Turkey Financial News » Sectoral Reports

Contractors pin hopes on gov’t for repayment of debts in Libya

meb — Thu, 03 Nov 2011 09:11:51 +0000

Turkish contractors, long unable to receive payments for projects in an unstable Libya, woke up Wednesday with renewed hope as Economy Minister Zafer Çağlayan arrived in Tripoli to discuss a solution for the problem with the country’s new rulers, the National Transitional Council (NTC).

Following months of heavy fighting against dictator Muammar Gaddafi, NTC fighters gained full control of Libya last month. Turkish construction companies that have the largest share of Turkish investments in Libya had to suspend projects following the national unrest.

Companies have failed to receive payment for projects — estimated at around $1.5 billion — they had completed prior to the uprising.

Economy Minister Zafer Çağlayan and a group of Turkish construction contractors met with Libya’s National Transitional Council (NTC) to discuss the future of payments of around $1.5 billion during a one-day visit on Monday. Observers said the visit had significant importance considering this is the first face-to-face interchange with the NTC on construction project payments following the council’s recent internationally recognized victory over Gaddafi forces. The minister met with Mustafa Abdul Jalil, head of the NTC on Wednesday in Tripoli. Speaking prior to the meeting, Abdul Jalil said they were grateful for Turkey’s support during the conflict and that Turkish companies will have a significant role in rebuilding the country’s civil war-torn towns. “Turkish companies will reconstruct buildings all across Libya, and some of these will be allocated to Libyan residents. This will be a great example of solidarity for future generations,” he explained. “Turkish companies had undertaken great projects in Libya, and they are famous for their quality work,” the NTC head added. Turkey has lent financial support as well as humanitarian assistance to victims of the Libyan conflict. Both Çağlayan and Abdu Jalil were expected to inform reporters about unpaid debts through the end of the day. The problems, however, may not come to an end as security is another issue that remains to be solved in the North African country.

Some Turkish contractors voiced concerns a possible authority gap in the post-Gaddafi Libya could endanger projects, currently underway at a total value of $15 billion. Turkish businesspeople are now hoping the government will also help secure the business rights they enjoyed during Gaddafi’s rule. But the issue that needs to be addressed first is the current unpaid debts. Evaluating the developments to Today’s Zaman on Wednesday, Association of Turkish Building Material Producers (İMSAD) Chairman Hüseyin Bilmaç said they attached utmost importance to healthy cooperation between Turkish advisors, industrialists and contractors in Libya. “This is crucial in maintaining our leadership in the Libyan construction market. … We are expecting the new government to address the safety concerns in the coming months,” he argued.

Speaking in Ankara on Wednesday, Union of Turkish Construction Industry Employers’ Union (İNTES) President Şükrü Koçoğlu said they “have to find an addressee with whom to discuss the future of Turkish projects in the country.”
source: todays zaman

Libya rush should start urgently, minister says

meb — Thu, 03 Nov 2011 09:07:41 +0000

Turkish construction companies should rush back to Libya, their one-time top market, as the government is ready to support them, according to Economy Minister Zafer Çağlayan.

“Our businessmen demand a special customs permit to take their machinery and equipment to Libya,” the minister said during a press meeting yesterday in Tripoli with his Libyan counterpart.

A business assembly of 200 people accompanied the minister during the one-day visit.

Turkish companies undertook $7.627 billion worth of projects in Libya in 2009 and 2010, according to official data.

Upon Turkish Prime Minister’s order, Turkey will build schools, mosques, police stations, courts and jails in Libya, the minister said.

Turkish contractors will start building these facilities for free once the Libyan authorities finalize determining their needs, he said.

The ministry runs a budget of $50 million to support consultancy practices for Turkish companies worldwide, Çağlayan said, adding that Turkey will pay up to $300,000 per project in Libya within the scope of this fund, calling it a gesture. “Libyan authorities will not pay for it.” he said.

Turkey will work on using this fund mostly in Libya.

Turkey has always been on Libya’s side and this is where the country diverges from other countries eyeing businesses there, according to Çağlayan.

“The countries that colonized Africa are today trying to achieve a role,” he said, without naming specific countries.

These countries are thinking of “how to exploit the resources there” once again, he added.

Abdullah Shamia, the economy minister of the National Transitional Council (NTC) in Tripoli, said Libya had a lot to learn from Turkey’s experiences. Turkey backed Libya during the transition period, Shamia said.

“We have overcome our cash problem due to Turkey’s support,” he said.

Turkey’s e-commerce grows at rapid pace

meb — Thu, 03 Nov 2011 09:03:47 +0000

The total revenue earned through online payments increased by 52 percent to 16.9 billion Turkish Liras in the year’s first nine months compared to the same period last year, according to data released yesterday.

“Almost one in every five people in Turkey now shops online,” said Soner Canko, general manager of the Interbank Card Center (BKM), speaking at Cardist 2011 International Card and Smart Technologies Exhibition & Summit held in Istanbul. He said Turkey ranked among the biggest markets in Europe regarding online commerce. The number of Internet transactions jumped 37 percent in the first three quarters compared to the same period in 2010, reaching 91.4 million transactions.

Many international finance institutions watched Turkey with interest as the Turkish e-commerce market became promising with high revenue, Canko said.

Turkey’s service sector ranked first regarding spending in online platforms, growing 69 percent compared to the previous period. The total revenue from e-commerce platforms in the service sector reached 2.53 million liras in the first nine months of this year.

Turkey should renew 8 million houses in 20 years

meb — Thu, 03 Nov 2011 09:02:22 +0000

The number of buildings needing to be renewed in Turkey over the next two decades is estimated to be 8 million, according to a chief construction sector representative.

“The renovation of 8 million dwellings over the next 20 years will generate an annual value of 28 billion Turkish Liras for the Turkish economy and the employment of 1 million people,” Tahir Tellioğlu, chairman of the Construction Contractors Federation (TİM-FED), said in a recent interview.
The country’s annual construction capacity is around 400,000 buildings, according to Tellioğlu. “Estimations show there is a total of about 19 million buildings in Turkey, of which 50 to 60 percent are unsoundly built. They must be transformed,” he said, adding that if the construction capacity was doubled, the country would be able to renovate 4 million dwellings per decade.

“Twelve years have passed [since the 1999 Gölcük earthquake] and no building has been renovated. Had we repaired at least 40,000 houses a year, about 500,000 houses would be [soundly restored] today,” Tellioğlu said.

The average cost for the renovation of a building was about 70,000 liras, he said, adding that renovating 400,000 dwellings would generate 28 billion liras yearly.

Meanwhile, Chairman of the Istanbul Developers Association (İNDER) Nazmi Durbakayım said the cost to renovate 5 million 100-square-meter houses would be 425 billion liras. “If [all renovations are] realized within 10 years, this would generate 42.4 billion liras annually, which is about one-third of Turkey’s gross domestic product in 2010.”

The work would also boost suppliers for the construction sector, such as iron and cement, Durbakayım said. “Thus, we can easily forecast that Turkey may become a G-7 country due to the chain reaction in construction,” he said.

Istanbul’s traffic and parking problems could also be solved during the urban renewal in the framework of the old houses’ renovation, according to the chair of Turkey’s Ready-mixed Concrete Association, Ayhan Güleryüz.

Discussions on illegally and unsoundly constructed buildings heated up as Prime Minister Recep Tayyip Erdoğan said recently they would demolish all illegally built and unsound buildings, although this could bear a heavy cost for the ruling Justice and Development Party (AKP’s) popular support.
source: hurriyet daily news

Turkcell chairman starts talks to resolve disputes

meb — Tue, 26 Apr 2011 09:32:00 +0000

The chairman of Turkcell, Turkey’s leading mobile phone operator, has started talks to resolve disputes after an annual general meeting last week, said the company in a filing with the Istanbul Stock Exchange, or ISE, on Monday.

TeliaSoner, 38 percent stakeholder in the company, said earlier Friday that the Turkcell board was in a deadlock after shareholders on Thursday failed to agree on removing Chairman Colin Williams and on a dividend from profits last year, Bloomberg reported Friday.

Turkcell also said a proposed dividend due May 16 would not be made after the payment was blocked at a shareholders’ general meeting.

Williams “submitted the requisite application to legally appoint the statutory auditors not appointed at the general assembly,” the company said in a filing with PR Newswire on Monday.

The company resumed trading on ISE on Monday after a suspension.

It had been temporarily suspended on the ISE upon a request from the company before the opening of Friday’s session. It lost 3.1 percent, to 8.90 liras at 11:10 a.m., reversing three days of gains between April 19 and April 21.

Meanwhile, Turk Telekom has not been able to start its annual general meeting after a representative of the Industry Ministry failed to show up, broadcaster CNBC-e reported on Monday. The meeting was due to start at noon on Monday.
source: hurriyet

Turkey posts 17.6 percent rise in tourist numbers in first quarter

meb — Tue, 26 Apr 2011 09:28:00 +0000

Some 2.1 million tourists visited Turkey in the first quarter of 2011, an increase over last year, the Turkish Hoteliers’ Federation, or TÜROFED, said last week, Anatolia news agency reported.

According to a TÜROFED tourism report, the first-quarter numbers for 2011 were 17.6 percent rise over last year’s figures of 1.8 million for the same period.

“The first-quarter figures indicate we can easily achieve our year-end target,” TÜROFED Chairman Ahmet Barut said at a press conference in Istanbul. Turkey received most of its tourists from Germany, Russia and Britain.

Russian tourist numbers to increase

Turkey is also expecting a 20 percent increase in Russian tourists after the beginning of a visa-free travel regime, Anatolia reported in a separate story.

“Turkey is expecting to receive more Russian tourists this year, an increase potentially as high as 20 percent with the onset of a new visa-free travel regime between the two countries,” said Cumhur Güven Taşbaşı, promotion director with the Culture and Tourism Ministry.

The visa liberalization agreement, which was signed during Russian President Dmitry Medvedev’s visit to Ankara in May 2010, went into effect on April 16. Earlier this year, officials from the two countries signed a readmission agreement to move closer to the visa-free regime, which will allow 30 days of visa-free travel to the other country within a 90-day period.

Taşbaşı said Russia was one the most important markets for Turkey and the visa-free regime would also boost the number of Turkish tourists visiting Russia. Over 3 million Russians visited Turkey last year and the figure is expected to reach 4 million in 2011.
source: hurriyet daily news

First domestic diesel train to be source of pride for Turkey

meb — Thu, 21 Apr 2011 07:15:02 +0000

Amid recent debates over creating a domestic car brand in Turkey, a Turkish wagon company has already managed to produce a domestic train named the Anatolia.

The train will run on diesel, making it highly attractive for markets whose transportation system is mainly designed for diesel, the top official of Turkish Wagon Industry, Inc., (TÜVASAŞ), the producer of the trains, told Today’s Zaman.

The country’s first domestic diesel train Anatolia was put on the tracks during a ceremony on Tuesday in the northwestern province of Sakarya. TÜVASAŞ General Manager İbrahim Ertiryaki told Today’s Zaman that the latest available technology was used in producing the wagons, 85 percent of which were produced locally.

Speaking at the ceremony in Sakarya on Tuesday, Ertiryaki briefed the media, noting that the trains were produced in full accordance with International Union of Railways (UIC) standards, namely, the wagons must have fully automatic air conditioning, automatic doors and an electronically controlled brake system. In order to provide maximum passenger comfort, each vehicle has fully adjustable aircraft-type seats, an announcement system and LCD screens. Ertiryaki also said the trains could reach speeds of up to 140 kilometers per hour.

When asked by Today’s Zaman if such developments in the Turkish railway sector could eventually lead to the production of domestic high-speed trains, Ertiryaki said this is in fact the ultimate goal, citing EUROTEM, a TÜVASAŞ and Hyundai joint venture project, to produce cars for high-speed trains.

“As our government has also made clear, the ultimate goal is to be able to produce such high-tech products in Turkey by ourselves in the near future,” he said. Ertiryaki drew parallels to the production of a domestic auto brand and said that such developments in other sectors would have a positive spillover effect on even more sectors.

Ertiryaki said producing a diesel-run train is significant in the sense that it was specifically designed for the needs of countries whose transportation systems mainly depend on diesel. He told Today’s Zaman that several countries from the Middle East to Europe have already shown a keen interest in such wagons.
‘It’s still the beginning for railways’

Addressing reporters during the ceremony on Tuesday, former Transportation Minister Binali Yıldırım, who resigned last month as required by the Law on Elections, said the government will not be content with only this project but will continue to take on other challenging projects as well. He also said the railroad sector in Turkey has shown significant improvement over the last nine years and is set for further progress.

According to Yıldırım, several countries from the European Union as well as Iraq have already placed orders for TÜVASAŞ’s wagons. He gave the example of Turkey’s Locomotive and Engine Industry Corporation (TÜLOMSAŞ), which has already started producing PowerHaul locomotives jointly with GE Transportation in the central province of Eskişehir. “For us it’s just the beginning of the journey,” he said.

Turkey has taken on extensive railroad and highway construction and outfitting projects over the past eight years. According to the Ministry of Transportation, more than 5,000 kilometers of rail have already been overhauled. The ministry has set as its goal for 2023, the centennial of the Turkish Republic, the laying 10,000 kilometers of high-speed train track and 4,000 kilometers of regular track.
PowerHaul locomotives also being produced in Turkey

TÜLOMSAŞ in 2008 signed a strategic partnership agreement with US-based General Electric (GE) to manufacture high-tech diesel locomotives in Turkey and export them abroad. The joint production of PowerHaul locomotives is already taking place in Eskişehir, where such locomotives are equipped with a 16-cylinder PowerHaul engine, GE’s most technologically advanced locomotive engine to date. This new engine, combined with other technologies from GE, is projected to reduce PowerHaul locomotive fuel use by up to 9 percent compared to current operatingfleet averages.
source: todays zaman

US brand to send sexy shop assistants to Turkey

meb — Fri, 15 Apr 2011 07:47:48 +0000

The U.S.-based Abercrombie&Fitch, a clothing retailer known for having half-naked male shop assistants greet customers at the door of its New York City branch, and its subsidiary Hollister are looking for the right place to open their first store in Istanbul.

The two brands are searching to secure space at İstinye Park, a stylish shopping mall in the city’s Maslak district.

The brands aim to open their first store after the end of 2012, Hakan Kurt, the general manager of the mall, said Tuesday at a retailers’ award ceremony in Istanbul.

“Still, we face some difficulties to create free space in the mall. Our only hope is turn over of some current renters,” he said.

The famous textile brand H&M opened its second store in Turkey in İstinye Park earlier this month.

The company runs stores in the United States, Japan, England, Denmark and Italy.

Abercrombie&Fitch is among the mostly imitated fashion brands in Turkey.

BP Turkey to open 40 new stations

meb — Mon, 11 Apr 2011 22:09:25 +0000

Aiming for growth in parallel with the fuel oil market in Turkey, BP’s local branch plans to open 40 new filling stations in the Turkish market this year, a written statement from BP Turkey said Friday.

Speaking at the Petroleum Istanbul 2011 fair that started Thursday, BP Turkey Fuel Manager Richard Harding said BP offers service quality to its customers with more than 600 filling stations in Turkey.

“We target a strong growth in 2011 in parallel with the fuel oil market. We plan to expand our station network, increase productivity and take 40 more stations in operation,” Harding said. “Being a company that has invested in the Turkish energy sector and economy since 100 years, we will continue investing with our innovative perspective in the upcoming period.”

At the fair, Harding shared his ideas related to BP Turkey’s growth strategy with representatives from the sector. Higher customer satisfaction can only be provided by happy dealers and workers, the BP statement read. It added that BP Turkey implements advanced management standards and programs to increase productivity. “BP Turkey uses all its experience and power to provide a better environment for its dealers,” the statement said.

As well as distributing and marketing fuel, oil and lubricants, BP Turkey’s activities include liquefied petroleum gas, or LPG, commercial and industrial fuels and exploration for petroleum, gas and energy.

Petrol Ofisi share drops

Meanwhile, Bloomberg reported Friday the share of Petrol Ofisi, Turkey’s biggest fuel retailer, in the Turkish fuel retail market fell to 24.7 percent last year from 26.7 percent in 2009, Turkey’s energy regulator said.

Shell & Turcas Petrol, a joint venture between Royal Dutch Shell Plc and Turcas Petrol, raised its market share to 19.1 percent from 18.6 percent and the share of Opet Petrolcülük dropped to 16.6 percent from 17.6 percent, the Ankara-based regulator in an e-mailed statement.
source: hurriyet daily news

Turkish mobile phone market keeps contracting

meb — Mon, 19 Oct 2009 13:11:29 +0000

The number of mobile phones sold in the first half of this year was down 8 percent over the same period of the previous year, thanks largely to an increased propensity for saving amid a global economic crisis, despite promotions offered by mobile operators, a recent survey has shown.

The Turkey division of the international research company GfK found in a market survey that nearly 450,000 less mobile phones were sold in the first six months of the year. In the January-June period of 2008, Turks purchased 5.46 million devices, whereas they bought slightly more than 5 million phones in the same period of this year.

The rate of decline was much more drastic in terms of turnover, however. The total earnings of mobile phone sellers amounted to 557 million euros, a 30 percent fall. According to the study, more models were introduced in the first six months of this year thanks to the entrance of new players into the Turkish market, especially from China. Companies vying to increase their share in the domestic market put forward 765 different models in the first six months of last year. However, this amount climbed to 1,119 in the same period of 2009.

Prices also saw a decline. Last year, the average price of mobile phones was 145 euros, a figure that has since dropped, retreating to 110 euros this year, but this improvement in price failed to significantly boost sales.

source: Today’s Zaman

Italy, Russia, Turkey sign pipeline deal

meb — Mon, 19 Oct 2009 13:06:39 +0000

Italy, Russia and Turkey signed an agreement on building the Samsun-Ceyhan oil pipeline, according to Eni, Italy’s biggest oil company.

The project underscores a “joint commitment to enhance energy security,” according to a statement issued by Eni on Monday. The pipeline will run between Samsun on Turkey’s Black Sea coast and the Mediterranean port of Ceyhan.

The accord was signed in Milan Tuesday by Turkey’s Energy Minister Taner Yıldız, Italy’s Economy Minister Claudio Scajola and Russia’s Deputy Prime Minister Igor Sechin and Energy Minister Sergei Shmatko.

Eni and Turkey’s Çalık Holding, which each own 50 percent, also signed a memorandum of understanding with Transneft and Rosneft on the participation of the Russian companies, according to the statement.

The 550-kilometer (342-mile) link, known as the Trans Anatolian Pipeline, will have a capacity of 1 million barrels a day, which may increase to 1.5 million barrels, according to Eni.
source: Hurriyet daily news

Groupama joins forces with two insurers

meb — Mon, 19 Oct 2009 13:03:16 +0000

Groupama, a leading European insurance, banking and financial services group, has decided to join forces with Turkey’s Başak Sigorta and Güven Sigorta under one brand in an attempt to expand operations in Turkey.

Becoming the third-largest insurance company, Groupama now aims to continue an ambitious investment plan with its Turkish branch. It announced last week the launch of “Groupama Sigorta” and “Groupama Emeklilik,” by merging Başak and Güven insurance companies. Groupama acquired Başak Sigorta and Başak Emeklilik in 2006 and Güven Sigorta and Güven Hayat in 2008.

“We joined two strong rooted companies’ forces by bringing local and international expertise together. With this merger, our clients will benefit from a strong service offering, an innovative product proposition and the strength of one of the leading international insurance companies, which already proved itself to more than 16 million customers all over the world,” said Jean-Francois Lemoux, international general manager of Groupama.

“Turkey, with its growth potential, has a strategic importance for Groupama, as it is a role model country within the group. The exciting dynamics of the market in Turkey is encouraging for us,” he said.

Targets of the group

Groupama will continue providing a competitive range of life and pension, household, liability, agricultural and motor products insurance, specially tailored to the needs of both retail and corporate customers, according to company statement. Groupama ranks second in life insurance and fifth in the non-life market with total revenues of 1.07 billion Turkish Liras (562 million euros), at the end of 2008. The new group will continue to be close to its 3 million customers with the support of more than 2,000 agents, 900 employees and partnerships all over Turkey.

The company aims to reach $1.5 billion in revenues and continues to have higher growth rates than the expanding insurance market in Turkey over the next three years.

To achieve these ambitious goals, Groupama is launching a new concept “Insurance+,” which is expected to be a milestone in the insurance market.

“We are not launching a campaign,” said Alain Baudry, Groupama Insurance general manager. “We are bringing an innovative and dynamic approach in order to provide maximum satisfaction and a strong commitment to our customers, enabling us to stay closer to them. We strongly believe that “Insurance+” will bring new dimensions to insurance in Turkey.”

“Insurance+” will cover car and household insurance services as a start. As an example, for car insurance, after the accident dossier is completed, the payment will be done within five days. If this is not the case, until the end of the year, Groupama will provide a one-year free insurance to the customer. New cars insured with Groupama will be covered with the new value of the car during three years in case of total pert and theft losses.

The new brand, Groupama, will be supported by a comprehensive campaign that will include advertising, public relations and corporate responsibility programs.

Turkey is the group’s third largest partnership in terms of turnover, reported Anatolia news agency, citing Lemoux. Regarding Güneş Sigorta, through which the group entered Turkey 18 years ago, he said: “We do not manage the company at present. If Vakıfbank decides to sell it one day, we are open to it.”

Groupama is present in 13 countries in Europe and Asia, including Italy, Spain, Britain, Portugal, Turkey, Greece, Hungary, Romania, Slovakia, Bulgaria, China and Vietnam.
source: Hurriyet daily news