April 2024

Economic & business news from Türkiye

The giant DFDS buys the Turkish Ekol Logistics

The Danish giant DFDS, specialized in maritime transport, recently concluded an agreement to acquire the Turkish Ekol Logistics, specialized in the transport of goods between Europe and Turkey. This approach will allow DFDS to integrate road transport into its ferry network in the Mediterranean and is part of the Danish company's strategy of offering the transport of goods by trailer by ferry, road and train.

Ekol and DFDS had started negotiations on this agreement in 2022 which was approved by the Turkish Competition Authority last year. The transaction, valued at EUR 254.7 million, remains subject to approval by the European Union. According to DFDS, the Turkey-Europe transport market is expected to grow by around 14% per year until 2028. According to Torben Carlsen, CEO of DFDS “Turkey's role as a European manufacturing hub will become even stronger in the future. future, as offshoring brings supply chains closer to end markets.”

Assuming the deal is finalized early in Q4 2024, DFDS anticipates full-year revenue growth from an initial forecast of 5-8% to a range of 8-11%. Following this acquisition, the Ekol brand will disappear from the EU but will continue to operate under its original name in the Turkish and Ukrainian markets.

Source: Trans.Info, April 12, 2024

Curium Pharma buys Turkish Eczacıbaşı-Monrol

The French Curium Pharma, world leader in nuclear medicine, announced that it had reached an agreement with Eczacıbaşı Holding and Bozlu Group for the acquisition of 50% of the shares of the Turkish Eczacıbaşı-Monrol Nuclear Products. This acquisition will significantly strengthen Curium's lutetium-177 production capacity, and facilitate the development of advanced radionuclides and radiopharmaceuticals for diagnostic and therapeutic purposes.

Additionally, this proposed acquisition will add 12 new PET sites to Curium's existing network in regions where the company does not yet have a presence. It will also expand Curium’s SPECT manufacturing capabilities and strengthen its logistics infrastructure.

Curium is active in 60 countries. The company develops, manufactures and distributes radiopharmaceutical products with production sites in Europe and the United States. The company provides nuclear diagnostics and therapies to more than 14 million patients each year to improve the lives of everyone with cancer. Based in Istanbul, Eczacıbaşı-Monrol is a nuclear medicine company serving the development and manufacturing of radioisotopes and radiopharmaceuticals. The company is dedicated to transforming and improving the patient journey in cancer treatment through a portfolio of products that it distributes in more than 70 countries.

The transfer of shares remains subject to obtaining the necessary authorizations and approvals from the Competition Council and compliance with all agreed closing conditions.

Source: Globe Newswire, April 9, 2024

Ranking of billionaire cities: Istanbul in the European top 5

Hurun Report, an economic platform based in China, has published its annual ranking of the world's billionaires “Global Rich List 2024”. This year again, Turkey maintains its position in 20th place in the world among the countries with the most wealthy people, including 25 billionaires. Among them, 22 reside in Istanbul, which makes the metropolis the fifth city among European countries with the most billionaires, just behind London, Moscow, Paris and Milan. On a global scale, Istanbul rises to 26th place, marking its entry into the top 30 for the first time. Below, the other essential elements that emerge from the report:

- The total number of billionaires in the world reached 3,279, an increase of 5% from the previous year.

- Financial services represent 10% of billionaires' wealth, followed by the consumer goods sector (8%), food and beverages (7%), and the real estate sector (7%).

- Artificial intelligence (AI) has been the primary source of more than half of all new wealth created.

- Mumbai has surpassed Beijing to become the leading Asian metropolis in terms of the number of billionaires, and is in the top 3 in the world for the first time.

- Elon Musk remains the richest person in the world for the third time in a row, with a fortune estimated at 231 billion USD.

Source: Hurun Report, March 26, 2024

German Geske enters the Turkish market

German beauty device brand GESKE: German Beauty Tech entered the Turkish market by establishing a partnership with HES Dış Ticaret who became its official distributor. German offers a wide range of beauty devices for home use, providing a professional skin care experience to users. Geske combines its expertise in skincare and beauty with scientific research and innovation, providing a 15-year warranty on its products. Geske's product portfolio includes beauty and aesthetic devices as well as dermatological care (creams, masks and serums).

Launched at an event attended by famous personalities and social media figures, Geske plans to offer more than 250 skincare products to Turkish consumers and highlights the company's commitment to making beauty technology accessible to all.

The German brand aims to reach an international audience of 5.5 billion consumers and is counting on a significant investment of EUR 120 million, including EUR 20 million invested in artificial intelligence and EUR 75 million invested in product development. The brand offers a 15-year warranty on its products.

Source: Ekonomim, April 26, 2024

Forto opens technology office in Türkiye

The German unicorn Forto, specializing in logistics and supply chain solutions, has chosen Istanbul to establish a technology office. Specializing in the development of technology infrastructure for sustainable global supply chains, aimed at removing operational and commercial barriers to global trade, Forto is one of the most supported startups in the sector with an investment of almost 600 million USD received from global investment companies such as SoftBank and Northzone and a valuation of 2.1 billion USD.

With operations in 7 countries and 15 locations and more than 700 employees, Forto seeks to redefine the traditional logistics sector by developing artificial intelligence-based solutions to solve chronic problems in existing logistics applications and technology infrastructures. The Istanbul Technology Center will play a crucial role in Forto's strategy to provide advanced technologies and software solutions to the industry. Its objectives will include the development of artificial intelligence-based document #automation and workflow solutions, as well as predictive freight management and allocation systems.

Founded in 2016 as FreightHub, Forto aims to revolutionize logistics and supply chain by combining technology, data and industry expertise, thereby aspiring to become a global leader in managing sustainable global supply chains.

Source: Ekonomim, April 24, 2024

EBRD supports Turkey’s decarbonization

Turkey has secured support from the European Bank for Reconstruction and Development to launch a new initiative to decarbonize industries where it is difficult to reduce carbon emissions, including the steel, cement, aluminum and fertilizers.

This Low Carbon Paths (LCP) initiative will include advice to national and international stakeholders on the technologies and financing needed to accelerate the country's decarbonization. It will strengthen infrastructure development by addressing aspects such as logistics, networks, carbon storage, renewable energy and green hydrogen. Indeed, Turkey has committed to achieving a goal of net zero emissions by 2053, making industrial decarbonization imperative. The LCPs show that investments of more than USD 70 billion will be needed to decarbonize the four selected sectors from 135 million tonnes of CO2 per year.

The LCPs will also provide policy recommendations to create a favorable market environment for industrial decarbonization, such as the creation of a Turkish emissions trading system aligned with European Union regulations. The EBRD is a key investor in Turkey, with almost EUR 19.5 billion invested in 440 projects and trade facilitation lines since 2009, mainly in the private sector.

Source: Anadolu Agency, February 19, 2024

Turkish Airlines 8th company: Stock market valuation ranking

Turkish Airlines (THY) has made a remarkable breakthrough by ranking among the most valuable airlines in the world. According to data recently published by Companies Market Cap, THY reached 8th place among the largest airlines in the world with a market capitalization of 12.29 billion USD (+ 2 places compared to last year's ranking).

The company Ryanair dominates the ranking with a market capitalization of 33.04 billion USD, followed by the American companies Delta Airlines and Southwest Airlines while Air France-KLM occupies the 31st position, displaying a capitalization of 2.65 billion USD. This achievement highlights Turkey's growing influence on the global stage and THY's strong performance.

The Turkish airline's success is based on impressive growth, innovative strategies and robust operational performance, thereby consolidating its leading position in the global travel industry. Its place among the main global competitors demonstrates its competitive advantage in the international market.

Source: Airport Haber, April 1, 2024

Airport operations: TAV Ariports in the world top 20

According to the report published by Fortune Business Insights on the global airport services market, Turkish giant TAV Airports ranks 19th largest operator in the world.

Founded in 1997 and a subsidiary of GROUPE ADP since 2012 which holds 46.12% of its capital, TAV Airports today operates 15 airports spread across 8 countries with a market value of USD 2.01 billion. In 2022, TAV served 78.5 million passengers and generated a consolidated turnover of more than EUR 1 billion. Non-aeronautical activities represent 55% of its turnover.

At the top of this ranking is the Spanish company Aena KOBİ SA with a market value of 29.5 billion USD. The Spanish giant operates 46 airports and 2 heliports in Spain.

Other major operators include Airports of Thai Public Company Limited, Aeroports de Paris SA, Shanghai International Airport and Grupo Aeroportuario del Sureste.

According to the report, the global airport services market value reached USD 158.71 billion in 2022 and experts estimate that this value will reach USD 440 billion by 2030, with an expected average annual growth rate of 13.67%.

Source: Dünya, April 1, 2024

Istanbul Airport: the first entirely solar

Istanbul Airport plans to meet all its electricity needs with a solar power plant, representing an investment of around EUR 212 million. This power plant, which will be located in the Eskişehir region, will cover an area of ​​approximately 3 million m3 and will have 439,000 solar panels, providing a total capacity of 199.32 megawatts (MW). It is expected to produce 340 million kilowatt hours of energy per year, making Istanbul Airport the first in the world to be powered entirely by solar energy.

This initiative is part of the company's commitment to achieve net zero carbon emissions by 2050. In addition, significant recycling efforts have reduced waste emissions by 50%, while total consumption energy consumption fell by 10.7% last year. Approximately 30% of the water used comes from reclaimed sources, contributing to a 5% reduction in the water footprint compared to the previous year.

The airport, inaugurated in October 2018 and fully operational since April 2019, has become one of the main air transit hubs, capable of handling up to 90 million passengers per year, with a planned capacity of 200 million once all expansion works completed planned for 2028.

In 2023, the airport welcomed approximately 76 million passengers. It has been ranked as Europe's busiest for four consecutive years according to Eurocontrol, with an average of 1,375 flights per day.

Source: Daily Sabah, April 8, 2024

Türkiye: New agreement with the World Bank

The World Bank Group Board of Executive Directors has announced a new Country Partnership Framework (CPF) for Turkey which will cover the period 2024-2028.

The Bank will finance USD 18 billion over the said period, adding to the current country portfolio of USD 17 billion, which constitutes the third largest country program in the World Bank Group.

The new CPF will focus on 3 key areas of development:

- Growth in productivity: smart agriculture, strengthening food security, reducing carbon emissions to make the industrial sector more ecological and maintain commercial competitiveness.

Employment and better delivery of public services: combating income inequalities and other inequalities, improving jobs for women, young people and vulnerable groups, reducing disparities in access to health and education .

- Resilience to climate change and natural disasters: priority to disaster preparedness, natural resource management and the transition to clean energy.

The CPF also highlights the need to accelerate digitalization, essential to boost productivity and the delivery of public services. The World Bank Group will work on many fronts to accelerate the use of digital technology, including improving the digital business ecosystem, supporting seismic and climate-resilient urban planning, expanding hybrid education opportunities and by improving financial inclusion.

Source: World Bank, April 11, 2024

Factory in Kenya: Turkish investment of 294 million USD

Turkish Industry Holding, a Turkish company active in many fields such as ceramics, energy, granite and construction, plans to make a significant investment of USD 294 million to establish the largest ceramics and granite factory in Kenya.

The facility, which will be located in the Naivasha special economic zone, targets an annual production of 25 million units in a closed area of ​​98,000 m3 and will create 700 jobs. The investment will focus on the production of large plates measuring 160 x 360 cm, representing the most advanced ceramic technology in the world.

70% of the total production will be exported to Kenya's neighboring countries, as well as the United States and EU countries.

This initiative is expected to benefit the Kenyan economy by significantly reducing ceramic imports currently made at 80% from foreign suppliers such as China, India, Uganda and Iran.

Turkish investments in Africa have visibly increased in recent years with significant investments affecting various sectors such as energy, construction, agriculture, ICT, tourism and infrastructure and collaboration opportunities between French and Turkish companies in Africa are broad and can lead to mutually beneficial partnerships, stimulating economic development and fostering innovation on the African continent.

Source: Dünya, April 3, 2024