Electrical machinery production in Turkey
by Tolga Taylan
The Turkish electrical machinery sector vitalised itself in the 1990’s by diversifying its products and adopting recent technologies in product design and in production processes. Therefore, the share of the electrical machinery industry increased to 1.1% in 2002 and to 3% of the manufacturing industry exports with a value of US $ 1.8 billion in 2004. Turkey produces almost every kind of electrical machinery including: isolated cables and wires, domestic electrical appliances, AC motors, small motors for domestic electrical appliances, all types of power transformers, distribution transformers, measurement transformers, power generators and electrical equipment such as breakers, contactors, fuses, capacitors, relays, panels and cells, insulators, indoor installation materials and accumulators, batteries, lighting materials, electric carbons and uninterrupted power sources. The Turkish electrical machinery industry is composed of more than 5000 companies with medium and small sized companies dominating the industry.
Isolated cables and wires
Isolated cables and wires have the largest share in the total production and exports of the Turkish electrical machinery industry. The share of the cables and wires subsector equals 34% of the production of the electrical machinery industry. The electrical cables industry in Turkey is composed of medium and large sized establishments as well as small sized plants, with most situated in Istanbul. With more than 374 cable manufacturers in addition to the plants of multinational cable companies, Turkey has a large potential for cable production.
Domestic electrical appliances
The domestic electrical appliances industry is one of Turkey’s well-established and dynamic sectors. The Turkish domestic electrical appliances sector has a wide product range from electrical shavers to microwave ovens. Sector production has been rising continuously since the 1950s. In terms of quantity, domestic electrical appliances production reached 11.6 million units in 2004. Among domestic electrical appliances electrical ovens are the most exported item and their production was 1.7 million units in 2004.
Electric motors industry production comprises 6% of the production of Turkish electrical machinery. 11% of production is exported. In Turkey, the production of small capacity motors for domestic electrical appliances has been successfully carried out by 9 medium sized companies. In addition, there are a few large companies producing special high capacity electric motors up to 160 kw.
The share of transformers in the production of electrical machinery is 6%. In Turkey power and distribution transformers and measurement transformers are produced effectively. The production of power and distribution transformers is realized by 9 large and medium sized companies. The capacity of distribution and power transformers in these plants is about 27.000 MVA. The technology used in these factories is compatible with world standards and the quality of Turkish engineering in the power transformers is as high as that in European countries. In addition, there are 12 large companies which produce measurement transformers up to 400 KV. The measurement transformers industry is competitive in world markets with its technology and product quality.
The production of other important electrical equipment such as medium voltage breakers, relays and protection systems, low voltage panels and cells, ceramic insulators and power generators, contactors, fuses, capacitors, indoor installation materials, lighting materials, accumulators and batteries is carried out by medium and large sized companies in an efficient way. For medium voltage breakers, the annual production capacity of the large sized companies is 22,750 units. Technology and quality are being improved continuously. The production of low voltage panels and cells meets domestic demand. Annual production capacity of the companies operational in the sector is about 190.000 cells. There are 2 medium scale companies in the ceramic insulator sector. Also, there are a large number of small scale producers, amounting to a total capacity of 2500 tons/year. The total capacity in the subsector was 11000 tons/year in 2002.
Export of Turkish electrical machines
At present, electrical machinery industry exports comprise 3% of the Turkish manufacturing industry exports and have been increasing significantly. The total export value of electrical machinery rose to US $ 1.8 billion in 2004. Turkish-made electrical machinery is exported to almost 179 countries throughout the world. In 2004, Germany was the major buyer of Turkish electrical machinery. Other principal export markets of the Turkish electrical machinery are Iraq, the United Kingdom, Russian Federation, France, Italy, Bulgaria, Saudi Arabia and Iran.
The main export products are insulated wires and cables, domestic electrical appliances and electric transformers. Among product groups, insulated wires and cables have the largest share in the total exports of electrical machinery. The share of insulated wires and cables in the exports of electrical machinery is 31%. Producer and exporter firms in the cable sector are competitive in international markets with their capacity, technology, service and quality. According to worldwide statistics for cables, Turkey ranked twenty seventh in 2003 with a market share of 1% among 155 other exporter countries. In spite of intense competition in international markets, Turkish cable exports are expected to increase further.
The other significant export product, domestic electrical appliances, account for 21% of the total exports of the sector. Improved marketing techniques and well-established after sales services results in the continuous export growth in recent years. Turkey had a 2.4 % share among the other exporting countries in the world for domestic electrical appliances in 2003. Electrical ovens which are part of domestic electrical appliances are the major export products. In 2004, the value of oven exports was US $ 221.5 million. Major export markets for electrical ovens are the United Kingdom, Germany, Iraq, Russian federation, France, Greece and the U.S.A In 2003, Turkey was the sixth largest exporting country in electrical ovens among the 99 exporter countries and Turkey’s share in world exports was 4%.
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