THE INDUSTRIAL PRODUCTS & SERVICES MAGAZINE FOR THE SOUTH-EAST EUROPEAN COUNTRIES www.tllmedia.bg MARCH ISSN 1312-0670 Visit the SEEIM web site: www.SEE-industry.com issue1/2023 LED lighting manufacturing in Turkiye ..
south-east european INDUSTRIAL MARKET 2 South-East European Industrial Market is a bimonthly industrial products & services magazine for the South-East European countries - Bulgaria, Croatia, Greece, Northern Macedonia, Romania, Slovenia, Serbia, Montenegro, Turkiye, Albania. It is distributed free of charge among the working specialists in the industrial sectors in the region, and the engineering, manufacturing and trade companies in South-Eastern Europe. Editorial Department Dilyana Yordanova - Lead Editor d.yordanova@tllmedia.bg % (+359 2) 818 3823 Lyuben Georgiev lubo@tllmedia.bg % (+359 2) 818 3808 Pepa Petrunova p.petrunova@tllmedia.bg % (+359 2) 818 3822 Advertising & Communications Marieta Krasteva % (+359 2) 888 956 150 Petya Naydenova % (+359 2) 818 3810 Gergana Nikolova % (+359 2) 888 595 928 Elena Dimitrova % (+359 2) 818 3815 reklama@tllmedia.bg Development Mirena Russeva m.russeva@tllmedia.bg % (+359 2) 818 3812 Secretary Maria Apostolova abonament@tllmedia.bg % (+359 2) 818 3811 ISSN 1312-0670 TLL Media Ltd. © All rights reserved.The artwork, layout design, the articles and all the graphical and text materials used - images, photos, texts, etc., are copyrighted and protected by the law. Unauthorized and unpermitted use is illegal and a copyright infringement. The Publisher shall not be held liable for the contents of the advertisements, advertising layouts and banners, video advertising publications, advertorials and company articles. Copyrights of all mentioned trademarks, registrated trademarkes, etc. belong to their owners. IN THIS ISSUE: www.tllmedia.bg Publishing House 104, Acad. Ivan Geshov Blvd., entr. A, office 9, 1612 Sofia, Bulgaria % (+359 2) 818 3838, Fax: (+359 2) 818 3800 e-mail: office@tllmedia.bg ® 4 Bringing Ethernet to the Edge of Industrial Networks. 7 Rosen Tzankov, Plant Manager at Integra Plastics: Automatic sorting systems are among the main weapons in the battle against plastic waste. 8 LED lighting manufacturing in Turkiye. 14 Iron and steel industry in Romania. 17 Biodiesel production in SEE. 20 EBRD supports EV adoption in Turkiye. 20 ALPLA Group starts producing rPET in new Romanian plant. 21 STADA invests more than EUR 50 million in new facility in Romania. 21 Toyo Tire opens first European production site in Serbia. 22 2700 exhibitors to pack interpack 2023 in Duesseldorf. 22 IFAT Eurasia 2023 to showcase comprehensive range of environmental solutions. 23 SolarEX Istanbul to bring together energy professionals for the 15th time. 23 IFAM, INTRONIKA and ROBOTICS present innovations in the field of industrial automation.
south-east european INDUSTRIAL MARKET 3 PAID ARTICLE The E-IOT Mesh with the new cityBox device as a gateway Zoltán Kiss, Export Director e-mail: z.kiss@endrich.com Written by Zoltan Kiss, Export manager and Head of R&D - Endrich Bauelemente Vertriebs GmbH z.kiss@endrich.com In the previous issue of the magazine, we have been talking our multi-award winning IoT Eco-System, the EIoT platform, which actually supports our major offering to our partners described by our last year slogan We MAKE YOUR DEVICE SMART. Smart features of devices support predictive maintenance, optimize energy consumption, and support remote monitoring. But not only that, we can call this ecosystem to support our everyday healthy life. By introducing a new IoT device, the so called cityBox, which is an air quality detection device, sending the characteristics of the air quality constantly to a Cloud database. Here we have chosen a new slogan, We take care of the environment as our goal is to provide local authorities with reliable data of the city air quality automatically with sampling and uploading data in every two minutes in 7/24 operation. But not only that, cityBox is also able to collect data of surrounding wireless smart sensors such as water level sensors, soil moisture detectors or any other similar devices without the possibility to connect directly to cloud. cityBox collects all their data and sends them over the cellular network ( NB-IoT, LTE-M or 2G). About the device itself According to the World Health Organization (WHO), air pollution is the greatest environmental health risk in the European Union (EU). Every year, it causes about 400,000 premature deaths and several 100 billion euros in health-related external costs in the EU. People in urban areas are particularly at risk. Particulate matter, nitrogen oxide and ground-level ozone are the air pollutants that cause most of these early deaths. To detect the problem can only be done by constant monitoring of the air and the soil quality in order to initiate appropriate protective measures. Therefore, it was our goal to develop a self-powered, 7/24 active and independent measuring and communication station, which, due to its numerous on-board sensors, and flexible wireless extensions could offer solution on a wide variety of application, locations and measuring area. Its versatility allows effective monitoring amongst others of air quality, water level and soil moisture to early warn of disasters. Versatile sensors allow chemical and physical parameters to be determined with high accuracy as far as they can be measured. This makes the cityBox an allrounder and serves to protect air, soil and water. With the help of the most modern electronics, encapsulated in a small housing, these goals can be achieved quickly and efficiently. Thereby the location of the device can be changed in a few minutes. Powerful solar cells combined with sate of the art rechargeable accumulator station ensure the continuous energy supply and is thus energy self-sufficiency. Wiring is thus unnecessary. The required sensors are either accommodated in the device itself or placed in different locations and the data obtained can be fed wirelessly to the sensor device. The measurements can be recorded every second, minute or hour - 24 hours a day - and forwarded to the corresponding Cloud Database for data analysis via modern reliable and cheap Narrow Band / LTE-M communication on the LTE 4G or as a fallback the 2G GSM network. What cityBOX does, can be described with a few key sentences: Detects air quality and the most important chemical and physical measures of it. Detects its own operational parameters, thus being able to report expected service black spots, helps for predictive maintenance and supports its own remote surveillance, including GNSS positioning itself. Powers itself by reusable green energy, using solar cells and long-life lithium accumulator station. Communicates its sensors data to the related Cloud Database (Endrich Cloud) using narrow band communication. Acts as a Gateway for the optional external 868 MHz MESH wireless smart sensor network dedicated to certain tasks. It collects the data of the standalone wireless sensors and forwards their data to the Cloud DataBase on NB 4G network. So cityBox is a sensor station, a small green power plant serving itself, a communication gateway for connecting himself to the Internet, and also a gateway to the optional wireless MESH network of smart sensor to help them to get their data into the Cloud. It does these functions all by calling the best available, state of the art and most modern technologies to help, such as the low power, wide area Narrow Band machine to machine communication , Cloud Database technology, MEMS and electrochemical sensor technologies, state of the art, long life time rechargeable lithium polymer battery technology and the MESH wireless local networking, that works on sub-Gigahertz frequency providing best penetration in harsh environments. Expectations that cityBox fulfills: On board sensors for most important chemical and physical air quality measures such as CO2, NOx, Ozone, Particulate Matters concentration, temperature, humidity, light conditions, noise and vibration conditions 7/24 independent operation (no external power source or maintenance required), once installed it will work independently Connection on sub-gigahertz frequency with oprional local wireless sensor network, such as soil moisture sensors, presence and motion detectors, counters etc. Gateway between local MESH and LPWA networks. Using cheap prepaid GSM communication : NB-IOT 10 EUR for 10 years and 500 MB of data.
south-east european INDUSTRIAL MARKET 4 Microchip has introduced new industrial-grade Single Pair Ethernet devices that implement the 10BASE-T1S and 100BASE-T1 physical layer. These products bring Ethernet all the way to the edge of industrial networks. Single Pair Ethernet, or SPE, defines the transceiver part of an Ethernet system. All the higher software layers remain unchanged, regardless of the speed grade. SPE is also referred to as T1, which means one balanced pair of wires. Some applications use a twisted pair of wires, but others use just two wires running alongside each other. The IEEE standard defines a channel in terms of its electrical characteristics and not the specific physical wires. Multiple bandwidths are defined for SPE. The first part of the name specifies the Mbit/s: 10BASE means 10 Mbit/s. There are standards for 10BASE-T1S (S for Short reach), 10BASE-T1L (L for Long reach), Bringing Ethernet to the Edge of Industrial Networks Henry Muyshondt, Senior Manager, Microchip Technology 100BASE-T1, 1000BASE-T1 and even higher data rates are defined for 2,5, 5 and 10 Gbit/s. SPE reduces system cost by reducing weight and wiring complexity. A new 10BASE-T1S MAC-PHY Ethernet controller now in the marketplace allows the simplest of microcontrollers to become part of the Ethernet world COMPANY ARTICLE
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south-east european INDUSTRIAL MARKET 6 The megatrend in networking is to move from distributed systems defined primarily by the hardware involved, to more centralized, software defined systems. The trend is to connect everything with Ethernet: l Domain-specific hardware architectures give way to zones connected to each other and to a centralized compute platform. l Multiple application-specific buses are replaced by an IP-based and ubiquitous Ethernet network. l Gateways or controllers required to translate between different hardware approaches and that require complex wiring are eliminated. Low-cost, single pair cabling then brings Ethernet all the way to the edge of the network. All this results in a more powerful, more flexible network to meet industrial challenges Ethernet enables connected Cloud-to-Edge infrastructures. Traditional IT networks at the top enable communications at the highest levels. Operational Technology (OT) networks are used within buildings to control processes and assembly lines. As you get closer to the edge of the enterprise network, you find sensors, actuators, and other low-level devices. Ethernet allows a common way to connect and communicate with all these elements to make their data available to higher levels of the organization so Big Data can use it to better run the enterprise. It also makes it easier to configure and control systems. Established Ethernet mechanisms can secure all these elements. Authentication, encryption, and secure updates are an increasingly important aspect of todays networking requirements. Microchip has been a leader in the development of Single Pair Ethernet. It helped write the standards at the IEEE and has in parallel developed a comprehensive portfolio of SPE solutions that are flexible and scalable. Whether running at 10 Mbits/s, 100 Mbits/s or 1000 Mbits/s, Microchip has a PHY, MAC-PHY or Ethernet switch that can drive a single pair of wires to transmit the data. 10BASE-T1S technology is one of the newest types of Ethernet interconnection defined by the IEEE The IEEE 802.3cg standard was published in 2019. Microchip was one of the key participants that created the standard within the IEEE. This standard was developed to expand Ethernet to the edge of Operational Technology or OT networks. Existing systems had bandwidths of hundreds of kilobits per second, so going to megabits per second provides for future growth. The technology uses half-duplex communication and provides for a flexible topology, from point-to-point to multidrop configurations. Multidrop means that multiple devices connect to a bus line made up of a single pair of wires. 10BASE-T1S is defined to use a single balanced pair of conductors. This can be a single twisted pair of wires, other configurations for wire pairs, or even parallel traces on a printed circuit board or server backplane. The new 10BASE-T1S standard defines a physical layer that creates new business opportunities for companies that embrace pervasive all-Ethernet systems. Data anywhere in the system can be used in innovative ways that enable new applications. Cost can be reduced since 10BASE-T1S uses simple components, software, and wiring. A new 10BASE-T1S MAC-PHY Ethernet controller now in the marketplace allows the simplest of microcontrollers to become part of the Ethernet world. 10BASE-T1S eliminates the need for gateways previously required to translate data from different hardware systems. The multidrop feature reduces the number of ports in switches as devices connect to a single bus line. Using well-established security mechanisms and the unified interfaces of the Ethernet world reduces risks when creating applications at the edge of industrial networks. Security mechanisms are well understood by a large body of designers and implementers. Any issues can be quickly discovered given how many people work with the technology, and they can also be quickly resolved. Design, software development, testing and maintenance resources at all levels of OT and IT networks can concentrate on the same basic communication mechanisms. Microchip offers a complete range of SPE PHYs, from 10 Mbits/s to 1000 Mbits/s, all offering industrial grade temperature support. Further enhanced support for industrial applications includes safety, security and extended cable reach. Complete SPE networked systems solutions can be realized with a broad portfolio of SPE switch devices. Microchip offers intelligent switches that support Time Sensitive Networking (TSN) and integrated SPE PHY technology. Our latest release is an industry first true single-chip SPE switch with TSN support, integrating switch fabric, CPU, RAM and uniquely FLASH code memory. Designers can now implement "out of the box" Single-Pair switching solutions, with little or no expertise on T1 PHY technology or AVB and TSN specifications.
south-east european INDUSTRIAL MARKET 7 Please tell our readers more about the innovations featured in Integra Plastics’ business concept and about the most advanced technologies implemented in your plant in Elin Pelin. In 2017, the Peoples Republic of China announced a ban on the import of waste plastics, which led to a major shock in the secondary products market around the world. Europe was by this time comfortably used to exporting much of its plastics, and this ban put a lot of stress on global environmental sustainability, as well as on the ability to handle the recycling of this waste. A large supply of raw materials appeared, and the production capacity turned out to be too small. This was an ideal opportunity to create a facility that would meet the highest quality expectations for secondary low density polyethylene (rLDPE) granules. Thus the conceptual project of the plant was born to produce regranulate of the highest quality in order to replace the primary material used in packaging to the maximum. Behind Integra Plastics project are leading companies in the field of recycling with innovative solutions for sorting, washing and extruding recyclable plastics. The Norwegian company Tomra, leader in the field of optical sorting, provided a solution that guarantees over 98% purity of the polymer in the final product. In addition to the qualitative indicators, the quantitative indicators are also high the capacity allows the sorting of 35 000 tons of material per year. In combination with a transport system from the German company Stadler, which has over 200 years of experience in the market, the plant achieves enviable results for the entire industry. Subsequently, the sorted bales of polyethylene enter the Washing and Extrusion workshop. Here, Integra again relies on top-class equipment from the German company Herbold and from the Austrian leader in the field of extrusion Erema. Daily analyses of numerous indicators that are important to consumers are performed at our state-of-the-art laboratory at the plant in Elin Pelin. This helps monitor the flawless running of the recycling processes. What is the specific added value of automation in the circular economy? Automatic sorting systems, like the one at the Elin Pelin plant, are one of the main weapons in the battle against plastic waste. They allow processing tens of times faster than manual processing. Through high-speed cameras and NIR-VIS sensors, optical sorters manage not only to separate at high speed, but also to recognize materials that even a well-trained person could Automatic sorting systems are among the main weapons in the battle against plastic waste Rosen Tzankov, Plant Manager at Integra Plastics, for South-East European Industrial Market mix up. Until recently, waste plastics were turned into low-quality granulate, which is inapplicable in the same production. An example of such a raw material is low-density polyethylene (LDPE), which, after recycling, could not be returned to the production lines for blow sacks and waste bags due to its low quality. Today, it is quite possible to use the granulate again for the same type and class of products. Automated processes, where accuracy and quality are a constant, make a huge contribution to this. Walk us through the production process at your plant. The Integra Plastics plant is designed to process films from pre-separated low density polyethylene. The raw material arrives at the site in the form of bales. After unpacking, the material is fed to a shredder to reduce the size to pieces suitable for sorting. A magnetic separator removes ferromagnetic metals, and a vibrating screen removes inert contaminants. The entire flow passes through ballistic separators that separate all bulk plastics. The LDPE film goes through several more processing steps using the latest generation optical sorters. A computer program controls which colours are sorted as a separate fraction and which are collected as a mixed fraction. The separated quantities are stored temporarily in hoppers managed by an operator who feeds a baling machine. The finished polyethylene bales are sent to the washing workshop, where they are de-baled again. After shredding, the material goes through preliminary, basic washing with warm water and detergents, rinsing and drying. Finally, it enters a silo, from which the extruders are fed. They are equipped with laser filters, which ensure the highest degree of purification of the melt and the extremely high quality of the final product.
south-east european INDUSTRIAL MARKET 8 The foundations of the modern lighting industry in Turkiye were laid in the 1960s, when significant investments were made in the production of incandescent and fluorescent lamps. In the next decade the sector began manufacturing decorative and other-purpose lighting fixtures, ballasts and various components. The branch started rapidly developing and by the beginning of the 90s it approached its current state of one of the leading sectors in the country. Since then, the industry has seen significant further growth in terms of product quality and design, production capacity and scope of applications. LED manufacturing today is one of the most important segments of the Turkish lighting industry with numerous economic, social and technological factors contributing to its development. The production and market challenges due to the COVID pandemic have been slowly but steadily overcome, current market reports show. According to official figures, published by the Ministry of Trade of the Republic of Turkiye, the Turkish lighting market is worth around USD 350 million, and about USD 130 million is the share of the lighting fixtures segment. The demand for lighting fixtures in Turkiye has been gradually increasing simultaneously with the countrys growing industrialization and urbanization process, as well as with the rising per capita income, the increasing architectural lighting segment and the changes in consumer lifestyles. The growth of the sector is further helped by the ever-increasing number of residential and industrial buildings, offices, stores, gyms, restaurants, cafes, hotels, etc., official reports inform. Òhe lighting industry has enjoyed a good recovery after the years of recession following the 2001 economic crisis. Construction, manufacturing and the booming tourism industries, and a shift towards energy efficient products are creating a bright future for the Turkish lighting industry. Given that the importance of the environmental technologies and the energy efficiency concept is increasing, new technologies have been developed in the lighting industry. The energy efficient lights and LED or O-LED lighting systems gain significance day by day, the Turkish Ministry of Òrade points out. The sector manufactures a broad spectrum of products, including indoor and outdoor lighting, specialized industrial lighting systems, and a variety of residential, emergency and safety, decorative and special-purpose lighting fixtures, lighting products for offices, sport halls, restaurants, cafes, etc. The industry comprises of around 50 large-scale manufactures and numerous medium- and small-scale enterprises, whose business activities include production. All the large companies and most of the medium-scale companies have international and national quality and safety standards such as ISO 9000 series, ENEC, VDE, etc. All companies have affixed the CE Mark on their products, which has been compulsory in Turkiye since 2003, the Turkish Ministry of Economy reports. To keep pace with increasing demand and ever-changing customer needs, large companies in the country have engaged in research and innovation activities in line with their production. Manufacturing technologies in the country have also been continuously improved in recent years. Development of the Turkish lighting sector The social and economic changes that occurred after the 2000s were determined by trade liberalization, competition for imported goods, particularly in China, and technological advancements in the lighting industry. The Turkish lighting equipment business suffered a transition in the 2000s and was forced to discontinue the proLED lighting manufacturing in Turkiye ..
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south-east european INDUSTRIAL MARKET 10 duction of transparent bulbs. Instead, a structure focused on fixture production and electronic applications in the sector was established. The manufacture of high-added-value functional and decorative lighting equipment was prioritized while the production of lighting for motorized land vehicles expanded quickly. In order to reduce energy consumption by as much as 75% and help the country balance its current budget deficit, Turkiye launched an ambitious project in 2013 to replace street lighting with LEDs. Since then, a significant transition from conventional light sources to non-conventional LED goods has occurred in Turkiyes lighting industry. The market has been expanding rapidly ever since because of government support in the form of advantageous import policies for LED chips, although product manufacturing companies still have to rely substantially on imports for their LED supply. Similar trends can be seen in other sectors for LED products, where LED displays are taking the place of conventional displays and LED signs are replacing traditional ones, altering how marketing is carried out. In order to fill the gap left by the European Unions import ban on halogen lights, the Turkish LED market is not only concentrating on increasing domestic demand for LEDs but is also looking to cater to export markets in the European region. Turkiyes ability to manufacture LED devices is constantly expanding. To take advantage of expanding market opportunities, many foreign businesses have established their manufacturing facilities in Turkiye. Osram, Philips, General Electric, and Metsan Lighting are some of the major companies in the Turkish LED market. Turkiyes determination to build competence in LED products and switch to LED lighting in order to minimize energy consumption has given the countrys LED lighting sector a significant boost. The other LED markets in the country have also begun to expand rapidly as a result of improved government coordination and increased availability of LED chips. Government investments in upgrading outdoor lighting, even in rural regions, facilitates the exponential penetration of LED lighting, reports show. Moreover, the halogen lamps ban in Europe has given Turkish lighting manufacturers another chance to produce and export LED products to the European nations. Sector overview The number of enterprises in the Turkish lighting industry overall is above 4000 and more than 25 000 people are currently employed in the sector. Between 2010 and 2018, the overall number of employees rose almost twice. The production value in the manufacturing industry of electrical lighting nowadays is more than TRL 6,45 billion, according to official data. Total exports worth in 2020 was above USD 466 million. Lighting devices, with exports of USD 230 million worth of electrical lighting equipment, is one of the two major sub-product groups in the sector. Electrical lighting equipment imports totaled USD 615,37 million during the same year. According to a current technical report by the Joint Research Centre (JRC) of the European Commission, the number of enterprises related to lighting OEM in the country has grown from 1849 in 2010 to approximately 4375 in 2018. Most of the lighting companies in Turkiye are located in the megapolis of Istanbul, and a significant share of those reside in the capital Ankara and also in Izmir the third largest city in the country and the second largest port after Istanbul. 61,5% of the companies in the electrical lighting manufacturing sector in general have gathered in Istanbul, statistics show. The share of Ankara is 10,6%, while Izmir ranks third with 6,7%. Istanbul hosts production activities in each field of general lighting. Decorative lighting production is common mostly in Ankara and Izmir. Automotive and industrial lighting
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south-east european INDUSTRIAL MARKET 12 SEE NEWS Knauf Insulation plans to invest EUR 120 million in Croatia Croatia’s economy minister Davor Filipovic met representatives of the Knauf Group on February 24, 2023, to discuss a EUR 120 million investment planned by Knauf Insulation in a new production line in Novi Marof, northwestern Croatia. The new line will have a production capacity of 60 000 tonnes and will create at least 70 new jobs, the economy ministry said in a press release. Knauf Insulation is part of the global Knauf group, which has been present in Croatia since 1980, when it opened the factory for production of insulation based on mineral wool in Novi Marof. Apart from it, the Knauf group has two factories for gypsum products in Knin and Krapina, and is co-owner of two factories for plaster and other building materials in Polaca and Djurdjevac. SOCAR opens its office in Bulgaria in May In May of this year, the Azerbaijani state oil company SOCAR will open its office in Bulgaria. This is a sign of the serious intentions to deepen cooperation between the two countries in the field of energy. This was stated by Bulgaria’s President Rumen Radev after a video conference call with his colleague Ilham Aliyev, which took place in Baku, the press office of the head of state announced. The opening of a SOCAR office was agreed upon during Aliyev’s visit to Sofia last year. From the Azerbaijani side, serious interest has been shown in the Solidarity Ring (String) project initiated by Bulgaria, which allows the transfer of additional quantities of natural gas to Europe from Azerbaijan, using the existing infrastructure of gas transmission networks of Bulgaria, Romania, Hungary and Slovakia. Photo: Knauf Insulation production facilities are mainly spread across Bursa and Kocaeli. In 2010, the value of production in the whole electrical lighting equipment manufacturing sector was TRL 1,46 billion. However, by 2018, it increased to above TRL 6 billion. Turkish domestic sales of lighting equipment reached USD 2,59 billion in 2015, up from USD 2,45 billion in 2013. Although the domestic market expanded in real terms in 2015 and 2016, it shrank in terms of dollar value. In spite of the Turkish liras depreciation, the domestic market grew quickly in real terms in 2017 and reached USD 2,31 billion. In actual terms, the domestic market substantially declined in 2018 and reached USD 1,94 billion, according to official figures. Today it is estimated at more than USD 2 billion, official country reports state. The smart housings and smart lighting products segments are considered to be lagging back compared to other countries. The penetration of residential smart technologies in the country was estimated at approximately 3,7% in 2020, but it is expected to hit 11,7% by 2025. Smart bulbs penetration was established at 2,6%-level in 2020. The national market revenue in the comfort lighting segment is projected to reach USD 116 million by 2025, forecasts say. Strong export-oriented market before the pandemic More than 150 countries all over the globe import Turkish lighting products. The countrys exports have climbed by around 3,5 percent annually since the global financial crisis in 2009, reaching USD 252 million in 2016. The main product category of the Turkish lighting industry at that time consisted of lamps, lighting fixtures, lighted signs, and nameplates, that are not defined in any other harmonized codes. The value of Turkiyes exports in 2017 was USD 232 million, a reduction of 9,3% year-byyear. Electric filament or discharge lamps ranked second in terms of export volume. In 2017, the exports of this product group declined to USD 19,2 million, a decrease of 9,8%. Although the portable electric lamps designed to function by battery, magnet, etc. are relatively a small product group in terms of trade volume, Turkiyes exports in this product group were approximately USD 1,4 million in 2017, according to official figures. The EU nations are major export markets for the Turkish lighting industry. Exports from the country to the EU were worth USD 76,6 million in 2017, accounting for 30% of all exports worldwide. Export-oriented activities, however, have been steadily moving toward other nations since 2009, including the Turkic Republics, Arabic Countries, and North African Countries. The majority of export goods are items for decorative lighting. Despite having a system that carries out contract manufacture and export for major brands, the industry has gradually begun to develop its own brands. The international business operations of the construction services contribute significantly to the export of lighting equipment. The markets in nearby and neighboring nations are currently among the top priorities, official reports state. In Turkiye there are numerous branch organizations that represent the industry in the country and abroad, including in many international projects and initiatives. The Luminaries Manufacturers Association (AGID), established
south-east european INDUSTRIAL MARKET 13 SEE NEWS Greek PPC to develop 5,4 GW renewable projects Romania Greek utility Public Power Corporation (PPC) said that as part of its acquisition of Italian group Enel’s assets in Romania for some EUR 1,26 billion, it is also getting a portfolio of green energy generation projects with a cumulative planned capacity of 5,4 GW. The green energy pipeline is ten times the size of Enel’s existing renewable energy projects in Romania, which amount to an installed capacity of 535 MW, PPC revealed in a presentation to its investors. The project pipeline involves seven wind farms and eleven solar parks with total installed capacities of 2,3 GW and 3,1 GW, respectively. This adds to Enel’s operational green energy generation portfolio, which comprises eight wind farms and four solar parks with total installed capacities of 499 MW and 36 MW, respectively. Bulgaria’s Glass Contribution expands Pleven factory Bulgarian glassware manufacturer Glass Contribution, owner of Rubin glass factory in the city of Pleven, will invest over BGN 100 million in the construction of a 300-tonne furnace at the plant. The investment is aimed at reducing CO2 emissions and meeting the criteria for sustainable production. The furnace will be built with the help of German companies Nikolaus Sorg GmbH&Co.KG, Sorg Feuerungsbau und Service, and Excelsius Global Services. The new facility is expected to be operational at the beginning of next year, increasing the plant’s production capacity by 80%, Rubin said in statement. Glass Contribution has already invested over BGN 100 million as part of its programme to modernise equipment and maintain employment at the Pleven factory, the municipal authority said. The Rubin factory manufactures glass bottles and jars for food, oil, spirits, wine and soft drinks. in 1997, represents 82 Turkish companies active in the lighting sector. The Turkish National Committee of Illumination (ATMK) supports scientific national and international research in the sector. TULIPP the Turkish Lighting Industry Platform is a cluster formed by the gathering of 22 sector representatives. The cluster was brought together within the scope of the Supporting the development of international competitiveness project, through the support of the Turkish Ministry of Trade. The project carries out its activities under the coordination of the Istanbul Chamber of Industry (ICI) and with the contribution of the Lighting Equipment Manufacturers Association (AGID). The cluster, which consists of the manufacturers of all sub-sectors of lighting such as indoor lighting, outdoor lighting, emergency lighting, also offer solutions in terms of lighting design and lighting application with the strong infrastructure of the country, the platforms official website states. Trends and future prospects According to a current forecast by Industry Research Place, Turkiyes LED market will continue to witness high growth in the future due to the decreasing LEDs price, high government support, and increasing corporate investments. From 2013, the government initiatives to reduce the power consumption and decrease the energy deficit have lured many domestic and multinational companies to the Turkish LED lighting market. This initiative has not only been fruitful towards the reduction of domestic power consumption but has also been helping in gaining the foreign currency via exporting LED lighting products to European countries after the ban of halogen lamps by the European Union, the report informs. Thus, LEDs market in Turkiye is expected to further grow in the upcoming years. The Turkish government is concentrating on generating an energy surplus in the near future and has not only focused on building power plants but has also concentrated on lowering the demand for power by using cutting-edge technologies. Street lights in Turkiye are being replaced with LEDs. Even after the effects of recent turmoil, the countrys energy demand is anticipated to stabilize in the following five years if the current trend continues. The cited report also highlights the impact of the pandemic on Turkiyes LED market, which suffered slopes and declines throughout the early 2020, as the spread of COVID-19 intensified on different geographies. The pandemic had a great impact on the workforce and on the industry as a whole, and caused disruption in various regions. In the following years the sector began slowly but steadily to recover and the business landscape gradually shifted to a positive prospect, market analysts point out. Turkiyes LED sector has developed, as a result of recent developments and government initiatives, to the point where many domestic manufacturers are now exporting LED goods to a large number of countries across Europe. The majority of LED components (i. e. chips) used in Turkiye, however, are imported from China or other South Asian countries because of the large capital investment requirements and low labor costs in those regions. Market analysts anticipate substantial development of the domestic LED production capacities by 2027 to reduce dependency on imports and facilitate the export of LED products.
south-east european INDUSTRIAL MARKET 14 The iron and steel industry plays a significant role within the Romanian economy as itaccounts for relevant shares of the main national economic activities, including industrial and manufacturing output and total exports. Romania has considerable amount of natural resources for a country of its size, including iron deposits. Major Romanian exports to the United States and other countries worldwide today include iron and steel both metals and items. The main industry product groups include: iron (iron ores and concentrates) and steel, ram materials, ferrous waste and scrap, flat?rolled items of iron or non?alloy steel (hot rolled), flat?rolled and other products of stainless steel, tubes, pipes and hollow profiles, iron and steel stranded wires, ropes, cables, etc. The country has substantial capacities for the production of crude and cast steel and pig iron, and a large number of semi-finished and finished steel products, including long and flat articles, seamless and weldless tubes and tube fittings, etc. Sector development The iron and steel output has demonstrated a high degree of concentration among the manufacturing facilities over the years as the top producers cover a large percent of the total proIron and steel industry in Romania duction. Among Romanias most important partnering countries in the international trade of base metals, including iron and steel, are Germany, Italy, Hungary, France, Turkiye, United Kingdom, Sweden, Morocco, Poland, etc., the Romanian Trade and Investment Agency reports. In 2018, the main partner countries from which Romania imported metals included Germany, Italy, Turkiye, France and Poland. Exports during that year were carried mostly to Germany, Italy, Hungary, Turkiye and Bulgaria. The total imports of metals by Romania from other countries in 2018 amounted over USD 10 billion, and the exports exceeded USD 7 billion. There are numerous large iron and steel processing facilities in Romania which supply the contemporary machine building industry in the country and also cover export needs. New investments are traditionally being located near ports or other economic centers which provide the necessary infrastructure and conditions to convey large amounts of raw materials, semiand finished products. Some of the leading cities in Romania, whose history and development have been most strongly influenced by the iron and steel industry, are Galati, Hunedoara, Resita, Calarasi, Targoviste, Calan, Campia Turzii, Otelu Rosu, Vlahita and Cugir. The Romanian metallurgical industry in general is concentrated around areas with strong economic potential, such as the Bucharest-Ilfov zone. According to official reports, most companies are registered in the North-West area of Romania (1485 companies, of which 1394 are involved in production activities and 91 involved in trade), in the Center part (1189 in total and 63
south-east european INDUSTRIAL MARKET 15 manufacturing) and in the Bucharest-Ilfov zone (1053/216). One of the sectors success stories is the Sidex Galati Steel Plant, which was privatized in the early 2000s. It proceeded its business activities under the name of ArcelorMittal. The ArcelorMittal corporation acquired many production units in the country, including facilities in Iasi, Roman and Hunedoara. The Galati business was recently rebranded as LIBERTY Galati. Modernization and restructuring According to the Ministry of Industry and Resources, in 1989 the total capacity of the iron and steel sector was around 18 million tons of steel per year, and the equivalent annual output produced by its 33 then units was 13,4 million tons of steel. Out of a workforce of some 150 000 people, one-fourth was employed by the local iron and steel works in Galati. Subsequent evolutions registered a steep decline, by far steeper than in other Central European countries embroiled in the economic difficulties of the transition period, so that the 1995 output was less than half the 1989 one. That situation was engendered primarily by a reduction in the domestic demand for metal products, the historic report also says. The metallurgical industry, including the iron and steel sector, had an important place in the Romanian economy before 1990, as the cited report showed. After 1990 the local metal industry suffered some setback due to significant reduction of sale markets and entry of foreign capital. Between 2004 and 2008 a serios privatization, modernization and restructuring process took place in the country, including the completion of the privatization of all integrated steel mills and manufacturing companies. Strategic investors included ArcelorMittal, Tenaris, MECHEL and TMK. A part of the process was the implementation of the Restructuring strategy of Romanian steel industry and of the viability individual plans of steel companies for the period 2003-2008, which was validated by the European Commission in the context of closure the negotiation of Chapter 6 Competition of the Accession Treaty. Romania also became a full participant within the Steel Committee of OECD, following the invitation received in 2005. The monitoring of the Romanian steel sector by the European Commission (2005-2008) came to the conclusion that the restructuring process in the transitional period had ended, generally, with success. Among the main goals of the latter Strategy for restructuring the iron and steel industry in Romania, elaborated by the Ministry of Industry and Resources, are to correlate the production capacities with the structure of products and semifabricated products on demand in the domestic and foreign markets (that is, produce more pipes, hot rolling metal-tapes and reduce the output destined to the mining and oil sectors); to update the production capacities by using new, more efficient and less polluting technologies and to reduce the specific consumption of raw materials and energy. The Strategy was also aimed to increase labor productivity and improve working conditions, to succeed in exporting iron and steel products efficiently by increasing the share of highly-processed items and to further reduce the workforce. Economic struggles The global financial and economic crisis affected the Romanian economy and the iron and steel industry. The results of this event were strongly manifested in the period 2009 2015. The significant decrease of production and associated steel demand resulted in further reduction of production capacities and of the number of employees. There was a subsequent increase in imports, particularly from non-EU countries (Ukraine, Turkiye, China, etc.), of concrete steel, wire rod, flat coated products, semi-finished products and so on. During that period approximately 250 000 employees were working in the metallurgical sector in Romania. This number decreased to only 25 000 by 2015. In 2014 almost 7700 companies were active
south-east european INDUSTRIAL MARKET 16 SEE NEWS Profine Energy working on 550 MW of solar in Serbia and Bosnia Profine Energy, a subsidiary of Germany’s Profine Group, is working on parallel projects to install grid-connected solar photovoltaic plants with battery storage in Serbia and Bosnia, with capacities of 450 MW and 100 MW respectively, said the group’s owner and CEO, Peter Mrosik. The ground-mounted solar array in Serbia will be near a planned carbon-free industrial park, to be built on an area of some 800 ha between Belgrade and Novi Sad, for an overall investment of more than EUR 2 billion. The solar park will cover the energy needs of Profine itself and interested companies whose production facilities will be located in the industrial zone. These include an unspecified number of original equipment manufacturers (OEMs) from the automotive sector. The energy consumption needs of Profine Group’s 25 production facilities, together with those of its customers, add up to over 2,5 GW per year, according to Mrosik, so more renewable projects will be needed. China’s Haitian to open a 250 000 sqm production complex in Serbia The Chinese company Haitian Machinery will build a factory complex for the production of industrial injection machines and cutting and casting machines in Ruma, Vojvodina. The complex will span 250 000 m2, and the production of a total of 250 machines a year is planned, as shown in the project’s draft, prepared by the Belgradebased company Masinoprojekt Kopring. The Chinese company announced that it would invest USD 100 million in the factory. The planned production capacity of the Ruma factory is 160 machines for plastic injection, 60 CNC cutting machines and 30 machines for the production of cast elements. The complex will also have a facility for the treatment of technological wastewater, as well as waste, chemicals and oil storage facilities. Photo: Haitian in the Romanian metallurgical industry, of which 948 were in the specific trade sector. Two years later, the figures were 7592 and 798 respectively, official reports state. In 2016 despite working at 70,8% capacity, gross steel production in Romania amounted to 3,4 million tons. In 2016, production capacities in some metallurgical sectors in Romania increased compared to the previous year. The largest increases were recorded in steel used for continuous casting, coated products, cast iron, ferro-alloys and hot-rolled flat products, statistics show. In 2018 crude steel production was 3,62 million tons, 5,3% higher than 2017. Year-by-year comparison showed that most raw material consumption increased. The consumption of pellets for the production of blast furnace iron increased by 11,2%. There were also increases in the consumption of iron ore and concentrates, as well as in the consumption of ferrous agglomerate, which led to an increase in the production of blast furnace iron by 8,9%. Also, there was an increase of 3,6% of the consumption of ferroalloys for obtaining crude steel, which is also reflected in the increase of crude steel production by 5,3% compared to 2017, official report data shows. Current overview At present the Romanian iron and steel industry has at its disposal numerous integrated production works, out of which only one is based on converter flow and six on arc furnace (Mittal Steel Galati, Mittal Steel Hunedoara, Mechel Targoviste, Mechel Campia Turzii, TMK Resita, Donasid Calarasi and Ductil Steel Otelu Rosu), the ICEM Bucuresti Institute reports. There are many companies manufacturing seamless and welded pipes, rolled steel, siderurgical equipment and castings, ferro alloys, smaller units as nails, steel wire mashes and metal braids. Some of these enterprises are the property of big international metallurgy groups. Arcelor Mittal, one of the biggest steel producers in the world, owns the iron and steel works in Galati and Hunedoara, the pipe plants in Roman and Iasi. Mechel the Russian group, holds the iron and steel works in Targoviste and Campia Turzii. TMK Russia, owns the Resita works and the Artrom pipe plant in Slatina. Donasid Spain, is the owner of the iron and steel works in Calarasi and the Silcotub pipe factory at Zalau. There are also many research and development institutes, carrying out innovation initiatives in the sector. The technology in use is characterized by two types of production units. The first has an integrated production cycle based on two technological steel production variants: by processing hot iron (Resita, Hunedoara and Galati), and the processing of iron (Targoviste, Calarasi and Campia Turzii). The second has a production cycle based on the processing of semifabs and the manufacturing of finite goods (seamless pipes, long and flat rolled products) in Bucuresti, Focsani, Targoviste, etc. Among the key branch organizations in the country is UNIROMSIDER the Union of the Romanian steel producers. It represents a large number of companies which produce, process metallurgical materials or carry out activities within the field of metallurgy. The goal of the Union is to preserve and favor the general economic importance of the metallurgical industry in Romania by supporting and representing its members. It also actively assists the market consolidation of the sector, the organizations official website states.
south-east european INDUSTRIAL MARKET 17 Biofuels are derived from renewable biological materials such as ethanol from corn starch, corn stover, perennial grasses, woody biomass, and algae, and diesel from soybeans. Replacing fossil fuels with biofuels has the potential to reduce some undesirable environmental impacts of fossil fuel production and use, including conventional and greenhouse gas (GHG) pollutant emissions, exhaustible resource depletion, and dependence on unstable foreign suppliers. Demand for biofuels could also increase farm income. Currently, the biofuels market in Europe is dominated by the conventional biofuels consisting of those obtained by food-based feedstock, also named first generation biofuels. The production and consumption of first generation biofuels have been limited by the European Commission since 2012, with the low Indirect Land Use Change (ILUC) directive, establishing a cap to the use of these fuels at 5%. The cap is almost achieved and, thanks to new supporting measures, the biofuels market is expected to change in the coming years. The EU biodiesel market Total production of renewable diesel (hydrotreated vegetable oil, HVO, and biodiesel) in EU amounted to about 15,7 16,6 million cubic meters in 2019, equal to around 14 million tons (considering biodiesel density of 0,88 g/cm3). The production volumes increased slowly over the last 5 years, also thanks to the contribution of hydrogenated vegetable oil. The most common feedstock consumed for renewable diesel production is rapeseed, excluded from those considered for advanced biofuels production by the revised Renewable Energy Directive (RED II) in the Annex IX. However, the range of feedstocks consumed from 2011 to 2019 changed significantly, following the request of the EU renewable energy directive, increasing the amount of biodiesel derived from used cooking oil (UCO), decreasing the consumption of Biodiesel production in SEE high ILUC feedstocks like sunflower, rapeseed, and soybean. On the contrary, palm oil consumption increased. Rapeseed consumption decreased from around 67% in 2011, to 43% in 2019. On the contrary, UCO passed from 7% to 21%. Palm oil share in the EU feedstock for biofuels production also slightly increased, from 10% to 16%. However, the production of HVO, or biodiesel from palm oil can be considered as advanced only in case palm oil mill effluent and empty palm fruit bunches are used. During the last decade, the consumption of renewable diesel in Europe strongly increased, going from 14,3 million cubic metres in 2011 to about 19 million in 2019. This consumption growth was well followed by an increase in the production volumes, enabling to avoid a strong increase of the importation, but to increase the export. Bulgaria As a strong contributor within the EU, Bulgaria has already committed to the GHG reduction targets as well as the development of renewables recently implemented by the European Commission. As a first step, Bulgaria has adopted the EU Directive 2003/30/EC regarding the promotion of renewable energy and biofuels. The Bulgarian national law for the promotion of renewable energy that was adopted in 2007 regulates the share of biofuels in transportation fuels. In order to comply with the current EU legislation, the law was amended several times according to RED (2009/28/EC). The last revision of the law was made in May 2019, in order to comply with the sustainability criteria and advanced biofuels of the revised renewable energy directive 2018/2001/EU REDII. The maximum admixture of bioethanol has remained at a fixed figure since March 2019 at 9%. Since April 2019, the share of biodiesel should be on a minimum level 6%, where 1% of this amount must be second generation biodiesel produced form algae biomass, waste biomass from households and industry, agriculture and by-products.
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