TURKISH FOUNDRY INDUSTRY

While Europe’s foundry production increased by 7.8 % between 1970 and 1998, the corresponding increase in Turkish output was over 250 %. The 217,000 tonnes figure of 1970 exceeding 900,000 tonnes in 1998. Turkish production represents 1.1% of the world total and 3.5% of European figure, this ranking it 13th and 6th respectively. (32nd Census of World casting production - Modern Casting December. A study of the figures (Table-1) shows that the most rapid increase (115%) took place in the early 1970s with a slowing during the 1980s due to the energy crisis, credibility problems of Turkey, lack of imported raw materials and sustained strikes in the country. Even so, overall production showed an average 57% increases in this period. From 1990, with the help of modernisation, capacity improvement investments plus an export drive, considerable production increases were achieved - a trend that continues today.

Import & Export

Much of the raw materials required by the Turkish foundries must be imported as must all the necessary plant and equipment. However, as table-2 shows, the percentage increase in exports far exceed those of production. Specifically, between 1990 and 1995, exports increased by over 300%. There are several reasons which led to this rapid increase for foundry products including the increased demand by the domestic market and government policies adopted between 1980 and 1990 which encouraged many entrepreneurs to invest in this sector of industry. At the same time, because of high living standards in the developed countries and low return on investment in foundry business, this discouraged these countries to further invest. Because of the comparative cost advantage, mainly resulting from the lower labour costs, this brought advantages to the Turkish foundry sector on the international market. Turkish foundrymen clearly realise that, by combining low production costs with higher quality, improved productivity and new technology, the sector will have considerable advantages in competing with other producers and processes. The final factor is the customs union of Europe which will certainly open new horizons to the Turkish foundry industry.

Foundry Sector Between 1977 & 1998

In 1977 some 60% of the total grey iron output was produced in small shops, this figure dropping to 13 % in 1998, the difference being taken over by large foundries (Table-3). The number of small foundries was about 1,500 in 1995, this figure dropping to 1,000 in 1998.

Established in 1976 to assist it’s members on technical and also official matters, the Foundrymen’s Association Of Turkey has 90 members being elected to the CIATF in 1989. Members produce 70% of the Turkish Foundry output. The Turkish foundry industry is currently in a phase of development and expansion based on strong domestic demand and export markets. Capacity utilisation is over industrial average and in addition to spending on machinery investments, the sector have invested heavily in training, research and development, as well as quality, with many foundries holding internationally valid ISO 9002 certificates. Products supplied at competitive prices coupled with good service, simultaneous engineering, value analysis, just in time delivery, prompt reaction to design changes, flexibility, modern technology and reliable quality will be leading factors in the future seccess of the Turkish Foundry Industry in the liberal market place of the 21st century.