lower than those in İstanbul►

Entertainment and cultural activities– 12% cheaper than those in İstanbul,– 6% cheaper than those in Ankara►

Food and non-alcoholic beverages– 6% cheaper than those in İstanbul

FOREIGN DIRECT INVESTMENT &SUCCESS STORIESForeign Direct Investments rises in İzmir
2416

2500

2460

2235
2096
1959

2000

1805
1656
1502

1500

1308
1168
1010

1000

837
663

500

328

357

379

2000

2001

2002

425

528

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: Ministry of Economy, 2017

2016

2017

International companies are getting bigger here…

24 %

8%

7% 6.5%6% 5.5% 5%2%2%2%

2%

2%

1%

RussiaAzerbaijan

Austria

Switzerland

Belgium

IsraelGreeceUSAUKFrance

Italy

Iran

Netherlands

Germany

Source: Ministry of Economy, 2016

4%

Multi Sectorial Structure
Industrial
Machinery

Biotechnology

ChemicalMaterials

Renewable
EnergyTourism

ICTMotor Vehicles

Food andBeverages

Aviation andDefenseRenewable Energy- Wind►

1,331 MW installed power (Ranked 1st in Turkey- %19 of the total)►

Turkey’s first wind power plant in 1998►

Theoretical capacity is 11,815 MW►

Big potential: Until 2023 around $ 3 Billion WEPP market and more than $ 18 Billion WE equipment market
can be managed from İzmir.

►Enercon, TPI, Nordex and GE have wind turbine components manufacturing facilities in İzmir►Strong local manufacturers and suppliers►Wind energy equipment manufacturing is defined as the priority sector so the investors can benefit from5th region incentives.

Information and Communication Technologies►

Revenues created by ICT companies in İzmir is around $ 400
million annually►

About 10,000 people are employed in ICT sector in İzmir►

4 technoparks with technology transfer offices and incubation
centers►

Global companies such as Ericsson, IBM, Accenture, Netsis
have service centers in İzmir.

Chemicals►Aliağa Organized Industrial Zone is a sector-specialized zone that functions for chemicals
companies.

►

About 25% of Turkey’s export in chemicals sector is realized in İzmir.

►The Turkish export goal for 2023 is more than 50 billion.

►PETKIM-SOCAR, one of the largest petro-chemicals companies in the world, is located in İzmir.

Biotechnology►

15.5% of the medical device companies in Turkey►

16% of medical device sector’s labor force in Turkey►

23 state hospitals, 8 university hospitals, 24 private hospitals►

Biotechnology campuses►

First thematic health technopark in Turkey►

First translational research center: İzmir biomedicine and genome institute►

Manufacturing medical equipment, sensitive and optical instruments and clocks and manufacturingchemical and vegetative products used in pharmaceuticals and medicine are defined as the priority
sector so the investors can benefit from 5th region incentives.

Industrial Machinery
More than 5,000 manufacturing and machinery companies operate 3rd in Turkey with its 735 million USD in the machinery equipment export
 860 million USD import of machinery equipment
 8% of Turkey’s machinery and equipment manufacture R&D activities İzmir is home to International companies such as Cummins, Mecalac,Hidromek, Mahle and Bonfiglioli.
Motor Vehicles► Accounts for over 10% of Turkey's exports of motor vehicles► Strong supply-chain with 5,500 firms in related sectors► Over 2,000 motor vehicle and related manufacturing firms

Aviation and Defense►

About 250 companies in aviation and defense sector►

International aviation and defense companies such as Pratt & Whitney, PFW, Fokker Elmo, FTB-Lisi
Fastener Technology and BMC have manufacturing facilities►

The First Aerospace Clustering Association (ACA) in Turkey

Food and Beverages
The number of companies operating in İzmir corresponds to 5.5% of companies in Turkey and thelevel of employment corresponds to 8.9% of total value in Turkey in the sector.
► 11.3% of overall Turkey export in food & beverages sector► 21% of the canned food manufacturers in Turkey► 7.7% of the red meat and 10% of the white meat production in Turkey► A major attractive FDI sector in İzmir►

Food Products and Beverages

15%

Electricity Generation and Distribution

13%

Machinery and Equipment N.E.C.

10%

Chemicals and Chemical Products

10%

Plastics and Rubber Products

7%Textile Products

7%

INVESTMENT AREAS

World Class Investment Areas…
Tax Types

Organized Industrial
Zone

Technology DevelopmentZone

Free Trade Zone

Corporate

20%0%0%8%-18%0%

0% for buying Turkish products

15%-35%0%

0% for companies which export 85%
or more of their products

Social Security Premiums(employee share)15%

15%15%

Social Security Premiums(employer share)

22.5%

11.25%

22.5%

Unemployment insurance
premiums

3%

3%

3%

0.5%- 0.1%

00.5%- 0.1%--0% for goods, equipment andmachinery brought into the Zone.

VATIncome Tax

Salary Costs

Stamp Tax
Custom Duties

Organized Industrial Zones►

13 Organized Industrial Zones►

The infrastructure provided with theseregions include road, water, natural gas,
electricity, communication instruments,
waste treatment and other services.

►Sectorial value chain, cluster►

3 EUR /m2 – 200 EUR/m2

 The investments made in Organized Industrial Zones are provided with incentives of a region lower in terms of tax reductions and insurance
premium employer share within the Regional Incentive Implications. (Decision No. 2012/3305 on State Aid for Investments)

Free Zones►

2 Free Zones►

Specific areas out of the frame of customs
territories►

100% exemption from customs duty►

100% exemption from corporate taxes►

100% exemption from value added tax (VAT)
and private consumption taxes.

Technology Development Zones

4 Technology Development Zones► 3 of them are in universities, 1 of them isin Organized Industrial Zones (OIZ)► Expertise on health technologies, life
sciences, etc.
► Profits made from software development
and R&D activities are exempt fromincome and corporate tax►

EGE TECHNOPARKDEPARKİZTEKGEBSCIENCE PARK

Japan – Turkey – İzmirJAPAN & TURKEY• Trade with Japan ($)• Principal imports from Japan: $4,280 billion (2017)(Construction equipment, automobiles, machinery, iron andsteel, engines, chemical and optical equipment) (%1.3)• Principal exports to Japan: $411 million (2017) (Storagebattery, tuna, leaf tobacco, processed foods, volatile oils,chrome steel, carpets, glass products) (%0.2)• 226 FDI by Japanese companies in Turkey (2017)

JAPAN & TURKEY
Latest News•

Yıldız Holding, owner of snack food giant Ülker, has sold several of its beverageproperties including Cola Turka, Çamlıca Soda and Saka Water to Japanese
DyDo DRINCO for TRY 335 mil. (JPY 13.5 bil.)•Japanese KYOCERA Document Solutions has signed acquisition agreementwith Bilgitas which is Turkey’s one of the leading documentation managementcompanies.

•İzmit Bay Bridge constructed by Japanese IHI started to be used. It is thefourth-longest suspension bridge in the world. The cost of the bridge is around
EUR 800 million.

•Japan’s Kansai Paint acquires 50 pct stake in Turkey’s Polisan Boya for $113 mln

JAPAN & TURKEYLatest News•

Daikin has initiated a heating-system factory in Sakarya inTurkey’s northwest.

•Honda has decided to celebrate its 20th anniversary in theTurkish market with a new investment of $50 million at its
Gebze plant. Honda exports the automobiles it produces inTurkey to 33 countries in Eastern Europe, the Middle East andNorth Africa.

•Mitsui & Co., one of Japan’s largest general trading
companies, acquired a 30 percent stake in Koç Holding’stechnological investment company Inventram. Inventram
started its activities in 2010 and focuses on technologicalinnovations for entrepreneurs, inventors, and companies. Thecompany also provides solutions and consulting services forstart-ups.

JAPAN & İZMİR
• Imports from Japan: $ 112 million (2017)• Exports to Japan: $ 36 million (2017)

Growth potential for both sides• Big Japanese companies already in İzmirJAPAN & İZMİR

 The trade relations started in 1990 in Turkey. The first production started in 1993 in İzmir Torbalı factory.
 İzmir factory is one of the 5 biggest factory of the 32 factories of JTI.
 The annual production of tobacco units is 35 billion in this factory. It corresponds to 16 percent of the Tobacco
market of Turkey with a product range, and 50 percent of the products exported abroad.

JAPAN & İZMİR

 Kansai Altan is a Turkish-Japanese joint venture paint company with an annual production capacity of 60
thousand tons, situated on a 100 thousand m² land in İzmir.
 It manufactures 75% of its polymer requirement in its own polymer production facility which is located in thesame site and has 12 thousand tons of production capacity per annum.

JAPAN & İZMİR

 Owned by Japan’s DIC Corporation, Sun Chemical is the world’s largest producer of printing inks and pigments,
employing 21,000 people globally. Having acquired Turkish ink producer CBS Inktas in 2004, Sun Chemical
currently has two operational plants in Turkey, one of them is in İzmir.
 The plant produces liquid inks for packaging applications, a market which is forecasted to grow by 2-3 percent
annually for the next several years in the EMEA region. İzmir’s well-developed transportation links, highly skilledlabor force and strong demand for liquid inks are the main reasons behind Sun Chemical’s decision to invest in thecity.

JAPAN & İZMİRJapanese Pigeon owned Lansinoh,global producer of breastfeeding and baby supplies,
has opened their production center (8,000 sqm2) in
Aegean Free Zone in Izmir.

Mitsubishi Electric Corporation which operates in 43
countries with more than 138 thousand employees,
officially opened its new factory for the development andmanufacture of room air conditioners in Manisa close toİzmir.

JAPAN & İZMİR
 Japanese food giant, Nippon Ham, made a fast entry toTurkey. Japan firm purchased 60% of Ege-Tav, a broiler
and feed manufacturer having plants in Bandırma andIzmir, for $ 72 Million.

Denso Corporation acquired 50% of DJ Cool Klima ve
Sogutma Cihazlari A.S. operating in Izmir.

A world leader in battery solutions, GS Yuasa Corp of Japan,
has entered into a partnership agreement with the leading
Turkish battery manufacturer, İnci Akü from İzmir.
Yanmar Holdings Co., Ltd. announced the opening of a representativeand sales office in the Republic of Turkey. With the growth of the Turkish
economy on the rise, Yanmar is currently intensifying data collection andmarketing efforts in the local market to look for production opportunities.

JAPAN & İZMİRToyo Ink Group, a Japanese maker of printing inks,
packaging materials, coating and polymers, has finalized adeal to acquire 75 percent of the shares of Turkish company
DYO Printing Inks from its parent company, Yaşar Holding.
Toyo Ink, recently announced that it would expand its Turkish
venture with a new investment of $30 million.
Ajinomoto Co. agreed to acquire all of the shares of ÖrgenGıda Sanayi ve Ticaret A.Ş. (“Örgen”), a major food company
in Turkey, and the trademark for its brand Bizim Mutfak,
which is widely sold in Turkey, for a total of approximately 220million Turkish Lira (TRY) (approximately JPY 7.4 billion).

Yusen Logistics decided to merge with İnci Logistics fromİzmir.

WHY Japanese companies rushing to Turkey to invest
 Turkey’s large population with increasing disposable incomes makes it a lucrative market forJapanese products that are produced in Turkey, such as automobiles, air-conditioners, consumer
electronics and so on.
 Turkey’s economy continued to grow with 7.4 percent in 2017 & became one of the best
performing countries in the world. Turkish economy grew 7.4 percent in first quarter of 2018 aswell.
 Free Trade Agreement between the two countries is about to be signed.
 Turkey is at a central position at the crossroads of several subregions, which makes it attractive
as a production hub. For instance, Toyo Ink has planned to invest in Turkey “as a production hub
for Eastern Europe, Russia and the Turkic republics, Middle East, the entire African continent andWestern Asia.”
 For those Japanese ventures that export their products to Europe, Turkey offers the additional
advantage of having a customs union with the European Union, which makes it possible forthese companies to export their products on a tariff-free basis.

WHY Japanese companies rushing to İzmir to investİzmir offers both a high quality life and a competitive standardof living for Japan companies.
Having significant ports, İzmir is a distrubition center for major
global markets.
Presence of other global Japanese companies
Qualified personnel with less salaries compared to İstanbul.

www.investinizmir.com

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www.izka.org.tr
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ADDRESSŞehit Fethi Bey Caddesi No:49/1 Birlik Plaza
Kat:3 35210 Gümrük İZMIR / TURKEY