The Turkish ship and yacht industry registered $1.5 billion (TL 70.48 billion) in exports in the first half of the year, and the sector leaders aim to catch a new record by the end of the year, according to a report on Sunday.

Mustafa Talha Pepe, chairperson of the Board of the Ship, Yacht and Services Exporters' Association (GYHIB), said the Turkish ship, yacht and services sector generated $1.5 billion in exports in the first six months of the year, adding that the industry aims to set a new record by reaching between $2.5 billion and $3 billion in exports by year-end.

Speaking to Anadolu Agency (AA), Pepe said the increase in exports was largely driven by deliveries of fishing vessels, special-purpose ships and tugboats to Northern European countries, underscoring that the sector continues to strengthen its competitiveness in international markets.

"We reached $1.5 billion in exports in the first half of the year. By the end of this year, we aim to break a new record and achieve exports of between $2.5 billion and $3 billion," he said.

Pepe noted that much of the first-half performance stemmed from deliveries under contracts signed two to three years ago, adding that the country's shipbuilding industry has made significant progress in recent years.

He said GYHIB is actively promoting the sector abroad by participating in shipbuilding and yacht exhibitions across Europe and organizing one-on-one business meetings.

"First and foremost, wherever we see potential, we fly our country's flag before our association's flag, and we are proud of that," Pepe said. "We regularly attend trade fairs across Europe for both ships and yachts, and we do our best to promote both our industry and our country."

He said the association visited Greece last month and is expected to participate in trade fairs in Germany and France in September and October.

"We try to represent both our country and our sector wherever opportunities arise. Borders and distances are not important to us, as long as there is an opportunity," he added.

Pepe also pointed to a slight decline in shipyards' order books compared to previous years, stressing that continued incentives and support mechanisms are essential for the sector to further expand its potential.

High value-added industry

Describing shipbuilding and yacht manufacturing as one of Türkiye's highest value-added export industries, Pepe said the sector generates an average export value of around $25 per kilogram, making it one of the country's most valuable export segments.

"I believe our industry is among those with the highest added value and makes a significant contribution to the overall value of Türkiye's exports," he said.

Pepe also suggested that export growth has had a positive impact on employment, domestic suppliers and local manufacturing.

Local production strengthens competitiveness

Moreover, he emphasized that increasing the share of locally produced components has significantly boosted the industry's export performance.

He said the COVID-19 pandemic exposed the vulnerabilities of globally interconnected supply chains, encouraging Turkish shipbuilders to rely more heavily on domestic suppliers.

"In shipbuilding and yacht construction, we are trying to show customers that by maximizing domestic supplier inputs and reducing dependence on imported materials, we can ensure a smoother and more reliable delivery process," he said.

"As a result, the contribution of domestic suppliers and local production is extremely important and is becoming more valuable every day. End users also appreciate having this option," he added.

Green shipbuilding gains momentum

Furthermore, Pepe said the industry has rapidly adapted to the transition toward sustainable shipping, noting that more than half of the vessels currently built in Turkish shipyards are equipped with electric or LNG-powered environmentally friendly technologies.

He added that production of green vessels for Northern European markets has increased as Turkish shipbuilders closely follow the global transformation of the maritime industry and adjust their production accordingly.

Looking ahead, Pepe said the industry's top priority is to preserve the market share it has built in Europe over the years.

He also underscored that continued support for the sector will be crucial to maintaining Türkiye's strong position in fishing vessels, ferries, tugboats and special-purpose ships.