December 2024

Dear readers,

As 2024 draws to a close, let us take a moment to reflect on the economic events that have shaped the year. 2024 has been marked by significant developments for Türkiye, further solidifying its position as a regional and emerging global power. Economic performance, bolstered by monetary reforms and strategic investments, has enabled the country to maintain impressive resilience in the face of global challenges.

An evolving economic context

The Turkish economy, though tested by challenges such as inflation, currency depreciation, and geopolitical tensions, has once again demonstrated its resilience. Quarterly growth rates have been robust (5.7% in Q1, 2.5% in Q2, and 2.1% in Q3), exceeding expectations in several key sectors. These performances, coupled with a more orthodox monetary policy, prompted multiple international credit rating agencies to upgrade Türkiye's credit ratings—a strong signal for the country's business climate. This year, the three major rating agencies—S&P, Fitch Ratings, and Moody’s—adopted an optimistic outlook on Türkiye, with Moody’s issuing its first upgrade in over a decade.

In 2024, Türkiye implemented a strict monetary policy to combat high inflation. Under the leadership of Finance Minister Mehmet Şimşek and Central Bank Governor Fatih Karahan, the key interest rate was drastically increased from 8.5% in June 2023 to 50% in March 2024. This policy had a notable impact on inflation. After peaking at 75.4% in May 2024, inflation dropped to 61.78% in July and then to 47.1% in November 2024. Maintaining the key interest rate at 50%  aims to stabilize prices and restore the Central Bank's credibility. At the same time, the government implemented austerity measures, including tax hikes and spending cuts, to support this strict monetary policy.

Bilateral trade between France and Türkiye

Trade between France and Türkiye remained strong in the first half of 2024, reaching a record €11.9 billion in goods exchanges, up 1.7% compared to the first half of 2023. French exports increased by 7%, reaching €6.3 billion, driven by the aerospace, capital goods, and chemical, perfume, and cosmetics sectors. Meanwhile, French imports from Türkiye fell by 4.2%, totaling €5.5 billion, mainly due to a decline in automotive purchases and challenges faced by the textile and metallurgy industries, which were impacted by the 2023 earthquakes.

France has become Türkiye's 6th largest supplier, following Russia, China, Germany, Italy, and the United States.
Türkiye remains France's 11th largest supplier and 5th largest non-EU supplier, after China, the United States, the United Kingdom, and Switzerland.

Industrial investments: large-scale projects and new entrants

The year 2024 saw significant investments from major companies in strategic industrial projects in Türkiye. Among them, Chinese company BYD, the world’s largest electric vehicle manufacturer, signed an agreement to build a production facility for electric and plug-in hybrid vehicles, representing a substantial $1 billion investment. Talks with automaker Chery are also ongoing for a similar investment.

Another major investment involves Progresiva Energy Investments, which finalized an agreement with Chinese manufacturer Harbin Electric International  for an ambitious energy storage and wind farm project valued at $600 million. In the energy sector, Ganfeng Lithium, a global leader in lithium batteries, also announced a massive $500 million investment in partnership with Turkish company Yiğit Akü, a key player in battery manufacturing.

Meanwhile, Russian tech giant Yandex invested $400 million to strengthen its digital presence in Türkiye, aiming to create services tailored to the local market.

The year also witnessed the entry of several new players into the Turkish market. Flying Tiger Copenhagen launched its presence in Türkiye through a partnership with Turkish group Karaca, while German brand Geske, specializing in beauty devices, opened its first store in Türkiye. UK-based car rental booking platform Finalrentals also entered the market.

Kaspi’s acquisition of Hepsiburada: the deal of the year!

Undoubtedly, the acquisition of Hepsiburada by Kazakh group Kaspi marks a strategic turning point in Türkiye's e-commerce industry. Kaspi.kz signed an agreement to acquire all Class A and B shares held by key shareholders, including founder Hanzade Doğan Boyner and several family members. The transaction is valued at $1.13 billion.

This deal highlights the strength and potential of the Turkish e-commerce market, a rapidly growing sector. In November alone, e-commerce campaigns generated nearly TRY 500 billion (approximately €13 billion), a 110% increase compared to the previous year. According to a recent study by We Are Social and Meltwater, Türkiye ranks 3rd globally for weekly online shopping activity.

Energy transition and green investments

2024 was a landmark year for the energy transition in Türkiye. The European Bank for Reconstruction and Development (EBRD) supported the decarbonization of key energy-intensive industrial sectors such as steel, cement, and fertilizers. Investments estimated at $70 billion will be dedicated to reducing CO2 emissions in these energy-consuming sectors. The World Bank also provided support by signing a $1 billion program to accelerate the development of renewable energy initiatives in Türkiye.

The Turkish government is also placing great importance on the green transition of its industrial ecosystem. At COP29, the climate summit held in Baku, President Erdoğan presented new ambitious measures to strengthen Türkiye's fight against climate change, including increasing green energy capacities and continuing zero waste initiatives. A massive investment of $81.7 billion was announced at this summit to achieve carbon neutrality through the transformation of key sectors and energy efficiency projects.

Tourism: sustained growth and new infrastructure

Tourism, one of the pillars of the Turkish economy, has once again maintained high attendance numbers this year. The sector saw a 9% increase in visitors between January and September, with 49.2 million tourists welcomed. This dynamism sets Türkiye on track to meet its goal of hosting 60 million tourists for the year. The inauguration of the 58th airport, the new Çukurova International Airport, opens new perspectives for tourism and trade by enhancing the connectivity of the country’s southern region. Hotel giants such as Accor, Hilton, and Barcelo have decided to expand their presence with new openings planned across the country.

Aerospace autonomy in sight

2024 was also a historic year for Türkiye in the aerospace sector. In January, the country sent its first Turkish astronaut, Alper Gezeravcı, into space, marking a key milestone in its space ambitions. Simultaneously, Türkiye made progress in the industrial field with the 5th generation fighter jet Kaan, fully designed and manufactured in Türkiye, whose first test flight was successful. Launched in 2010, the TF-X program (now named "Kaan") aims to develop a fighter jet to replace the Turkish Air Force's F-16C/Ds and ensure that Türkiye can strengthen its defense industry.

On July 9, Türkiye launched its first national communication satellite, Türksat 6A. Designed with over 80% domestic components, this satellite represents a strategic advance in the country’s security and technological autonomy. It will be operational for 15 years and provide communication services to over 5 billion people, covering regions such as South and Southeast Asia.

These successes illustrate Ankara's determination to develop its technological autonomy and play an active role in the aerospace industry.

Türkiye strengthens its determining geopolitical role

Türkiye is seeking to enhance its global influence by diversifying its international alliances. To this end, it has officially applied to join the BRICS group, an initiative that aligns with its geopolitical expansion strategy. This application underscores the central role Türkiye aims to play in a multipolar world by strengthening its relationships with emerging powers like Russia and China while maintaining ties with Europe and honoring its obligations as a key NATO member.

In parallel, Türkiye has consolidated its diplomatic role in the Middle East, particularly after the upheavals in Syria. The fall of Bashar al-Assad has redefined regional dynamics, and Ankara has asserted itself as a central player in stabilizing the region. In support of Syria's reconstruction and the return of refugees, Türkiye is working closely with international partners such as the European Union and the United Nations.

Looking ahead to 2025: strengthened ambitions

Türkiye's economic objectives for 2025 focus on economic growth, inflation reduction, improving the trade balance, and attracting foreign investments to support industrial development.

The primary goal is to reduce inflation to 17.5% by 2025, with forecasts of 9.7% in 2026 and 7% in 2027. The Turkish government anticipates a GDP growth of 3.5% in 2025, followed by 4.5% in 2026 and 5% in 2027.

Türkiye aims to reduce its external deficit by increasing exports and controlling imports. The expected recovery in European demand is likely to support Turkish exports. At the same time, the country is pursuing a disinflationary process, with the Turkish lira expected to appreciate in real terms, which should help reduce inflation.

Türkiye is also focused on attracting foreign direct investments (FDI) to stimulate its industrial development and diversify its economy. These investments are essential to strengthen key sectors, modernize industrial infrastructure, and increase the country's competitiveness in global markets.

Advantis remains at your service

On behalf of the entire Advantis team, we would like to express our heartfelt thanks to our partners, collaborators, and clients for their unwavering trust and commitment. Your support is the driving force behind our success and the key to our determination to push our limits every day.

We extend our sincerest wishes for a 2025 filled with health, happiness, and success, both personally and professionally. May we continue to transform ideas into opportunities, challenges into successes, and ambitions into realities, together.

Happy New Year to everyone, and let’s head into 2025 with optimism and determination!

Turkish Economy Records 2.1% Growth in Q3 2024

The Turkish Statistical Institute (TUIK) has recently published the growth figures for the third quarter of 2024. The country recorded an economic performance of 2.1%. The GDP estimate by production method increased by 53.3% in Q3 2024 compared to the same period last year, reaching 11.893 trillion 252 million TRY, or 357.9 billion USD.

Construction was the sector that contributed the most to growth, accounting for 9.2%. Other sectors contributing to this growth include:

• Finance and insurance: 6.2%
• Agriculture: 4.6%
• Real estate: 2.5%
• Other service activities: 2.4%
• Industrial sector: 2.2%
• Information and communication technologies (ICT): 2.2%
• Public administration, education, public health, and social services: 1.9%
• Services: 1.4%

Professional, administrative, and support services decreased by 0.3%. Household final consumption expenditure increased by 3.1% in Q3 2024 compared to the same period last year. Exports of goods and services grew by 0.8%, while imports decreased by 9.6%.

Reminder: The Turkish economy recorded a growth of 5.7% in Q1 2024 and 2.5% in Q2 2024.

Source: Dünya, November 29, 2024

French Company Virbac Acquires Turkish Distributor Mopsan

The French pharmaceutical group Virbac has completed the acquisition of Mopsan, a Turkish company specializing in the distribution of pet food and health products. Virbac has been present in Türkiye for over 20 years, initially through local distributors and later with its own subsidiary since 2018, marking a new strategic milestone. Mopsan, a partner of Turkish veterinarians for over 30 years, brings recognized expertise in a rapidly growing pet food and animal health market.

With this acquisition, Virbac strengthens its proximity to local players to better meet the needs of animal health in Türkiye. The 47-strong Mopsan team will now be fully dedicated to the pet care business. Alican İngeç, former owner and general manager of Mopsan, will take the lead of Virbac Türkiye as the new general manager.

Virbac, founded in 1968 in Carros, near Nice, is the 6th largest veterinary pharmaceutical group worldwide, with a revenue of EUR 1.247 billion in 2023. With 5,500 employees and a presence in over 100 countries with 35 commercial subsidiaries, the company continues its commitment to animal health worldwide.

Source: Virbac, December 3, 2024

Saint-Gobain renforce son leadership en Turquie

Saint-Gobain renforce son leadership en Turquie grâce à deux initiatives stratégiques récemment menées :

• L'acquisition à 100% de His Yalıtım par İZOCAM, co-détenu par Saint-Gobain et Alghanim Industries. Société située à Kayseri (Anatolie centrale), cette acquisition enrichit la gamme de solutions d’isolation de haute qualité d’İZOCAM, qui dispose déjà de quatre usines en Turquie. His Yalıtım est spécialisée dans la production de laine de roche et emploie environ 170 personnes.

• L’inauguration de la 7ᵉ usine Weber, filiale de Saint-Gobain, à Diyarbakır, dans le sud-est de l’Anatolie. Implantée sur un terrain de 25 000 m², dont 6 200 m² d’espace couvert, l’usine aura une capacité de production annuelle initiale de 200 000 tonnes et fabriquera des mortiers-colles, des joints, des enduits à base de ciment, des systèmes d’isolation thermique et des solutions pour sols.

Ces investissements s’inscrivent dans la stratégie "Grow & Impact" de Saint-Gobain, visant à renforcer le leadership du Groupe et à accélérer sa croissance en enrichissant sa gamme de solutions pour une construction légère et durable.

Présent en Turquie depuis 1998, Saint-Gobain exploite actuellement 22 sites et emploie plus de 2 000 personnes dans le pays. Ces initiatives consolident le positionnement de Saint-Gobain dans la construction légère et durable en Turquie, où le Groupe occupe des positions de leader dans les secteurs de l’isolation, du plâtre, des plaques de plâtre et des produits chimiques pour la construction.

Géant mondial, le groupe a généré 47,9 milliards EUR de chiffre d’affaires l’année dernière. Il emploie 160 000 collaborateurs dans 76 pays.

Source : Communiqué de presse Saint Gobain, 02 décembre 2024

Sandoz Boosts Its Production Capacity in Türkiye

Sandoz, a global leader in the pharmaceutical sector, continues its commitment to Türkiye by announcing an USD 80 million (TRY 2.775 billion) capital increase. This new strategic investment aims to boost the production capacity of its Gebze plant by 50%, increasing its annual output from 10 billion to 15 billion tablets.

Listed on the Swiss stock exchange since October 2023, Sandoz has been present in Türkiye for nearly 70 years. The Gebze plant is a key site, accounting for approximately 10% of Türkiye's pharmaceutical exports, with shipments to nearly 60 countries. Last year, its exports reached USD 115 million. Cengiz Zaim, President of Sandoz Türkiye, emphasized: "Global and local conditions do not hinder our ambitions. This capital increase is a key step in expanding our production and international impact, while also supporting the local market through our strong partnerships."

Sandoz is the only global company to successfully become a true leader in the generics and biosimilars segments. With over 22,000 employees, the company operates in over 100 countries and offers a portfolio of over 400 generic medicines and 11 biosimilar products. Additionally, 25 biosimilars are under development. With this investment, Sandoz reaffirms its leadership role and confidence in the economic and industrial potential of Türkiye.

Source: Foreks, December 4, 2024

Systemair Completes Acquisition of Its Turkish Subsidiary

Systemair Group has announced the completion of its acquisition of the remaining 10% of shares in Systemair HSK Türkiye. The Swedish company initially entered the capital of the Turkish firm HSK in August 2012, acquiring 70% of the company, and later added 20% more in December of the same year. The agreement included an option to acquire the minority shares at a later date. Since the acquisition, the company has experienced significant growth, reaching a turnover of approximately EUR 55 million and employing around 350 people. The current management has helped the company establish a strong market position, notably through the construction of a modern 28,000 m² factory on the outskirts of Istanbul.

This acquisition allows Systemair to own 100% of the shares, strengthening its strategic position in a growing market. Approval from Turkish competition authorities is expected in the coming months.

A leader in the ventilation sector, Systemair operates in 51 countries and employs approximately 6,700 people. The company achieved a turnover of SEK 12.3 billion (approximately EUR 1.1 billion) for the 2023-2024 financial year.

Source: Systemair, December 12, 2024

BSH Invests EUR 500 Million to Strengthen Its Presence in Türkiye

BSH Ev Aletleri Türkiye, a leader in the home appliance sector, reaffirms its commitment to Türkiye by announcing a major EUR 500 million investment planned over the next five years. This investment aims to solidify its key role in the emerging markets region, which has been managed from Türkiye since 2020 and covers 130 countries and a population of 4.6 billion people. Türkiye stands out as a strategic platform for driving BSH’s operations in these high-potential markets, leveraging its geographic location, industrial infrastructure, and local expertise to support sustainable and balanced growth.

In Türkiye, BSH is firmly established, particularly with its production site in Çerkezköy, one of the group's largest industrial centers. Comprising five factories with an annual capacity of 7 million units, this site exports to 150 countries and represents BSH's industrial and technological excellence. In addition to production, it is a hub for innovation, incorporating advanced technologies to improve energy efficiency and accelerate digital transformation. These initiatives reinforce Türkiye’s position as a strategic center for technological innovation and environmental sustainability.

Managed from Türkiye, the emerging markets region is experiencing double-digit annual growth, driven by trends such as rapid urbanization and the rise of the middle class. In this context, BSH continues to invest to meet consumer expectations. With its central position, ability to develop solutions for economic and environmental challenges, and expertise in managing emerging markets, Türkiye is emerging as a strategic pillar in BSH’s long-term vision.

With this investment, BSH confirms its commitment to making Türkiye a growth lever and an industrial excellence hub to address global challenges and meet the needs of a rapidly changing region.

Source: Dünya, December 12, 2024

Puma to Produce Its Shoes in Türkiye

PUMA Group, the third-largest global sportswear brand, takes a new step by launching local shoe production in Türkiye. As part of this initiative, Puma has formed a strategic partnership with Urgan Ayakkabıcılık, a manufacturer based in Istanbul. Already well-established in the sector, Urgan Ayakkabı manufactures for giants such as Inditex, LC Waikiki, and FLO. With facilities covering 15,000 m², the company has a production capacity of 7,500 pairs per day, or approximately 1.75 million pairs annually. Puma is leveraging this expertise to achieve an ambitious goal: to locally produce nearly 2 million pairs of shoes per year.

Puma is currently conducting social compliance audits with other Turkish manufacturers to identify new partners and expand its production capacity. This strategy reflects the brand's intention to strengthen its supply chain, improve manufacturing process speed and efficiency, and add value to its products with the "Made in Türkiye" label.

This return to production in Türkiye, after a hiatus in 2020, highlights the increasing attractiveness of the country for international brands. With an annual production capacity of over 500 million pairs of shoes and local consumption reaching 250 million pairs, Türkiye plays a dual key role: as a major player in both production and consumption markets. The country's geographic location, near the European Union and major global markets, provides a significant logistical advantage. Additionally, Türkiye has a strong and competitive textile and footwear infrastructure that attracts companies seeking to optimize costs while maintaining high-quality standards.

Source: Dünya, December 5, 2024

Parfois to Establish a Purchasing Office in Türkiye

Parfois, a global leader in women's accessories, plans to establish a purchasing office in Türkiye starting next year. This development marks a key step in its expansion strategy, with the goal of increasing its sourcing from Türkiye by 30% over the next decade.

This decision is part of an ambitious plan to triple its global purchases, from 500 million EUR to 1.5 billion EUR within ten years. Sourcing from Türkiye is expected to rise from 5 million EUR to 450 million EUR.

Türkiye represents a major strategic asset for Parfois, thanks to its logistical advantages and flexible production capacity, which were particularly highlighted during the pandemic. This confidence is also reflected in the accelerated pace of store openings: six stores have been opened in one year, and the potential to open 30 more remains high.

With over 1,000 stores in nearly 80 countries, the Portuguese-origin company continues to expand its international footprint and confirms its commitment to the Turkish market, which is becoming a key pillar of its global sourcing strategy.

Source: Türkiye Today, December 23, 2024

Double U Games Acquires Turkish Paxie Games

South Korea’s DoubleU Games Co., Ltd., a major player in the mobile gaming industry, announces the strategic acquisition of Paxie Games, a Turkish studio known for its global hit game Merge Studio: Fashion Makeover.

In the first phase, DoubleU Games will invest 27 million USD to acquire 60% of Paxie Games. Once required conditions are met, the company will take full ownership with a total investment of 67 million USD.

The remaining 40% will be transferred over the next three years, contingent on meeting specific financial targets, for an additional amount that could reach up to 40 million USD.

With over 25 million users captivated by Merge Studio: Fashion Makeover, Paxie Games has established itself as a key player in the mobile gaming market.

Direnç Çelik, CEO of Paxie Games, stated: “With one of the most talented teams in Türkiye, we’ve achieved great things in just three years. With our collaboration with DoubleU Games, we are entering a new growth phase that will allow us to develop our existing games and create new titles to reach an even wider audience.”

This acquisition marks a turning point for both companies, combining innovation, expertise, and ambition to meet the demands of a rapidly evolving global market.

Source: Dünya, December 26, 2024

WEG Strengthens Its Industrial Presence in Türkiye

Brazilian giant WEG, one of the world’s leading manufacturers of electric motors, continues its expansion with a new major investment in Türkiye. WEG has announced a 28 million EUR (approximately 1 billion TRY) investment for a gearbox manufacturing plant in Manisa. Scheduled to begin production in 2027, this 12,000 m² facility will generate 150 jobs, bringing the total number of WEG employees in Türkiye to 900.

This investment marks a first for WEG: the company has chosen to lease a building rather than purchase land. This decision is driven by the high real estate costs in Türkiye, a reality pushing companies to innovate in their approach.

WEG has been present in Türkiye for over 20 years, strengthening its local presence through strategic acquisitions and investments. The Izmir plant is WEG’s first production site in Türkiye, created to enhance its position in the country. The Dilovası plant, inaugurated in 2023 near Istanbul, specializes in the production of industrial solutions, including systems for air conditioning. WEG also recently acquired Turkish Volt Electric Motors for 88 million USD in September 2024.

Founded in 1961 in Brazil, WEG initially focused on electric motors, later diversifying into industrial automation products, transformers, paints, and renewable energy solutions. Today, WEG operates in 29 countries and has production units in 12 of them. With an annual turnover of 19 billion USD, WEG is the fourth-largest publicly listed company in Brazil.

Source: Dünya, December 21, 2024

Hilton Announces Ambitious Expansion Plan in Türkiye

Hilton has announced a major investment in Türkiye, with plans to expand its presence to over 120 hotels, both operational and under development, across the country by 2025. This portfolio will include more than 1,000 additional rooms through 10 new openings under its flagship brands: DoubleTree by Hilton, Tapestry Collection by Hilton, Hilton Garden Inn, and Hampton by Hilton.

Among the upcoming openings, Hilton will debut its first airport hotel in Istanbul: Hilton Istanbul Airport, scheduled to open in the summer of 2025. In the Aegean region, Hilton is also set to open a new Tapestry Collection by Hilton in Bodrum Eskicesme, expected in May 2026. This will be Hilton's fourth property in Bodrum, one of Türkiye’s most popular vacation destinations. In Sarikamis (Kars), in the eastern region of Türkiye, another DoubleTree by Hilton is in the works. This will be Hilton’s first ski resort in Türkiye.

Furthermore, the iconic Hilton Istanbul Bosphorus is currently undergoing a major renovation, with numerous rooms and the swimming pool being refurbished before its full reopening next year.

2025 will also be a milestone year for Hilton in Türkiye, marking its 70th anniversary of operations in the country.

Hilton continues to solidify its position in Türkiye, a strategic market, and meet the needs of travelers seeking comfort, innovation, and quality.

Source: Hilton, November 27, 2024

Barceló Hotel Group Strengthens Its Commitment to Türkiye

A major player in the global hospitality industry with over 300 establishments in 30 countries, Barceló Hotel Group is reinforcing its presence in Türkiye, a strategic market where it has been operating for 26 years. The country's cultural and historical diversity, as well as its growing appeal in the tourism sector, make it a key destination for the Spanish group. Barceló is focused on enhancing iconic regions while contributing to the growth of sustainable tourism.

With EUR 70 million in direct investments to date, Barceló aims to exceed EUR 100 million over the next four years. In addition to popular coastal destinations such as Antalya, Bodrum, and Izmir, the group is focusing on culturally rich cities like Mardin, Gaziantep, and Konya. This strategic expansion seeks to diversify the hotel offerings while meeting the expectations of an increasingly discerning international clientele.

Among its recent accomplishments, the 5-star Barceló Cappadocia hotel perfectly exemplifies this ambition. Located in the heart of the UNESCO World Heritage-listed region, it combines architectural design with the preservation of local heritage. With this new investment and the upcoming introduction of charter flights to facilitate access to Cappadocia, Barceló confirms its role as a catalyst for Türkiye's tourism and economic development.

Source: Dünya, December 18, 2024

Türkiye-Oman: $500 Million Joint Venture

The Turkish military pension fund OYAK and the Omani sovereign wealth fund Oman Investment Authority (OIA) have joined forces to launch a $500 million joint venture. Each partner will invest $250 million, with a shared goal of developing projects in key sectors such as logistics, communications, energy, and manufacturing. The first flagship project of this partnership will be the construction of a new container port in Iskenderun, located in southern Türkiye. Iskenderun already has a container terminal, but it was severely damaged by the double earthquakes of February 7th last year, followed by a fire that devastated the storage area. The port, one of the largest in the Eastern Mediterranean with an annual capacity of one million containers, only resumed full operations in mid-2024.

This partnership is part of a broader dynamic: several strategic agreements were signed during the recent visit to Türkiye by the Sultan of Oman. Among them, Ankara agreed to import Omani natural gas to diversify its energy sources, while the two countries committed to cooperating in the sectors of industry, health, and agriculture.

Key Players:

• OIA, with $51 billion in assets in 2023, is a global player present in over 50 countries. It already collaborates with countries such as Spain, Vietnam, India, and Saudi Arabia.
• Oyak, founded in 1961, manages $24.4 billion in assets. A leader in port management in Türkiye, with a near 10% market share in bulk operations, the fund also manages ro-ro facilities and is active in strategic sectors like automotive, energy, and agriculture.

This partnership represents a strong commitment to enhancing Türkiye-Oman economic relations while investing in key infrastructure and future sectors.

Source: Türkiye Today, December 23, 2024

Baykar Acquires Italy’s Piaggio Aerospace

Turkish company Baykar Technologies, a global leader in armed drones, has taken a decisive step by announcing the acquisition of Piaggio Aerospace, one of Italy's most renowned aerospace companies. Founded in 1884, Piaggio Aerospace is known for its P.180 Avanti business aircraft, nicknamed the "Ferrari of the skies," as well as its aircraft engines.

This acquisition, approved by the Italian Ministry of Enterprises and Made in Italy, allows Baykar to strengthen its presence in the European aerospace market while preserving Piaggio’s historical and industrial heritage.

This move is strategically significant for Baykar, marking a major expansion into the European market and ensuring the development of Piaggio's technological capabilities and 140-year-old historical identity. Piaggio also plays a key role in Italy's defense ecosystem through its maintenance, repair, and overhaul (MRO) services and has significantly contributed to the development of Italy's technological infrastructure.

Baykar's achievements are part of a remarkable global growth trend. In 2023, the company achieved $1.8 billion in exports, ranking among Türkiye's top 10 exporters across all sectors. According to a report by the American think tank CNAS (Center for a New American Security), Türkiye dominates 65% of the global armed drone export market, with Baykar accounting for approximately 60% of this share through sales in over 35 countries. This global success is underscored by the fact that over 90% of Baykar's revenues come from exports.

Through this acquisition, Baykar combines performance, innovation, and the preservation of Europe’s industrial heritage.

Source: Dünya, December 27, 2024

$81.7 Billion in Planned Climate Investments

At COP29, the climate summit held in Baku, President Erdoğan outlined ambitious new measures to strengthen Türkiye's fight against climate change, including expanding green energy capacities and continuing zero-waste initiatives. The goal: Turkiye aims for carbon neutrality through the transformation of key sectors and green development.

Key highlights include:

• The installed capacity for wind and solar energy will increase from 31,000 MW to 120,000 MW by 2035.
• The Zero Waste Project, launched under the guidance of First Lady Emine Erdoğan, has already prevented 5.9 million tons of greenhouse gases since 2017.
• The goal is to recycle 60% of recyclable waste by 2035.

Strategic investments of $81.7 billion:

• $59 billion for renewable energy by 2035.
• $2.5 billion for energy storage.
• $20.2 billion for energy efficiency by 2030.

Nuclear development: Türkiye aims for a 7.2 GW nuclear capacity by 2035, with a reduction of 30 million tons of emissions annually from the Akkuyu nuclear power plant. Erdoğan also reaffirmed Türkiye's commitment to the Paris Agreement and its bid to host COP31 in 2026.

Source: Daily Sabah, November 12, 2024



Türkiye to Import 520,000 Feedlot Cattle in 2025

According to directives published by the General Directorate of Livestock regarding the importation of feedlot cattle, Türkiye plans to import 520,000 male feedlot cattle in 2025. The Meat and Milk Institution (ESK) will be responsible for this operation and will also set the sale prices for the imported cattle. The country imported 600,000 cattle in 2024.

The directive specifies that 400,000 heads will be allocated to farms with a capacity of 200 or more cattle, while 120,000 heads will be distributed to smaller farms. This initiative aims to strengthen domestic production capacity while supporting farmers, particularly large-scale operations, through careful planning of beef requirements. It also seeks to reduce red meat prices.

The imported feedlot cattle, which will come from EU member countries, European nations, or other countries, must be purebred males or crosses of the following beef or dual-purpose breeds:

Beef breeds: Angus, Charolais, Limousin, Hereford, Belgium Blue, Piedmontese, Aubrac, Gasconne, Salers, Blonde d'Aquitaine. Bos taurus indicus breeds (Nelore, Zebu, Gyr, etc.) or their crosses are not permitted.

Dual-purpose breeds: Simmental, Shorthorn, Brown Swiss.

Source: Tarımdan Haber, December 4, 2024

Agricultural Machinery - Major Acquisitions by TürkTraktör

TürkTraktör, the pioneer of the Turkish automotive industry and the market leader in tractors in Türkiye, is expanding its activities in the agricultural equipment sector. The company has acquired two Turkish companies: Kayhan Ertuğrul Makine and Terramak Tarım.

Total transfer costs: $65.6 million.

With these acquisitions, TürkTraktör aims to become a key player in agricultural equipment production while expanding its product range.

As a leader in the tractor sector with iconic brands such as New Holland and Case IH, TürkTraktör already boasts the largest agricultural equipment portfolio in Türkiye, covering a wide range from plows to precision harvesting machines. The integration of these new companies will allow TürkTraktör to expand its offerings, increase production, and better meet the growing needs of farmers.

Founded in 1954, TürkTraktör has seen steady growth over the years and is now one of the largest companies in the country, with 2,900 employees and exports to over 125 countries.

Source: TürkTraktör, November 1, 2024

Ulusoy Un Acquires Italian Pastificio Mediterranea

Ulusoy Un, Türkiye's largest flour producer, has taken a significant step in its diversification strategy by acquiring an 85% stake in the Italian pasta company, Pastificio Mediterranea S.R.L., which is owned by the Spanish group Cerealto. The transaction, valued at approximately €5.3 million, is part of Ulusoy's strategy to expand into high-value-added sectors.

Founded in 1908, Pastificio Mediterranea is a century-old pasta manufacturer located in Silvano d'Orba, Italy. Over the decades, the company has evolved from traditional methods to automated production systems and expanded its international presence with the Moccagatta brand in the 1950s and 1960s. The expansion of its operations into a modern factory in 2003 demonstrates its commitment to innovation and quality.

Eren Günhan Ulusoy, President of Ulusoy Un, stated that the company would contribute to the growth of Pastificio Mediterranea and expand its geographic reach through its sourcing capabilities and global network. Marco Ferraroni, CEO of Pastificio Mediterranea, expressed his enthusiasm for the collaboration, confident that this alliance will propel the company to new heights.

Previously, Ulusoy's subsidiary, Soke, a Turkish flour producer, acquired a 12.65% stake in the American bread manufacturer, Rudi’s.

Source: Daily Sabah, November 1, 2024