44
Turkey’s fastener industry
The 80:20 rule appears to apply fairly accurately to the Turkish fastener industry. Various estimates for
the total number of producers centre around 500; encompassing everything from high end automotive
parts, major construction elements, through to small screws, fixings and other hardware elements.
Many companies are reportedly very small. Perhaps 100 can be considered substantive businesses and
fewer than fifty are reckoned to achieve a significant scale of production.
The Turkish fastener association estimates burden of increased liabilities in the current maintenance. Most companies also have
total fastener production in 2007 at 350kt – climate. Long-term finance from Turkish banks in-house atmosphere-controlled, continuous
around half Italy’s output and 70% of that of is reportedly difficult placing heavy emphasis heat treatment lines - again mainly Taiwanese
Germany. on the company’s own financial resources. technology - and properly equipped laboratory
Exports of fasteners, again according While short-term survival is now uppermost facilities. Final inspection equipment, generally
to association figures, were around 240 in all minds, several companies are evidently multi-camera, is common although most also
million euros in 2007. Official data shows constrained by the size of existing premises, carry out significant levels of hand inspection.
2007 exports of CN code 7318 at around acknowledging this as an issue that will need In most plants significant environmental
124 million euros, reflecting a 40% year on to be addressed decisively once markets controls were installed or planned.
year growth and a 74% increase over 2005. recover. Most of the companies understandably
The EU represented 44% of total Turkish Those companies not already specialised in expressed deep concerns over current market
hardware exports in 2007, with Germany the more complex parts aspire strongly to do so – conditions. It is not our role to assess financial
largest market. Outside the EU exports were showing little inclination to deviate from this viability but it is clear that investment timing
significant to the Russian Federation and plan despite current conditions. is proving a crucial factor. Companies investing
Kazakhstan. The underlying difficulty in establishing two to three years ago, while not necessarily
The fastener association achieved some long-term finance is reflected in the choice of always in the clear, have reduced liabilities.
protection from low value imports for the production equipment to upgrade capability. Others have managed to side step, what could
last four years by obtaining anti-dumping While there are notable examples of European have proven catastrophic, major commitments
measures that result in double tariff and VAT cold-forging technology in use in Turkey, just in time; whether as a matter of foresight
liability on imports of fasteners valued at recently acquired multi-die formers are mainly or fortune is harder to tell. A minority
less than US$2,500 per tonne. Nevertheless Taiwanese and Korean. SACMA and Nedschroef acknowledge significant levels of vulnerability
imports from China are reported to have grown equipment is widely acknowledged as ‘the and the need to make radical cost reductions
substantially. Several major manufacturers also ultimate in performance and productivity’ if current market conditions continue into
operate as importers and traders, servicing for forging complex parts but the acquisition the second quarter, especially if the Turkish
domestic and, to a lesser extent, export cost of these machines is generally seen government fails to effect promised support
demand. as prohibitive. Asian machines are more measures.
We visited nine production companies, affordable in the short term, providing an Short term economic climate to one side
in the Istanbul, Ankara and Izmir areas – immediate ‘step-up’ in capabilities. the overall impression – admittedly on a very
representing a major element of the upper The factories we saw demonstrated high selective sample of the Turkish industry as a
echelon of Turkish fastener manufacture. levels of quality control throughout the whole whole - was of high levels of professionalism
Several are long established businesses, process. The majority of wire was sourced from and commitment to development through
almost all family owned. Many began as well-recognised European producers. Generally production of higher grade fasteners and parts.
traders or very small-scale producers growing wire stocks appeared high presenting Read on for specific profiles.
to become globally comparable production significant difficulties
operations. Growth tends to have been rapid in in responding to
recent years, driven by the development of the cost down pressure.
Turkish automotive, electrical and construction Most companies
sectors and free trading opportunities with have a phosphating
Europe. line for wire pre-
Several companies specialise strongly in the treatment; some
automotive sector, both domestic and export; have annealing
production ranging from high grade standard furnaces. Most also
and semi standard fasteners to complex have extensively
parts. Inevitably, these companies have been equipped tooling
impacted by the downturn: “hitting a wall” shops, several
was a recurrent description. producing a high
Some companies made major investments proportion of their
in recent years to upgrade their production own requirements
capabilities and capacities. Others have and most evidently
shelved expansion plans and avoided the capable of effective
Courtesy of Norm Fasteners
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