Production of color TVs in Turkey

IndustrySouth-East European INDUSTRIAL Мarket - issue 4/2007

The color TVs manufacturing business in Turkey is more than colorful with more than strong players and outstanding production volumes and growth. Last more than 10 years the Turkish color TVs production rapidly conquers the European market generating share growth from 5% (1995) to 45% (2005). For the last year Turkey’s Vestel Electronics was pronounced as the biggest TV producer in Europe and together with its competitors – also Turkish origin companies, form more than 1/2 of entire TVs production on the continent.

The entire consumer electronics sector in Turkey is very important for the country economy – it forms around 58% of all electronics production and 69% of the export (2005). For sure the TVs sets are the biggest part of the overall consumer electronics production in the country which means in numbers – about 95% and total production volume of 4.725.000 USD (2005). The ratio between the import and the export of color TVs is about 1:3.

Color TVs producers in Turkey are big companies, mainly part of huge holdings with important role for Turkish economy. Among the strongest names of Turkish origin companies are:

ARCELIK arcelik

is well known producer of consumer electronics already half a century. Company has more than 17,000 employees and is one of the leading providers of Turkish household appliances market with more 4,500 dealers and 600 services. It has 10 production plants in three countries, 13 subsidiaries abroad and sales of products and services in more than 100 countries on five continents. TRY 7 billion in consolidated revenues in 2006 and 181 million in investments in 2006. According to the companies official data ARCELIK provides products and services provided to approximately 17 million households in Turkey and 75 million households worldwide and is the largest household appliances producer in Turkey and the 3rd largest in Europe. Currently ARCELIK produces CRT TVs 37-84 inches screen sized, 106-inches plazma screen TVs, LCD models 40-106 inches screen sized, and 2 models of Project TVs.

Beko Elektronik beko

Another one of 98 consolidated companies of Koc Holding, is very strong name in consumer electronics in Europe – according to its official data for 2006, a total of 4,990,505 TV sets were sold. The company exports 78% of its turnover in terms of sales units (1,124,271 TVs sold on domestic market and international sales of 3,866,234 TVs).
“Beko Elektronik keeps abreast of the latest advances in technology and consumer trends and adopts the necessary changes in its production processes. Influenced by the transition from analog technology (CRT) to digital technology (LCD, PDP), 2006 unit sales fell to a certain extent, but no significant change was observed in overall revenue”, is said in the official Annual Report for the last year. 

OZAK ELEKTRONIK A.S. ozak

Founded in 1983 as a OZAK ELEKTRONIK Limited Company changed its formation into a joint-stock company in 1989 – OZAK ELEKTRONIK A.S. nowadays  is well developing and technology oriented Turkish manufacturer of TV products. For OZAK is working 550 well-trained staff, 4 SMD lines and radial and axial machines with capacity to support the SMD lines, a painting shop and 2 lines for CKD production, 12,000 square-meter closed area, of which 7,000 square-meter used as a production zone. Due to its resources and facilities, the company has a capacity of production 1,000,000 unit TV-sets. As a result of its flexible production system and management, OZAK Elektronik manufactures all kinds of electronic cards & products and its production process is certified with ISO 9000:2000. 

Vestel Elektronics

Founded in 1984 and acquired in 1994 by the Zorlu Group, a family-owned textile giant controlled by Ahmet Zorlu – Chairman of the board of Zorlu Holding Company Vestel Elektronics is emblematic manufacturer of household electronics in Turkey. According to the ISO data and officially announced by the company, Vestel Elektronics is the biggest television producer company in Europe controlling 5% of the world television market. The production of 10,5 millions sets and the share of 26% from the European market of TVs puts Vestel at the leading positions in Europe. Mainly focused on EU countries, the company exports to 108 countries. Vestel Elektronics is one of the leading OEMs manufacturing the products of the global electronic giants such as JVC, Hitachi, Sharp, Sanyo,Thomson, LG and Toshiba in its facilities together with its own trade marks for the last four years.
Product program of the company in the field of visual electronics includes wide range of TFT-LCD TVs, Plasma TVs, 100 HZ TVs, 16:9 wide-screen TVs, TVs with DVD combination, digital TVs, TVs with memory, and mobile TVs besides the 37-87 cm screen standard televisions. In addition to TVs and other electronics, Vestel is also one of the leaders in the white goods sector - washing machines, dishwashers, refrigerators, air conditioners, devoted to the local market, Europe and the Middle East. The figures of its success points 14,000 employees in Turkey, 3.3 billion USD sales volume for 2005, 25% growth compared to 2003, 63 million USD net profit, export orientation of about 90% of the goods. 

PROFILO TELRA A.S.  profilo

Part of the Profilo Group of Companies, the Private Holding with interests in Electronics, Telecom, Trading, Construction, Real Estate, Distribution, Ship building and Tourism PROFILO TELRA A.S. was established in 1970 and started TVs manufacturing in 1980. It has been the first ever outsourcing partner of Sony, also partnered with Matsushita, and in 1990, the company signed a Production & Sales Agreement with Thomson. With 3 million TVs produced and sold in 2004 and 2100 skilled employees, Profilo-Telra is ranked on leading positions among the top European TVs producers. Its modern TV production facilities capacity was extended to 5 million units in 2005. Additional capacity for a few millions electronic sets is used for other Audio/Video products. Equipment consists of 65 insertion machines, 36 plastic injection machines, and 22 assembly lines (4.5 million LCD and CRT TVs, 500,000 Plasma and DLP TVs). Products currently manufactured range from 14 to 50" LCD Plasma DLP and CRT TVs, including DVD, DVD+RW, DMC, Wireless Combi’s, and Digital TVs. The company sells its products on the European market through own subsidiaries in Germany, France, Poland, and Turkey, and through a network of dedicated distributors in other countries. Most TVs are sold under distributors’ specific brands or retailers’ private labels, as well as renown CE Brands. According to the published company data, in Turkey Profilo-Telra enjoys 20% market share and sells its products under own and franchised brands through 5 000 stores. The financial data for 2005 points 550 million USD revenue and growth superior to 50% over 2003. Confident in its growth prospects, Profilo Telra expects its turnover to surpass the 1 billion USD mark in 2007. 

Megatek Elektronik  megatek

Concerning the TV modules production it should be mentioned Megatek Elektronik operating in the field of consumer electronics and specialized in production of electronic cards and products using the most advanced manufacturing and automation systems. The manufacturing facilities started operation in 2000 and have been expanding steadily since. The data available concerns 2002 in which the company manufactured more than 450,000 electronic boards and 2003 when the production was doubled to over 900,000 electronic boards and products. Range of products covers except TV modules (TV main chassis, CRT modules, stereo modules, teletext cards, 100Hz feature boxes, etc.), also Phones, Digital Satellite Receivers and Complete TV sets. The staff consists of over 180 people well-trained specialists.




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