HVAC-R Turkey | 2020 Yearly Issue

İSİB Sets Eyes On Northern Europe İSİB organized a visit by a “Sectoral Trade Delegation” to Helsinki, Finland and Oslo, Norway on 1-6 December 2019. The organization brought together potential buyers with representatives 16 İSİB- affiliated firms that constituted the delegation. The participating firms promoted their products during the meetings with representatives of different institutions and companies, which provided a fertile ground for evaluation of mutual trade relations. As many as 120 B2B meetings were held during the visit, where İSİB was represented by Mr. Murat Bakanay, a Member of İSİB Board of Directors. The B2B meetings commenced on 2 December 2019 in Helsinki, Finland. Republic of Turkey Commercial Counsellor Mr. Serdar Akıncı also attended the meetings. The second day of the program included visits to Finnish Association of HPAC Tecnical Contractors and Finnish Building Services Industry and Trade, which are active players in the HVAC&R sector. The second part of the program involved business meetings in Norway, with participation of Republic of Turkey Oslo Trade Counsellor Mr. Alper Toközlü. The participants expressed their satisfaction at the positive outcomes of the meetings held during the visit. The participants also underlined the importance of such organizations in increasing the exports of member companies and seizing new cooperation opportunities. T urkish HVAC&R Exporters Asso- ciation (İSİB) is targeting distant markets as part of its strategy de- veloped in 2018 towards increasing ex- ports and expanding market range. The Association carried out numerous ac- tivities in 2019, and is planning many more in 2020. We talked to Mehmet Hakkı Şanal, President of İSİB Board of Directors, on İSİB’s activities in the target markets as part of this strategy. 2019 has been a great success for Turkish HVAC&R Industry Exports The total export volume of the sector reached 4.7 billion US dollars in 2019 with a 3.2% increase from the previ- ous year. The same period also saw a 13.4% decrease in imports. The added value per kilogram for Turkish HVAC&R Exporters was 4.4 US dollars, well above the Turkish average of 1.2 USD. All these numbers indicate two impor- tant facts: First, the sector’s exports make up for the sector’s imports. Sec- ondly, the sector is enjoying a growth rate in foreign trade that is above Tur- key’s average. The outcomes make us proud and mo- tivate us further. Currently, our coun- try has around 1% share in the global HVAC&R market which has a total vol- ume of 504.7 billion US Dollars. Our principal goal is to exceed 5 billion US dollar threshold in exports in 2020 and to increase our share in the global mar- ket to 1.5% in 2023. Additionally, R&D and innovation are indispensable to our sector. We are closely watching the latest develop- ments in global trade. Around 20 of our companies have obtained the status of a Research and Development Cen- tre. As it is, Turkish HVAC&R sector is becoming the production hub for inno- vative products with high added value. Turkish HVAC&R Sector’s high sensitiv- ity on digitalization, sustainability, envi- ronmental awareness, energy efficien- cy and university-industry cooperation as part of the fourth industrial revolu- tion is increasing our strength in glob- al competition. Turkish HVAC&R compa- nies have their products certified by the most prestigious quality standard doc- uments (UL, Eurovent, AHRI, ISO, CE, TUV, etc.). Also, Turkish companies are manufacturing energy efficient products that directly meet the requirements of ERP (Energy-Related Product) Directive and increase the use of environmental- ly-friendly and renewable sources of en- ergy. Thanks to these efforts, Turkey is one of the most important suppliers of HVAC&R products in the European Un- ion countries, which account for 50% of Turkey’s exports. The sector sells products to 175 coun- tries, and has been following a mod- el that generate higher added value through integration with global value chain. Thanks to these developments as well as Turkey’s geopolitical posi- tion, the sector has transformed into Europe’s production hub. The recent İSİB News Mehmet Hakkı Şanal, President of İSİB Board of Directors “We are targeting distant markets to increase exports and to expand our market range” 38 2020