Energy crisis pushes some countries to shift orders to Türkiye from Europe
An employee is seen at a factory of iron and steel producer Kardemir in Karabük province, northern Türkiye, Feb. 11, 2021. (AA Photo)


Energy crisis in Europe, which was fueled by Russia’s invasion of Ukraine, caused some countries and firms that faced problems in product supply to shift their orders from various sectors, especially metal and machinery, to Türkiye, according to a sector representative.

Levent Çamur, chairperson of the OSTIM Organized Industrial Zone Industrialists, Businessmen and Managers Association (ORSIAD), told Anadolu Agency (AA) that the war between Russia and Ukraine caused an energy crisis, especially in Europe.

Stating that the energy costs of factories in Europe increased by about 10 times due to the problem experienced, Çamur stated that the producers of iron, steel, aluminum and zinc-type products had difficulties in maintaining their activities.

Çamur pointed out that the energy crisis experienced by Europe has advantages and disadvantages for Turkish industrialists on a sectoral basis.

"There is an increase in demand in Turkish orders due to disruptions in European production," he said, however adding: "Although this crisis seems like an advantage for us, it is likely that Türkiye will experience a similar problem in the near future."

"Just like Europe, we are a foreign-dependent country in energy. We can experience the crisis, too. While we have the opportunity and time today, it is important that we learn from this crisis and take steps for the energy problem," he said.

"Several sectors, especially metal and machinery, are suffering from product supply problems from the European market. There is a tendency toward Türkiye in these sectors, especially from the Middle East and African countries," Çamur said.

Çamur pointed out that in addition to the foreign dependency problem in energy, another issue that Türkiye needs to overcome is "foreign dependence on raw materials" and stated that the rate of domesticity in imported products should be further increased.

Stating that Türkiye’s exports of value-added products are low, Çamur went on to say: "There is more transformation production. What does this mean? Imported products come to our country, are processed and exported. Factors such as the slowdown in production in Europe due to the energy crisis and the recession will also affect the arrival of imported products that our country needs for production."

"It will disrupt our production. Therefore, we have to develop alternative sources. When we manage to create resources and reduce the import of intermediate goods, risks turn into opportunities, not crises," he underlined.

Çamur said that in order for Türkiye to cope with possible problems arising from the energy crisis or recession, it should first put forward a financing plan in export-oriented sectors.

"One of the issues that need to be resolved in the medium term is our low production capacity. It is imperative for Türkiye to produce more, ensure efficiency, and become a reliable supplier in the supply chain process."

"While we increase our production capacity, we have to bring our logistics and stock infrastructure to the desired level," he added.