presentation wood used in construction in turkey for proholz austria foreign market consulting ltd....

Presentation

Wood used in Construction in Turkey

ForproHolz Austria

Foreign Market Consulting Ltd. Şti.September 23, 2010

Foreign Market Consulting www.fmconsulting.info

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Target of the Study

Analysing Turkish Market for Wood and Wood products

Focus: Construction(carrying units, e.g. roof & houses)


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Intro: The Turkish Wood IndustryIntro: The Turkish Wood Industry

BB Wood used in construction in TurkeyWood used in construction in Turkey

Content

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Content A

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11 Forests in TurkeyForests in Turkey


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What makes Turkey so Interesting?• 72 Mio. people• Europe’s youngest population

- Avarage age 28,5- 65 % younger than 34

• Highly motivated and driven workforce• Close to Europe• Strategic Position – Neighbouring countries


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Turkey...

• ddd

Turkey is the gateway between the eastern and western world.

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World’s biggest economies


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Europe’s biggest economies


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Per capita income Turkey (USD)


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Forests in Turkey

• Surface: 22 Mio ha

• Forest: 28 % in Turkey

• Per capita 0,15 ha

• Turkey is Nr. 7 in Europe in terms of forest areas

• Forests are mostly in mountainous areas


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Forests in Turkey

• More than 9000 Plants

• 3000 endemic

• Most important trees:

» Pine

» Beech

» Oak

• 99,8 % of forests is governed by government

• New legislation motivates privatisation


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Forests in Turkey

Yearly increase: 36,3 Mio M3 Yearly increase: 36,3 Mio M3

Total Value: 1.3 Bil M3Total Value: 1.3 Bil M3

Total Forest Area : 22 Mio Ha.Total Forest Area : 22 Mio Ha.

Yearly Increase in Total Productive Area : 26,8 Mio M3

Yearly Increase in Total Productive Area : 26,8 Mio M3

Total Productive Area: 9,6 Mio Ha.Total Productive Area: 9,6 Mio Ha.

Plantation: 16 Mio Ha. % 78Plantation: 16 Mio Ha. % 78

Coppice Forest: 6 Mio Ha. % 27Coppice Forest: 6 Mio Ha. % 27

Plantation: 1,2 Bil M3 % 93Plantation: 1,2 Bil M3 % 93

Coppice Forest: 0,1 Bil Ster % 7Coppice Forest: 0,1 Bil Ster % 7

Plantation: 8,0 Milyon Ha. % 83Plantation: 8,0 Milyon Ha. % 83

Coppice Forest: 1,6 Milyon Ha. % 17

Coppice Forest: 1,6 Milyon Ha. % 17

Plantation: 31,4 Milyon M3 % 86Plantation: 31,4 Milyon M3 % 86

Coppice Forest: 6,5 Milyon Ster % 14


Plantation: 23,0 Milyon M3 % 86Plantation: 23,0 Milyon M3 % 86





Yearly Eta : 16,3 Mio M3Yearly Eta : 16,3 Mio M3 Plantation: 11,3 Milyon M3 % 69

Plantation: 11,3 Milyon M3 % 69


Source: Ministry of Environment and Forestry, GDF

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Content A

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22 Forestry in TurkeyForestry in Turkey


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Responsible Institutions

• Administration and management of forestry:General Directorate of Forestry (GDF) part of Ministry of Environment and Forestry (MEF)

• To supply the timber industry of GDF and the connected regional offices:Management and Marketing Unit

• Regional offices are in 81 cities in Turkey

• The management of GDF is also affiliated with: .Regional Forestry Directorates .Directorates of Forestry Management .Chief Management Offices


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Content A

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33 Wood IndustryWood Industry


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Turkish Wood Industry

• Turkish foresty products sector has reached per year 25 mio m3 raw material processing capacity, and an export level compatable with world markets’ technology and quality in furniture, particle board (chipboard), parquet packaging, pallete, etc., -except paper-, and has an important part in EU market.

• After the EU market has shrunk, Turkish forestry products’ export market share has risen in Asian regions especially in neighbouring countries.


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Turkish Wood Industry

• Even though the wood sector has had a stagnation at the beginning, it has been improving with mainly the board sector.

• Some firms in the biggest wood sub-sectors (particle and fiberboard industry) have suspended production, on the other hand some new investments are continuing.

• The wood packaging and pallet industries who got the hardest hit are also in their recovering stages.

• On the other hand there are still financial problems for example, in terms of getting credits and L/Cs.

• GDF has taken precautions to help the industry, realizing this problem ahead of time.


19Foreign Market Consulting www.fmconsulting.info

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Supply ChainImporter of Round Wood

Wood Processors/Carpenters

Private Producer of Round Wood

GDF

Trader

End-User

End User Local Market

Producer of Wood Products

Importer of Processed Wood

End User Export Market


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Wood Consumption - Overview

Consumption from Roundwood 25 – 27 Mio. m3 (for use of Industrial & fuel wood)


GDF PRODUCTION10,0-11,0 PRIVATE SECTOR

3,0-3,5

IMPORTS2,0-2,5

PRIVATE SECTOR1,5-2,0

OTHER4,0-4,5

GDF PRODUCTION4,5-5,0

Industrial WoodIndustrial Wood15-16 Mio. M15-16 Mio. M33

Fuel WoodFuel Wood10-11 Mio. M10-11 Mio. M33


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CURRENT WOOD SUPPLY – DEMAND IN TURKEYCURRENT WOOD SUPPLY – DEMAND IN TURKEY

GDFWOOD PRODUCTION16 – 17 Mio M3/YEAR

PRIVATE SECTORWOOD PRODUCTION4,5 – 5,0 Mio M3/YEAR

IMPORTROUND WOOD2,0 – 2,5 Mio M3/YEAR

INDUSTRIAL WOOD PRODUCTION11 –11,5 Mio M3

FUEL WOOD PRODUCTION5 – 5,5 Mio M3

INDUSTRIAL WOOD PRODUCTION3 – 3,5 Mio M3

FUEL WOOD PRODUCTION1,5 – 2 Mio M3

INDUSTRIAL WOOD IMPORT2 – 2,2 Mio M3

FUEL WOOD0,2 – 0,5 Mio M3

WOOD CONSUMPTION26 – 27 Mio M3/YEAR

INDUSTRIAL WOOD CONSUMPTION16 – 17 Mio M3

FUEL WOOD CONSUMPTION10 – 11 Mio M3

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GDF INDUSTRIAL WOOD PRODUCTIONGDF INDUSTRIAL WOOD PRODUCTION

Years

Mio M3



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GDF INDUSTRIAL WOOD SALESGDF INDUSTRIAL WOOD SALES (1000 m³) (1000 m³)



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WOOD INDUSTRY CURRENT PRODUCT CAPACITYWOOD INDUSTRY CURRENT PRODUCT CAPACITY

INDUSTRY BRANCHFacility

(qty)Production

Capacity 000m³/yr

Amount of Production*

000m³/yr

Particleboard 24 3.972 2.950

Fibreboard 16 3.937 2.500

Plywood or such like products

55 300 210

Sawlog/Veenerlog 18 110 90

Timber 10.000 10.000 6.100

* amount of production is the avarage of the last 3 years Foreign Market Consulting www.fmconsulting.info

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PINE ROUND TIMBER LOG PRICES 2008-2010PINE ROUND TIMBER LOG PRICES 2008-2010

PRODUCT TYPE 2008 (TL/m3) 2009 (TL/m3) 2010 (TL/m3)

Pine RTL 3rd Class 161 140 141

" " II.S. 258 244 260

" " I.S. 365 330 442

Fir RTL 3rd Class 156 139 145

" " II.S. 197 167 180

" " I.S. 267 197 240

Beech RTL 3rd Class 163 156 165

" " II.S. 278 261 275

" " I.S. 324 306 297

Oak RTL 3rd Class 156 138 152

" " II.S. 496 485 684

" " I.S. - 631 -



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PRECAUTIONS TAKENPRECAUTIONS TAKEN

After the global crisis that started effecting Turkey from 3rd quarter of 2008 onward, the following precautionary measures have been put in effect for 2009 BY gdf, taking into account the forest products sector and the developments abroad sector.

– Producing as per demand, and keeping no stocks,– Concentrating on selling uncut trees directly from the forest,– Giving priority to products that are high in demand in the market,– Regarding selling the forest products;

1-Reducing the downpayments from % 50 to % 20-40,2-Raising the installment periods from 6 months to 9 months,3-In terms of payments, raising the 30 day additional grace period to 90 days and

offering 12 months of payment terms,4-Reducing the late payments interest rates,5-Giving additional time periods in selling assigned and uncut trees, 6-Getting a L/C from 3rd parties, for sales with installments, 7-Putting in effect, sales with 4 months of installments with no downpayment and no

interest rate.


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EVALUATING 2009

• Due to economic stagnation, like for other countries, 2009 was also a difficult year for Turkey in terms of the sector for forestry products.

• Precautionary measures have been put in effect immeadiately by the GDF, • considering the economic trends and the sector.• With GDF’s precautionary measures, inspite of the strict banking regulations,

all possible improvements have been accomplished, especially, providing raw materials without down payment and with long payment terms. These changes have also benefited the employment in this sector and functioned as a socio-economic tool.

• On the other hand, current sales going up 1mio m3 more, compared to last year’s sales, has significantly reduced last year’s stocks, and enabled continiuity of 2010 production, creating an opportunity to provide fresh products to the market.

• The ambiguity in the raw material imports in 2009 has positively effected the sales.

• The drop in prices around the world has also effected Turkey and the income from timber sales has become about the same as last year’s.This is an expected development as per the predictions in 2009.


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WOOD SECTOR’S CURRENT CAPACITY STATUSWOOD SECTOR’S CURRENT CAPACITY STATUS

Sub-sectorNumber

of Facility

Current Capacity 1000 m3/yr

Production 2008

1000 m3/yrContinious Investments

Particle Board24 3,972 3,181

2.2 mio M3 Bolu, İzmit, Adana,

Isparta

Fiberboard 16 3,938 2,2261.5 mio M3

Bursa, Afyon, Antalya

Plywood 55 250 111

Veneerlog 18 107,119 m2 96

Sawnwood and Parquet 10000 10,000 6,260



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INTERNATIONAL TRADEINTERNATIONAL TRADE

In 2009, even though both exports and imports have gone down in general, imports of wood products dropped by %37, yet exports dropped by %4,7 only.

The drop in furniture imports and exports is very minimal compared to the general picture.

When round wood imports dropped by %25, another raw material chip-wood and processed wood leftovers rose by % 6.

As a result, inspite of the drop of 428 mio USD in imports of all wood products, exports dropping only by 22 mio USD has created a very important advantage.


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IMPORT AND EXPORT OF FOREST PRODUCTSIMPORT AND EXPORT OF FOREST PRODUCTS

PRODUCT GROUP

IMPORT%

EXPORT%2008

1000m3

2009 1000m3

2008 1000m3

2009 1000m3

Industrial wood 1.239 929 -25 5 16 220

Burning wood, particle and left overs 1.453 1.543 6 1453 1543 6

Total wood and wood products 1.159 731 -37 535 509 -5

Furniture 1.114 787 -29 1.891 1.588 -16

General 201.964 140.775 -30 132.027 102.165 -23Source: TUIK (Turkey’s Statistics Association)


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Imports (Unit: 1000USD) 2002 2003 2004 2005 2006 2007 2008 2009

440710151011 Cedar 28 3 0 84 59 28 28 0

440710151012 Black Pine (Pinus nigra Arn) 0 0 0 2 0 24 129 0

440710151013 Pine 570 293 598 230 189 652 665 0

440710151014 Fir 0 33 85 4 69 139 470 0

440710151015 Spruce 284 146 8 674 2.619 704 1.144 0

440710151019 Other with needle leaves 0 64 50 38 53 0 0 0

440710159000 Other with needle leaves, emerized 24 25 5 34 14 180 50 1.018

440710310000 Pricea abiest karst Ispuce and silver cypress 58 186 287 415 586 4 701 1.017

440710330000 Pinus sylvestris pinegrated 51 1.72 2.298 4.129 5.07 6.8 5.493 1.855

440710380000 Other with needle leaves, grated 0 135 15 19 21 348 2.268 675

440710930000 Yellow Pine (Pinus sylvestris) 3.65 4.072 11.029 18.679 42.617 47.977 59.355 91.198

440710981000 Cedrus-cut/chipped/grated 43 18 6 19 0 4 180 198

440710989011 Black Pine (Pinus nigra Arn) -cut/chipped/grated 0 9 132 6 8 122 141 0

440710989012 Pine - cut/chipped/grated 2.871 549 1.836 2.866 6.117 3.59 4.457 0

440710989013 Fir - cut/chipped/grated 5 375 1.456 1.716 2.7 2.058 4.652 0

440710989014 Spruce -cut/chipped/grated 65 91 183 1.096 2.886 2.5 8.021 0

440710989019 Other with needle leaves -cut/chipped/grated 28 106 175 370 618 222 160 0

440910181000 Chipped other wooden sticks and betten from needle leaf trees 7 0 7 43 46 60 453 602

440910182000 Emerized other wooden sticks and betten from needle leaf trees 0 0 9 2 435 0 92 80

440910183000 Needle leaf trees cut as long sticks 0 0 0 0 8 0 0 0

440910184000 Other wooden sticks and batten from needle leaf trees 93 83 157 129 399 141 28 48

440910189000 Chipped pieces from shaped needle leaf trees 108 125 302 594 1.092 2.163 2.713 858

441890100000 Glued and laminated timber 145 118 339 299 1.068 1.143 1.983 1.795


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DEVELOPMENTS in FOREST PRODUCTS MARKETDEVELOPMENTS in FOREST PRODUCTS MARKET

• It is understood that the stagnation will continue until the It is understood that the stagnation will continue until the production and exports in Forest products get into an production and exports in Forest products get into an increasing trend. increasing trend.

• Dependently on other sectors, there has been a Dependently on other sectors, there has been a decrease in use of wood in packaging and pallet decrease in use of wood in packaging and pallet industries.industries.

• Inspite of the decreasing trend in exports to EU Inspite of the decreasing trend in exports to EU countries, the exports to Asian region has been adding a countries, the exports to Asian region has been adding a momentum to the sector in Turkey.momentum to the sector in Turkey.


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GDF’s POLICIES AND STRATEGIESGDF’s POLICIES AND STRATEGIES

• Producing according to the market demand,• Rational costs and efficiency in production, selling from

forests without cutting.• Optimisation in selling forest products, standardisation.• bringing in products other than timber to the economy, • Creating a socio-economic benefit to the forest

communities.


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GDF’s 2010 PRODUCTION MARKETING TARGETSGDF’s 2010 PRODUCTION MARKETING TARGETS

Taking into account the Forest Products Market, year 2010 has been Taking into account the Forest Products Market, year 2010 has been planned as 11 mio Mplanned as 11 mio M33 industrial wood 6,5 mio ster burning wood. industrial wood 6,5 mio ster burning wood.

€€305 mio production cost for the production activities, and total of €440 mio 305 mio production cost for the production activities, and total of €440 mio contribution will be given to forest villagers in the programme of year 2010.contribution will be given to forest villagers in the programme of year 2010.

The forest products sales revenue for 2010 has been set in the budget as The forest products sales revenue for 2010 has been set in the budget as €180mio 2010.€180mio 2010.

Taking into account the developments and the state of the Forest Products Taking into account the developments and the state of the Forest Products Sector in domestic and iternational markets, the targets for production will Sector in domestic and iternational markets, the targets for production will be revisable during the year.be revisable during the year.

Turkey’s potential for non-wood products will be evaluated as best as Turkey’s potential for non-wood products will be evaluated as best as possible, and GDF’s efforts will continue to include them into the economy. possible, and GDF’s efforts will continue to include them into the economy.


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DEVELOPMENTS IN WOOD INDUSTRY IN TURKEYDEVELOPMENTS IN WOOD INDUSTRY IN TURKEY

When global crisis has also effected Turkish economy, including the construction sector, Turkish forestry has continued to grow. (Growth in agriculture and forestry: 3,2%).

Wood sector has recovered from this period with small damage, and even though manufacturing industry production index went down on avarage by 10%, wood industry production index went up by 1,1%.


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Wood in Construction in TurkeyWood in Construction in Turkey

Contents C

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Construction IndustryConstruction Industry11


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Construction industry overview

• Leading Industry, after food and textile.

• Growth rate:

8 % in 1st quarter 2010, 21.9 % in 2nd quarter 2010.

GDP Growth Rate Construction Sector’s Growth Rate

2008 Ist Quarter % 7.0 -% 3.1

2009 Ist Quarter -%14.5 -%18.6

2010 Ist Quarter %11.7 % 8.0

• Gov’t Investments in Construction (Jan-Jun 2010): €7,300 mio

• Private Investments in Construction (Jan-Jun 2010): €15,000 mio

• GDP (Jan-Jun 2010): €256,000 mio


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2009/I 2009/II 2009/III 2009/IV 2009 2010/I 2010/II 2010 1st Half

Value (€1000) 4,665,173 4,724,700 4,324,691 4,586,441 18,301,020 4,787,123 6,075,104 10,862,227

Growth Rate%/yr -18.5 -20.9 -18.2 -6.4 -16.1 8.3 21.9 15.1

Growth Rate% -16.9 0.7 3.1 8.4 - -3.9 13.5 -(compared to previous period)

Share in GDP% 5.8 5.3 4.6 5.3 5.2 5.6 5.8 5.7


Source: TUIK (Turkey’s Statistics Association)

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USE OF PURPOSE 2010 / I 2009 / 1 Change (%)

Buildings in Total Number of Buildings 52,647 48,556 8.4

Area (m2) 63,700,800 51,555,147 23.6

Value (€) 36,177,590,130 27,663,432,648 30.8

Number of Apartments 322,030 249,373 29.1

Residential Buildings in Total Number of Buildings 44,572 40,610 9.8

Area (m2) 47,467,006 37,651,560 26.1

Value (€) 27,046,667,919 20,296,897,196 33.1


Other Buildings Number of Buildings 8,075 7,946 1.6

Area (m2) 16,233,794 13,903,587 16.8

Value (€) 9,130,922,211 7,366,535,452 24


Source: YEM – Yapı Endüstri Merkezi (Association of Construction Industry Center)

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Materials Used in Construction

• Main: Concrete and Steel

• Wood: In small amounts (mainly doors, windows, floors, roofs) in dimensions 5X10 and/or 10X10 cm

• Small yet growing market for constructive timber use (residential - commercial)


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Wood in Construction Sector in TurkeyWood in Construction Sector in Turkey

Inhalt B

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Carrying Applications in TurkeyCarrying Applications in Turkey22


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• Traditional:80 – 90 % of all roof constructions with wood has dimensions of: 5x10 and 10x10 cm

• New:Wood in wall covering and for carrying construction is growing.

• Reason: earthquake in 1999 emphasized usage of timber

Wood as Carrying Material


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Wood in constructive purposes in ConstructionsWood in constructive purposes in Constructions

Inhalt B

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ActorsActors33


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• Biggest companies in Wood construction:

– Saral İnşaat

– Konkur

– Yaprak (Aktürk)

Main Actors


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• STF

• TOKI (gov’t)

• Enka

• Doğuş

• Yeşil

• Dumankaya

• Akasya

• Simpaş

Main Actors: Construction companies


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• Number of Importers: 50+

• 25 main actors , mostly in Gebze (Izmit) and Gemlik (Bursa)

• Main Importers:Taciroğlu, Alanyalı, Kuruoğlu, Şanlıoğlu, Pelit Aslan, Yüceller, Akçalar, Sağlamlar, Üçorman, Koyuncuoğlu, Şişman Dış Tic., Geredeliler, Macitler, Gözütoklar, Tokurlar, Alpeks.

Main Actors: Importers


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• National Timber Association (UAB) Members: Planners, Architects, Engeneers, Academicians.

Other Associations are:

• Association of Turkish Freelance Architects (TSMD)

• The Chamber of Turkish Architects (CAT)

• Union of Chambers of Engineers and Architects (UCTEA)

• The Chamber of Civil Engineers of Turkey

• Turkish Wooden Products Importers and Industrialists (TORID) Members : Importers, Traders

Main Actors: Associations


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• Ministery of Public Works (Bayındırlık Bakanlığı)

Construction Division (to have wood standards included in its book, to open tenders)

• Ministry of Environment and Forestry (MEF)

Main Actors: Decision Makers - Lobbying


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Overview

• It is predicted that wood construction would increase in long term but not in short term, due to lack of: educated end users (consumers); experts in associations, big companies, and universities (e.g. there are no engineers who know the statics of wood).

• Wrong perceptions need to be corrected -such as; wood is not good, it is too expensive, it spoils or dries fast.

• There are no government incentives, tenders promoting wood constructions (except some touristic, historical buildings and public areas such as parks).

• There are no wood construction regulations (imar yönetmeliği)

• Foreign investors could donate attractive buildings to big municipalities to promote wood constructions.

• Associations need to unite and act together to influence main decision makers in government offices as well as main constructions companies such as TOKI.


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Foreign Market Consulting Ltd. Sti.

İnci Turan JocelynBusiness Development Manager

Telefon: +90-212-36 38 515Fax: +90-212-36 38 515Mail: [email protected]

Adresse: Sümer Korusu EvleriKasimpati Sok. Nr. 25TR-34457 Tarabya-Istanbul - Turkey

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presentation wood used in construction in turkey for proholz austria foreign market consulting ltd....

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