Turkish PU the market will grow if economic and political conditions remain stable

Turkish PU the market will grow if economic and political conditions remain stable

UK-based IAL Consultants has forecasted Turkish output of polyurethane products will grow by an average of 5.2% a year up to 2007, provided that economic and political conditions remain stable.

Turkey’s production was an estimated 186,800 tonnes in 2002, and is expected to reach almost 241,000 tonnes in 2007. Polyurethane Chemicals and Products in Turkey said flexible foams comprise the largest sector, accounting for 31% of output. This market offers modest growth prospects, the consultants said, while the best opportunities for growth are in coatings, adhesives, sealants and elastomers applications.

According to IAL, future growth remains heavily dependent on export-driven sales in areas such as auto components, construction panels and refrigeration, where the competitive production costs are attractive to overseas companies, including west European OEMs.

Report author and IAL associate director Angela Austin highlighted the problems facing the Turkish PU industry. These included overcapacity in the refrigeration and automotive industries; low growth in domestic demand due to a succession of economic crises; and an almost total dependence on raw material imports.