turkish aluminium with pakistan

Turkish Aluminium Sector

Executive Summary

• The research addresses the factors influencing the customers and their decisions to buy a particular aluminum product. The survey includes a sample of major customers via a questionnaire. They answered question about their preference of aluminum products, the factors influencing their purchase decisions, brand preference as well as the brand image to the customers which are to be considered by a company before starting of a project.

Primary Objective The main objective of the project is to analyze if there is any

approach (market) for Turkish Aluminium Companies in global market.

Hypothesis: H0: Market potential of aluminium products is not fairly

good H1: Market potential of aluminium products is fairly good

Research DesignDATA SOURCE PRIMARY-SECONDARY

RESEARCH APPROACH DESCRIPTIVERESEARCH INSTRUMENT STRUCTURED

QUESTIONNAIRESSAMPLING UNIT 20

DATA COLLECTION METHOD PERSONAL INTERVIEW-OFFICIAL WEBSITES

Alumunium Industry Profile Astaş Aluminium Company The company was incorporated in 1974. Their plant is one of the two most modern aluminium

extrusion factories in Turkey Competitors: Assan Aluminium Eti Aluminium Alpash Aluminium Asas Aluminium Emre Aluminium etc.

Turkish Aluminum Companies & Their Marketing Strategies

• Aluminum companies began to assess their global competitiveness as a strategy for survival and growth. Competitiveness may be defined as the ability of a firm to survive and grow, in the light of competition from other firms.

• The financial crisis which began around middle of 2007 in USA spread out to the whole world in 2008. Turkey was also affected by this global crisis in 2008 and 2009. With the negative effect of the global crisis, Turkish aluminum building materials exports decreased by 19% in 2009 compared to the previous year.

• After the economic crisis of 2008, with the positive developments in economy in general, the aluminum building materials sector has shown to increase in both exports and domestic demand.

• In 2010, aluminum building materials exports reached about US $796 million with 13% growth.

• The Turkish economy has gained great dynamism and potential in the past few years. Since 2002, the annual gross domestic product increased by 7% and exports by 10%. Inflation levels remain below 10%.

• As a result, the demand and design conceptions with regard to packaging of aluminum products have changed. Turkish exporting companies try and adapt to the standards and tastes of the destination countries.

Current Aluminium Market

• The Turkish aluminum industry has been booming since 2002. Production levels, domestic sales and imports and exports are continuously rising. The growth of the Turkish aluminum sector is stimulated by the expansion of important consuming industries such as the automobile industry and housing construction, and the demand for semi-finished and finished aluminum products for the packaging industry as well as electric household devices.

Aluminum exports of Turkey:

• According to the Turkish association of aluminum producers Türkiye Alüminyum Sanayicileri Dernegi (Talsad) the annual Turkish market volume for aluminum products amounted to approximately 3 Bn. USD in 2007. Housing construction is booming due to low interest rates. Although demand is increasingly met by PVC-products, the construction of shopping and leisure centers and other commercial objects with modern façades necessitates an increased quantity of aluminum and glass.

• The Turkish aluminium industry comprises around 500 companies with a total of 18,000 employees. To a large extent they are small-sized enterprises with low capacities.

Largest Enterprises of the Turkish Aluminum Industry

Company Net Turnover 2004 (in Mil. YTL)Company Net Turnover

Assan Alüminyum 541,6Eti Alüminyum 198,5CMS Jant ve Makina 159,6Asas Alüminyum 119,3Has Celik Halat 97,8Kale Oto Radyatör 89,7Saray Döküm 80,5Sahinler Metal 77,4Cevher Döküm 65,7Fenis Alüminyum 50,6Erdoganlar Alüminyum

45,7

Semi-finished and finished products

• To the largest part, Turkish aluminum companies produce semi-finished and finished products. In total, the annual capacity is estimated at 700,000 tons. For semi-finished and pre-manufactured products Talsad estimates output at 400,000 to 450,000 tons, of which 200,000 to 220,000 tons are extrusion produces, 150,000 tons are rolled products and 180,000 tons are smelting products.

• Aluminum rods and profiles are mainly exported to Germany, Great Britain and Bulgaria. Sheets and slabs go to Italy, Spain and Germany. Kazakhstan, Germany and Russia receive products for the building and construction industry.

The Aluminum Market of Azerbaijan, Albania and Pakistan PAKISTAN

No Period Trade Flow Reporter Partner Code Trade Value NetWeight

(kg)

01 2005 Export Turkey Pakistan 69129 $15,803 3,477



04 2008 Export Turkey Pakistan 69129 $7,885 899


AZERBAIJANNo Period Trade

Flow Reporter Partner Code Trade Value NetWeight (kg)

01 2005 Export Turkey Azerbaijan 69129 $645,275 198,613

02 2006 Export Turkey Azerbaijan 69129 $2,974,154 550,988

03 2007 Export Turkey Azerbaijan 69129 $4,246,497 884,761

04 2008 Export Turkey Azerbaijan 69129 $6,967,116 1,277,608

05 2009 Export Turkey Azerbaijan 69129 $7,543,395 1,365,314

ALBANIANo Period Trade

Flow Reporter Partner Code Trade Value NetWeight (kg)

01 2005 Export Turkey Albania 69129 $666,472 103,35

02 2006 Export Turkey Albania 69129 $1,342,873 192,14



05 2009 Export Turkey Albania 69129 $628,475 126,115

Future Growth of Aluminum Market • Total annual production by approximately 500

aluminum producing companies ranged at 750,000 tons in 2007. An output of 1,000,000 tons is the medium-term goal. Talsad expects an annual growth of at least 15% for the next few years.

• The largest producer in the country with 137.000 tons output in 2007, Assan Aluminum, managed to increase their production levels by 14% compared to the previous year.

• Despite investments in the sector, Turkish supply capacities have not been able to balance out the rising demand in recent years, especially as a result of high energy consumption levels for aluminum production.

SWOT Analysis Of Aluminum Industry in Turkey

Strengths:• Abundant resources of

aluminum• Low cost and efficient labor

force• Strong Managerial capability• Strongly globalized industry

and emerging global competitiveness

• Modern new plants & modernized old plants.

Weakness:• High cost of energy• Higher duties and taxes• Labor laws• Dependence on imports for

aluminum manufacturing equipments & technology.

Opportunity:• Increasing demand for

consumer durables• Untapped rural demand• Increasing interest of

foreign aluminum producers in Turkey

• Globalization

Threats:• Market fluctuations and

China’s export possibilities

• Global economic slowdown

Data Collection Simple category scale Multiple Choice Single Response ScaleThe purpose of designing the questionnaire is to obtain

the following data: Nature of the business of the customer Kind of aluminum requires by consumer Preference of the customer of aluminum’s products

over other products Preference of a particular brand or company Factors influencing purchasing decision Degree of satisfaction on various factors

Survey Questionnaire 1. Are you a customer of aluminum products: Ans: a) Yes b) No. Out of the total 20 customers, 11 customers i.e. around 57%

of the total sample size prefer aluminum to steel or iron or any alloys for a particular product.

2. What type of aluminum product do you use? a) foils b) Wires c) Conductors d) Tubes e) If any other, specify ………….. More than half of the sample surveyed is well aware of the

companies producing the aluminum products in the market.

3. For a given product, which type of product will you use? a) Aluminum b) Steel c) Iron d) If any other, specify…………….Factors that influence the purchase decisions of the

aluminum products.4. Which of the companies are you aware of? a) Astaş Aluminyum b) Saray Aluminyum c) Emre Aluminyum d) Feniş Aluminyum e) Any other,specify………………………Different people, different companies

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