Question to Turkish members

[Paul2]

How is the industry doing in Turkey? Any prospect of electronics taking off?

So far I saw that your defence industry is disproportionate to everything else (this is by no mean a criticism.)

Koç group got quite big in household goods with Arçelik. Do they hire OEMs or the make everything in house?

Last time I was in Istanbul when I did a sourcing contract for one of bathroom accessories maker there. I walked a bit in the industrial park, and saw you have quite bit of metalworking done locally. It is still nothing in comparison to a typical industrial district here, but quite formidable in comparison to just anything else outside of East Asia.

How do you think, is it possible for a small OEM to make its way there, or the big players left no room to smaller manufacturers?

 

[damm1t]

How is the industry doing in Turkey? Any prospect of electronics taking off?

So far I saw that your defence industry is disproportionate to everything else (this is by no mean a criticism.)

Koç group got quite big in household goods with Arçelik. Do they hire OEMs or the make everything in house?

Last time I was in Istanbul when I did a sourcing contract for one of bathroom accessories maker there. I walked a bit in the industrial park, and saw you have quite bit of metalworking done locally. It is still nothing in comparison to a typical industrial district here, but quite formidable in comparison to just anything else outside of East Asia.

How do you think, is it possible for a small OEM to make its way there, or the big players left no room to smaller manufacturers?

Which sector we are talking about ?

 

[Paul2]

Which sector we are talking about ?

Light industries, electronics

 

[mehmeTcc]

As far as I know, big two of Turkish household appliances both use OEM components coming from East Asian countries, for applications such as television sets. There is a trend of increasing the production of hardware components though, especially in smaller start-ups since there are huge government incentives.

Most importantly though, the software is almost always Turkish.

 

[TNT]

Light industries, electronics

Sorry for interrupting but that industry would shine in Pakistan.

 

[Nein]

As far as I know, big two of Turkish household appliances both use OEM components coming from East Asian countries, for applications such as television sets. There is a trend of increasing the production of hardware components though, especially in smaller start-ups since there are huge government incentives.

Most importantly though, the software is almost always Turkish.

Well Turkish electronics and appliances products are making their way into Australia my mum owns a Arcelik Turkish coffee maker. Well mainly Beko has came which Arcelik owns.

 

[Turan09]

Well Turkish electronics and appliances products are making their way into Australia my mum owns a Arcelik Turkish coffee maker. Well mainly Beko has came which Arcelik owns.

Well I heard once that Koç uses Beko Brand more for english speaking countries because ''Arçelik's'' pronunciation isn't look nice in english. I am not sure if it is true or not.

 

[Nein]

Well I heard once that Koç uses Beko Brand more for english speaking countries because ''Arçelik's'' pronunciation isn't look nice in english. I am not sure if it is true or not.

I think so or maybe its just a way of slowly expanding into the Australian market. I was surprised on how Beko has established itself. Many places I go to like Harvey Norman, Jb Hifi or any other electronic stores or appliance stores there is a lot of Beko products.

 

[xenon54 out]

Light industries, electronics

Arcelik as you pointed out is a big brand but there are ones such as Vestel, and Beko which export worldwide.
The structure of those companies is similar to South-Korean Samsung, LG etc. they are part of bigger holdings, the two biggest konglomerates having consumer Electronic brands in their structures are the following:

Koç Holding A.Ş.
Zorlu Holding

The total number of Holdings in Turkey is about 150 (as listed in Wikipedia) many of them produce electronics too.
Other than that there are some stand alone brands who also export but mainly focus on domestic market.


Vestel City, one of the larges industrial complexes in Europe, even got featured in National Geographics ''Mega Factories'' series.

 

[Paul2]

The structure of those companies is similar to South-Korean Samsung, LG etc. they are part of bigger holdings,

That's quite obvious.

I was looking for the opposite, is there anything there for anything other than a big holding company?

Other thing I noticed is that almost all rich people in Turkey are quite "old money." Some tracing their fortunes to WWII, and some even past the revolution.

 

[xenon54 out]

That's quite obvious.

I was looking for the opposite, is there anything there for anything other than a big holding company?

Other thing I noticed is that almost all rich people in Turkey are quite "old money." Some tracing their fortunes to WWII, and some even past the revolution.

Well there are as said smaller companies too but their products arent as ''hi-tech'' as a fully automatic washing machine for exsample, more like room heaters and aspirator etc.

As for rich people, i wouldnt agree with that, the richest are like that maybe but many also became rich in the last decades espacially during the economic growth of 2000-2010.
Construction moguls are a good exsample for this, they made good profits in the recent construction boom.

 

[mehmeTcc]

If only you can be more specific about what kind of hardware you are looking, but here are some companies (except the usual suspects like Arçelik or Aselsan) I know of from the industry:

http://www.mikro-tasarim.com.tr a ROIC company

http://www.polaran.com A consultancy firm who licensed polar codes to Huawei (which in fact enables 5G telecomms) Owner was my probability professor, kicka*s guy but his course was quite hard

We usually do electronics that doesn't need that much of a scale, like FPGAs, where boutique companies can shine. I believe we are about to make an explosion in the sector just like Germans did with machinery sector back in the 50s, lots of talent in areas like telecommunications, biomedical engineering and nanotechnology. Government incentives are focused on the workforce generated and the nicheness of the market which makes electronics a shining star. Also notice the fact that İstanbul is not the marker for electronics in Turkey, Ankara is since the city is the cardinal center of electronics research. If you are interested check the research being done, if there is a research there is a high probability of some firm producing such devices since they are surprisingly quick and eager to industrialize that kind of things:

https://mems.metu.edu.tr

http://unam.bilkent.edu.tr

http://www.nanotam.bilkent.edu.tr

http://umram.bilkent.edu.tr/index.php/tr/