Overview and Historical Development
**Chemicals** are indispensable to modern life, and the development of the **chemical industry** has significantly helped to elevate the standard of living, serving as a crucial indicator of a country's industrialization level. Products from this industry contribute significantly to growth across many other industrial sectors.
At the beginning of the 20th century, a few basic chemical establishments existed within the Ottoman Empire, manufacturing products like soap, liquorice extract, and valonia extract. Following the establishment of the Republic of Turkey up to the 1950s, these chemical works developed into corporations, and final-stage production began in fields such as explosives, medicine, agricultural chemicals, detergents, printing ink, and textile dyes.
The acceleration of the chemical industry in Turkey began after the 1950s, particularly during the planned economy period (1960–1980). Economic policies focused on **import substitution** and public sector investments were directed toward high-investment, low-profitability areas such as **petrochemicals, fertilizers, and basic organic and inorganic chemicals**. Meanwhile, private and foreign investments focused on pharmaceuticals, synthetic yarns, and cleaning products.
Following the new **export-oriented economic policy** launched in 1980, the manufacturing sector boomed. The chemical industry benefited greatly, showing an impressive increase in both production and exports. Today, the Turkish chemical industry, utilizing modern technology and offering diversified products, is a key component integrated into the supply chain of national industries, especially the **textiles** and **automotive** sectors.
PRODUCTION LANDSCAPE
Turkey has a long history of chemical manufacturing, producing a wide range of basic, intermediate chemicals, and petrochemicals. Production includes **petrochemicals, inorganic and organic chemicals, fertilizers, paints, pharmaceuticals, soaps and detergents, synthetic fibers, essential oils, and cosmetics/personal care products**.
Industry Structure and Key Resources
- The majority of chemical production is handled by the **private sector**.
- 70% of production is utilized by other sectors as **intermediate goods** and raw materials, while 30% is sold directly to consumers.
- The sector, including plastics and rubber sub-industries, employs nearly **200,000 people** across approximately **6,200 companies**.
- Most companies are concentrated in major industrial hubs like **Istanbul, Izmir, Kocaeli, Sakarya, Adana, Gaziantep, and Ankara**.
- Despite some raw material dependence, Turkey is among the world's leaders in **boron, chrome, soda ash, and trona reserves**.
- The industry is actively adopting **EU's Technical Standards** and successfully implements the Responsible Care initiative for environmental, health, and safety issues since 1992.
KEY SUB-SECTORS
Petrochemicals & Refining
The petrochemical industry has grown considerably since 1970.
- **Upstream Producer:** **TÜPRAŞ** (Turkish Petroleum Refineries Corporation) is the country's only integrated refinery, operating four refineries (Izmit, Izmir, Kırıkkale, and Batman).
- **Downstream Producer:** **PETKİM Petrokimya Holding A.Ş.** is the sole integrated petrochemical complex in Turkey (located in Aliağa, Izmir).
- PETKİM produces a wide range of products, including common plastics (HDPE, LDPE, PS, PVC, PP), aromatics, ethylene glycol, and synthetic rubber. Total production meets about 30% of domestic demand.
Pharmaceuticals & Healthcare
The pharmaceuticals sector is a leading part of the chemical industry, closely tied to domestic demand.
- Domestic industry meets **90% of pharmaceutical demand**, producing a wide range of products, mostly generic formulas.
- New and complex pharmaceuticals (cancer treatments, vaccines, hormones) are typically imported.
- Turkish companies produce many active ingredients (antibiotics, analgesics) using various methods.
- **Afyon Alcaloids Factory** produces **20% of the morphine consumed globally** by pharmaceuticals industries.
Fertilizers & Synthetic Fibers
Fertilizers:
The fertilizer industry is crucial for Turkey's vast agricultural sector. Seven major private companies dominate production (Tugsaş, Igsaş, Toros Gübre, etc.).
Synthetic Fibers:
Parallel development with the textile sector led to large plants producing polyamide, polyester, and acrylic fibers. Production, mainly private, is around 850,000 tons/year and targets both domestic and foreign markets.
Soaps, Detergents & Cosmetics
Soap & Detergents:
The sector shows high performance in quality and exports, featuring major domestic and multinational companies. Natural soap production (laurel soaps from Mersin/Antakya and natural olive oil soaps) is also widespread and exported in large quantities.
Cosmetics:
Consumption and production are growing rapidly. Hair care (shampoos) holds the largest market share (around 59% of hair care products). Natural cosmetic production is on the rise due to increasing demand.
Specialized Chemicals and Mineral Advantage
Paints and Coatings
The paints and coatings industry is highly dynamic, parallel to the growth of Turkey's construction, automotive, and marine sectors. The industry, comprised of about 600 manufacturers, produces approximately **800,000 tons/year** and has a growing export trend.
Soda Ash and Trona
Turkey hosts the **largest soda factory in the Middle East** (750,000 tons/year capacity). The discovery of an extremely rich **trona** (natural soda ash) deposit near Ankara (Beypazarı) has given Turkey substantial export potential. **Eti Soda A.Ş.** began operations in 2009 with a projected 1 million tons/year soda ash production.
Chrome and Boron Chemicals
Turkey is among the **top five countries supplying chrome ore** globally, producing important chrome chemicals (sodium bichromate, chromic acid). Furthermore, Turkey enjoys a comparative advantage in **boron chemicals** (borax, boric acid, sodium perborate) due to massive reserves and quality minerals. **Eti Maden İşletmeleri Genel Müdürlüğü** is the dominant producer and sole exporter of boron chemicals.
Other Growing Segments
Turkey has a substantial capacity for **sodium sulphate** production, ranking among the world's top producers. The country is also one of the most important **rose oil exporters** in the world (primarily from the Isparta region), benefiting from favorable climatic conditions for medicinal and aromatic plants (laurel oil, thymus oil, etc.).
EXPORTS AND FOREIGN INVESTMENT
Turkey's chemical industry exports have been increasing steadily. In **2011**, the chemical industry was one of the most important exporting sectors, with exports valued at about **US$ 17.1 billion**, representing approximately **12.71%** of Turkey's total exports (US$ 134.9 billion).
The sector has attracted significant foreign interest, with **more than 300 companies** currently operating with foreign investment. The Turkish chemical industry holds a share of nearly **15% of the total foreign capital** invested in Turkey.
INDUSTRY RESOURCES
Major Trade Fairs (2012 Examples)
- **AYSAF (Footwear Industry Suppliers Fair):** Istanbul, 29 Feb - 3 March 2012.
- **Chemistry, Chemical Industry, Chemical Products:** Istanbul, 13-15 September 2012 (focus on HVAC, Building Materials, Ceramics).
- **Chemistry, Chemical Industry, Chemical Products:** Istanbul, 3-6 October 2012 (focus on Leather, Footwear).
- **TURKCHEM’12 (Chemicals, Laboratory and Technology):** Istanbul, 11-14 October 2012.
Useful Industry Links
- Turkish Chemical Society: http://www.turchemsoc.org/tr/
- Turkish Chemical Manufacturers Association: http://www.tksd.org.tr/
- Istanbul Chemicals and Chemical Products Exporters’ Association: http://www.immib.org.tr/en/
- Akdeniz Chemicals and Chemical Products Exporters’ Association: www.akib.org.tr