November 2023

Economic & business news from Türkiye

Agreement between French ports and Türkiye

The French ports of Calais and Sète, as well as the transport companies DFDS and VIIA, have formalized a cooperation agreement to facilitate the transport of freight from Türkiye to Northern Europe.

This agreement, signed on the occasion of the Logitrans international logistics and transport exhibition, which was held in Istanbul last week, will notably simplify the transport of goods between Türkiye and England thanks to the anticipation of customs formalities .

The project aims to anchor a fast trade route, with goods transported by ship from Türkiye to the port of Sète by the DFDS company. They will then transit to Calais using the rail highway operated by VIIA, inaugurated last year. Commercial trailers can then reach England using the DFDS Calais-Sheerness freight line.

The journey will last seven days; a significant time saving compared to the two weeks needed for a road itinerary. Another advantage put forward by the partners is that of less pollution: a trailer traveling by train releasing one tonne less CO2 into the atmosphere per thousand kilometers traveled.

Source: La Voix du Nord, November 17, 2023

Savino Del Bene acquires Turkish TransOcean

The Italian company Savino Del Bene announced the acquisition of the Turkish company TransOcean Shipping.

This acquisition consolidates Savino Del Bene's position in the Turkish market where the Italian firm has been present since 1999 and further strengthens its operations in the Mediterranean.

It also confirms its long-term commitment to generate new synergies, business opportunities and jobs and to provide excellent logistics solutions worldwide.

The two entities will continue to operate independently but will maximize all opportunities to create synergy.

With over 120 years of history, Savino Del Bene is the leading Italian multinational freight forwarder offering air, sea and land transportation services. The firm has a workforce of 5,000 people and is present in 60 countries. In 2021, the company's global annual turnover was EUR 4.5 billion.

Founded in 2002, Türkiye's TransOcean has become a national leader specializing in international shipping. With its three strategic locations located in Istanbul, Izmir and Mersin, the company focuses on maritime export services and has a team of 60 highly qualified professionals.

Source: The Load Star, November 20, 2023

DB Schenker Arkas opens its 9th warehouse

The Turkish-Austrian JV DB Schenker Arkas has inaugurated its ninth warehouse in Ankara. This is the 2nd warehouse opened this year. Thanks to these two centers, the firm is increasing its storage capacity by 15%.

This investment decision was motivated to meet growing customer demand alongside the growth of the country's economy and logistics sector.

The new warehouse, equipped to provide many different contract logistics services, will notably accommodate the automotive industry. In addition to storage services, special value-added services will be offered to businesses.

The JV aims to double its turnover by 2025 and increase its storage activities by 36%. Currently, the company is one of the top 8 companies in the maritime sector and has a portfolio of important clients in air transport.

Source: Ekonomim, November 9, 2023

Türkiye is part of Renault's EUR 3 billion investment plan

Renault Group revealed this month in a world premiere the Group's new international strategy in Brazil. Called “International game plan 2027”, the new roadmap, resulting from the “Renaulution” strategic plan, provides for the launch of eight new vehicles internationally (outside Europe) by 2027 intended mainly for Latin America, North Africa, Türkiye and India. Five of these models will be in segments C and D and a third will be 100% electric or hybrid.

This strategy, in which Renault has invested EUR 3 billion, will allow the brand to expand its presence, particularly in regions outside Europe where the group generates 43% of its sales. To do this, Renault will adapt its catalog using a new modular platform, specifically built for the industrial regions of Latin America, Türkiye, Morocco and India where the new models will be assembled. This platform makes it possible to design and build tailor-made vehicles: it will therefore be possible to produce vehicles of different sizes, with varied silhouettes and various engines. Reducing CO2 emissions from future vehicles is also a key objective of this plan which will be achieved thanks in particular to the introduction of electric E-Tech models in several countries outside Europe, such as the electric Megane E-Tech, already available in Brazil and Türkiye. With this strategy, the diamond brand has set itself the objective of doubling the turnover per vehicle sold outside Europe compared to 2019 and marketing one vehicle in three in a hybrid or electric version outside Europe. by 2027.

Türkiye is an important market for Renault, which occupies 4th place in the group's international sales ranking. The Renault Group (including Dacia) held 17.3% market share in 2022 in Türkiye. It is also an important production base; Renault today manufactures 85% of its Clios there, mainly for the European market.

Source: Dünya, October 30, 2023; New Factory, October 25, 2023

New Toyota production in Türkiye

Toyota has started production of the new generation of the Toyota C-HR in Türkiye, at its TMMT (Toyota Motor Manufacturing Türkiye) plant in Sakarya, which benefited from a new investment of EUR 308 million to modernize its production lines. This is Toyota's first European factory to produce plug-in hybrid vehicles.

The second generation C-HR is offered with electrified engines: 1.8 and 2.0 liter hybrid models, as well as a 2.0 liter plug-in hybrid version. With this new compact SUV, the Japanese firm wants to offer a range of affordable and practical vehicles, emitting low CO2 emissions. The rechargeable batteries used by the C-HR's hybrid engines are also produced on site, in a production line which has the capacity to assemble 75,000 battery packs each year. Toyota is committed to achieving complete carbon neutrality in Europe by 2040, and is aiming for carbon neutrality in all of its European manufacturing plants by 2030. To achieve this goal, TMMT has implemented measures to minimize carbon emissions. energy consumption, while adopting renewable energies. For example, new paint shop technologies help reduce CO2 emissions, while carbon-free ventilation systems use solar energy.

“We are excited about the launch of the new Toyota C-HR and TMMT’s expanded production facilities. The ability to produce a plug-in hybrid variant with locally assembled batteries will further expand Toyota's multi-technology offering towards its goal of reducing CO2 emissions by 100% across its vehicle range in Europe by 2035. declared on this occasion Yoshihiro Nakata, President of Toyota Motor Europe.

Source: Auto Plus, November 8, 2023

Ford Otosan unveils “Factory of the Future”

Ford Otosan unveiled its fully modernized factory located in Yeniköy this weekend. Described as the “factory of the future”, the site has been redesigned to house new technologies to increase the efficiency and sustainability of the factory, through high levels of automation, advanced robotics and intelligent applications.

This “smart” factory will have workshops on several floors and noise-reducing assembly lines will, for example, be used. The site will feature end-to-end data analytics and management systems guided by artificial intelligence. Energy efficiency and carbon neutrality will be ensured through photovoltaic glass walls and solar tracking systems. The factory will host production of the new generation Transit Custom, Transit Electric as well as Volkswagen's one-tonne utility vehicle.

The modernization of this site is part of the EUR 2 billion investment project announced by Ford Otosan in 2021 which constitutes the largest investment by the Turkish private sector to date. This ambitious vision project, the impact of which will last at least 10 years according to the leaders, should contribute to the transformation towards electrification of the Turkish automobile industry.

With motorists' increasingly growing interest in hybrid and electric vehicles, Türkiye aims to be one of the world's leading players in the production of electric vehicles and batteries. Sales have indeed exploded this year; they were multiplied by 9 during the first 10 months of 2023.

Source: Dünya, November 6, 2023

Vitol acquires BP's oil operations in Türkiye

The Geneva-based hydrocarbon trading giant Vitol has acquired, through its Turkish subsidiary Petrol Ofisi, shares from the British giant BP in BP Türkiye Refining and BP Petrolleri. The agreement remains subject to certain conditions, including regulatory approvals. The sale of BP shares in BP Türkiye Refining Limited and BP Petrolleri A.Ş. is expected to be completed in 2024.

Once the transaction is finalized, a network of approximately 770 BP stations will be renamed Petrol Ofisi. The acquisition also includes commercial and industrial fuels businesses. Petrol Ofisi will benefit from an improved presence in major cities, supported by a strategic storage and infrastructure network. This expansion positions Petrol Ofisi as a key player in the Turkish energy landscape, offering a wider range of services and products to its customers. This transaction demonstrates Vitol’s strategic vision in the energy sector and reflects the dynamic nature of the global energy market and Vitol’s ability to adapt in this landscape. It also highlights the Swiss company's commitment to investing in growth opportunities and expanding its presence in key markets.

Vitol, the world's largest independent oil trader, acquired Türkiye's Petrol Ofisi in 2017. The acquisition marked an important step for Vitol, expanding its operations and presence in the Turkish energy market. Petrol Ofisi, being one of the leading distribution companies for petroleum products and lubricants in Türkiye, represented a strategic asset for Vitol in the region.

For BP, this sale is part of its broader strategy to overhaul its business portfolio. The decision to sell its Turkish operations to Petrol Ofisi allows BP to focus on other areas of its global business while ensuring continued quality of service to its customers in Türkiye.

Source: Fuels and Lubes, November 21, 2023

New biomethanization center for PepsiCo

PepsiCo Türkiye inaugurated a biomethanization facility earlier this month which aims to use waste from various companies to produce its own energy. Thus, PepsiCo will use biomethane produced from waste acquired from partner companies to obtain a significant part of the natural gas needed for its Manisa plant. The site is expected to supply around 40% of the Turkish plant's natural gas needs. By converting 10,000 tonnes of organic #waste into biomethane per year, the facility will reduce greenhouse gas emissions by approximately 1,237 tonnes per year.

Aligned with PepsiCo's pep+ strategy, this sustainability-focused effort will benefit the circular economy and significantly reduce the firm's energy waste. The site will also make an important contribution to Türkiye's ecological transformation as the country aims to achieve net zero emissions by 2053.

This project has already initiated changes within the wider Pepsi ecosystem, with a parallel initiative expected to be implemented in Portugal. Similar projects are planned to be rolled out at several other Pepsi facilities around the world.

PepsiCo Türkiye has invested in total more than TRY 350 million in renewable energy resources, allocating TRY 250 million of this budget for solar panels and another TRY 100 million for the biomethanization plant.

Source: Invest.gov.tr, November 6, 2023

Sabancı opens technology center in Germany

Turkish industrial giant Sabanci Holding has opened a technology center at the prestigious Technical University of Munich (TUM). Amount of investment: 2.2 million EUR. By joining the German university's technological development ecosystem, the Turkish group affiliates with an educational institution with 18 Nobel Prize winners and brings industry-university cooperation to Europe, an important role in the approach to Sabancı's innovation.

The companies of the Turkish group, Çimsa (cement) and Kordsa (tire market and composite technologies) intend to develop innovations in their respective fields on the campus.

The University of Munich has extensive experience in commercializing academic ideas and integrating them into everyday life, especially in the fields of civil engineering and mechanical engineering. The group aims to export the solutions and innovations that will emerge from the synergy between the R&D center and the university to the European market.

Sabancı attaches great importance to the development of technological solutions. During the first 9 months of this year, the firm increased its investments by 124% compared to the same period of 2022 (on a TL basis), reaching 33.3 billion TL. 75% of its investments were made in the “new economy” or new technologies, in accordance with the group's strategy which consists of devoting ¾ of its investments to new energy and climate technologies, advanced material technologies and digital technologies.

With the inauguration of this new center, Sabancı increases the number of its R&D centers to 8; 6 are in Türkiye and 2 abroad (Indonesia and Germany).

Source: TR Monitor, November 21, 2023

Atlas Copco buys Turkish Hamak

Swedish giant Atlas Copco has acquired Hamamcıoğlu Makina (HAMAK), a Turkish distribution company specializing in the sale and service of air compressor solutions.

With its 23 employees and decades of experience, Turkish HAMAK supplies compressors, spare parts and services to the Turkish market and operates mainly in the textile, steel, automobile, chemical and industrial sectors. agri-food. In 2022, the company achieved a turnover of approximately 120 million TL (≈6.5 million EUR). This acquisition aims to increase the local presence of the Swedish group as well as its service capabilities.

Atlas Copco is an international industrial group specializing in industrial compressors, construction materials, industrial tools and assembly systems.

In 2022 the group had a workforce of more than 49,000 employees for a turnover of 13 billion EUR.

Source: Atlas Copco Group, November 14, 2023

Strategic foreign investment in aquaculture

E20 Investment, an investment company from the United Arab Emirates, has acquired a majority stake of 70% in the Turkish company Lucky Fish, one of the largest producers and processors of sea bass and sea bream in Europe.

Created by the Kopuzmar family in 1986, Lucky Fish is one of the largest vertically integrated high value-added bass and sea bream production and processing companies in Europe. Its operations encompass the entire value chain, from marine farming and fish feed production to harvesting and processing of products.

This acquisition aims to strengthen the growth and position of Lucky Fish in international markets by increasing capacity. Exports represent around 97% of total sales with the United Kingdom and EU countries as the main destinations.

Decisions will also be made to increase Lucky Fish's competitiveness in strategic markets, according to company statements.

The company employs around 450 people. Mediterra Capital, which was the initiator of the institutionalization of the company, acquired 100% of the capital of Lucky Fish in 2013.

Source: Anadolu Agency, October 31, 2023

Azur Games seduced by Turkish gems

The Cypriot company Azur Games, founded in 2017 and which is one of the top 3 mobile publishers in the world in terms of downloads, has acquired the entire portfolio of so-called “hyper-casual” games from Turkish Good Job Games. Azur Games will thus continue the development of the games, the acquisition not implying the buyout of the company or its development teams.

Also founded in 2017, the Turkish Good Job Games offers more than 35 games, mainly puzzle games, totaling more than 3 billion downloads. Its most popular games include Fun Race 3D (+500 mins download), Color Bump 3D (+300 mins) and Run Race 3D (+250 mins).

This transaction will allow the Cypriot developer and publisher to enrich its portfolio with high-quality projects and is also part of its strategy to be among the leading mobile game publishers in the hyper-casual category. Azure Games, which has more than 4.5 billion downloads, also acquired the hyper-casual portfolio of American publisher Tastypill.

According to figures from Mordor Intelligence, the global mobile games market size is expected to grow from USD 141.71 billion in 2023 to USD 300.47 billion by 2028, growing at a CAGR of 16.22% during the forecast period ( 2023-2028).

Source: Azur Games, November 3, 2023