Plastics industry continues its growth trend. The report issued by PAGEV for the first half of 2018 shows that plastic product manufacturing increased by 7.2% to 5 million tons, while value increased by 9.3% to 19.4 billion dollars. During the same period, plastic product exports increased by 12.8% to 2.4 billion dollars.
As the driving force of Turkish economy, the plastics industry continued its growth performance in the first half of 2018. According to data published by the industry organization Turkish Plastics Foundation (PAGEV), plastic product manufacturing increased by 7.2% to 5 million tons, while value increased by 9.3% to 19.4 billion dollars compared to the same period previous year. Plastic packaging accounted for the largest share of plastic product manufacturing with 2.2 million tons, followed by plastic construction materials with 1.1 million tons.
PAGEV's industry watch report projects that the total plastic product manufacturing will grow by 5% until the end of 2018 and reach 38.8 billion dollars. However, the report argues that the profitability in the second half of the year will remain below first half levels.
Exports projected to become 4.7 billion dollars by the end of 2018The plastics industry maintained its strong export position in the first half of the year. Plastic product exports in the first half of 2018 increased by 7.3% to 856 thousand tons, while growing by 12.8% in value and reaching 2.4 billion dollars compared to the same period of the previous year. The top markets among the 200 export destinations of the plastics industry during the January-March period were Iraq, Germany, UK, Israel and France. The direct plastic product exports of the industry is projected to increase by 4.8% by quantity to 1.7 billion tons, and 8.4% by value to 4.7 billion dollars.
Domestic sales drive growth in the first halfIn the first six months of 2018, the domestic consumption of plastic products increased by 8.5% in value to 18.6 billion dollars, and 7.1% in quantity to 4.5 billion tons compared to the same period previous year. Approximately 2 million tons of the 4.5 million tons consumed in the domestic market was indirectly exported in the form of finished products and semiproducts by the automotive, packaging, construction and electronics industries. 2.5 million tons were directly used by consumers.
Investments continue despite economic downturnThe plastics industry invested $526 million on machinery and equipment during the first half of 2018. Presses and other machines accounted for 40% of the total investment, followed by injection at 19%, equipment and parts at 17%, extrusion at 16%, thermoform at 6%, and inflation machines at 2%. Total investment in equipment is expected to increase by 13% compared to 2017 and reach 1 billion dollars by the end of the year.