The Turkish heavy equipment sector is setting out to take a larger share from China, the world’s largest heavy equipment market. With exports to over 130 countries, the sector aims to reach $5 billion in exports in 2023.
China carries significant potential for Turkish companies in terms of getting a share of the overall market and also exporting, said Merih Özgen, the head of the Turkish Construction Equipment Distributors’ and Manufacturers’ Association (İMDER).
“We are planning on making our move in China. Even a 1 percent share that we receive in the first place will be an important rate for the initial phase,” he said.
Özgen evaluated the developments in the heavy equipment sector, saying the current account deficit in the sector will return to surplus this year. “We foresee that exports will exceed imports. We expect a boom in exports along with a 40 percent growth,” he said. Recalling that China is the world’s largest heavy equipment consumer, Özgen added they are planning to carry out a wide attendance at a fair to be held in Beijing in September.
This year, the Chinese heavy equipment sector is expected to grow steadily by 10 percent, he noted, adding there has been a serious breakthrough in the Chinese construction industry for the last 40 years.
“European countries account for about $200 million of imports of the $1.5 billion in China’s heavy equipment group,” he continued. “There is a remarkable import ratio of heavy equipment and forklift trucks here, which gives our manufacturers the opportunity to acquire an important market and export.”
Stressing that Turkey holds the fastest growth rate in the market for the last eight years after China and India, Özgen said Europe, the Middle East, Russia, Central Asia and Africa stand out as the traditional markets of the Turkish heavy equipment sector.
“South America and Australia have recently been added to this. Major construction and infrastructure projects are being carried out in South America,” said İMDER Chairman Özgen. “The increase in the need for heavy equipment has triggered us to convert our route to that region. However, especially India and the People’s Republic of China constitute an important part of the global market.”