opportunities for canadian wood producers to …opportunities for canadian wood producers to expand...

OPPORTUNITIES FOR CANADIAN WOOD PRODUCERS

TO EXPAND THEIR MARKET SHARE IN TURKEY

Prepared for

Natural Resources Canada

FINAL REPORT

Istanbul

May 13, 2014

Kuloğlu Mah. Ağa Hamamı Sok. No:1/6 Cihangir, Beyoğlu 34433, Istanbul

Tel: (212) 252 2460 Fax: (212) 252 2430; E-Mail: [email protected]

Web Site http://www.IBSResearch.com

Registered in Istanbul, No. 214984/162536

IBS i

Table of contents

Executive summary ........................................................................................................ 1

I Introduction ......................................................................................................... 11

1.1 Aim of the project ................................................................................................. 11

1.2 Research method ................................................................................................... 11

II Turkish economy ................................................................................................. 13

2.1 Economic overview ............................................................................................... 13

2.2 Foreign direct investment ...................................................................................... 17

2.3 Construction and real estate .................................................................................. 18 Construction trends ............................................................................................... 18

Implications for usage of wood and products ....................................................... 20 2.4 Population and demographics ............................................................................... 21

III Forests and wood supply .................................................................................... 24 3.1 Forests in Turkey ................................................................................................... 24

3.2 Wood supply ......................................................................................................... 26

IV Wood products in Turkey .................................................................................. 29 Introduction ........................................................................................................... 29

4.1 Fibreboard ........................................................................................................... 32 4.1.1 Supply ......................................................................................................... 32 4.1.2 Demand: Market size and trends ................................................................ 40

4.1.3 Main market drivers .................................................................................... 42 4.1.4 Market opportunities for Canadian producers ............................................ 43

4.2 Particle Board ...................................................................................................... 44

4.2.1 Supply ......................................................................................................... 44

4.2.2 Demand: Market size and trends ................................................................ 49 4.2.3 Main market drivers .................................................................................... 50 4.2.4 Market opportunities for Canadian producers ............................................ 51

4.3 Veneer ................................................................................................................... 52 4.3.1 Supply ......................................................................................................... 52 4.3.2 Demand: Market size and trends ................................................................ 56 4.3.3 Main market drivers .................................................................................... 57

4.3.4 Market opportunities for Canadian producers ............................................ 58

4.4 Plywood ................................................................................................................ 59

4.4.1 Supply ......................................................................................................... 59

4.4.2 Demand: Market size and trends ................................................................ 64 4.4.3 Main market drivers .................................................................................... 65 4.4.4 Market opportunities for Canadian producers ............................................ 66

4.5 Sawn Wood .......................................................................................................... 67

4.5.1 Supply ......................................................................................................... 67 4.5.2 Demand: Market size and trends ................................................................ 72 4.5.3 Main market drivers .................................................................................... 73 4.5.4 Market opportunities for Canadian producers ............................................ 74

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4.6 Wood-based flooring ........................................................................................... 75

4.6.1 Supply ......................................................................................................... 75 4.6.2 Demand: Market size and trends ................................................................ 78 4.6.3 Main market drivers .................................................................................... 79 4.6.4 Market opportunities for Canadian producers ............................................ 80

4.7 Furniture .............................................................................................................. 81

4.7.1 Supply ......................................................................................................... 81 4.7.2 Market opportunities for Canadian producers ............................................ 86

4.8 Other Industries – Joinery and Carpentry ....................................................... 87

V Regulatory Issues ................................................................................................ 89 Import duties ......................................................................................................... 89 Anti-dumping duties .............................................................................................. 89

Compulsory certification ....................................................................................... 90

Annex I Turkey’s wood products export ............................................................... 93 1 Fibreboard ................................................................................................... 93

2 Particle board .............................................................................................. 95

3 Veneer ......................................................................................................... 97

4 Plywood ...................................................................................................... 98

5 Sawn wood ................................................................................................. 99

6 Flooring .................................................................................................... 100

7 Furniture ................................................................................................... 101

Annex II Distribution of tree species by area ........................................................ 103

Annex III Activities of the government ................................................................... 106

Annex IV Distribution of industrial roundwood .................................................... 109

Annex V Ports of entry ............................................................................................ 110

Annex VI Profiles of key players ............................................................................. 111 Kastamonu Entegre ................................................................................... 112

Yildiz Entegre ........................................................................................... 115

Çamsan ..................................................................................................... 119

Starwood ................................................................................................... 120

Annex VII List of companies importing wood ......................................................... 122

Annex VIII Contact list .............................................................................................. 123

Annex VIII List of fairs .............................................................................................. 123

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LIST OF TABLES

Table 1: The markets for wood products in Turkey, 2013-2017 ($ Mn) .......................... 1 Table 2: Bilateral trade between Turkey and Canada, 2012, $’000 ................................. 4

Table 3: Product segments with potential for Canadian wood product producers ........... 5 Table 4: Recommendations for promotion of wood product exports to Turkey .............. 9 Table 5: Breakdown of interviews .................................................................................. 12 Table 6: Key economic figures in Turkey, 2012-2018 ................................................... 14 Table 7: Turkey’s credit rating ....................................................................................... 16 Table 8: Medium-term GDP growth forecasts and targets, 2014-2017 ......................... 16 Table 9: Real estate market trends (based on construction permits), 2002-2013 ........... 18

Table 10: Real estate sales, 2012-2017 .......................................................................... 20

Table 11: Population growth rate 1960-2011 ................................................................. 21 Table 12: Population forecast 2010-2030 ....................................................................... 21 Table 13: Population by age groups in Turkey, 2008-2025 ........................................... 22 Table 14: Regional breakdown of population, end-2012 ............................................... 22 Table 15: Provinces over one million population, end-2013 .......................................... 23

Table 16: Distribution of forest land, 1973-2012 (Mn hectares) .................................... 25

Table 17: Forest land per species, 2012 ......................................................................... 25 Table 18: Industrial roundwood supply, 2008-2012 ...................................................... 26 Table 19: Turkey industrial wood production, 2008-12, 000 m

3 ................................... 26

Table 20: Turkey roundwood imports, 2008-2012, (000 m3) ......................................... 27

Table 21: Turkey roundwood imports, 2008-2012 ($ Mn) ............................................ 27

Table 22: Segmentation of Turkish roundwood imports, 2008-2012 ............................ 28 Table 23: Wood products market size, 2008-2013 ($ Mn) ............................................. 29

Table 24: World fibreboard production, 2008-2012, ‘000 m3 ........................................ 32

Table 25: Manufacturers of fibreboard, 2014, Cubic metres ......................................... 33

Table 26: Market share of companies in board industry, 2014 ...................................... 33 Table 27: Regional concentration of fibre board capacity, 2014 ................................... 34 Table 28: Raw materials in particle and fibre board industries, 2011 ............................ 34

Table 29: Imports of wood in chips or particles, 2009-2013, 000 tonnes ...................... 35 Table 30: Imports of wood in chips or particles, 2009-2013, $ Mn ............................... 36

Table 31: Average selling price of fibre-chip wood, 2000-2012 ($/m3) ........................ 36

Table 32: Sales of wood in chips or particles, 2011-2013 .............................................. 37

Table 33: Fibreboard imports by Turkey, 2008-2013, $‘000 ......................................... 37

Table 34: Fibreboard imports by Turkey, 2008-2013, tonnes ........................................ 38

Table 35: Segmentation of imported fibreboards, 000 tonnes ........................................ 38 Table 36: Fibreboard industry market, 2008-2012, $ Mn .............................................. 40 Table 37: Fibreboard industry market, 2008-2012. 000 m

3 ........................................... 41

Table 38: Fibreboard industry forecasts, 2013-2017 ...................................................... 42 Table 39: Turkish fibreboard imports from Canada, 2008-2013 (quantity and value) .. 43

Table 40: World particleboard production (000 m3) ...................................................... 44

Table 41: Manufacturers of particle board by capacity, 2014, cubic metres .................. 45 Table 42: Regional and provincial concentration of particle board producers, 2014 ..... 45 Table 43: Particle board imports by country 2008-2013, $’000 ..................................... 47 Table 44: Particle board import by country, 2008-2013, tonnes .................................... 47

Table 45: Segmentation of imported particle boards, 2008-2012, $’000 ....................... 48 Table 46: Particle board market 2008-2012, 000 m

3 ...................................................... 49

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Table 47: Particle board market, 2008-2012, $ Mn ........................................................ 49

Table 48: Particle board industry forecast, 2013-2017 ................................................... 50 Table 49: Turkish particle board imports from Canada, 2008-2013 .............................. 51 Table 50: World veneer production, 2008-2012, 000 m

3 ............................................... 52

Table 51: Veneer production facilities in Turkey, 2010 ................................................. 53 Table 52: Veneer imports by country, 2008-2013, $’000 .............................................. 54

Table 53: Veneer imports by country, 2008-2013, tonnes ............................................. 54 Table 54: Veneer imports by wood type, 2008-2013, tonnes ......................................... 55 Table 55: Veneer market in Turkey, 2008-2012, 000 m

3 ............................................... 56

Table 56: Veneer market in Turkey, 2008-2012, $ Mn .................................................. 56 Table 57: Veneer industry forecasts, 2013-2017 ............................................................ 57

Table 58: Turkish veneer imports from Canada, 2008-2013 .......................................... 58 Table 59: World plywood production, 2008-2012, 000 m

3 ............................................ 59

Table 60: Plywood production facilities in Turkey, 2010 .............................................. 60

Table 61: Plywood imports and exports, 2008-2013 ...................................................... 61 Table 62: Plywood imports by country, 2008-2013, $’000 ............................................ 62 Table 63: Plywood imports by country, 2008-2013, tonnes ........................................... 62 Table 64: Plywood market, 2008-2012, 000 m

3 ............................................................. 64

Table 65: Plywood market, 2008-2012, $ Mn ................................................................ 64 Table 66: Plywood industry forecasts, 2013-2017 ......................................................... 64

Table 67: Plywood imports from Canada, 2008-2013 ................................................... 66 Table 68: World sawn wood production, 2008-2012, 000 m

3 ........................................ 67

Table 69: Breakdown of sawn wood production, 2008-2012, 000 m3 ........................... 68

Table 70: Sawmills in Turkey, 2010 .............................................................................. 68

Table 71: Sawn wood industry foreign trade, 2008-2013 .............................................. 69 Table 72: Exporters of sawn wood to Turkey, 2008-2013, $’000 .................................. 70 Table 73: Exporters of sawn wood to Turkey, 2008-2013, tonnes ................................. 70

Table 74: Sawn wood imports by species, 2008-2013, tonnes ....................................... 71 Table 75: Sawn wood industry market size, 2008-2012, 000 m

3 ................................... 72

Table 76: Sawn wood industry market size, 2008-2012, $ Mn ...................................... 72

Table 77: Sawn wood industry growth forecast, 2013-2017 .......................................... 73

Table 78: Turkish sawn wood imports from Canada, 2008-2013 .................................. 74 Table 79: Major flooring producers in Turkey, 2009 ..................................................... 75 Table 80: Flooring imports by country, 2008-2013, $’000 ............................................ 76 Table 81: Flooring imports by country, 2008-2013, tonnes ........................................... 77

Table 82: Segmentation of Turkish flooring import from the world, 2008-2013 .......... 77 Table 83: Flooring industry market size, 2008-2012, tonnes ......................................... 78 Table 84: Flooring industry growth forecast 2013-2017, $ Mn ..................................... 79

Table 85: Turkish flooring import from Canada, 2008-2013 ......................................... 80 Table 86: Turkish furniture industry market size, 2008-2012, $ Mn ............................. 81 Table 87: Top furniture companies, 2012 ...................................................................... 82 Table 88: Provincial distribution of furniture companies, 2010 ..................................... 82 Table 89: Furniture industry foreign trade, 2008-2012, $ Mn ........................................ 84

Table 90: Furniture imports by country, 2008-2012, $’000 ........................................... 84 Table 91: Furniture industry trade balance, 2000-2012, $’000 ...................................... 85 Table 92: Wood furniture import, 2008-2012, $ Mn ...................................................... 85 Table 93: Furniture industry growth forecast 2013-2017, $ Mn .................................... 86

Table 94: Wood furniture imports from Canada ($’000) ............................................... 86 Table 95: Turkey wood carpentry import ($ Mn) ........................................................... 87

IBS v

Table 96: Turkey wood carpentry import from Canada ($’000) .................................... 87

Table 97: Import duties on wood products ..................................................................... 89 Table 98: List of anti-dumping measures, 2014 ............................................................. 89 Table 99: Current anti-dumping investigations, 2014 .................................................... 90 Table 100: Exports of wood products and furniture, 2008-2012, $’000 ........................ 93 Table 101: Fibreboard foreign trade, 2008-2013 ............................................................ 93

Table 102: Fibreboard export by country, 2008-2013, $’000 ........................................ 94 Table 103: Fibreboard export by country, 2008-2013, tonnes ....................................... 94 Table 104: Particle board foreign trade, 2008-2013 ....................................................... 95 Table 105: Particle board export by country, 2008-2013, $’000 .................................... 95 Table 106: Particle board export by country, 2008-2013, tonnes .................................. 96

Table 107: Veneer export by country, 2008-2013, $’000 .............................................. 97 Table 108: Veneer export by country, 2008-2013, tonnes ............................................. 97 Table 109: Plywood export by country, 2008-2013, $’000 ............................................ 98

Table 110: Plywood export by country, 2008-2013, tonnes ........................................... 98 Table 111: Sawn wood export by country, 2008-2013, $’000 ....................................... 99 Table 112: Sawn wood export by country, 2008-2013, tonnes ...................................... 99 Table 113: Flooring export by country, 2008-2013, $’000 .......................................... 100

Table 114: Flooring export by country, 2008-2013, tonnes ......................................... 100 Table 115: Furniture export by country, 2008-2013, $’000 ......................................... 101

Table 116: Distribution of areas by main tree species, 2012 (hectares) ....................... 104 Table 117: Forest area by tree species, 2012 (000 hectares) ........................................ 105 Table 118: Silvicultural applications, 2009-2012, (000 hectares) ................................ 108

Table 119: Afforestation studies, 2008-2012 (000 hectares) ....................................... 108

Table 120: Industrial roundwood production by province, 2012 (m3) ......................... 109

Table 121: Ports by forestry products unloaded, 2007 ................................................. 110 Table 122: Top particle and fibre board companies, 2012 ........................................... 111

Table 123: Breakdown of Yildiz Entegre dealers, 2014............................................... 118 Table 124: Breakdown of Çamsan dealers, 2014 ......................................................... 119

IBS vi

LIST OF FIGURES

Figure 1: Wood products market value chain ................................................................... 2

Figure 2: Market segmentation, 2012 (in value terms) .................................................... 3 Figure 3: Shares of leading wood products suppliers in Turkey’ import, 2008-2012 ...... 4 Figure 4: Gross Domestic Product 2012, nominal prices ............................................... 13 Figure 5: 2008-2014, into and out of the slump ............................................................. 13 Figure 6: Current account and foreign trade deficits, 2010-2013 ................................... 15 Figure 7: Regional breakdown of GDP, 2013, $ Bn ...................................................... 16 Figure 8: Foreign direct investment, 2004-2013 ............................................................ 17

Figure 9: Provinces with over one million population, end-2013 .................................. 23

Figure 10: Forest map of Turkey, 2012 .......................................................................... 24 Figure 11: Material flow in Turkish wood industry ....................................................... 30 Figure 12: Fibreboard products distribution chain ......................................................... 39 Figure 13: Fibreboard domestic sales prices, 2008-2013, $/m

3 ..................................... 40

Figure 14: Particle board distribution chain ................................................................... 48

Figure 15: Particle board domestic sales prices, 2008-2013, $/m3 ................................. 49

Figure 16: Veneer distribution chain .............................................................................. 55 Figure 17: Veneer domestic sales prices, 2008-2013, $/m

3 ........................................... 56

Figure 18: Plywood distribution chain ........................................................................... 63

Figure 19: Plywood domestic sales prices (m3/$) .......................................................... 63 Figure 20: Distribution channels for sawn wood ............................................................ 71

Figure 21: Sawn wood domestic sales prices ($/m3) ...................................................... 72

Figure 22: Flooring distribution chain ............................................................................ 78

Figure 23: Furniture industry distribution chain ............................................................. 83 Figure 24: Distribution of some main tree species ....................................................... 103

Figure 25: Market shares of key players ...................................................................... 111

IBS vii

ABBREVIATIONS

$ US dollar

Bn Billion

CAGR Compound annual growth rate

CIS Commonwealth of Independent States

CUR Capacity utilization rates

DIY Do-It-Yourself (stores)

EU European Union

FAO Food and Agriculture Organization

FSC Forest Stewardship Council

GDF General Directorate of Forestry

GDP Gross Domestic Product

GLA Gross Leasable Area

HDF High Density Fibreboard

IMF International Monetary Fund

KONUDER Association of Plywood Manufacturers

MDF Medium-Density Fibreboard

Mn Million

MTP Medium-Term Plan

Nes Not elsewhere specified

OAIB Middle Anatolia Exporters Union

OECD Organization of Economic Cooperation and Development

ORSIAD Association of Forest Industry Businessmen

OSB Oriented Strand Board

SES Socio-Economic Status

SME Small and Medium-sized Enterprises

Stere One cubic metre used for stacked wood

TRNC Turkish Republic of Northern Cyprus

TOBB The Union of Chambers and Commodity Exchanges of Turkey

TOKI Mass Housing Administration (State-owned)

TORID Association of Forestry Products Importers and Exporters

TUAD The Turkish Association of Marketing Research Companies

TURKSTAT Turkish Statistical Institution

UNCTAD United Nations Conference on Trade and Development

UNECE The United Nations Economic Commission for Europe

VAT Value Added Tax

IBS 1

EXECUTIVE SUMMARY AND RECOMMENDATIONS

Market highlights

Turkey has a US$6 billion (Bn) market for wood and wood products, and additionally a

furniture industry with a turnover of $15 Bn in 2012. Turkey is the third largest

producer of fibre board in the world, with exports of $282 million (Mn) in 2013. It is

also a competitive exporter of furniture ($2.1 Bn in 2013)1.

The market for wood and wood products is forecast to grow at 6.7% per year to 2017:

between 2008 and 2013, growth was 8% per year. Turkey’s long-dynamic furniture

market is forecast to grow at a slightly higher rate of 9.5%.

Imports of these products totalled $0.9 billion, but Canada’s contribution to this trade

has been limited. In 2013, Canadian exports of wood and wood products to Turkey

totalled $35.8 Mn, of which $34 Mn was wood chips for the fibre and particle board

industries.

Table 1: The markets for wood products in Turkey, 2013-2017 ($ Mn)

Consumption 2013 2014 2015 2016 2017

CAGR

2013-17

Fibreboard 2,007 2,182 2,372 2,579 2,804 8.7%

Particle board 890 936 985 1,037 1,093 5.3%

Veneer 120 126 133 140 148 5.4%

Plywood 407 441 477 518 563 8.4%

Sawn wood 2,062 2,167 2,278 2,395 2,519 5.1%

Flooring 150 154.5 159.1 163.9 168.8 3.0%

Others 362 387 414 442 473 6.9%

Total wood and wood products 5,998 6,393 6,818 7,275 7,769 6.7%

Furniture 16,660 18,244 19,983 21,895 23,995 9.5%

Source: IBS forecasts, 2014

Turkish economy

Turkey is the 17th

largest economy in the world with its Gross Domestic Product (GDP)

in 2013 estimated at $820 Bn. GDP growth has been volatile, but has averaged 4.3%,

per year over the past three decades. In October 2013, the Government set a 5% growth

target for 2015-2016. These figures are above forecasts released by the International

Monetary Fund in April 2014 which foresees growth of 2.3%, 3.1% and 3.5% in the

years 2014-2016. To date, the economy has survived the uncertainties caused by

allegations of corruption against some of the country’s leaders, but faces strains, in

particular where inflation and the current account deficit are concerned

The country has a population of 77 Mn, growing at 1.1% per year. The average age is

young, and there are 600,000 marriages per year. Economic growth, migration to the

cities and decreasing family size – all these are driving the growth of the construction

sector and, in turn, demand for wood and wood products.

1. In this report, all dollar figures are in US dollars not Canadian dollars. (Original figures for

international trade are given in US$ terms, as are some Turkish statistics.)

IBS 2

Regulations

Turkey has a Customs Union with the European Union for industrial products. It applies

zero tariffs for wood and wood products from the EU. For imports from other countries,

it applies zero tariffs for industrial wood, chips, logs and wood pulp and between 2.5-

10% tariffs for wood products. It has introduced anti-dumping measures against Canada

and the US (for Oriented Strand Board), China (for laminated flooring and plywood)

and Indonesia (for laminated flooring).

Health certificates are mandatory for logs and lumber, while wood and a number of

wood products are subject to compulsory certification of relevant Turkish standards.

Some large-size manufacturers of furniture and wood products who export to

industrialized countries ask for wood with Forestry Stewardship Council (FSC)

certification in order to be able to compete in those markets. But there are no

expectations that in the foreseeable future FSC certification of imports will become

mandatory.

Industry structure

Around half of the wood product sector in Turkey is comprised of producers of raw and

intermediate materials – lumber, veneer, wood-based panels, components etc. – while

the other half comprises producers of finished products – furniture, flooring and interior

joinery, according to a rough estimations of the sector associations.

Figure 1: Wood products market value chain

Source: IBS

The construction and furniture industries are the major users of wood and wood

products, and continue to drive increases in demand for wood products.

IBS 3

The panel industry (fibreboard and particle board) accounted for 48% of the wood

product market in value terms in 2012. Fibreboard is the leading wood product,

accounting for 33% of sectoral turnover. Plywood comes next, with a 7% share.

Figure 2: Market segmentation, 2012 (in value terms)

Source: IBS estimates

Other industries such as solid flooring, builders’ carpentry and joinery accounted for

10% of consumption in 2012, according to IBS estimates.

Fibreboard was the fastest growing sector, with laminated parquet important in this.

Fibreboard output grew by 12% annually between 2008 and 2012, reaching $1.9 billion

in 2012. The high growth in laminated parquet production was driven by the

construction sector as a result of relatively low mortgage rates and government

sponsored housing projects.

Forest resources

Turkey has a relatively strong forest base, with 21 Mn hectares (27% of the land)

classified as such. Half of this area (10.6 Mn ha) comprises productive forests, and the

other half consists of degraded or severely degraded and unproductive forests. 99.9% of

the forest area belongs to the state, being administered by the General Directorate of

Forestry (GDF).

Turkey used 15.4 Mn m3 of roundwood for industrial purposes in 2012, of which 14.4

Mn m3 was from domestic sources and 1 Mn m

3 was imported, mainly coniferous logs

from Ukraine.

Of this total, 5.4 million m3

were for fibre-chip wood production, 2.5 million m3

were

for pulpwood production, 6 million m3

for industrial use, and 1.5 million m3 for other

uses such as mining poles and telephone poles Around 90% of industrial roundwood

production is of various softwood species and the remainder of poplar, beech, oak,

chestnut, ash, sycamore (European maple) and walnut.

Canada’s presence in the Turkish market

Canada was the eighth largest supplier of wood products to Turkey in 2012, with

Ukraine, Romania, Russia, Germany and the USA being the top five suppliers.

Canada’s share was 3.1% that year. Canada’s presence in Turkish market has been

slightly increasing: in 2008 it was 1.6%.

Fibreboard,

33%

Particle

board, 15%

Veneer, 2%

Plywood,

7%

Sawn

wood, 35%

Flooring,

3%

Others, 6%

IBS 4

Figure 3: Shares of leading wood products suppliers in Turkey’ import, 2008 and 2012

The shares of the major suppliers remained relatively constant between 2008 and 2012.

The US was able to double its share from 4.9% to 9.6%.

In 2012, Canadian exports of wood and wood products to Turkey accounted for $50 Mn

of Turkey’s 1.6 Bn imports of these products. Wood in chips and particles constituted

nearly the entire Canadian export consignment to Turkey.

Table 2: Bilateral trade between Turkey and Canada, 2012, $’000

Product

HS

code Product name

Canadian

exports to

the world

Imports of

Turkey

from the

world

Imports of

Turkey

from

Canada

Share of

Turkish

imports from

Canada

4411 Fibreboard 234,275 323,336 5 0.0%

4401 Fuel wood; wood in chips or particles 337,932 316,104 48,533 15.4%

4412 Plywood 171,235 298,861 56 0.0%

4407 Wood sawn/chipped lengthwise 5,927,580 222,298 624 0.3%

4403 Wood in the rough 686,180 146,782 - 0.0%

4410 Particle board and similar board of wood 1,085,594 111,756 560 0.5%

4418 Builders' joinery and carpentry of wood 778,830 60,935 273 0.4%

4408 Veneer sheets 217,774 39,409 - 0.0%

4421 Articles of wood, nes 340,176 27,040 1 0.0%

4402 Wood charcoal 1,115 17,630 - 0.0%

4409 Wood continuously shaped along any edges 112,279 14,461 - 0.0%

4415 Packaging materials of wood 89,875 8,846 2 0.0%

4420 Wood marquetry and inlaid wood 10,123 8,586 63 0.7%

4419 Tableware and kitchenware of wood 3,326 7,360 - 0.0%

4413 Densified wood, in blocks, plates, etc. 996 6,554 - 0.0%

4414 Wooden frames 4,816 3,091 2 0.1%

4405 Wood wool; wood flour 470 2,633 - 0.0%

4417 Tools, tool and broom bodies and handles, etc. 2,945 1,721 - 0.0%

4416 Casks, barrels, vats, tubs etc. of wood 976 1,250 - 0.0%

4406 Railway or tramway sleepers 2,742 935 - 0.0%

4404 Hoopwood; split poles; piles, pickets etc. 6,639 150 - 0.0%

Total 10,015,878 1,619,738 50,119 3.1%

Source: IBS analysis based on Trademap, TURKSTAT

IBS 5

Opportunities

The following areas offer potential opportunities for the Canadian wood products

industry.

Table 3: Product segments with potential for Canadian wood product producers

Products Potential

Fibreboard *

Particle board * * *

Veneer * * *

Plywood * *

Sawn wood * * * *

Flooring * *

Wood furniture * * *

Other products

Builder’s joinery and carpentry * *

Wood in the rough * * * *

Packaging materials * *

Other articles of wood * * *

***** highest potential

* least potential

Source: IBS, 2014

Turkish fibreboard imports amounted to $302 million in 2013. Of this total,

only $73,000 were imported from Canada, a small fraction of Canada’s $234

million fibreboard exports.

o Though it seems there is an opportunity in Turkey for Canadian

fibreboard producers, European companies, in particular German firms,

have a strong penetration of the Turkish market due to their geographical

proximity and relatively competitive pricing. One fibreboard

manufacturer argued that Canadian suppliers could seek cheaper

transportation options in order to obtain a greater share in Turkish market

for fibreboard products which, he says, is open to high-quality products2.

OSB was the main particleboard item imported from Canada. Turkish imports

of OSB from Canada amounted to $557,000 in 2012 which was less than one

tenth of the previous year.

o Considering the fact that Canadian OSB exports to the world accounted

$885 million in 2012, and total Turkish OSB imports in 2012 were $51

million, IBS advises Canadian manufacturers to address the latent

opportunities. Turkey’s anti-dumping levy on US and Canadian OSB

imports is hindering import from these countries. The original anti-

dumping measures ended in December 2013 but have been extended

pending investigation of a further complaint. The investigation is planned

2 One major fibreboard manufacturer told IBS that Canada was one of their primary suppliers

of wood chip and Canadian wood industry supplied high quality wood chip at competitive

prices. Wood chip is outside the scope of this study.

IBS 6

to be completed in four months3. One industry source advised Canadian

companies to spend more effort on lobbying the Turkish Government to

ease this trade barrier since several traders believe that OSB will have

wider application in the future as a substitute for plywood. For this

reason, local traders suggest Canadian exporters would be well advised

to maintain a position in the Turkish market.

Turkey’s veneer imports from Canada in 2013 amounted to only $21,000. In the

same year, Canada’s global exports were $250 million.

o Given that Turkish veneer imports in 2013 were worth $41 million,

Canada’s small share in Turkey’s veneer market indicates an opportunity

for Canadian manufacturers: the USA shipped $8.1 million of veneer to

Turkey in 2013. An industry player told IBS that veneer from Canadian

red cedar is highly appreciated in Turkey due to its resistance to water,

easy application and authentic colour. Canadian veneer manufacturers

could offer alternative styles of veneer (rustic, textured, glossy etc.) to

Turkey’s vibrant furniture industry. The furniture industry is looking for

new and alternative products in this area.

Turkey imported $56,000 of plywood from Canada in 2012. In the same year,

the value of Canadian plywood exports to the world was $160 million.

o Given that Turkish plywood imports in 2012 totalled $300 million the

market appears open to more Canadian products. There is demand for

high-quality North American (USA and Canadian origin) plywood,

particularly plywood composed of cherry, walnut, and red and white oak

species which have a direct impact on durability and strength, apart from

the chemicals used and process technology applied.

o Plywood from birch, mostly imported from Russia, provides a higher

degree of durability which makes these products sought after for

construction projects

There were very limited exports of Canadian sawn wood to Turkey in 2013

amounting to only 1,278 tonnes, according to Turkish statistics.

o Industry sources state that there is a considerable demand for high-

quality North American (USA and Canada) oak lumber, particularly in

the furniture industry. Maple from Canada is a preferred species for areas

that include ship building, flooring, furniture, music instruments,

carpentry and some other kitchen cabinetry appliances. Hickory (North

American walnut) and cherry (also known as American cherry) are

sought after since they are highly durable and resistant to pests. They are

used in relatively expensive furniture and decoration appliances, luxury

goods, aircraft and weapons. Red fir (also known as Douglas fir, Yellow

fir or Oregon pine) is another species regarded as high quality. It is used

in luxury yacht building, but is as expensive as hickory and cherry.

3 The maximum duration for an investigation is 18 months: measures continue to be valid

during the investigation phase.

IBS 7

In this context, there continues to be a strong market for wood in the rough:

industrial round wood from coniferous and non-coniferous trees as well as from

oak and beech

Flooring parquet from Canadian oak is classified as high quality and there

appears some scope for Canada to win a share of this market: imports totalled

$18 million in 2013.

o IBS expects that the demand for higher quality flooring will increase

even if it is limited to relatively higher income consumers with

awareness of the advantages of more organic, healthy and resistant

flooring.

There is a major market for Canadian products in Turkey’s wood manufacturing

sector, while there is also scope for Canada’s furniture manufacturers to win

customers.

o Within wood furniture, IBS identified a particular niche market for

wooden kitchen cabinets and nursery furniture as areas which Canadians

could explore. Nursery furniture made of quality wood is popular in the

market due to increased awareness of the potentially harmful effects of

engineered wood furniture on health.

In 2012, Canada was the major shingles and shakes supplier of Turkey. Turkey

imported shingles and shakes valued at $62,000 and Canada’s share was 90%,

valued at $56,000. In 2013 Canada’s share decreased to 50%. The other half was

supplied by Russia.

Doors and door frames, as well as other joinery and carpentry products, were

other important import items of Turkey with $28 million and $15 million import

value respectively in 2013.

o Canada’s share in these items has been limited; Canada exported only

joinery and carpentry products, as well limited quantities of shingles and

shakes.

Windows and French windows are another potential area that may be

considered by Canadian suppliers.

In addition to the opportunities described above, Canada’s exporters could consider the

following:

Packaging material: pallets, box pallets and other load boards, cases, boxes,

crates, drums and similar packs; and cable-drums

Other articles of wood: spools, cops, bobbins, sewing thread reels, clothes

hangers and articles, match splints, wood paving blocks, wooden pegs or pins

for footwear, drawn wood.

Trends

There are opportunities for Canadian suppliers of value-added wood products such

as prefabricated housing, packaging and components for the joinery sector.

IBS 8

Sawn wood has potential in specific areas such as western red cedar for facade

siding as well as veneer.

Heat-processed sawn wood products are new in the market and IBS forecasts

they will be more widespread in the future. An example of this is

ThermoWood®4 which is demanded in Turkey for a number of application areas

such as cladding, decking, outer and interior doors, shutters, windows, sauna and

bathroom furnishing, garden furniture and flooring (parquet) as well as lumber.

A few companies produce ThermoWood®. Novawood, one of these companies,

ships ash from Canada and processes it in Turkey.

Composite products are an innovative area which provides opportunities for

Canadian manufacturers to promote finished and semi-finished products,

particularly to the construction and furniture industries.

Structural wood products such as cross-laminated lumber and laminated veneer

lumber are other niche products with opportunities in construction.

There is increasing demand for decorative products such as wood stickers and

decorative wood mirrors.

Wood based toys are a growing area. IBS estimated that toy expenditure per

child was $150 in 2012 with this forecast to double in the next five years.

4 Thermowood is a thermal modification process developed in Finland using steam and high

heat treatment to increase the durability of wood. As a result of the high temperature, the

substances which reduce the life of the wood, such as glucose, citric acid and resin are

removed or crystallized. This process improves the physical properties of the timber, the

durability, and the colour. Only members of the International ThermoWood Association

may use the brandname ThermoWood with thermally modified timber.

IBS 9

Other remarks

Canada has a good market image and most interviewees believe that Canadian

manufacturers could increase their share in most segments of Turkey’s wood products

industry.

This section draws together other findings about the steps which could be taken to

increase the presence of Canadian wood and wood products in the Turkish market.

Table 4: Recommendations for promotion of wood product exports to Turkey

Measure Government Sector

associations Manufacturers

Lobbying for trade barriers &

procurement opportunities * * * * * *

Trade facilitation tools * * * * * *

Product differentiation * * * * * *

Promotion * * * * * * * *

*** most responsibility

* least responsibility

Source: IBS, 2014

1 Actions by Canadian Government bodies

o The Canadian Government needs to continue an active policy of

interaction with the Ministry of Economy of Turkey to challenge claims

made by Turkish companies to support the extension of anti-dumping

measures currently in force against OSB. In such activities, the various

Canadian bodies involved need to cooperate closely with Canadian wood

sector associations and exporters.

o The Canadian Government, in cooperation with the industry and banking

sector, could enhance current trade facilitation measures to promote

Turkish imports from Canadian companies.

Under the USA Government’s GSM-102 programme, the USA supports

importers of US forestry and agricultural products. The exporter in the

USA applies to the Credit Commodity Corporation (CCC) of the US

Department of Agriculture on behalf of the importer in Turkey. After the

shipment is made to Turkey, CCC transmits the amount to the account of

the exporter, and in return the Turkish importer pays the intermediary

bank in Turkey in 12-24 months. According to the 2013 annual report of

CCC, the amount credited to Turkish importers of forestry products was

$24 Mn. The Canadian Government may well consider developing

similar agreements in this direction.

o The Canadian Government could arrange trade missions and visits in the

spirit of the regular visits made by “Team Finland” to introduce Finnish

products to industry players.

o The Canadian Government (and/or relevant trade and industry

associations) could allocate funds for inviting and hosting Turkish

companies to visit Canada to introduce their products. One sawn wood

trader told IBS that: “All importers of wood products like to see the

IBS 10

product they are going to buy. That’s why they travel to Russia, Ukraine

and other Western and Eastern European countries. None of us pays

before seeing the material and/or product.”

o A policy with a longer-term pay-off could be encouraging the industry to

promote the activities of the Forest Stewardship Council (FSC) as well as

other national and international certificates. Worldwide, the industry is

moving in the direction of requiring all imports of sawn wood (and of

roundwood) to come from forests with the relevant FSC certificates.

Canada has more certified forests than any other country in the world,

meaning its wood sector would benefit from the spread of such

requirements. Turkey is moving only hesitantly in this direction and

Canada could seek to promote this concept in Ankara.

2 Actions by trade associations and manufacturers

o Canadian manufacturers could also participate in wood promotion

campaigns in Turkey, participating in relevant trade fairs5, and

organizing specialized trade missions to Turkey to market their products.

Several industry players commented on the fact that Canadian companies

appeared to be unaware of the opportunities in the Turkish market,

particularly in high quality end products. Canadian companies are not

active in the Turkish market. They could find inspiration in the activities

of US companies, said one prominent sector organization.

o As mentioned above, Canadian trade and industry associations could

allocate funds for inviting Turkish companies to Canada and hosting

them.

o Canadian manufacturers could come together to set up joint

transportation activities in order to reduce their individual transportation

costs. Many sources also advised that Canadian companies could seek

alternatives for flexibility in lesser amounts of shipments to Turkey as

minimum average product load from Canada was 30,000 m3 while it was

only 3,000 m3 from Russia, Ukraine and other neighbouring countries.

o Canadian manufacturers need to stay ahead of technological changes in

the industry which may affect the market in the near future. One example

is that chips and particles, which have been the traditional raw material

for particle board, are being challenged by more organic and sustainable

sources like food and agricultural waste products. Industry experts also

say that there is a trend to use cement-based particle board, particularly

in prefabricated buildings. Such developments may adversely affect the

exports of chips and particles which have long been Canada’s most

flourishing exports to Turkey.

5 Please Annex IX for a list of trade fairs to be organized in 2014

IBS 11

I INTRODUCTION

In November 2013, Natural Resources Canada commissioned IBS Research &

Consultancy of Istanbul to carry out a study on the opportunities for Canadian wood

producers to expand their market share in Turkey.

IBS carried out its field work for this study in December 2013 and in January to March

2014.

1.1 AIM OF THE PROJECT

The objective of the research is to determine which product segments within Turkey’s

remanufacturing and furniture sector offer the most potential for Canadian wood

product exporters and to provide recommendations on how best to address these

opportunities. The study will explore/characterize the following elements:

Supply: current production (location of mills, ports of entry, species used and

their origin, prices paid, applications, destination markets within

Turkey/elsewhere, industry structure and value chain dynamics)

Demand: market size and trends (current/future consumption, consumer

preferences e.g. species)

Main market drivers: prices, exchange rate, shipping logistics, barriers to entry;

others

Market opportunities for Canadian producers: preferred species

(hardwoods/softwoods), applications.

1.2 RESEARCH METHOD

IBS used primary data supplied by the following institutions and associations: it also

consulted with experts in most of these institutions:

Ministry of Development (MoD)

Ministry of Economy (MoE)

Turkish Statistical Institute (TURKSTAT)

Under-secretariat of Treasury (UFT)

IGEME (Export Promotion Centre)

Wood and Forestry Products Exporters Association

Association of Turkish Furniture Manufacturers

Association of Furniture Industrialists, Importers and Exporters

Other manufacturer and importer unions and relevant ministries.

IBS utilized its own database built up in more than 1,650 industrial and sectoral

research projects. IBS also utilized company web sites and press articles and EMIS

Internet Securities and Euro Monitor databases, as well as the Trade Registry Gazette

IBS 12

database and the company databases of the Istanbul Chamber of Commerce and Istanbul

Chamber of Industry.

IBS conducted telephone calls and face-to-face interviews with the following:

Leading sector companies

Sector associations and chambers

Sector experts.

During the study, IBS conducted 42 in-depth interviews. The breakdown of these

interviews is as follows:

Table 5: Breakdown of interviews

Organization type

# of

Interviews

Wood products manufacturers/traders 25

Sector associations 6

Furniture manufacturers 4

Governmental bodies 4

Prefabricated building company 1

Certification company 1

Customs clearance company 1

TOTAL 42

During the research IBS has also visited two major trade fairs:

Istanbul Furniture Fair (ISMOB), January 28 – February 2, 2014

Wood Products Fair, February 13 – 16.

At these fairs, IBS met numerous industry players and associations from different

product segments.

IBS 13

II TURKISH ECONOMY

2.1 ECONOMIC OVERVIEW

Turkey has recently been one of the fastest growing economies in the world, putting

behind it a history of volatility. Turkey is the 17th largest economy in the world with its

Gross Domestic Product (GDP) in 2013 estimated at $820 Bn. This figure puts it behind

Indonesia, Korea, Mexico and Russia, but ahead of Netherlands, Switzerland, Sweden,

Norway, Poland, Belgium, and Greece. Turkish GDP figures may not adequately reflect

the large unofficial economy.

Figure 4: Gross Domestic Product 2012, nominal prices

In general, Turkey has been riding the crest of a wave. In the past three decades, GDP

has grown at a compound rate of 4.3%, but growth has been uneven. After strong GDP

growth of 9.2% in 2010 and 8.5% in 2011, growth fell to 2.2% in 2012, and 4% in 2013.

Figure 5: 2008-2014, into and out of the slump

Source: TUIK

I B SR e s e a r c h &

C o n s u l t a n c y 4

Russia$2,015bn

$789bn

$514 bn

$250bn

$176bn

Egypt

$257bn

$62bn

$169bn

$51bn

$200bn

$69 bn

$210 bn

$258bn

$74bn

Gross domestic product, 2012

Current international $

Note: Georgia , Lebanon, Jordan, Turkmenistan all under $50 bn

Figures in blue are 2009 values

Source: World Bank, World Development

Indicators, September 2013

S. Arabia$711bn

$51bn

-15%

-10%

-5%

0%

5%

10%

15%

1 5 9 13 17 21 25

GDP growth, quarterly, 2008-2014

Medium-term programme

2008 2009 2010 2011 2012 2013 2014

IBS 14

Since the governing AK Party came to power a decade ago, GDP has grown by an

average 4.8% per year. In October 2013, the Government set a 5% growth target for

2015-2016. The economy was hit by the international financial crisis of 2008, but

recovered quickly. To date, it has survived the uncertainties caused by corruption

allegations since December 2013, but faces strains, in particular where inflation and the

current account deficit are concerned.

At end-2013, consumer prices were 7.4% higher than a year earlier – the official target

was 5% – and the current account deficit was high. In the 12 months to December 2013,

the trade deficit averaged 10% of GDP and the current account deficit 7.6%.

Table 6: Key economic figures in Turkey, 2012-2018

Actual Medium-Term Programme

(2014-2016)

10th Development Plan

(2014-2018)

GROWTH 2012 2013* 2014 2015 2016 2013 2018 2013-

2018**

Gross Domestic Product

($ Bn, current prices) 786 823 867 928 996 850.5 1,285.5 8.6%

Per capita income (GDP, $) 10,497 10,818 11,277 11,927 12,670 11,183 15,996 7.4%

Increase in GDP (%), volume terms 2.2 3.6 4.0 5.0 5.0 4.0 5.9 5.5

INTERNATIONAL TRADE

Exports (FOB) ($ Bn) 152.5 153.5 166.5 184.0 202.5 157.8 277.2 11.9%

Imports (CIF) ($ Bn) -236.5 -251.5 -262.0 -282.0 -305.0 -252.3 -404.3 9.9%

Energy imports (27th Chapter, Bn $) 60.1 59.0 61.0 62.0 64.5 58.7 74.4 4.9%

Balance of trade ($ Bn) -84.1 -98.0 -95.5 -98.0 -102.5 -94.4 -127.0 n.a.

Tourism Income ($ Bn) 25.7 29.0 31.0 32.0 34.5 28.0 40.8 7.8%

Current account balance ($ Bn) -47.8 -58.8 -55.5 -55.0 -55.0 -55.3 -67.1 n.a.

Current account balance / GDP (%) -6.1 -7.1 -6.4 -5.9 -5.5 -6.5 -5.2 -5.8

International trade volume / GDP (%) 49.5 49.2 49.4 50.2 50.9 48.2 53.0 51.2

Exports/ imports (%) 64.5 61.0 63.5 65.2 66.4 62.5 68.6 n.a.

Brent price ($/barrel) 112.0 108.8 103.2 97.6 93.1 n.a. n.a. n.a.

INFLATION

GDP deflator, % 6.8 6.3 6.0 5.0 5.3 n.a. n.a. n.a.

Consumer Price Index

(end year, % increase) 6.2 6.8 5.3 5.0 5.0 5.3 4.5 4.8

* 2013 figures are estimates of the Ministry of Development except for GDP which is the reported figure.

** CAGR of 2013-2018 except for figures given as percentage.

Source: Turkey’s Medium-Term Programme (2014-2016), 10th Development Plan, Ministry of Development,

TURKSTAT

Exports, which are equivalent to almost one-fifth of GDP, have been affected by the

slowdown in Europe and the turmoil to Turkey’s south, while the bill for energy

imports remains high: these accounted for 25% of imports in 2012 and 22% in the first

IBS 15

10 months of 2013. Tourism revenues earned the country $25.0 Bn in the first 10

months of 2013.

As the country continues to prioritise its trade relations with Asia and Africa, the impact

on Turkey’s growth of the slower economic performance of Europe will recede. The

Medium Term Plan (MTP) foresees improvement in the external balance. The

Government projects exports to increase 8.5% in 2014 and 10.5% in 2015. Imports, on

the other hand, are expected to grow at a slightly slower pace, 4.2% and 7.6%,

respectively. The current account deficit is foreseen to fall as a ratio of GDP to under

7%, a more healthy level than the 10% reached in 2011.

Figure 6: Current account and foreign trade deficits, 2010-2013

Countries like Greece have shown the dangers of deficits of this order and it is the key

item which worries foreign analysts. The Turkish authorities believe that the trade

deficit is under control, but studies by the IMF in autumn 2013 concluded that Turkey

can grow sustainably at 4% or above only if it manages to raise domestic savings.

Otherwise, such growth rates would come at the cost of widening current account

deficits, with the risks attached to this.

Financing the current account deficit has long depended on foreign capital inflows.

These are mainly short-term and represent a source of vulnerability. Turkey’s short-

term debt is around $160 Bn, which, together with the cost of financing the current

account deficit, means that Turkey’s annual external financing needs run at around

$200 Bn. Also to be considered is the $200 Bn invested in stocks and bonds by non-

residents, which funds may always be withdrawn. In May 2013, when the rating

agency Moody’s followed Fitch by raising Turkey’s debt to investment grade, it also

warned:

“Turkey has some of the highest external vulnerabilities – as measured by

the current account deficit and the external vulnerability indicator (which

measures short-term foreign debt obligations in the economy as a

proportion of foreign exchange reserves) – within the investment-grade

sovereign rating universe.”

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

De

c-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

De

c-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

De

c-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

De

c-1

3

Current Account Deficit

Foreign Trade Deficit

Share of GDP

10%

7.5%

Current account and foreign trade deficits, 2010-201312-month average to dateUS$ Mn

Source: Turkish Treasury

IBS 16

The expectations of credit rating agencies for 2014 and thereafter are positive. Turkey’s

credit rating was increased in 2013 by four rating agencies as below.

Table 7: Turkey’s credit rating

Rating agency Date Rating

S & P 27 March 2013 BB+

Fitch 01 May 2013 BBB-

Moody’s 16 May 2013 Baa3

JCR 24 May 2013 BBB-

The medium-term GDP growth forecasts of IMF, OECD, the World Bank and the

Turkish Government are as follows:

Table 8: Medium-term GDP growth forecasts and targets, 2014-2017

2014 2015 2016 2017 IMF, April 2014 2.3 3.1 3.5 3.5 OECD, April 2014 3.9 4.1 - - World Bank, January 2014 3.5 3.9 4.2 5.1 Turkish Government, October 2013 4.0 5.0 5.0 - Source: IMF World Economic Outlook, April 2014, OECD Economic Outlook, November 2013, World Bank, Global Economic Prospects, March 2014 and Ministry of Development, Medium Term Plan 2014-2016

Where future growth is concerned, IBS believes that achieving 4% per year through the

next decade would be a success. Doing so requires a continuing improvement in

political and economic management and that current external shocks are soon

corrected. There has been a major improvement in public finances, leading to lower

absolute interest rates, though Turkish real interest rates remain among the highest in

the world, a factor long causing a strong Turkish lira.

The figure below shows the regional division of GDP as a whole – and how economic

activity is concentrated in the north-west of the country; 40% of GDP is generated in

the Marmara region.

Figure 7: Regional breakdown of GDP, 2013, $ Bn

IBS 17

2.2 FOREIGN DIRECT INVESTMENT

Net foreign direct investment, including investment in real estate, soared in the past

decade, averaging $20.6 Bn per year between 2006 and 2008. It then halved in 2009

and 2010, before recovering in 2011. According to UNCTAD estimates, Turkey was

23rd in the world ranking in 2011. In 2013, net investment, including in real estate, was

$12.7 Bn, equivalent to 1.5% of GDP.

Figure 8: Foreign direct investment, 2004-2013

Source: Ministry of Economy. Figures show net figures for real estate and gross figures for other

investments. Gross figures exclude real estate investments from each country.

Turkish legislation welcomes foreign investment. The large inflows in 2006 and 2007

reflected the sales to foreign banks of some Turkish banks and large sales of public

assets to foreigners in those years. Since 2008, 69% of foreign direct investment has

been from EU countries and 11% from the Middle East, a source favoured by the

present government.

Foreign capital linked to the real estate market started to enter in 2003, with registered

sales averaging $2-3 Bn annually – and unregistered sales perhaps even larger.

A key current target for foreign investment is the energy sector.

IBS 18

2.3 CONSTRUCTION AND REAL ESTATE

Construction trends

In recent years, the real estate and construction sectors have seen overall growth despite

a recent slowdown as overall levels of consumer confidence have fallen.

Real estate investments started to ascend in 2004, after five years of stagnation

following the Marmara earthquake in 1999 and the financial crisis in 2001. In the early

years of the decade, banks began to offer limited housing loans and these have grown

since the enactment of the Mortgage Law in 2007. At end-May 2013, the volume of

housing loans was $52 Bn, 35% up on end-2010 loans in $ terms. Increasing interest by

foreign real estate funds has also contributed to the growth of the sector, with these

focusing on Istanbul, Ankara and Izmir, as well as other big provinces. Further, and

particularly important, TOKI, the state-owned Mass Housing Administration, became

actively involved in the sector, tendering housing projects throughout the country.

Between 2003 and 2010, in a series of mass housing and urban transformation projects,

TOKI launched construction of approximately 500,000 residential units, including

social facilities and landscaping work. TOKI continues to handle the construction of

45,000 to 50,000 residential units per year. It aims to undertake construction of another

500,000 residential units by 2023.

All this has been reflected in the impressive growth rates in residential and commercial

property development. Between 2002 and 2013, construction permits per area (m2) for

residential purposes grew at 16% per year and those for commercial purposes at 11%

per year.

Table 9: Real estate market trends (based on construction permits), 2002-2013

Residential Commercial

Years

Number of

buildings Area, m2

Number of

buildings Area, m2

2002 36,973 25,461,564 3,461 4,309,441

2003 42,284 32,511,687 4,594 6,110,900

2004 65,286 51,080,151 5,772 7,639,491

2005 99,220 82,297,998 8,316 10,258,004

2006 99,451 92,941,776 8,108 13,755,222

2007 91,610 89,807,200 7,173 15,604,006

2008 81,003 74,340,807 6,941 13,774,684

2009 79,021 77,912,168 6,729 10,140,404

2010 119,776 139,160,581 9,041 13,333,455

2011 87,246 93,459,859 6,179 9,828,155

2012 89,271 113,047,329 6,565 14,392,440

2013 99,371 125,620,018 7,855 13,518,808

CAGR 2002-13 9% 16% 8% 11%

Source: Turkstat

The sector was relatively unaffected by the global crisis in 2008-2009. Major housing,

business centre and shopping centre projects came on board not only in the three big

provinces, but also in other industrialised and developing regions of the country.

However, in 2011, the sector was affected by Government measures to cool the

economy. These adversely affected the construction sector that year and in the first three

IBS 19

quarters of 2012, even if performance was still better than in 2008 and 2009. Real estate

investment started to pick up in the last quarter of 2012, fuelled by decreasing interest

rates on housing loans; the year ended with a higher number of construction permits

received by real estate developers compared to 2011.

67.3% of the population owns their homes and 23.8% live in rented accommodation6,

according to the population and housing census carried out by TURKSTAT in 2011.

The share of rented accommodation is higher in the larger cities, averaging 31% in

Istanbul and Ankara. Owners tend to renovate or decorate apartment prior to rental since

such renovation will increase the monthly rent. Renovation often includes installation of

cheaper flooring (dominantly laminate) and kitchen cabinets. Apartments are generally

rented unfurnished, with the tenant installing his/her own furniture and other

belongings.

Current trends in the construction sector are positive, with the main drivers for growth

being:

increasing housing demand as a consequence of urbanisation and decreasing

household size fuelled by changing lifestyles

newly launched urban transformation projects aiming to regenerate an estimated

6.4 Mn housing units at a cost of $400 Bn

improving financial means due to low-cost mortgage loans and increasing

participation of women in the work force, increasing household income

land made available in the big cities by a new law which allows sales of the

degraded forest land to its users

amendments in reciprocity conditions of Law No 6302 facilitating ownership of

real estate by foreigners

two new town projects planned next to the third airport proposed to be built in

north Istanbul7

around 150 new shopping centres with ~7 Mn m2 Gross Leasable Area (GLA) to

come on board during 2013-2017

current projects adding 1.2 Mn m2 to Istanbul’s office stock during 2013-2017

planned investments for construction of 224 hotels by local investors and major

hoteliers such as the Wyndham Group, Hilton Worldwide, in the next 10 years.

In recent years, the real estate industry has received support from the entry of a number

of real estate developers and increasing demand for residential property in Turkey.

On the other hand, the industry has had some adverse signals as well. In September

2013, the Turkish Statistical Institute reported that its confidence index for the

construction sector had declined for the sixth straight month, dropping 5.1% from

August.

This was the sharpest fall among the three areas of the economy covered by the

institute’s confidence surveys, with the retail industry remaining steady and the services

sector decreasing by 3%.

6 Remaining 8.9% either live in public or company owned apartments, or do not own the

apartment in which they live and do not pay a rent. 7 Some commentators doubt the financeability of this project.

IBS 20

This was the sharpest fall among the three areas of the economy covered by the

institute’s confidence surveys, with the retail industry remaining steady and the services

sector decreasing by 3%.

Table 10: Real estate sales, 2012-2017

2012 2013 2014e 2015e 2016e 2017e

Value as % of total construction 52.3 52.5 51.7 51.0 50.4 49.8

Value, TL Bn 32.3 37.0 40.8 44.9 49.5 54.5

Value, $ Bn 18.0 19.2 19.3 20.8 22.7 24.5

Value real growth (%) -4.5 6.9 3.8 4.1 4.3 4.1

Value as % of GDP 2.3 2.4 2.4 2.4 2.4 2.4

e = BMI (Business Monitor International) forecast

Source: Turkish Statistical Institute/BMI

Industry sources estimate that the sector will continue to grow in 2014 at 3.8% year-on-

year in real terms, driven by the contracts awarded under the government's regeneration

programme. Many observers highlight the downside risks to that forecast and indeed

growth over the longer term as well. While growth in the industry is largely driven by

domestic investment, which could keep growth buoyant, the caution stemming from

political uncertainty will certainly drag on growth over the medium term, as indicated

by industry experts.

Implications for usage of wood and products

Turkish buildings are mainly made of concrete with steel reinforcing and frames. For

such housing, wood is mainly used for the roof structure and for doors.

TURKSTAT statistics show that of the 116,525 building permits granted in 2013, only

201 buildings were to be constructed with a wooden frame. The number of prefabricated

buildings is also minimal, with permits totalling only 1,893; only 10-15% were to be

build from wood.

The traditional product used in construction is sawn wood cut in sizes 5x10 and/or

10x10cm which is used in form works. In recent years, new formwork materials such as

H-20 wood beam (also called also known as I-beams or I-Joists), plywood and particle

board, particularly OSB, have started to be used more commonly. IBS estimates that

approximately 6 Mn m3 of wood is consumed in the construction sector, including

consumption for doors, windows, roofs, etc. Of this total, the consumption of sawn

wood (cut in 5x10 and 10x10cm size) is estimated as 4 Mn m3.

Wood products account for approximately 25% of construction materials used,

according to sector experts. Consumption is mainly in private up-scale villas and low

quality, poorly constructed ghetto houses. In major housing projects, the consumption of

wood in structure and/or window/door panels is low when compared to concrete and

steel (for structure) or PVC (for windows/doors). There is also consumption of wood for

flooring and, a frequent item, internal wall coverings.

The fact that Turkey is located in an active earthquake zone has resulted in expectations

that the market for wood structures with their greater ability to withstand tremors will

increase in coming years even if the demand for wood was limited as majority of

structural elements has been concrete and steel following the Marmara earthquake of

1999.

IBS 21

2.4 POPULATION AND DEMOGRAPHICS

As of end-2012, Turkey was the 18th

most populated country in the world and second in

Western Europe after Germany. TURKSTAT announced the population as 76.6 Mn at

the end of 2013.

The population increased five-fold between 1923 and 2000, but the rate of growth has

been decreasing since 1955-1960 from its peak level of 28.5‰ (per thousand) to 12.8‰

from 2005-2011. The growth rate was about 25‰ per year during the 1970s, but has

now fallen to 13‰ per year. The decreasing trend is expected to continue between 2010

and 2030 due to increasing urbanisation and the associated changes in lifestyles, such as

increasing participation of women in the labour force and smaller family sizes.

Table 11: Population growth rate 1960-2011

Period Annual growth (‰) 1970 - 1975 25.0 1975 - 1980 20.7 1980 - 1985 24.9 1985 - 1990 17.2 1990 - 1995 16.3 1992 - 2000 14.6 2000 - 2005 13.1 2005 - 2011 12.8 Source: TURKSTAT

Official forecasts released in February 2013 are that Turkey’s population will reach 80

Mn in 2017, 82 Mn in 2020 and 88 Mn in 2030.

Table 12: Population forecast 2010-2030

Years Population of Turkey Growth Rate (‰) 2011 74,724,269 14 2012 75,627,384 12 2013 76,481,847 11 2014 77,323,892 11 2015 78,151,750 11 2016 78,965,645 10 2017 79,766,012 10 2018 80,551,266 10 2019 81,321,569 10 2020 82,076,788 9 2021 82,816,250 9 2022 83,540,076 9 2023 84,247,088 8 2024 84,936,010 8 2025 85,569,125 7 2030 88,427,604 6 Source: TURKSTAT, Population Projections, 2013-2075

Two trends impacting on demand for housing are the migration of population to the

cities and the young age of the population. Between 1970 and 2012, the share of

population living in cities doubled to 77%. This shift of population is driving demand

for new housing, while the young age of the population means household numbers are

growing faster than the population as a whole. One quarter of the population is under

IBS 22

the age of 15. In the next decade, the percentage of young people is expected to

decrease, while the percentage of those of middle age and those over 65 will increase.

The proportion of those over 65 is still only about 7%, which is well below the 15%

norm in developed countries. As a result, in coming years, companies will benefit from

the increasing share of the population that has purchasing power. The construction

sector will continue to benefit from abundant demand.

Table 13: Population by age groups in Turkey, 2008-2025

Population 2009 2010 2015 2020 2025 65+ 4,930 5,034 5,638 6,792 8,253 25-64 35,623 36,337 39,626 42,311 44,507 15-24 12,393 12,425 12,606 12,595 12,451 0-14 18,951 18,902 18,728 18,559 18,355 Total 71,897 72,698 76,598 80,257 83,566 Shares 65+ 6.9% 6.9% 7.4% 8.5% 9.9% 25-64 49.5% 50.0% 51.7% 52.7% 53.3% 15-24 17.2% 17.1% 16.5% 15.7% 14.9% 0-14 26.4% 26.0% 24.4% 23.1% 22.0% Total 100% 100% 100% 100% 100% Source: TURKSTAT

In Turkey, approximately 600,000 couples are married per year, with almost all needing

not only a roof over their heads, but furniture for themselves and their future children.

As of the end of 2012, the top 20 provinces accounted for 66.2% of Turkey’s

population. Istanbul, Ankara and Izmir are the three most populated provinces in

Turkey, housing 30% of Turkey’s population.

Table 5 shows the regional breakdown of the population according to TURKSTAT’s

statistical division of regions. Istanbul, the Aegean, Mediterranean and South East

Anatolia regions accounted for 54% of the population: the West Marmara, East Black

Sea and North East Anatolia had the lowest populations in 2012.

Table 14: Regional breakdown of population, end-2012

Region SRE Population Share Istanbul TR1 13,854,740 18% Aegean TR3 9,779,502 13% Mediterranean TR6 9,611,007 13% South East Anatolia TRC 7,958,473 11% West Anatolia TR5 7,253,247 10% East Marmara TR4 7,058,367 9% West Black Sea TR8 4,483,603 6% Central Anatolia TR7 3,853,025 5% Central East Anatolia TRB 3,756,322 5% West Marmara TR2 3,247,669 4% East Black Sea TR9 2,545,274 3% North East Anatolia TRA 2,226,155 3% Total TR 75,627,384 100%

Source: TURKSTAT, Address Based Population Registration System, 2012

20 of Turkey’s 81 provinces have a population of over one million people.

IBS 23

Table 15: Provinces over one million population, end-2013

Province Region SRE* Population Share Istanbul Istanbul TR1 14,160,467 18% Ankara West Anatolia TR5 5,045,083 7% Izmir Aegean TR3 4,061,074 5% Bursa East Marmara TR4 2,740,970 4% Antalya Mediterranean TR6 2,158,265 3% Adana Mediterranean TR6 2,149,260 3% Konya West Anatolia TR5 2,079,225 3% Gaziantep South East Anatolia TRC 1,844,438 2% Sanliurfa South East Anatolia TRC 1,801,980 2% Mersin Mediterranean TR6 1,705,774 2% Kocaeli East Marmara TR4 1,676,202 2% Diyarbakir South East Anatolia TRC 1,607,437 2% Hatay Mediterranean TR6 1,503,066 2% Manisa Aegean TR3 1,359,463 2% Kayseri Central Anatolia TR7 1,295,355 2% Samsun West Black Sea TR8 1,261,810 2% Balikesir West Marmara TR2 1,162,761 2% K. Maras Mediterranean TR6 1,075,706 1% Van Central East Anatolia TRB 1,070,113 1% Aydin Aegean TR3 1,020,957 1% Others 25,888,458 34% Total 76,667,864 100% * SRE means “Classification of Statistical Regions” Source: TURKSTAT, Address Based Population Registration System, 2012

Figure 9: Provinces with over one million population, end-2013

Source: TURKSTAT

13

14.2

5.0

4.1

2.7

2.1

2.1

1.81.8

1.6

1.72.2

1.7

1.1

1.3

1.0

1.2

1.4

1.5

1.3

Population 76.7 mn in 2013

Source: Turkstat

1.1

IBS 24

III FORESTS AND WOOD SUPPLY

3.1 FORESTS IN TURKEY

Turkey has a relatively strong forest base, with 21 Mn hectares (27% of the land)

classified as such. Half of this area (10.6 Mn hectares) comprises productive forests, and

the other half consists of degraded or severely degraded and unproductive forests. As

the map below shows, the forests are widely spread throughout the country, with

concentrations in the mountains of the north and south.

Figure 10: Forest map of Turkey, 2012

99.9% of the forest area belongs to the state, being administered by the General

Directorate of Forestry (GDF). The remainder are privately-owned forests, marked as

red in the above map, but scarcely visible. Forests in private property, which exclude

farmed poplar etc., have an area of 10,182 hectares.

The concept of state management has long dominated Turkish forestry, with forest

resources planned and managed under Government mandate.

The forests are diverse in terms of composition and structure. They include managed

and pristine natural mixed forests, dominated by softwoods such as pine, fir, and spruce,

and hard woods such as beech, oak, alder, walnut and hornbeam. Of note is the Lebanon

Cedar (Cedrus libani) in Turkey’s southwest: despite its name, this tree is endemic to

the Toros Mountains.

The GDF categorizes forests as high forests and coppice forests, also known as low

forests. The high forests are the forests originated from seed, or from planted seedlings,

IBS 25

and they are usually tall mature trees with a closed canopy. Trees in a high forest can be

of one, a few, or many species. As elsewhere, coppicing is a traditional method of

woodland management.

The distribution of forest land has changed slightly in favour of high forests. The ratio

of high forests was 77% in 2010, up from 69% in 1999. The ratios of productive and

degraded forests are now similar.

Table 16: Distribution of forest land, 1973-2012 (Mn hectares)

Total Productive Degraded

hectare % hectare % hectare %

1999 20.8 100 10.1 49 10.7 51

High forest 14.4 69 8.3 40 6.2 29

Coppice forest 6.4 31 1.8 9 4.5 22

2005 21.2 100 10.6 50 10.6 50

High forest 15.5 73 8.9 42 6.5 31

Coppice forest 5.7 27 1.7 8 4.1 19

2010 21.6 100 11.2 52 10.3 48

High forest 16.7 77 9.8 45 6.9 32

Coppice forest 4.9 23 1.4 7 3.4 16

2012 21.7 100 11.6 53 10.1 47

High forest 17.3 80 10.3 47 7.0 32

Coppice forest 4.4 20 1.3 6 3.1 15

Source: Ministry of Forestry and Hydraulics

High forests largely comprise coniferous trees, in particular Calabrian Pine (Pinus

brutia), also known as Turkish Pine, Crimean Pine (Pinus nigra) and Scots Pine (Pinus

sylvestris). Coppice forests tend to be broad-leaved trees with oaks dominant. Annex II

shows a detailed distribution of main tree species by area. The following table

summarizes the species by forest type:

Table 17: Forest land per species, 2012

Mn hectares

High forests 17.3

Coniferous 13.2

Broad-leaved 4.1

Coppice forests 4.4

Coniferous 1.0

Broad-leaved 3.4

Total 21.7

Source: General Directorate of Forestry

IBS 26

3.2 WOOD SUPPLY

Turkey used 15.4 Mn m3 of roundwood for industrial purposes in 2012, of which 14.4

Mn m3

was from domestic sources and 1 Mn m3 was imported8.

Table 18: Industrial roundwood supply, 2008-2012

2008 2009 2010 2011 2012

CAGR

2008-12

Total roundwood production (000 m3) 11,541 11,463 12,569 13,582 14,424 4.6%

Sales price per m3 ($) 120 93 111 136 117 -0.5%

Market value ($ Mn) 1,385 1,066 1,395 1,847 1,688 4.0%

Import (000 m3) 1,239 929 1,174 1,108 1,008 -4.1%

Import ($ Mn) 211 113 147 175 147 -7.0%

Source: General Directorate of Forestry, 2013, Trademap, TURKSTAT, 2014

Most roundwood of local origin comes from high forests. In 2012, 14.4 Mn m3 was

harvested, slightly below the 17.1 Mn m3 planned, 13.3 Mn m

3 from high forests and 3.8

Mn m3 was from coppice forests. Other sources of supply include coppicing of woods

and bushes grown on properties owned by the private sector, and wood from

afforestation areas owned by the private sector. Some of the private sector activity is

unauthorised, meaning that total local output may be higher than official records.

Industrial wood is mainly produced from coniferous wood. The main products are wood

for fibre-chips, logs and pulpwood for the paper industry.

Table 19: Turkey industrial wood production, 2008-12, 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Share

2012

Total industrial wood production 11,541 11,463 12,569 13,582 14,424 4.6% 100%

Logs of coniferous wood 9,020 8,787 9,502 10,441 10,745 3.6% 74%

Log 3,282 3,076 3,491 3,988 4,055 4.3% 28%

Telephone pole 75 67 56 71 60 -4.5% 0%

Mining pole 468 433 499 615 598 5.0% 4%

Other industrial wood 483 382 486 563 540 2.3% 4%

Pulpwood 2,334 2,343 1,983 2,194 2,115 -1.9% 15%

Fibre-chip wood 2,360 2,475 2,968 2,996 3,367 7.4% 23%

Thin pole 18 11 19 15 10 -11.6% 0%

Logs of non-coniferous wood 2,521 2,676 3,067 3,142 3,680 7.9% 26%

Log 664 682 883 902 973 7.9% 7%

Telephone pole

0.03

0%

Mining pole 54 69 78 71 95 12.0% 1%

Other industrial wood 272 276 301 311 335 4.2% 2%

Pulpwood 73 90 163 190 219 24.5% 2%

Fibre-chip wood 1,456 1,558 1,640 1,667 2,058 7.2% 14%

Thin pole 1.5 1.1 0.8 1.4 1 -4.3% 0%

Source: General Directorate of Forestry, 2013

Imports are dominated by the Ukraine. Russia was a major supplier but such shipments

have fallen in recent years.

8 Turkey also used 6.4 Mn m

3 of roundwood for fuel, which is not covered in this report.

IBS 27

Table 20: Turkey roundwood imports, 2008-2012, (000 m3)

2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

Ukraine 593 683 905 830 766 76% 5.2%

Romania 61 41 40 59 63 6% 0.6%

Bulgaria 6 13 32 47 47 5% 51.5%

USA 11 4 6 6 42 4% 32.1%

Cameroon 14 18 30 38 13 1% -1.9%

Russia 425 114 115 76 15 1% -49.1%

Total 1,239 929 1,174 1,108 1,008 -4.1%

Source: Trademap, TURKSTAT, 2014

In value terms, Ukraine’s roundwood exports to Turkey accounted for $94 Mn,

followed by the USA with $12 Mn.

Table 21: Turkey roundwood imports, 2008-2012 ($ Mn)

2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

Ukraine 72 59 87 104 94 64% 5.5%

USA 6 3 5 6 12 8% 12.4%

Cameroon 6 6 10 14 4 3% -8.5%

Romania 9 5 6 8 9 6% -1.6%

Bulgaria 1 1 3 4 5 3% 51.3%

Total 211 113 147 175 147 2% -7.0%


The major import item is coniferous logs, which account for 85% of roundwood

imports. Other imported items were non-coniferous, including beech, oak, meranti

(various species of Shorea) and other tropical woods.

IBS 28

Table 22: Segmentation of Turkish roundwood imports, 2008-2012

Product name 2008 2009 2010 2011 2012

(000 m3)

440320 Logs, poles, coniferous nes 1,011 794 1,024 940 845

440399 Logs, non-coniferous nes 36 28 42 76 86

440392 Logs, beech 51 24 30 31 33

440349 Logs, tropical hardwoods nes 109 60 51 34 20

440391 Logs, oak 22 16 18 15 15

440310 Poles, treated/painted etc 10 7 10 12 9

440341 Logs, meranti red (dark, light, bakau) in rough 0 0 0 0 0

(000 $)

440320 Logs, poles, coniferous nes 128 72 100 117 105

440399 Logs, non-coniferous nes 50 26 22 21 10

440392 Logs, beech 5 3 9 20 16

440349 Logs, tropical hardwoods nes 9 5 5 4 5

440391 Logs, oak 9 4 4 5 5

440310 Poles, treated/painted etc 9 3 5 8 5

440341 Logs, meranti red (dark, light, bakau) in rough 0 0 0 0 0

Source: Trademap, TURKSTAT, 2014 Note (here and below): nes – not elsewhere specified

Canada has not recently exported roundwood to Turkey. In 2012, the USA delivered

42,000 m3 of roundwood to Turkey with a value of $12 Mn. This indicates that, despite

the distance and costs, there may be a market for Canadian roundwood in Turkey.

Imports of wood chips are covered in Section 4.1. In 2012, these amounted to $316 Mn,

more than twice the value of roundwood imports. Canada accounted for 15% of this

total.

IBS 29

IV WOOD PRODUCTS IN TURKEY

INTRODUCTION

Large forest reserves and continuing investment in technological enhancement have

given a boost to the Turkish wood industry.

Sales of wood products (excluding furniture) reached $6 Bn in 2013, up from $4.2 Bn in

2008, according to IBS estimates. Apart from a drop in 2008 due to the global economic

downturn, the sector has been growing strongly. Between 2008 and 2013, consumption

of wood and wood products grew at an average 7.6% per year, slightly more than twice

the 3.2% growth of GDP in the period. This growth has been driven by developments

in construction and the furniture industry.

Table 23: Wood products market size, 2008-2013 ($ Mn)

Production 2008 2009 2010 2011 2012 2013e

CAGR

2008-13

Share

2013

Fibreboard 1,009 1,183 1,269 1,477 1,840 1,987 14.5% 41%

Particle board 844 538 669 770 826 860 0.4% 18%

Veneer 114 91 102 100 102 103 -2.0% 2%

Plywood 96 66 30 87 97 98 0.4% 2%

Sawn wood 1,358 974 1,147 1,575 1,759 1,838 6.2% 38%

Import 2008 2009 2010 2011 2012 2013

Fibreboard 274 150 239 290 323 302 2.0% 30%

Particle board 60 59 85 89 112 110 12.9% 11%

Veneer 33 20 28 38 39 41 4.4% 4%

Plywood 126 70 180 272 299 326 20.9% 32%

Sawn wood 160 99 132 211 222 238 8.3% 23%

Export 2008 2009 2010 2011 2012 2013

Fibreboard 205 215 253 287 295 282 6.6% 68%

Particle board 93 64 65 74 74 80 -3.0% 19%

Veneer 27 21 25 25 28 24 -2.3% 6%

Plywood 22 15 13 14 14 17 -5.0% 4%

Sawn wood 12 13 15 14 13 14 3.1% 3%

Consumption 2008 2009 2010 2011 2012 2013

Fibreboard 1,078 1,119 1,254 1,480 1,868 2,007 13.2% 33%

Particle board 811 534 691 785 864 890 1.9% 15%

Veneer 120 90 105 113 114 120 0.0% 2%

Plywood 200 121 197 345 382 407 15.3% 7%

Sawn wood 1,506 1,061 1,264 1,772 1,968 2,062 6.5% 34%

Flooring 121 117 118 122 125 150 4.4% 3%

Others 322 297 285 329 350 362 2.4% 6%

TOTAL MARKET 2008 2009 2010 2011 2012 2013

Production 3,421 2,852 3,217 4,009 4,624 4,886 7.4%

Imports 653 398 664 900 995 1017 9.3%

Exports 359 328 369 414 424 417 3.0%

Consumption 4,158 3,339 3,914 4,946 5,671 5,998 7.6%

(e) estimate

Source: IBS analysis, 2014

IBS 30

Apart from demand for the furniture industry, whose production totalled $16.3 Bn in

2012 (see Section 4.7), there has also been solid growth in board manufacturing. The

figure below shows the flow of material in the sector in 2012 in volume terms.

Figure 11: Material flow in Turkish wood industry

Source: IBS

Turkey is one of the leading players in the European wood industry, producing 14.4 Mn

m3 of logs. It is also one of the largest producers of sawn wood, with a production of 6.7

Mn m3 in 2012. Sawn wood accounted for 35% by value of consumption of wood and

wood products in 2012.

Also of importance are the country’s fibreboard and particle board industries. Turkey is

the third biggest producer of fibreboard in the world and is also a significant producer of

particle board (which is a low-density fibre board but commercially treated separately).

These two products accounted for 48% of consumption of wood and wood products in

2012 by value, being followed by plywood with a 7% share. Other industries include

solid flooring, builders’ carpentry and joinery, and accounted for 8% of consumption in

2012.

The fastest growing sector has been fibreboard which grew 12% per year between 2008

and 2012 to reach a turnover of $1.9 Bn. One-third of fibreboard is used in laminate

parquet and demand for this has been increasing with the growth of new housing, an

IBS 31

activity stimulated by more readily available mortgages and government sponsored

housing projects.

Imports amounted to $1 Bn in 2012 - a figure which represents 17% by value of Turkish

consumption. Imports have grown in parallel with the overall market. Turkey’s major

trade partners include Germany, Romania, Bulgaria and Ukraine.

In 2013, Canada had a limited presence in the sector, being a supplier of wood chips,

with exports to Turkey of $34 Mn in 2013, and of sawn wood, with exports of $1.3 Mn.

Wood chip exports to Turkey by Canada had been $50 million in 2012, declining

because of cheaper raw materials being supplied by the General Directorate of Forestry

and combined with an increase in the $/TL exchange rates, as indicated by ORSIAD,

even if it is only 7%.

IBS 32

4.1 FIBREBOARD

4.1.1 SUPPLY

Production

Turkey is the world’s third largest producer of fibreboard, coming after the USA and

Germany. These three together account for over half of the world fibreboard supply. Of

the three, Turkey, which has a 12.5% share in world fibreboard production, has the

fastest growth rate, 12% annually between 2008 and 2012. Turkish output is beginning

to approach the levels of Germany. In 2012, Canada was the world’s sixth largest

producer of this product.

Table 24: World fibreboard production, 2008-2012, ‘000 m3

Country name 2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

USA 6,636 8,919 8,195 7,585 7,336 22.9% 2.5%

Germany 4,933 4,259 4,575 4,748 5,063 15.8% 0.7%

Turkey 2,226 2,950 3,300 3,585 4,015 12.5% 15.9%

Poland 2,559 2,714 2,977 3,018 3,103 9.7% 4.9%

Russia 2,023 1,626 1,710 1,900 2,291 7.1% 3.2%

Canada 1,519 1,361 1,314 1,277 1,277 4.0% -4.2%

France 1,220 960 1,054 1,071 1,071 3.3% -3.2%

Spain 1,180 1,025 1,028 999 999 3.1% -4.1%

Austria 905 855 855 861 861 2.7% -1.2%

UK 709 660 776 759 788 2.5% 2.7%

Others 4,966 4,352 4,775 5,189 5,284 16.5% 1.6%

Total 28,875 29,682 30,560 30,991 32,088 100% 2.7%

Source: FAO Statistics, 2014

Fibreboard is a remanufactured wood product, with the main commercial categories

being:

Hardboard Also known as high density fibreboard,

HDF.

Medium-density fibreboard, MDF This is mainly used in furniture and

laminate parquet (flooring). A veneer of

wood is often glued onto fibreboard to give

it the appearance of conventional wood.

Particle board or chip board This is made of low-density fibreboard,

LDF, and is covered in Section 4.2.

Fibreboards are usually manufactured with a (substantially) dry process. Coniferous

trees are preferred in the dry method in which thermosetting adhesives are often

employed.

MDF production accounted for 99% of fibreboard production in 2012, up from 86% in

2008. MDF production capacity has increased significantly, reaching 5 Mn m³ in 2013.

The rapid growth in the furniture industry has been the main driver of this. The

majority of the production is consumed domestically.

IBS 33

Manufacturers

The Turkish fibreboard industry comprises 20 production facilities with an annual

capacity of 5.7 Mn m3. These facilities also account for 2.4 of the 5.5 Mn m

3 capacity of

particle board production.

Table 25: Manufacturers of fibreboard, 2014, Cubic metres

Manufacturer Plant location Fibreboard Particle board

Yıldız Entegre İzmit 1,152,000

Yıldız Sunta MDF İzmit 576,000 544,000

Kastamonu Entegre Gebze 432,000 480,000

AGT Antalya 424,000

Kastamonu Entegre Adana 424,000

Yıldız Entegre Mersin 424,000

Kastamonu Entegre Kastamonu 384,000 214,400

Çamsan Ordu 262,400

Divapan Düzce 240,000 0

Çamsan Entegre Adapazarı 224,000

Starwood Bursa 192,000 912,000

Teverpan MDF Tekirdag 192,000

Vezir Agac Samsun 192,000 56,000

S.F.C. Kastamonu 152,000 64,000

Divapan Düzce 102,400

Teverpan MDF Tekirdag 89,600 144,000

SBS Bursa 64,000

Teverpan MDF Tekirdag 56,000

Yıldız Entegre (Door facility) İzmit 56,000

Selolit Manisa 19,200

Total

5,657,600 2,414,400

Source: ORSIAD, 2014 Figures exclude other producers of particle board

Based on company sales figures, production capacities and comments made by various

industry sources, IBS estimates that Yildiz Entegre and Kastamonu Entegre together

account for 50% of the overall markets for fibre and particle board in terms of domestic

sales.

Table 26: Market share of companies in board industry, 2014

Company name Share

Yildiz Entegre & Sunta 28%

Kastamonu Entegre 22%

Çamsan 10%

Starwood 9%

SFC 7%

Others 24%


IBS 34

Production is concentrated in Izmit in the eastern Marmara: the Marmara region as a

whole accounts for 68% of fibre board production capacity. The Black Sea region

follows with a 25% share of capacity.

Table 27: Regional concentration of fibre board capacity, 2014

Region Province

Established.

Capacity (m3)* Share

Marmara Izmit 1,755,000 38.6%

Marmara Bursa 745,000 16.4%

Black Sea Kastamonu 610,500 13.4%

Marmara Tekirdag 390,000 8.6%

Mediterranean Antalya 300,000 6.6%

Black Sea Samsun 225,000 4.9%

Marmara Adapazari 180,000 4.0%

Black Sea Ordu 180,000 4.0%

Black Sea Duzce 120,000 2.6%

Black Sea Bolu 24,000 0.5%

Aegean Manisa 18,000 0.4%

Source: TOBB, 2010 * As of 2009

Raw materials – for fibre board and particle board

The main raw materials for production of fibre board and particle board are similar, and

are classified together by Turkey’s General Directorate of Forestry as well as in

international trade statistics. As described above, there is also a considerable overlap in

manufacturing capacity. This section describes the combined raw material situation.

According to 2011 figures, 62% of the raw materials used by Turkey’s particle and fibre

board plants were supplied by the GDF, 23% were of imported chips, 9% from

industrial waste and 7% from private growers.

Table 28: Raw materials in particle and fibre board industries, 2011

Raw material provided by General Directorate of Forestry (GDF) Stere* Share

Fibre-chip wood production 6,217,000 36%

Fuel wood production (that comes to fibre and particle board industries) 1,500,000 9%

Pulp wood production (that comes to fibre and particle board industries) 1,000,000 6%

Planted tree tenders (that comes to fibre & particle board industries) 2,000,000 11%

Raw material provided by other sources

Industrial waste woodchips 1,500,000 9%

Poplar wood and other wood from private lands 1,200,000 7%

Imported roundwood (in chips) 4,000,000 23%

Total 17,417,000 100%

Source: ORSIAD, 2012 * 0.5-0.7 cubic metres

Fibreboard is manufactured primarily from wood residues from production of lumber

and plywood, fuel wood, wood in chips or particles, sawdust and some other wood

based and agricultural waste and scraps.

Imported logs, primarily from the Ukraine, used to be the main raw material for MDF

manufacturing. Of the imported logs, 60% were beech logs, 15% birch, 15% oak and

IBS 35

10% ash according to a recent estimation by the Association of Forest Industry

Businessmen (ORSIAD). In recent years, however, imported wood chips have become

the main raw material used to produce MDF. Today, wood chips account for 60-65%

total raw material used in Turkish MDF production, with the USA and Canada being the

main supplier of wood chips to Turkey.

The main species used in this industry are:

Coniferous - cedar, juniper, pine, spruce, and fir

Non-coniferous - oak, hornbeam, beech, poplar, and alder

Species

Sector experts estimated that the annual raw material need of fibreboard and particle

board sector was 22.8 Mn stere/year with current capacities. The actual raw material

need of the sector is estimated as 18.5 Mn stere/year because of the unused capacity

including closed facilities.

Supplies of raw materials

Turkey’s main suppliers of wood chips are the USA, Canada, Venezuela and Bulgaria.,

Canada’s share increased in 2013 to 15%. Brazil and Ukraine have been losing market

share.

Table 29: Imports of wood in chips or particles, 2009-2013, 000 tonnes

2009 2010 2011 2012 2013

Amount Share Amount Share Amount Share Amount Share Amount Share

USA 659.8 42% 544.0 31% 655.0 34% 1,342.9 43% 893.2 43%

Canada 37.7 2% 0.0 0% 193.7 10% 421.3 14% 313.7 15%

Venezuela 0.0 0% 89.5 5% 189.5 10% 228.0 7% 231.3 11%

Bulgaria 54.5 3% 245.8 14% 340.5 18% 396.2 13% 178.5 9%

Brazil 438.5 28% 269.3 15% 155.9 8% 145.7 5% 171.1 8%

Ukraine 386.5 24% 585.4 33% 372.9 19% 422.5 14% 131.1 6%

Germany 0.1 0% 0.1 0% 0.1 0% 37.0 1% 71.4 3%

Romania 0.0 0% 1.7 0% 21.9 1% 43.4 1% 41.5 2%

Spain 0.0 0% 0.0 0% 0.0 0% 28.3 1% 10.2 0%

Croatia 0.0 0% 0.0 0% 0.0 0% 0.0 0% 9.8 0%

Others 11.8 1% 44.3 2% 15.5 1% 50.4 2% 9.5 0%

Total 1,589.1 100% 1,780.0 100% 1,945.2 100% 3,115.6 100% 2,061.3 100%

Source: IBS analysis based on Trademap, TURKSTAT, 2014. Original figures include imports of fuel wood,

which are believed to be negligible

Canadian wood chip exports to Turkey have been increasing since 2011 largely due to

local manufacturers, especially Kastamonu Entegre and Yildiz Entegre, bringing chips

to Turkey with their own vessels.

IBS 36

Table 30: Imports of wood in chips or particles, 2009-2013, $ Mn

2009 2010 2011 2012 2013

Amount Share Amount Share Amount Share Amount Share Amount Share

USA 53.3 41% 49.0 30% 60.2 32% 121.1 38% 80.6 39%

Canada 4.1 3% 0.0 0% 20.7 11% 48.5 15% 34.0 16%

Venezuela 0.0 0% 11.4 7% 21.8 11% 27.1 9% 30.1 14%

Brazil 37.3 29% 25.3 16% 14.9 8% 16.9 5% 17.5 8%

Bulgaria 4.1 3% 19.6 12% 30.6 16% 37.6 12% 16.0 8%

Ukraine 29.5 23% 53.2 33% 38.1 20% 47.9 15% 14.3 7%

Germany 0.1 0% 0.1 0% 0.1 0% 4.5 1% 7.8 4%

Romania 0.0 0% 0.2 0% 2.3 1% 4.5 1% 4.2 2%

Others 0.8 1% 2.7 2% 1.6 1% 8.0 3% 3.0 1%

Total 129.1 100% 161.5 100% 190.0 100% 316.1 100% 207.6 100%

Source: IBS analysis based on Trademap, TURKSTAT, 2014. Original figures include imports of fuel wood,

which are believed to be negligible

At the end of 2012, the average price of coniferous and non-coniferous roundwood sold

by the General Directorate of Forestry was $51.5 per cubic metre.

Table 31: Average selling price of fibre-chip wood, 2000-2012 ($/m3)

Coniferous Non-coniferous

2000 19 24

2001 13 17

2002 17 29

2003 28 41

2004 35 43

2005 36 49

2006 34 49

2007 42 54

2008 45 59

2009 35 47

2010 43 43

2011 44 44

2012 45 58


This figure compares with an average cost of chip imports of $101 per tonne in 2013,

with US exports averaging 10% below this, and Canadian exports 7% above.

The sales price of fibre chip (particle) wood by the GDF has been $43-46 per cubic

metre in the last three years. The Government applies 18% VAT plus 9% other taxes

(forestation fund, ministry brokerage fund, stamp duty) resulting in a total burden of

28.6%9. Turkish industrialists argue taxation is only 5-7% in Germany and France.

9 Other taxes are added onto the price with VAT

IBS 37

Table 32: Sales of wood in chips or particles, 2011-2013

CAGR

2011 2012 2013 2011-13

Production (‘000 m3) 4,629 5,318 5,440 8.4%

Sales (‘000 m3) 4,345 4,730 5,193 9.3%

Sales, $'000 191,031 218,652 222,231 13.8%

m3/$ 44.0 46.2 42.8


Imports of fibreboard

Turkey imports a similar value of fibre board as it does of wood chips for board

manufacture. In 2013, imports of such board amounted to $302 Mn, 7% down on the

record achieved in 2012. Germany, Romania and Italy were the leading suppliers,

constituting 82% of such imports in value terms and 85% in volume terms.

50% of these imports were used for laminate parquet and 10% for door surfaces,

according to industry sources. Imports from Italy have been increasing due to rising

demand by high-end furniture manufacturers. Germany is the leading exporter of

laminate parquet to Turkey.

Imports from Canada were only 47 tonnes in 2013. In 2008 and 2011, slightly better

figures of over 250 tonnes were achieved.

Table 33: Fibreboard imports by Turkey, 2008-2013, $‘000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Germany 70,306 57,105 99,503 122,137 133,092 140,502 46.5% 15%

Romania 84,340 51,784 68,282 86,016 86,168 82,319 27.3% 0%

Italy 7,618 304 6,412 17,893 22,768 24,950 8.3% 27%

Poland 4,447 6,480 14,862 13,971 14,509 11,743 3.9% 21%

Switzerland 24,394 14,068 15,563 16,833 11,683 10,842 3.6% -15%

Austria 7,223 3,150 4,176 4,490 5,121 7,099 2.4% 0%

Belgium 5,177 3,924 5,074 6,650 6,658 6,382 2.1% 4%

Hungary - - 55 1,121 789 2,742 0.9% 268%

France 2,234 1,690 2,091 2,383 2,351 2,654 0.9% 4%

Slovenia 622 187 128 3,955 7,515 2,487 0.8% 32%

Luxembourg 2,052 546 2,288 449 93 2,459 0.8% 4%

China 45,349 3,589 4,683 2,915 2,296 1,593 0.5% -49%

Bulgaria 226 612 1,295 1,197 1,473 1,522 0.5% 46%

Russian Federation 4,752 1,332 5,058 1,836 244 733 0.2% -31%

Malaysia 4,430 2,770 2,746 703 1,185 601 0.2% -33%

Spain 1,315 69 1,558 2,268 12,531 124 0.0% -38%

Ireland 2,183 25 201 150 224 102 0.0% -46%

Canada 292 77 119 443 5 73 0.0% -24%

Others 11,322 2,562 6,572 7,253 27,391 3,248 1.1% -22%

Total 274,492 150,103 238,788 289,802 323,336 301,876 100% 2%


IBS 38

The following table confirms the predominant role of the top three suppliers.

Table 34: Fibreboard imports by Turkey, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonnes

2012

Romania 164,956 120,184 170,233 200,804 185,995 185,826 37.8% 2% 463

Germany 76,701 73,981 129,540 140,884 168,892 169,086 34.4% 14% 788

Italy 16,494 261 17,192 42,597 56,977 64,525 13.1% 26% 400

Poland 4,581 8,318 20,551 15,833 20,767 13,487 2.7% 20% 699

Switzerland 27,614 19,199 22,392 19,380 14,516 11,485 2.3% -14% 805

Hungary 0 0 104 2,285 1,768 7,425 1.5% 191% 446

Austria 6,742 4,018 6,422 5,554 5,268 7,011 1.4% 1% 972

Belgium 5,495 4,977 6,526 7,238 7,478 6,543 1.3% 3% 890

Luxembourg 2,378 682 3,398 617 185 6,136 1.2% 17% 503

Slovenia 1,078 395 297 8,450 16,960 5,385 1.1% 31% 443

Canada 282 67 88 264 0 47 0.0% -26%

Others 103,737 19,311 35,817 23,107 73,619 14,989 3.0% -28%

Total 410,058 251,393 412,559 467,014 552,427 491,946 100% 3% 585


Turkey mainly imports fibreboard of wood or other ligneous materials and MDF with

thickness larger than 9 mm. The first three items in the list below also include laminate

parquet.

Table 35: Segmentation of imported fibreboards, 000 tonnes

2008 2009 2010 2011 2012 2013

441192 Fibreboard of wood or other ligneous materials, whether or not agglom. 239 131 215 214 247 238

441114 Medium density fibreboard MDF of wood, of a thickness > 9 mm 124 68 134 188 238 201

441113 Medium density fibreboard MDF of wood, of a thickness > 5 mm but <= 9 44 45 61 60 63 43

441112 Medium density fibreboard MDF of wood, of a thickness <= 5 mm 1 1 2 4 4 10

Total including others 410 251 413 467 552 492

(Note: nes – not elsewhere specified.)


IBS 39

Value chain and terms

The major fibreboard products, laminate parquet and MDF panels are traded in different

ways. Laminate parquet, as an end product, is sold through dealers/distributors, DIY

stores, retailers and small wood products shops. MDF panels are rather an intermediate

product and large-scale furniture manufacturers buy directly from the manufacturer.

Figure 12: Fibreboard products distribution chain

Large-scale contractors also buy laminate parquet directly from the manufacturers.

Small and medium sized contractors, furniture manufacturers and other industries

purchase from distributors.

Most DIY stores and other small shops/retailers buy from the dealers/distributors,

according to interviews carried out by IBS. These DIY stores and other small shops sell

mainly to the final consumer, or to workmen who undertake residential renovation

works. Larger DIY stores, in particular chains like Koctas and Tekzen, obtain their

requirements directly from the manufacturers.

Interviews with dealers and distributors showed that manufacturers sell their products to

dealers and distributors at 10-20% discount on the list price. Payment is generally due in

6-10 months. Distributors generally avoid an exclusivity agreement with one specific

manufacturer and may sell several brands.

Each dealer and/or distributor has a quota given either by the manufacturer or promised

by the retailer and/or distributor itself. Discount rates and credit terms differ according

to the following:

Cooperation history between manufacturer and retailer and/or distributor

(personal relations are important)

The quota, i.e. a target for annual purchases.

A distributor in Ankara who sells products of all key players explained to IBS: “My

quota for the leading manufacturers varies between TL50,000 and 150,000 ($23,000 -

$72,000) per year with this receiving a 15-20% discount from the list price. We agree

on the quota of a year at the end of previous year. Payment is done in instalments with

checks. In 2013, I pay in nine instalments with monthly checks.”

IBS 40

Dealers confirmed that all manufacturers work on a quota base and noted that the

commercial terms of manufacturers are almost identical.

Dealers and/or distributors sell the products with a profit margin of 8-13%. Discounts

given vary according to the volume of purchase and payment method, i.e. credit card,

cash or other.

In 2012, fibreboard retail prices in the domestic market were $451 per m3, according to

IBS interviews. These prices fell slightly in 2013 and early 2014.

Figure 13: Fibreboard domestic sales prices, 2008-2013, $/m3


4.1.2 DEMAND: MARKET SIZE AND TRENDS

The market for fibreboard in Turkey totalled $1.9 Bn in 2012, according to IBS

estimates, and $2.0 Bn in 2013. Domestic consumption has been growing fast, by 14.7%

per year in value terms and 16% in volume terms, between 2008 and 2012. Industry

sources estimate that one-third of domestic consumption is attributed to laminate

flooring, indicating that the market size for this was $600 Mn in 2012.

Table 36: Fibreboard industry market, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

(2008-12)

Production 1,009 1,183 1,269 1,477 1,840 16.2%

Imports 274 150 239 290 323 4.2%

Exports 205 215 253 287 295 9.5%

Consumption 1,078 1,119 1,254 1,480 1,868 14.7%


Production of hardboard and “other board” has now been almost entirely replaced by

MDF.

IBS 41

Table 37: Fibreboard industry market, 2008-2012. 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Hardboard

Production 250 34 20 - - -100%

Imports 251 125 227 204 341 8%

Exports 41 23 52 68 93 23%

Consumption 460 136 195 136 248 -14%

Medium Density Fibreboard (MDF)

Production 1,921 2,916 3,265 3,570 4,000 20%

Imports 228 172 232 311 420 17%

Exports 356 456 538 556 465 7%

Consumption 1,793 2,632 2,959 3,325 3,955 22%

Other board

Production 55 - 15 15 15 -28%

Imports 1 0 0 0 0 -100%

Exports 19 12 15 15 31 13%

Consumption 37 (12) 0 0 (16) -184%

Total fibreboard

Production 2,226 2,950 3,300 3,585 4,015 16%

Imports 480 297 459 515 761 12%

Exports 416 491 605 639 589 9%

Consumption 2,290 2,756 3,154 3,461 4,187 16%

Source: FAO, TURKSTAT, 2014

Imports are equivalent to 19% of local production by volume.

Imports of hardboard - 341,000 m3 in 2012 - meet all domestic demand for this product,

as well as allowing some re-export: domestic production is negligible.

Imports of MDF amounted to 420,000 m3 in 2012, being largely dominated by laminate

flooring (also known in Turkey as laminate parquet). This accounts for slightly more

than half of MDF imports in volume terms and 70% in value. Turkey is the biggest

market for exports of laminate flooring from Europe. The weak European market has

led manufacturers, particularly in Germany, to drop prices for export of laminate

flooring to Turkey. In 2013, Turkish manufacturers requested an anti-dumping

investigation against German companies. Turkey also applied anti-dumping levy on

Chinese imports between 2008 and 2013 and measures are still in force for pending

investigation of further complaint. Turkish laminate flooring producers have enough

capacity to meet the local demand, according to ORSIAD. However, they cannot

compete against the relatively low priced (and low quality) laminate parquet imported

from Europe and China. ORSIAD believes capacity increases or greenfield investment

could target exporting rather than domestic market.

Between 2008 and 2013, Turkey’s fibreboard exports value showed a steady increase at

a 5% CAGR reaching $282 Mn. Iran was the leading export market for MDF;

accounted 30% of MDF exports, followed by Iraq and Georgia.

IBS 42

Forecasts

IBS forecasts that fibreboard demand will increase to $2.8 Bn by 2017 showing a

CAGR of 8.7% during 2013-2017, a rate approximately half of the period 2008-2012.

This rate is the consensus of interviews with companies and associations active in the

sector. Part of the reason for the expected decline is the slower growth rate expected in

the economy. Exports too are expected to grow relatively slowly due to a decline in

prices in Turkey’s target export markets, economic uncertainties in Europe, and possible

political turmoil in the Arab region.

Table 38: Fibreboard industry forecasts, 2013-2017

2013e 2014f 2015f 2016f 2017f

CAGR

2013-17

Production (000 m3) 4,296 4,597 4,919 5,263 5,631 7.0%

Production ($’000) 1,987 2,146 2,318 2,503 2,703 8.0%

Exports (000 m3)

584 613 644 676 710 5.0%

Exports ($’000’) 282 298 314 331 350 5.5%

Imports (m3) 602 662 728 801 881 10.0%

Imports ($’000) 302 334 369 407 450 10.5%

Consumption (000 m3) 4,314 4,646 5,003 5,388 5,803 7.7%

Consumption ($’000) 2,007 2,182 2,372 2,579 2,804 8.7%

(e) estimate (f) forecast

Source: IBS forecasts based on interviews with market players

4.1.3 MAIN MARKET DRIVERS

Turkish manufacturers use modern technology facilities and continue to invest in order

to respond both to domestic and export opportunities.

The industry has developed in parallel with the development of furniture and

construction.

Laminate parquet, which accounts for one-third of domestic consumption of MDF, is

preferred by Turkish contractors and end-users for building renovation due to its easy

application and price advantage compared with solid flooring.

In recent years, there have been discussions over the problems associated with

formaldehyde emission during the manufacturing process. However, manufacturers told

IBS that they do not expect an early change as a result of health and environmental

concerns. “We do not foresee changes to legislative pressure that will make it necessary

to adapt our production process,” one manufacturer said. Companies manufacture

fibreboard products in accordance with the current quality standards such as ISO 9001,

ISO 9002, ISO 14000, OHSAS 18001 ve SA 8000. Some sources suggest bonding

agents such as plaster as an alternative to current chemicals.

The fibreboard industry expects that the export markets in the Middle East will continue

to be important due to large construction and rehabilitation projects being carried out.

Once the political turmoil in Syria is resolved, the renovation of the country will

IBS 43

provide the fibreboard industry with large opportunities. In the meantime, developments

in Iran, Iraq and Libya could compensate for difficulties in Egypt.

The major problem of the industry is obtaining competitively priced raw materials.

According to ORSIAD, wood prices in Turkey are twice the prices in Europe and three

times those in the USA, Canada, Ukraine and Russia. The General Directorate of

Forestry has high production costs (low productivity, subsidies to the villagers etc.).

These and the taxes described above make raw material supply more expensive and the

sector less competitive.

The Customs Union agreement with the European Union is another threat for the local

industry. Cheap imports from Germany, Romania and Switzerland can be made by road.

Indeed, Turkish companies like Kastamonu Entegre and Yildiz Entegre have production

facilities in Bulgaria and Ukraine. These companies also bring in wood and chips from

Brazil, Canada and the USA. Some other local companies have affiliates in Romania.

4.1.4 MARKET OPPORTUNITIES FOR CANADIAN PRODUCERS

In 2013, fibreboard imports amounted to $302 Mn of which only $73,000 was sourced

from Canada - a fraction of Canada’s $234 Mn fibreboard exports. Though it seems

there is a market opportunity in Turkey for Canadian fibreboard producers, Germany, in

particular, and European companies, in general, have built up a strong position in the

Turkish market.

Geographical proximity and relatively competitive pricing of European and other

neighbouring suppliers are the main challenges Canadian suppliers have to face. One of

the major fibreboard manufacturers told IBS that Canada was one of their primary

suppliers of wood chip and that the Canadian wood industry supplied high quality wood

chip at competitive prices.

He suggested that to gain a higher market share, the Canadians could think about

cheaper transportation options: “Turkey is open to high quality products.”

Table 39: Turkish fibreboard imports from Canada, 2008-2013 (quantity and value)

Code Product name 2008 2009 2010 2011 2012 2013

Tonnes

441114 MDF of wood thickness > 9 mm - - - 1 - 3

441192 Fibreboard of wood or other ligneous materials, whether or not agglom. 47 67 88 263 - 44

441194 Fibreboard of wood or other ligneous materials, whether or not agglom. 235 - - - - -

$’000

441114 MDF of wood thickness > 9 mm - - - 17 5 7

441192 Fibreboard of wood or other ligneous materials, whether or not agglom. 55 77 119 426 - 66

441194 Fibreboard of wood or other ligneous materials, whether or not agglom. 237 - - - - -

Source: Trademap, TURKSTAT, 2014 Note: nes – not elsewhere specified

IBS 44

4.2 PARTICLE BOARD

4.2.1 SUPPLY

Production

Turkey is the world’s seventh largest producer of particle board, with a 6% share in

world production.

Particle board, a low-density fibreboard also called chipboard, is made as a three-layer

board in continuous and discontinuous single or multi-layer presses. Most

manufacturers have melamine coating lines, with melamine-surfaced particle board as

the final product. Particle boards have found wide usage since their manufacture allows

use of relatively small size and low value timbers.

Table 40: World particleboard production (000 m3)

Country name 2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

United States 18,164 16,112 14,600 14,700 15,265 21% -4%

Germany 9,174 9,277 7,634 6,940 6,838 10% -7%

Russia 5,751 4,562 5,429 6,634 6,753 9% 4%

Canada 7,976 5,539 6,157 6,369 6,700 9% -4%

Poland 5,081 4,704 4,684 4,917 4,870 7% -1%

France 4,525 3,680 4,170 4,378 4,258 6% -2%

Turkey 3,181 2,350 3,100 3,620 3,950 6% 6%

Italy 3,350 2,700 3,016 2,976 2,588 4% -6%

Romania 1,371 1,365 2,140 2,223 2,292 3% 14%

Austria 2,500 2,100 2,200 2,250 2,250 3% -3%

Others 17,923 14,979 16,621 16,107 15,403 22% -4%

Total 78,997 67,368 69,751 71,114 71,168 100% -3%


According to recent FAO statistics, world particle board production in 2012 is estimated

at 71 Mn cubic meters with the top four countries (USA, Germany, Russia and Canada)

accounting for half of the total. Among the top 10 particle board manufacturing

countries, only Russia, Turkey and Romania recorded positive CAGR in the last five

years, i.e. 4%, 6% and 14% respectively.

Manufacturers

Turkey has a production capacity of 5.5 Mn cubic metres of particle board per year. The

largest unit in Turkey is Starwood in Bursa, which has a capacity of 912,000 cubic

metres per year: it also has a capacity of 192,000 cubic metres per year of fibreboard.

The major five producers account for 58% of installed capacity for particle board. Only

two relatively small Turkish producers have the ability to produce OSB, with its various

product advantages.

IBS 45

Table 41: Manufacturers of particle board by capacity, 2014, cubic metres

Manufacturer Plant location Fibreboard Particle board

Starwood Bursa 192,000 912,000

Orma Isparta

672,000

Yıldız Sunta MDF İzmit 576,000 544,000

Kastamonu Entegre Balıkesir

544,000

Yıldız Entegre Manisa

544,000

Kastamonu Entegre Gebze 432,000 480,000

Yıldız Entegre (Mudurnu 1) Bolu

368,000

Kastamonu Entegre Kastamonu 384,000 214,400

Kastamonu Entegre Samsun

176,000

Kastamonu Entegre Mersin

160,000

Teverpan MDF Tekirdag 89,600 144,000

Dengizekler İzmir

96,000

Koyuncuoğlu Kütahya

96,000

Küpeliler Eskişehir

96,000

Merkez Sunta Bursa

96,000

S.F.C. (OSB) Kastamonu

96,000

Serdar Agac Bursa

96,000

S.F.C. Kastamonu 152,000 64,000

Vezir Agac Samsun 192,000 56,000

Sumaş (OSB) Balıkesir

48,000

Gentaş Bolu

30,720

Total

2,017,600 5,533,120

Source: ORSIAD, 2014

Bursa province has the largest particle board production capacity in Turkey, 25.7%.

This is mostly due to the concentration of the furniture industry in Bursa, clustered in

nearby Inegol. The Marmara region as a whole accounts for 60% of particle board

production capacity. The Black Sea region follows with a 17% share.

Table 42: Regional and provincial concentration of particle board producers, 2014

Region Province

Established.

Capacity (m3) Share

Marmara Bursa 1,020,000 25.7%

Marmara Balikesir 597,000 15.0%

Marmara Izmit 510,000 12.8%

Black Sea Kastamonu 255,000 6.4%

Marmara Tekirdag 240,000 6.0%

Mediterranean Isparta 225,000 5.7%

Black Sea Samsun, Sinop 226,000 5.7%

Middle Anatolia Kayseri 180,000 4.5%

Black Sea Zonguldak, Bolu 172,800 4.4%

Mediterranean Mersin 150,000 3.8%

Aegean Izmir 90,000 2.3%

Aegean Kutahya 90,000 2.3%

Aegean Manisa 90,000 2.3%

Middle Anatolia Eskisehir 75,000 1.9%

Black Sea Giresun 51,000 1.3%

TOTAL (As of 2009) 3,971,800

Source: TOBB, 2010

IBS 46

Raw materials – for fibre board and particle board

The main raw materials for production of fibre board and particle board are similar, and

are classified together by Turkey’s General Directorate of Forestry, as well as in

international trade statistics. As described above, there is also a considerable overlap in

manufacturing capacity. The combined raw material situation was described in Section

4.1.1 above.

Duzce University in Turkey developed a project to produce particle board from cotton

straw in 2013. The project team in the university claimed that cotton farming in Turkey

is carried out over 700,000 hectares of land and 3.5 Mn tonnes of cotton straw is not

utilized efficiently and is considered to be waste. The team succeeded in producing

particle board from this waste instead of from wood based chips and particles. The team

claims that 30 Mn tonnes of agricultural waste is generated in Turkey annually and

could be used as a raw material for particle board and fibreboard. The project aimed at

producing light weight particle board which could be used in the construction sector for

insulation, in addition to traditional use in the furniture industry.

Apart from conventional production techniques and usage potential, industry sources

claim that traditional urea formaldehyde-based resins which have been the standard

binders used to glue the particles have begun to be challenged by alternative resin

binders such as soy-based resin technology. Urea formaldehyde-based resins were

recently criticised for their health hazards. On the contrary, soy-based resins are

renewable sources which are not expected to have health impacts as significant as the

formaldehyde binders.

Species

Pine and poplar are the most common species used in this product. Birch (particularly

Betula verrucosa), southern pines (Pinus palustris, Pinus echinata, Pinus elliottii and

Pinus taeda), red maple (Acer rubrum), Sweetgum (Liquidambar styraciflua), yellow

poplar, (Liriodendron tulipifera) and western red cedar (Thuja plicata) are the preferred

American and Canadian species, according to IBS interviews.

Imports of particle board

Turkey mainly imports Oriented Strand Board (OSB) and the closely related

waferboard. Romania and Bulgaria are lead supplies to Turkey of particle board,

together accounting for over 85% of Turkey’s supplies in both volume and value terms.

IBS 47

Table 43: Particle board imports by country 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Romania 8,004 4,015 16,225 10,895 43,292 52,438 47% 46%

Bulgaria 15,490 32,768 46,292 45,249 46,623 43,586 39% 23%

Germany 1,930 5,883 2,109 5,176 1,616 4,238 4% 17%

Italy 2,895 1,810 2,484 3,119 3,027 4,233 4% 8%

Greece 4,683 3,981 8,453 8,429 5,341 2,172 2% -14%

United Kingdom 5,441 5,323 - 2,846 3,872 1,471 1% -23%

Ireland - - 92 - 1,677 693 1% 96%

Serbia - - 1,772 1,505 3,910 692 1% -27%

China 397 78 337 1,039 492 247 0% -9%

Belgium 260 217 354 59 107 233 0% -2%

Austria 69 62 37 68 165 93 0% 6%

USA 13,426 382 2,177 3,715 362 91 0% -63%

Poland 97 11 - 13 14 76 0% -5%

Spain 867 - 15 29 204 67 0% -40%

Netherlands 3 - 58 - 3 35 0% 63%

Canada 3,483 2,577 5,582 6,371 560 - 0% -100%

Others 2,525 2,165 789 1,202 491 40 0% -56%

Total 59,570 59,272 86,776 89,715 111,756 110,405 100% 13%


The unit value of imports from Germany at $802 per tonne was high compared to

Turkey’s average unit import price of $375 in 2012. Since 2011, there has been a sharp

increase in the volume of Romanian exports to Turkey. Turkish investments in

Romania, including those by Kastamonu Entegre, are a major driver for the increase in

imports from Romania.

Up to 2011, Canada was one of Turkey’s top five particle board suppliers. Industry

sources informed IBS that the sharp decline in exports from US and Canada to Turkey

followed an anti-dumping investigation filed in 2009 by a local OSB producer, Sumas.

Table 44: Particle board import by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonnes

2012

Romania 26,234 13,289 54,821 24,612 119,554 138,954 52% 40% 362

Bulgaria 39,844 85,381 111,062 99,981 120,909 99,088 37% 20% 386

Greece 12,629 12,501 30,748 28,035 16,342 6,664 3% -12% 327

Germany 1,923 11,532 3,151 7,102 2,015 6,480 2% 28% 802

Italy 3,850 1,979 3,119 3,084 5,036 5,995 2% 9% 601

Serbia 0 0 9,570 6,571 15,533 2,969 1% -32% 252

UK 13,400 12,490 0 5,104 8,728 2,831 1% -27% 444

Ireland 0 0 205 0 4,279 1,340 1% 87% 392

Belgium 247 473 603 94 153 423 0% 11% 699

China 457 139 571 1,587 529 375 0% -4% 930

USA 42,391 1,273 6,304 10,338 1,282 225 0% -65% 282

Canada 9,484 7,778 13,829 15,849 1,488 0 0% -100% 376

Others 6,881 5,768 1,825 2,685 1,924 397 0% -43%

Total 157,343 152,602 235,808 205,041 297,773 265,741 100% 11% 375


IBS 48

Waferboard and OSB are the major product groups imported as particle board,

accounting for respectively 54% and 46% of imports in 2012. In practice, the market

considers there is little difference between these products which tend both to be referred

to as OSB. The share of other particle board types is negligible.

Table 45: Segmentation of imported particle boards, 2008-2012, $’000

2008 2009 2010 2011 2012

441011 Waferboard, including OSB of wood 21,328 17,424 36,991 32,867 60,292

441012 OSB of wood 36,057 39,294 47,963 56,221 51,021

441019 Particle board of wood nes 1,830 2,506 1,721 599 436

441090 Particle board of other ligneous materials 355 47 100 28 7

Total 59,570 59,271 86,775 89,715 111,756



Manufacturers sell to both dealers/distributors and large scale contractors.

Figure 14: Particle board distribution chain

The small and medium size contractors, furniture manufacturers and other industries

purchase mainly from the distributors.

Credit terms and usage of quotas are similar to those described for fibre board in

Section 4.1.1 above.

Particle board retail prices in the domestic market have fallen in US dollar terms to

$201 per cubic metre in 2013.

IBS 49

Figure 15: Particle board domestic sales prices, 2008-2013, $/m3



In 2012, Turkish consumption of particle board was 4.1 Mn m3, with imports in and

waferboard and OSB important as local production is limited. Between 2008 and 2012,

consumption showed a CAGR of 7.3%.

Table 46: Particle board market 2008-2012, 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Production 3,181 2,350 3,100 3,620 3,950 5.6%

Imports 239 244 367 332 478 18.9%

Exports 320 254 264 317 320 0.0%

Consumption 3,100 2,340 3,203 3,635 4,108 7.3%


IBS estimates that in 2012 the domestic particle board market totalled $864 Mn of

which 13% was supplied through imports. Local production of particle board has a

slower growth record than fibreboard due to the increase in Romanian and Bulgarian

exports to Turkey, particularly in the last four years, due to cost and transportation

advantages.

Table 47: Particle board market, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

2008-12

Production 844 538 669 770 826 -0.5%

Imports 60 59 85 89 112 16.9%

Exports 93 64 63 74 74 -5.6%

Consumption 811 534 691 785 864 1.6%

Source: IBS analysis

IBS 50

Forecasts

IBS forecasts that overall consumption will reach $1.1 Bn in 2017, with a CAGR of

5.3% during the period. The industry is vulnerable to imports due to the cost advantage

of imports from Eastern European countries. Industry sources do not expect significant

capacity increases in Turkey in the near future. The share of imports is expected to rise

from its current level of around 12% to 16%.

Table 48: Particle board industry forecast, 2013-2017

2013e 2014f 2015f 2016f 2017f

CAGR

2013-17

Production (000 m3) 4,108 4,272 4,443 4,621 4,806 4.0%

Production ($’000) 860 895 932 970 1,010 4.1%

Exports (000 m3) 332 339 345 352 359 2.0%

Exports ($’000) 80 82 84 86 88 2.5%

Imports (m3) 430 495 569 654 752 15.0%

Imports ($’000) 110 123 138 153 171 11.6%

Consumption (000 m3) 4,206 4,428 4,666 4,923 5,198 5.4%

Consumption ($’000) 890 936 985 1,037 1,093 5.3%

(e) estimate, (f) forecast



Particle board is used in a wide range of areas such as residential and non-residential

repair and construction, roof covering, and furniture. Among these, residential and

commercial construction consumes the greatest share.

In this regard, the continuing growth predicted in the Turkish real estate and

construction sectors provides the greatest potential market for particle board production.

There are some technological changes in the industry which would affect the market in

the near future. Chips and particles, which have been traditional raw material for

particle board, are challenged by more organic and sustainable sources such as food and

agricultural wastes. As exemplified in the raw material section above, the industry, in

cooperation with the universities, seeks to develop particle board from different sources.

Such developments would also introduce newer uses for particle board, for example as

insulation board.

Cement-based particle board will also be particularly popular in the near future in

prefabricated buildings, according to industry experts.

Such developments would adversely affect Canadian exports of chips and particles in

the near future.

OSB is expected to become a substitute for plywood. Costs are rising faster for plywood

than for OSB which is more flexible in the type of logs required. However, as outlined

in the plywood section, the overall demand for plywood is not expected to decrease

significantly due to wider usage.

IBS 51


Turkey’s key particle board import from Canada has been OSB. Canadian exports of

this board to Turkey amounted to $6.4 Mn in 2011, but fell to one-tenth of that in 2012

and to zero in 2013. That year Turkish OSB imports totalled $51 Mn, while Canadian

OSB exports to the world amounted to $885 Mn.

In market practice, there is little differentiation between OSB and the closely-related

waferboard. Canada has not exported waferboard to Turkey since 2008, whereas

Turkish imports have developed to an annual $60 Mn.

Turkey introduced 15% import duty on OSB exports from Canada (and 24% duty on

exports from the USA) as of 2012 following an investigation application by a local OSB

manufacturer, Sumas A.S. IBS discovered that during the investigation phase the import

department of the Ministry of Economy sent a questionnaire to Canadian and American

companies in order to probe the grounds of Sumas’ application, but stated that no

response was received.

The official expiry date of the anti-dumping levy on OSB imports from Canada and the

USA was the end of 2013. As the industry applied for the extension of the anti-dumping

measure, the Ministry is currently investigating the terms and conditions. The

investigation is planned to be completed in four months as the maximum duration for an

investigation is 18 months. The measures will continue to be valid during the

investigation phase.

Turkey’s anti-dumping levy on US and Canadian OSB imports is hindering imports

from these countries. One industry source advised Canadian companies to make more

effort to lobby the Turkish government to ease this trade barrier since several traders

believe that OSB will have wider application areas in the future as a substitute for

plywood. For this reason, local traders suggest Canadian exporters would be well

advised to “keep their foot in the Turkish market”.

Table 49: Turkish particle board imports from Canada, 2008-2013

Code Product name 2008 2009 2010 2011 2012 2013

Tonnes

441011 Waferboard, including OSB of wood 1,298 0 0 0 0 0

441012 OSB of wood 8,186 7,778 13,829 15,849 1,488 0

441019 Particle board of wood nes 0 0 0 0 1 0

‘000 $

441011 Waferboard, including OSB of wood 496 0 0 0 0 0

441012 OSB of wood 2,987 2,577 5,582 6,371 557 0

441019 Particle board of wood nes 0 0 0 0 3 0


IBS 52

4.3 VENEER

Turkey is a minor producer of veneer, with production in 2012 of 85,000 cubic metres.

Of this production, it exported 21,000 cubic metres. Its imports that year were three

times the level of exports, totalling 64,000 tonnes.

As in other countries, veneer sheets are mostly used as a coating material on more

modest materials such as plywood. The main domestic species used in the production of

veneer are walnut, ash, oak, beech, plane, and maple. Imports include a range of African

hardwoods.

In terms of production costs, Turkey is competitive with European Union countries,

according to sector experts. Italian and other European companies were obtaining

veneer from Turkish mills and using it in their domestic markets. Some Turkish firms

are operating veneer manufacturing facilities in neighbouring countries such as Ukraine,

taking advantage of the low production costs in these countries.

4.3.1 SUPPLY

Current production

World veneer production in 2012 was 12 Mn m3 and has been stable in the last five

years, according to recent FAO statistics.

Table 50: World veneer production, 2008-2012, 000 m3

Country Name 2008 2009 2010 2011 2012

Share

2012

CAGR

2008-

2012

China 3,000 3,000 3,000 3,000 3,000 25% 0.0%

Indonesia 427 685 737 816 891 7% 20.2%

Malaysia 1,005 821 798 833 766 6% -6.6%

New Zealand 513 488 463 688 708 6% 8.4%

Russia 299 318 320 527 572 5% 17.6%

Brazil 550 550 550 550 550 5% 0.0%

Canada 500 450 450 500 550 5% 2.4%

USA 400 400 400 400 400 3% 0.0%

Mexico 350 350 350 350 350 3% 0.0%

Gabon 202 183 282 296 296 2% 10.0%

Turkey 96 82 96 88 85 1% -3.0%

Others 4,859 4,745 4,607 4,409 4,212 35% -3.5%

Total 12,201 11,893 11,884 12,285 12,172 100% -0.1%


China is by far the largest veneer producer in the world, producing 25% of world

output. Indonesia, Romania and Russia have recorded the fastest growth rates in the last

five years, with CAGRs respectively of 16%, 32% and 15%.

In 2012, Turkey ranked 25th

in world veneer production and produced 85,000 m3

veneer, accounting for 1% of world output. Production in Turkey has been declining

slightly, by 2% per year during the last five years. This is mostly due to the introduction

of cheaper substitute products such as laminated MDF.

IBS 53

Manufacturers and geographical concentration

There are 20 companies in the veneer industry in Turkey with a total capacity of

178,000 m3 per year for veneer production, according to recent research carried out by

the Middle Anatolia Wood and Forestry Products Exporters’ Union. IBS identified 20

veneer producers active in 2010. All are small and medium sized companies.

Table 51: Veneer production facilities in Turkey, 2010

Company Name Plant location # of personnel

Masif Kaplama ve Kereste Düzce 125

Milano Ağaç Kaplama Balıkesir 100

Arın Orman Ürünleri Düzce 78

Kapsan Kaplama Düzce 77

Dastaş Demircioğlu Sakarya 73

Haşep Kaplama Düzce 67

Erbaa Kaplama Tokat 49

Düzkap Ağaç Mamulleri Düzce 47

Akyüz Orman Ürünleri Düzce 46

Başoğlu Orman Ürünleri Zonguldak 44

Burhan Celik Bolu 43

Bilsan Ağaç Kaplama Düzce 39

Kaya Kaplama Düzce 24

Sunka Orman Ürünleri Kayseri 23

Meskap Ağaç Kaplama Düzce 22

Mercanlar Parke Kereste Düzce 18

Bulut Kontraplak Kastamonu 16

Hüsamettin Ustüner Ankara 14

Severler Kaplama Bursa 14

Karebant Istanbul 3

* As of 2009

Source: TOBB Industry Inventory, 2010

The producers are concentrated in the provinces of Duzce, Bursa and Bolu. Companies

registered as veneer producers also produce other wood products, such as plywood, and

timber etc.

The industry mostly comprises small-sized companies using simple production

technologies which result in low production quality and a limited product range. For

that reason, many Turkish furniture manufacturers tend to import veneer.

Species

The preferred veneer species in Turkey are beech, chestnut, mahogany, birch, various

oaks (American, red, milling and European), rosewood, American cherry, Canadian

maple (often referred to as North American maple in Turkey), red cedar, pine, walnut,

white ash and African hardwoods such as afrormosia, anigre, limba, ovengkol and

wenge.

Among this, Canadian maple is largely preferred due to its dense fibrous structure

which allows colour adjustments to be applied. In general, light colours of veneer are

preferred in musical instruments and luxury furniture.

IBS 54

Import

Turkish imports of veneer totalled $41.2 Mn and 41,400 tonnes in 2013. In value terms,

they have been growing at 4.8% per year and in volume terms at 17.2% per year. The

major suppliers in 2013 in value terms were China and the USA.

Table 52: Veneer imports by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

China 9,329 6,418 8,506 12,270 8,488 8,471 21% -1.9%

USA 5,411 2,049 4,319 4,452 7,278 8,121 20% 8.5%

Romania 2,210 1,448 2,074 3,472 4,093 4,551 11% 15.5%

Italy 2,892 2,520 2,075 2,198 3,434 2,879 7% -0.1%

Gabon 590 414 596 2,220 3,202 2,585 6% 34.4%

Ukraine 1,449 971 1,823 1,376 3,026 2,335 6% 10.0%

Finland 3,142 1,545 2,243 2,792 1,633 2,225 5% -6.7%

Brazil 149 702 646 2,452 1,912 2,220 5% 71.6%

Bulgaria 763 640 675 884 895 1,954 5% 20.7%

Germany 3,500 1,449 1,961 1,782 958 1,125 3% -20.3%

Others 2,643 1,768 2,409 4,076 3,270 3,805 9% 7.6%

Total 32,532 20,291 27,867 38,303 39,409 41,155 100% 4.8%


By volume, Romania, Bulgaria, and Ukraine together accounted for half of Turkey’s

imports in 2013.

Turkish imports from China have been decreasing since 2011 while imports from the

USA have been increasing gradually since 2009. The sector companies and experts

explained the main reason behind this was increasing demand for high-quality

American species such as cherry, walnut, and red and white oak, and Canadian maple

(IBS could not verify re-export of Canadian maple veneer from China). The reason for

the decline in Chinese exports is that China produces veneer from tropical woods and it

may have trouble in sourcing wood from tropical countries, according to one industry

source.

Table 53: Veneer imports by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2013

Romania 4,106 3,181 4,982 7,674 9,571 8,880 21% 16.7% 428

Bulgaria 2,134 2,018 2,405 2,874 3,024 7,019 17% 26.9% 296

Ukraine 1,916 1,912 3,643 2,602 5,737 5,589 13% 23.9% 527

Brazil 55 163 301 3,889 3,103 4,077 10% 136.6% 616

Russia 813 569 942 580 3,047 2,586 6% 26.0% 401

China 2,339 1,891 2,678 3,595 2,543 2,567 6% 1.9% 3,398

Gabon 758 582 532 2,477 4,265 2,311 6% 25.0% 751

USA 1,390 469 798 756 1,419 1,818 4% 5.5% 5,129

Finland 1,791 861 1,398 1,646 1,039 1,378 3% -5.1% 1,572

Macedonia 0 23 0 0 227 1,053 3% 160.1% 251

Others 3,430 2,122 1,518 2,565 3,656 4,136 10% 3.8%

World 18,731 13,795 19,198 28,657 37,632 41,413 100% 17.2% 1,047


IBS 55

Veneer imports are mainly from non-coniferous wood and accounted for 75% of

imports in volume terms in 2013.

Table 54: Veneer imports by wood type, 2008-2013, tonnes

Product name 2008 2009 2010 2011 2012 2013

440890 Veneer, non-coniferous nes, less than 6 mm thick 13,945 10,799 15,713 18,154 24,560 31,333

440810 Veneer, coniferous (softwood) less than 6 mm thick 3,301 2,021 2,305 7,109 7,866 6,591

440839 Veneer, tropical woods nes, <6mm thick 1,440 950 1,146 3,251 5,123 3,444

440831 Veneer, meranti red (dark red, light red, bakau) <6mm 45 25 33 144 82 46



Veneer manufacturers initially procure logs and process them to produce veneer. The

resulting veneer is sold to furniture, door, and panel manufacturers, as well as to interior

decorators, architects, carpentry stores, merchants and others that use veneer for various

purposes.

Figure 16: Veneer distribution chain

Veneer products are not commonly sold in DIY stores. Most veneer manufacturers are

SMEs and they mostly market and sell their products directly to the market. Retailing or

selling through a distributor is not common, but some wood product distributors also

sell veneer to end users, mostly in small quantities.

Trade terms are similar to those in fibreboard described above.

Veneer prices weakened in 2009 and 2010 reflecting the economic turndown in 2009.

Then prices went up again with the recovery of the economy. Veneer prices were the

most vulnerable to market conditions and were most affected by Chinese imports.

Veneer retail prices in the domestic market were $1,025 per m3 in 2013, according to

interviews carried out by IBS. The influx of low-cost Bulgarian and Russian veneer

contributed to the fall in prices compared with 2012.

IBS 56

Figure 17: Veneer domestic sales prices, 2008-2013, $/m3



In 2012, 127,600 m3 of veneer was used in Turkey with nearly half of this supplied via

imports. Consumption has recovered since the fall in 2009, the year of the post-Lehman

financial crisis. In 2012, in volume terms it was one-fifth higher than in 2008.

Table 55: Veneer market in Turkey, 2008-2012, 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Production 96.0 82.0 96.0 88.0 85.0 -3.0%

Imports 30.0 21.6 42.9 51.0 64.0 20.9%

Exports 20.8 17.7 21.8 20.4 21.4 0.7%

Consumption 105.2 85.9 117.1 118.6 127.6 4.9%


This market had a value of $114 Mn, with this figure relatively stable in recent years,

apart from 2009.

Table 56: Veneer market in Turkey, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

2008-12

Production 114 91 102 100 102 -2.7%

Imports 33 20 28 38 39 4.3%

Exports 27 21 25 25 28 0.9%

Consumption 120 90 105 113 114 -1.3%


Domestic production has been falling slightly, in both volume and value terms.

Imports have been growing considerably in volume terms – 20.9% per year between

2008 and 2012 - and less in value terms – 4.3% per year largely due to cheaper options

IBS 57

from Romania and Bulgaria. In 2013, Turkey’s veneer imports were 41,400 tonnes,

valued at $41.2 Mn.

Forecasts

Veneer is one of the key inputs for the furniture industry in Turkey. Companies in the

sector and experts forecast that the sector will grow in parallel with the Turkish

furniture industry. IBS expects domestic consumption to reach $148 Mn by 2017, with a

CAGR of 5.4% in value and of 7.3% in volume terms.

Table 57: Veneer industry forecasts, 2013-2017

2013e 2014f 2015f 2016f 2017f

CAGR

2013-17

Production (000 m3) 86 87 88 88 89 1.0%

Production ($ Mn) 103 104 105 106 107 0.9%

Exports (000 m

3) 29 29 29 29 30 1.0%

Exports ($ Mn) 24 24 24 25 25 1.0%

Imports (m

3) 72 80 89 99 111 11.6%

Imports ($ Mn) 41 46 52 59 66 12.7%

Consumption (000 m

3) 129 138 147 158 170 7.3%

Consumption ($ Mn) 120 126 133 140 148 5.4%



Turkey continues to show strong and growing demand for veneer due to its strong and

established wood product industry and exports of furniture and wood products to more

than a hundred countries. Given that the construction sector, one of the largest

contributors to Turkey’s GDP, is a large consumer of imported wood products, the

industry claims that this will lead to greater demand for veneer, in particular for imports.


Representatives of the veneer and furniture industries claim that high-definition textured

laminates have begun to impact the market. One of the leading veneer manufacturers

told IBS that veneer manufacturers are planning to improve and automate production,

and introduce rustic and textured styles.

Some furniture manufacturers also said that veneers from ash and oak area highly

demanded by their industry. Particularly oak species such as Northern red oak and

English oak which provide a lighter shade of wood in a vintage look for furniture and

wall coverings are preferred in kitchen cabinets, restaurants and offices furniture.

The demand for retro designed furniture is currently increasing in Turkey and veneers

from oak, ash and sycamore as well as maple are demanded, according to a leading

furniture manufacturer in Turkey. Turkish veneer manufacturers mostly produce

standard veneers and offer few alternatives. Furniture manufacturers visit the facilities

of a veneer manufacturer, review the products available, and purchase the best available

option for their furniture projects. But they complain about the limited options offered

IBS 58

as well as veneer manufacturers’ lack of ability to respond to requests for alternative

specifications.


In the past six years, Turkey had limited imports of veneer from Canada and did not

export any veneer to Canada. The main product that Canada exported to Turkey was

non-coniferous wood veneer, mostly of maple. However, there has been no trade

between the two countries in the last two years in this sub-category.

Table 58: Turkish veneer imports from Canada, 2008-2013

Product name 2008 2009 2010 2011 2012 2013

(tonnes) 440810 Veneer, coniferous (softwood) less than 6 mm thick 0 0 0 1 0 4

440890 Veneer, non-coniferous nes, less than 6 mm thick 105 38 18 5 0 0

($’000)

440810 Veneer, coniferous (softwood) less than 6 mm thick 0 0 0 13 0 21

440890 Veneer, non-coniferous nes, less than 6 mm thick 449 118 22 21 0 0


Canada’s veneer exports to Turkey are a minimal share of its overall exports to the

world of $250 Mn and of Turkish veneer imports of $41 Mn. By contrast, the USA is

Turkey’s second largest veneer supplier in value terms, selling $8.1 Mn in 2013.

The profile of Canada is limited in contrast with the high reputation of Canadian

supplies. One manufacturer said that veneer from Canadian red cedar is highly

appreciated for its authentic colour, colour consistency, durability and strong physical

properties, in addition to easy application. Canadian companies are described as losing

market opportunities in Turkey due to their low profile. Market players suggest that

increasing Canadian marketing activities, including participation in trade fairs and

relevant events, would contribute to higher sales in this area.

Canadian veneer manufacturers could concentrate on marketing alternative styles of

veneer (rustic, textured, glossy etc.) to the Turkish furniture industry. The more rapid

growth of imports than of production indicates that consumers are looking for new and

alternative products in this area. Traders say this particularly applies to the furniture

industry.

IBS 59

4.4 PLYWOOD

Turkey had a plywood market of $382 Mn (369,000 m3) in 2012. Domestic production

contributed $97 Mn (116,000 m3) of this, while 80% of demand was met by imports.

There are few exports.

The plywood manufactured in Turkey is produced from poplar, beech, pine, eucalyptus

and redwood trees using the dry system. These products have a lower degree of

durability to water, and consequently are considered to be less durable compared with

the boards (fibre and particle). The main usages in Turkey are in construction, yacht

building10 and packaging.

4.4.1 SUPPLY

Production

Production of plywood was 116,000 m3 in 2012, slightly above the 108,000 m³ recorded

in 2008. In 2012, demand far exceeded this and in 2012 Turkey imported 268,200 m³ of

plywood.

Table 59: World plywood production, 2008-2012, 000 m3

2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

China 35,409 44,512 44,512 44,512 44,512 52.0% 5.9%

USA 10,376 8,934 9,397 9,365 9,493 11.1% -2.2%

Indonesia 4,150 4,150 4,850 4,850 5,178 6.1% 5.7%

Malaysia 4,837 3,901 4,285 3,887 3,887 4.5% -5.3%

Russia 2,592 2,107 2,689 3,040 3,146 3.7% 5.0%

India 2,154 2,521 2,521 2,521 2,521 2.9% 4.0%

Japan 2,586 2,287 2,645 2,486 2,459 2.9% -1.3%

Brazil 2,669 2,197 2,300 2,456 2,456 2.9% -2.1%

Canada 2,225 1,810 2,005 1,794 1,824 2.1% -4.8%

Finland 1,273 800 980 1,010 1,020 1.2% -5.4%

Turkey 111 100 110 115 116 0.1% 1.1%

Others 9,011 8,320 8,683 9,192 8,964 10.5% -0.1%

Total 77,393 81,639 84,977 85,228 85,576 100% 2.5%


According to recent FAO statistics, world plywood production in 2012 was 85.5 Mn

cubic meters with the top 10 countries producing 90% of the total. China alone

produced more than half of plywood in 2012. Turkey ranks 38th

, with a share of 0.9% in

world production.

10

Turkey’s manufacturers of yachts and leisure boats achieved $250 million export in the last

three years. Sector experts estimate that markets size for overall yachts and leisure boats

industry in Turkey is around $1 billion including domestic sales, repair and maintenance,

and other financial services including insurance and brokerage.

IBS 60

Manufacturers

55 companies manufacture plywood and have a total capacity of 250,000 m3/year,

according to a survey carried out by the Central Anatolia Wood and Forestry Products

Exporters’ Union in 2013. The table below lists the companies registered in an earlier

(2010) survey by the TOBB, the Union of Chambers of Commerce and Industry This

recorded 45 companies as submitting capacity reports, and having a total of 218,300

m3/year in 2009.

Table 60: Plywood production facilities in Turkey, 2010

Company name Province

# of

personnel


# of

personnel

Vezirköprü Orman Ürünleri Samsun 379 Cont'd

Çağ Orman Ürünleri Kastamonu 172 Demirtaşlar Kereste Sakarya 25

TKS Tosya Ağaç Kastamonu 155 Emin-El Hatay 23

Akça Kontrplak Çorum 139 Sarp Mobilya Sakarya 23

Pelit Arslan Kontrplak İstanbul 119 Deniz Ağaç Trabzon 21

Taşköprü Orman Ürünleri Kastamonu 90 Alaçam Ambalaj Sakarya 20

Aydın Kontrplak Ordu 80 Mes Orman ve Ambalaj Hatay 19

Bayrak Kontraplak Sakarya 60 Sivas Kayalar Sivas 18

Eroğlu Orman Ürünleri Tokat 53 Demircioğlu Kontraplak Sakarya 17

Erbaa Kaplama Sanayi Tokat 49 İpek Orman Ürünleri Hatay 16

Filare Mobilya Kayseri 43 Berkfa Mobilya İzmir 16

Yorüs Orman Ürünleri Karabük 42 Bulut Kontraplak Kastamonu 16

Bahar Orman Ürünleri İstanbul 40 Füm-ser Fümigasyon Antalya 13

Dülger Mobilya Çankırı 39 Taner Entegre Bursa 13

Menta Mobilya Bursa 36 İhsan Pamuk Hatay 13

Kartal Ağaç Sanayi Bartın 34 Belle Lamine Antalya 11

Bayrak Ağaç Sakarya 33 Dalfidan Ağaç Ürünleri Bursa 11

Orkav Orman Ürünleri Bursa 31 Baleno Orman Ürünleri Bursa 11

Kuriş Entegre Kocaeli 31 Balıkesir YK Balıkesir 8

Panel Kontrplak Kütahya 31 Has Lamine İstanbul 7

Anıl Orman Ürünleri Bursa 28 Aydın Biçer Balıkesir 6

Abdulkadir Fişekci Samsun 28 Mefsan Orman Ürünleri Sakarya 5

Akaş Hatay 25


Sakarya, Bursa and Kastamonu are the leading provinces in plywood production. The

companies listed above are registered as plywood producers and also produce similar

products such as veneer and sawn wood. The established capacity above reflects only

the capacity for plywood production revealed in company capacity reports per product.

Production capacity had been as high as 400,000 m³ in 2005, but growing imports of

low priced plywood from China resulted in a 50% fall in domestic production by end-

2006. An anti-dumping investigation introduced in 2006 lasted until 201111 and the

Turkish Government applied an additional duty of $240-300 per m³ (varying by

thickness) on Chinese plywood imports during this period. On July 10, 2012, Turkey

decided to extend this measure for an additional five years.

11

Please see section V for a detailed list and explanation of anti-dumping measures on wood

products.

IBS 61

Before the enforcement of anti-dumping measures many Turkish importers stocked

Chinese plywood and released it onto the market in phases. The current annual domestic

production capacity is approximately 250,000 m³.

Species

Plywood is produced from softwood and hardwood species of trees and the species used

in its manufacture determine the physical and mechanical properties of the plywood. In

Turkey, poplar species, including hybrid poplars and oriental beech are extensively

used.

Companies told IBS that plywood from birch, mostly imported from Russia, provides a

higher degree of durability which makes these products sought after for construction

projects.

Imports

In 2012, Turkey imported 188,884 tonnes of plywood. Russia and Ukraine were the top

two exporters to Turkey. Imports have been growing fast, rising 21% per year in value

terms during the period 2008-2013 and 12.5% in volume terms.

Table 61: Plywood imports and exports, 2008-2013

2008 2009 2010 2011 2012 2013

CAGR

2008-13

Exports ($’000) 22,471 14,917 12,912 14,401 14,050 16,615 -5.9%

Imports ($’000) 126,214 69,697 179,878 272,389 298,861 325,750 20.9%

Exports (tonnes) 14,543 13,145 10,809 10,478 9,591 13,368 -1.7%

Imports (tonnes) 104,626 78,933 121,090 152,685 170,713 188,884 12.5%

Trade Balance($’000) -103,743 -54,780 -166,966 -257,988 -284,811 -309,135 24.4%

Trade Balance (tonnes) -90,083 -65,788 -110,281 -142,207 -161,122 -175,516 14.3%


Russia, Ukraine and Brazil are the top three plywood exporters to Turkey, together

accounting for 65% of Turkey plywood imports in value terms in 2013. During the

2008-2013 period, plywood imports from Brazil decreased and imports from Latvia,

Vietnam and Ukraine increased significantly with a respective CAGR of 262%, 150%

and 63%.

Companies in the sector emphasised that the main reason behind increasing plywood

imports was the increasing demand for fine quality plywood by the construction sector.

IBS 62

Table 62: Plywood imports by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Russia 20,979 26,468 83,883 108,005 140,125 149,352 46% 48.1%

Ukraine 3,012 3,988 11,172 15,555 22,171 35,108 11% 63.4%

Brazil 27,166 12,404 25,177 45,510 30,962 27,014 8% -0.1%

Romania 5,251 2,775 2,750 10,011 17,777 21,386 7% 32.4%

Latvia 31 910 6,982 9,380 15,343 19,279 6% 262.0%

Bulgaria 2,208 2,513 12,030 15,725 16,721 15,120 5% 46.9%

India 10,608 3,305 12,785 22,049 17,862 12,123 4% 2.7%

Finland 8,913 2,669 4,262 7,835 9,658 11,927 4% 6.0%

Viet Nam 118 239 3,297 2,618 5,496 11,346 3% 149.2%

Malaysia 10,985 3,278 2,430 10,907 3,895 4,882 1% -15.0%

Others 36,946 11,151 15,109 24,794 18,851 18,212 6% -13.2%

Total 126,214 69,697 179,878 272,389 298,861 325,750 100% 20.9%


In volume terms, Russia and Ukraine were the leading plywood exporters to Turkey.

The two countries combined provided 61% of plywood imports in 2013. The highest

growth in Turkey’s plywood imports in the last five years was from Latvia and

Vietnam.

Table 63: Plywood imports by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2013

Russia 18,611 32,164 59,573 67,196 86,789 92,301 49% 37.7% 1,615

Ukraine 2,747 5,007 8,283 9,845 14,026 22,132 12% 51.8% 1,581

Brazil 23,722 15,197 14,937 21,962 15,250 13,485 7% -10.7% 2,030

Latvia 25 857 4,919 5,817 9,621 12,148 6% 244.6% 1,595

Romania 4,360 4,643 1,794 5,822 9,672 11,178 6% 20.7% 1,838

India 12,021 5,060 10,019 12,436 9,466 7,183 4% -9.8% 1,887

Bulgaria 1,618 2,356 6,970 7,400 7,707 6,946 4% 33.8% 2,170

Finland 4,399 1,443 2,201 3,877 4,915 6,330 3% 7.5% 1,965

Viet Nam 130 364 1,905 1,519 2,955 6,233 3% 116.8% 1,860

Malaysia 10,036 3,975 1,643 5,968 2,113 2,469 1% -24.5% 1,843

Others 26,956 7,864 8,845 10,843 8,200 8,480 4% -20.6%

Total 104,626 78,933 121,090 152,685 170,713 188,884 100% 12.5% 1,751


In recent years, local manufacturers have established production facilities in Romania,

Ukraine and Russia where the necessary raw material is plentiful and cheap. In these

facilities, thin wood sheets (called papel) are produced and shipped to Turkey to

produce plywood within Turkey. These sheets are imported under different HS codes

by different sawmills and traders and detailed figures do not exist, according to

KONUDER. The association has been collecting figures on this trade from

manufacturers and plans to announce them by June 2014. Its initial estimates are that

imports are 40,000-45,000 cubic meters in 2013, with a value of $7-8 Mn.

IBS 63


There are two main channels for plywood sales: direct to end users such as furniture

manufacturers, contractors and industrial users, and via dealers or distributors to other

users.

Figure 18: Plywood distribution chain

Small-scale furniture workshops and other end users mainly purchase from the

distributors. Plywood is not commonly sold in DIY stores or small shops. Trade

payment and credit terms are as for fibreboard.

Plywood prices dropped in 2009 following the global economic turndown. Then prices

went up again with the recovery of the economy.

The plywood retail price in the domestic market was $788 per m3 in 2013, but according

to IBS interviews in March 2014 it was around $1,000 per m3.

Figure 19: Plywood domestic sales prices (m3/$)

IBS 64


In 2012, the plywood market size was 369,000 m3, with 72% of that volume supplied

through imports. Domestic production was 116,000 m3 with only 10% of this exported,

a share which has been decreasing in recent years.

Table 64: Plywood market, 2008-2012, 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Production 111.0 100.0 110.0 115.0 116.0 1.1%

Imports 184.0 127.5 190.0 244.0 268.2 9.9%

Exports 24.0 20.7 17.8 17.5 15.4 -10.5%

Consumption 271.0 206.8 282.2 341.5 368.8 8.0%


IBS estimates the domestic market was $382 Mn in 2012, with 78% in value terms

supplied through imports.

Table 65: Plywood market, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

2008-2012

Production 96 66 30 87 97 0.3%

Imports 126 70 180 272 299 24.1%

Exports 22 15 13 14 14 -10.7%

Consumption 200 121 197 345 382 17.6%


Forecasts

In 2013, plywood exports reached $17 Mn and imports were $326 Mn. Overall

consumption is estimated at $407 Mn. Domestic consumption is forecast to reach $563

Mn in 2017 with a CAGR of 8.5% between 2013 and 2017. This forecast is based on an

analysis of the growth of the plywood industry and related consumer industries and the

future expectations within the sector.

Table 66: Plywood industry forecasts, 2013-2017

2013e 2014f 2015f 2016f 2017f

CAGR

2013-2017

Production (‘000 m3) 117 117 118 118 119 0.5%

Production ($ Mn) 98 99 100 101 102 1.0%

Exports (‘000 m3) 17 19 21 23 26 11.0%

Exports ($ Mn) 17 18 20 22 24 10.0%

Imports (‘000 m3) 300 336 377 422 473 12.0%

Imports ($ Mn) 326 360 398 440 486 10.5%

Consumption (‘000 m3) 400 435 474 517 566 9.1%

Consumption ($ Mn) 407 441 477 518 563 8.5%



IBS 65

Industry sources declared that import growth will rise due to an anticipated plywood

demand from industries such as construction, transportation vehicles, packaging, and

furniture.


IBS expects that veneer and plywood industries will continue to have a positive growth

in the next four years. While the veneer industry is much more dependent on furniture

and construction industries, plywood provides a wider range of application areas.

All the demand sectors listed above were growth areas in the past five years and this is

expected to continue in the next five years – even if not at such high levels. The general

market expectation is that demand for plywood in Turkey will provide good

opportunities for the next five years.

The use of OSB has been developing and it will be an important substitute for plywood,

particularly in the construction industry in the future. That said, industry experts do not

expect plywood to lose its prevailing importance significantly, largely due to its many

applications.

According to the Association of Plywood Manufacturers (KONUDER), local producers

supply only 20-25% of total domestic demand. The association complains about the

unstructured feature of the sector stating that importing plywood is too easy and many

companies import plywood for various purposes since it is cheap and easy to find.

Plywood is extensively used in following areas:

Construction

o Mould works for concrete forms

o Scaffold platforms

o Internal partitions and roofing works

o Floors and parquet industry

Furniture

o Seats, doors, chairs, tables and shelf manufacturing

o Office furniture

Transport and ship and yacht building

o Floor and side walls of trailer trucks and wagons

o Bases of containers

o Animal transportation vehicles

o Buses

o Cargo compartments of ships

Packaging

Other areas of use

IBS 66

o Toys and game rooms

o Musical instruments and construction of music columns

o Traffic signs, billboards and street furniture

o Garden shed

o Basketball, backboard and skate platforms

o Climbing wall boards

o Construction of tribune, stand and stage

o Under and over kitchen benches.


There has been virtually no plywood trade between Turkey and Canada. Only in 2012,

Canada exported 28 tonnes of plywood (consisting solely of sheets of wood <= 6 mm

thick) to Turkey valued $56,000.

Table 67: Plywood imports from Canada, 2008-2013

Product name 2008 2009 2010 2011 2012 2013

(tonnes)

441232 Plywood consisting solely of sheets of wood <= 6 mm thick 0 0 0 0 28 0

441299 Panels, 1 outer ply coniferous wood nes 2 0 0 0 0 0

($’000)

441232 Plywood consisting solely of sheets of wood <= 6 mm thick 0 0 0 0 56 0

441299 Panels, 1one outer ply coniferous wood nes 2 0 0 0 0 0


Turkey is a price sensitive market, but there is demand for specialty high quality North

American (US and Canadian origin) plywood, particularly those composed of cherry,

walnut, and red and white oak species, according to KONUDER. These have a direct

impact on durability and strength, apart from the chemicals used and technology applied

during the process. That said, there have been virtually no imports from these two

countries in the past five years, apart from the 2012 sale mentioned above. In the same

year, the value of Canada’s overall plywood exports was $160 Mn. There were no

exports of plywood from Canada in 2013.

One industry player told IBS that Canadian plywood producers are competitive and the

reason for low plywood exports from Canada to Turkey is that manufacturers in Canada

have been concentrating on the US housing market. Any slowdown in that market could

increase the priority which Canadian exporters give to Turkey, and local traders suggest

that Canadian exporters could be aware that there is still a huge market opportunity in

Turkey given that local production cannot meet demand.

IBS 67

4.5 SAWN WOOD

Turkey is an important user of sawn wood, using about 7.6 Mn cubic metres of wood

each year. Around 85% of the required roundwood is sourced locally and the remainder

imported. Imports are mainly of coniferous softwoods.

Sawn wood is important as an end product, in particular for construction and as a raw

material for plywood and flooring.

Consumption has increased significantly in recent years, reflecting the growth in

construction and strong economic growth, but sawmills have faced difficult times.

Small enterprises were strongly affected by the global economic crisis of 2009 and the

recovery of sawmills in 2010 was weaker than that of other wood processing branches,

according to industry players.

4.5.1 SUPPLY

Production

Turkey was the world’s 14th

largest producer of sawn wood in 2012, according to the

FAO. A recent report by this body recorded world sawn wood production in 2012 as

413 Mn m3 with USA, China and Canada together accounting for 40% of the world

total.

Table 68: World sawn wood production, 2008-2012, 000 m3

2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

USA 72,869 56,070 60,045 62,345 66,435 16.1% -2.3%

China 28,400 32,298 37,200 44,600 55,700 13.5% 18.3%

Canada 41,548 32,820 38,667 38,880 40,715 9.9% -0.5%

Russia 27,163 27,293 28,870 31,215 32,230 7.8% 4.4%

Brazil 25,462 24,580 25,080 25,210 25,310 6.1% -0.1%

Germany 19,187 20,781 22,059 22,628 21,031 5.1% 2.3%

Sweden 17,601 16,200 16,750 16,500 15,900 3.9% -2.5%

Japan 10,884 9,291 9,415 9,434 9,434 2.3% -3.5%

Finland 9,881 8,072 9,473 9,750 9,350 2.3% -1.4%

Austria 10,835 8,458 9,603 9,636 8,952 2.2% -4.7%

France 9,343 7,885 8,316 8,675 8,242 2.0% -3.1%

Chile 7,306 5,836 6,354 6,785 7,160 1.7% -0.5%

India 6,889 6,889 6,889 6,889 6,889 1.7% 0.0%

Turkey 6,175 5,853 6,243 6,461 6,682 1.6% 2.0%

Others 92,579 86,408 92,999 92,716 92,705 22.5% 0.0%

Total 391,122 353,735 383,763 397,723 412,734 100% 1.4%


With the notable exceptions of China and Russia, most countries have been reporting

falling production of sawn wood. Turkey’s output of 6.7 Mn cubic metres represented

1.6% of the world total. Output increased at an annual rate of 2% between 2008 and

2012.

IBS 68

65% of the sawn wood produced in Turkey is from coniferous trees. This proportion has

changed little in recent years.

Table 69: Breakdown of sawn wood production, 2008-2012, 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Coniferous 4,076 3,777 3,984 4,192 4,307 1.4%

Non-coniferous 2,099 2,076 2,259 2,269 2,375 3.1%

Total 6,175 5,853 6,243 6,461 6,682 2.0%


Of the sawn wood consumed in Turkey, it is estimated that 70% is used in the

construction sector, 20% in furniture and 10% in pallets, packaging and other sectors.

Only a small proportion is exported.

Turkey’s sawn wood imports from the United States and Canada are increasing due to

their high quality and attractive prices. Increasing usage of high quality lumber in

furniture and yacht building has also contributed to demand.

In previous years, illegal logging was a problem. Increased use of natural gas for

heating, instead of wood, has led to a decline in illegal logging.

Normally, the General Directorate of Forestry declares a harvest plan every year and

cuts trees accordingly. Some deviations from those targets occur particularly when there

are problems with pests or disease which result in more trees having to be felled. The

GDF sometimes increases its harvests for revenue purposes, some experts claim.

In order to obtain sawn wood, larger sized companies tend to import roundwood since

taxes are high on GDF domestic roundwood sales, i.e. 27% (18% VAT + 9% other

taxes). While importing roundwood, these other taxes (9%) are not applied.

Manufacturers

Industry sources estimate that there are thousands of small to medium-sized mills in

Turkey that produce sawn wood.

Table 70: Sawmills in Turkey, 2010

Province

No of

companies

No of

personnel

Province

No of

companies

No of

personnel

Bursa 35 778 Bolu 15 180

Sakarya 31 333 Tokat 16 407

Adana 29 201 Denizli 14 237

Düzce 29 1,185 Kütahya 14 243

Kocaeli 29 393 İzmir 13 277

Isparta 24 516 Karabük 13 190

İstanbul 22 353 Çorum 12 313

Mersin 22 407 Ordu 12 107

Balıkesir 21 368 Muğla 11 138

Kastamonu 21 562 Zonguldak 11 170

Trabzon 21 306 Burdur 10 77

Afyon 19 209 Kayseri 10 246

Ankara 19 257 Others 150 2,755

Total 623 11,208


IBS 69

The industry database of TOBB recorded 623 companies as having submitted capacity

reports for 2009. Annual established capacity is 13.6 million m3

and most sawmills are

small-scale.

The major sawmills are in the Marmara and West Black Sea regions. In terms of

company size (based on personnel numbers), the largest sawmills are in Duzce

province, east of Bursa. In recent years, Turkish companies have begun setting up

production facilities in low-cost neighbouring Black Sea countries, like Ukraine,

Bulgaria and Romania.

Species

The main domestic species used for sawn wood are softwood species like pine (Scotch

pine, Calabrian pine, Black pine), spruce, fir and poplar.

Oak and iroko are the preferred imported hardwood species in Turkey due to supply

advantages and easy processing. However, in recent years some hazardous effects of

iroko were identified: industry players and organizations warned that medical masks

should be worn during working with this species.

One industry expert informed IBS that hickory (North American walnut) and cherry

(also known as American cherry) have increased in popularity in recent years since they

are highly durable and resistant to pests. They are used in relatively expensive furniture

and decoration appliances, luxury goods, aircraft and weapons. Red Fir (also known as

Douglas Fir) is another species regarded as high quality. It is used in luxury yacht

building, but is as expensive as hickory and cherry.

Canadian maple is a preferred species for a wide use of high end application areas such

as covering in ship building, flooring, furniture, musical instruments, carpentry and

some kitchen fittings12.

Imports

Turkey imported 632,046 tonnes of sawn wood in 2013, a 47% increase on imports in

2008. In volume terms, imports have been increasing at 8% per year, and in value terms

at 8.3%. Imports proved to be strongly affected by the post-Lehman Brothers’ financial

crisis of 2008-2009.

Table 71: Sawn wood industry foreign trade, 2008-2013

2008 2009 2010 2011 2012 2013

CAGR

2008-13

Export ($’000) 12,261 12,894 14,897 14,078 12,588 14,029 2.7%

Import ($’000) 159,720 99,440 132,290 210,967 222,298 238,438 8.3%

Exports (tonnes) 16,295 21,252 22,831 15,504 13,870 16,568 0.3%

Imports (tonnes) 429,299 304,495 363,326 580,500 619,014 632,046 8.0%

Trade balance ($’000) -147,459 -86,546 -117,393 -196,889 -209,710 -224,409 8.8%

Trade balance (tonnes) -413,004 -283,243 -340,495 -564,996 -605,144 -615,478 8.3%


12

One industry source told IBS that Canadian maple exists in the market, being imported via

some European countries and China. IBS was unable to corroborate this claim with other

sawmills or traders.

IBS 70

Turkey’s Black Sea neighbours, Ukraine, Bulgaria, Russia and Romania, are the major

sawn wood exporters to Turkey, accounting for 73% of Turkey’s sawn wood imports in

2013 by value. Ukraine alone constituted 25% of imports.

The jump in imports from Bulgaria was stimulated by Turkish investments in Bulgaria.

Finland has a similar record as it was only $176,000 in 2008 and it reached $10 Mn as

of 2013. IBS identified a number of Turkish companies (like Novawood) that bring

Finnish technology and products, i.e. thermal wood, to Turkey.

Table 72: Exporters of sawn wood to Turkey, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Ukraine 25,135 21,090 33,779 53,545 54,385 60,313 25% 19.1%

Bulgaria 527 1,426 6,477 28,671 32,388 42,265 18% 140.3%

Russia 65,188 31,143 40,377 48,658 42,503 41,897 18% -8.5%

Romania 13,236 9,316 13,112 25,846 31,307 27,834 12% 16.0%

Cameroon 12,930 9,183 11,244 13,998 13,049 14,330 6% 2.1%

USA 3,179 4,019 5,705 9,166 13,745 11,779 5% 29.9%

Finland 176 430 1,871 3,733 6,572 9,995 4% 124.3%

Sweden 872 742 1,468 3,031 6,906 6,081 3% 47.5%

Estonia 191 445 968 2,850 5,418 4,266 2% 86.1%

Myanmar 1,790 1,139 1,706 1,626 1,122 2,812 1% 9.5%

Congo 5,463 2,646 2,304 2,164 288 2,589 1% -13.9%

Germany 5,497 1,112 1,452 1,958 2,511 1,459 1% -23.3%

Canada 997 157 152 569 624 1,326 1% 5.9%

Others 24,543 16,590 11,676 15,153 11,480 11,492 5% -14.1%

Total 159,720 99,440 132,290 210,967 222,298 238,438 100% 8.3%


In quantity terms, the first four countries, Ukraine, Bulgaria, Russia and Romania,

supplied 86% of total sawn wood imports. Imports from Ukraine accounted for one-

third of the total.

Table 73: Exporters of sawn wood to Turkey, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2012

Ukraine 88,263 89,324 132,509 186,294 194,316 204,776 32.4% 18.3% 280

Bulgaria 2,219 7,340 38,352 137,757 148,270 180,154 28.5% 140.9% 218

Russia 171,723 86,518 102,094 116,995 101,023 90,989 14.4% -11.9% 421

Romania 40,745 32,581 40,290 75,700 90,193 75,435 11.9% 13.1% 347

Cameroon 14,904 12,157 14,116 15,888 15,403 16,324 2.6% 1.8% 847

Finland 120 436 2,135 4,981 9,684 15,125 2.4% 163.1% 679

USA 3,441 5,213 6,170 8,253 13,989 11,885 1.9% 28.1% 983

Sweden 2,727 1,432 2,680 4,698 15,001 8,544 1.4% 25.7% 460

Estonia 145 728 1,499 4,170 8,270 5,677 0.9% 108.2% 655

Georgia 66,975 49,022 6,074 5,668 3,888 4,059 0.6% -42.9% 216

Congo 4,182 2,318 2,798 2,070 394 2,986 0.5% -6.5% 731

Austria 7,802 5,964 2,836 3,974 4,913 1,789 0.3% -25.5% 440

Germany 12,636 2,642 1,942 3,345 4,166 1,632 0.3% -33.6% 603

Serbia 140 0 568 291 758 1,334 0.2% 57.0% 472

Canada 674 116 92 448 591 1,278 0.2% 13.7% 1,056

Others 12,601 8,705 9,168 9,967 8,159 10,062 1.6% -4.4%

Total 429,299 304,495 363,326 580,500 619,014 632,046 100% 8.0% 359


IBS 71

US producers tripled their export volume in the last six years to 12,000 tonnes. In 2013,

Canadian sawn wood exports to Turkey amounted to only 1,278 tonnes.

Coniferous lumber was the major item in Turkey’s sawn wood imports, accounting for

88% of sawn wood imports. Oak, “other non-coniferous” and iroko sawn woods were

the next most important species.

Table 74: Sawn wood imports by species, 2008-2013, tonnes

Product name 2008 2009 2010 2011 2012 2013

440710 Lumber, coniferous (softwood) 6mm and thicker 327.8 226.1 309.2 523.8 562.9 561.4

440791 Lumber, oak 9.1 9.8 16.5 15.4 14.9 18.3

440799 Lumber, non-coniferous nes 13.4 9.2 9.4 10.0 13.0 16.4

440728 Iroko, sawn or chipped lengthwise, sliced or peeled 7.8 9.6 10.5 13.8 11.9 13.6

440792 Lumber, beech 58.7 40.3 7.3 9.2 7.2 7.9

440729 Lumber, tropical hardwood nes, sawn lengthwise >6mm 7.5 5.9 5.5 4.9 5.3 6.5

440795 Ash Fraxinus spp., sawn or chipped lengthwise, sliced or peeled 0.1 0.3 0.4 0.6 2.0 3.9

440727 Sapelli, sawn or chipped lengthwise, sliced or peeled 4.5 3.0 4.3 2.5 1.5 3.5

440793 Maple Acer spp., sawn or chipped lengthwise, sliced or peeled 0.2 0.0 0.0 0.1 0.2 0.4

440725 Lumber, meranti (red, bakau) sawn lengthwise >6mm 0.1 0.2 0.1 0.0 0.2 0.1

440726 Lumber, meranti nes, lauan, seraya, alan sawn >6mm 0.0 0.0 0.1 0.0 0.0 0.0

440794 Cherry Prunus spp., sawn or chipped lengthwise, sliced or peeled 0.1 0.0 0.0 0.1 0.1 0.0



Sawn wood and flooring products are directly sold via sawmills and sawn wood traders.

Retailers and distributors that sell fibre board, particle board and plywood also sell sawn

wood and flooring products.

Figure 20: Distribution channels for sawn wood

Sawmills obtain sawn wood in various ways. They may purchase roundwood from the

General Directorate of Forestry, saw this in their mills and sell the sawn product.

Alternatively, they import roundwood and saw this into sawn wood, or they import

sawn wood.

IBS 72

Sawn wood retail prices in the domestic market averaged $242 per m3 in 2013,

according to IBS’s trade interviews which stated that the sawn wood price in March

2014 was around $300 per m3.

Figure 21: Sawn wood domestic sales prices ($/m3)


The sawn wood market in Turkey was 7.6 Mn m3 in 2012 with 13% of market

consumption met through imports. Imports, however, have increased was and, in fact,

have doubled since 2009. However, the export ratio of the industry is small, and has

been decreasing in recent years.

Table 75: Sawn wood industry market size, 2008-2012, 000 m3

2008 2009 2010 2011 2012

CAGR

2008-12

Exports 28 39 41 29 24 -3.8%

Imports 667 457 664 909 953 9.3%

Production 6,175 5,853 6,243 6,461 6,682 2.0%

Consumption 6,814 6,271 6,866 7,341 7,611 2.8%


In value terms, the Turkish sawn wood market in 2012 accounted for $2 Bn of which

imports were 11.3%. Exports have not changed in dollar terms, although they have

decreased by 4% CAGR in quantity.

Table 76: Sawn wood industry market size, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

2008-12

Production 1,358 974 1,147 1,575 1,759 6.7%

Imports 160 99 132 211 222 8.5%

Exports 12 13 15 14 13 2.0%

Consumption 1,506 1,061 1,264 1,772 1,968 6.9%


IBS 73

Forecasts

In 2013, sawn wood export volumes reached $14 Mn in value and the industry imported

sawn wood to the value $238 Mn. Total market consumption was some $2 Bn. Based on

current growth rates in the industry and field research with the sector companies and

associations, IBS estimates that sawn wood consumption will be $2.5 Bn by 2017 with

5.1% growth annually.

Table 77: Sawn wood industry growth forecast, 2013-2017

2013e 2014f 2015f 2016f 2017f

CAGR

2013-17

Production (000 m3) 6,949 7,227 7,516 7,817 8,130 4.0%

Production ($ Mn) 1,838 1,920 2,007 2,097 2,192 4.5%

Exports (000 m3) 25 25 26 26 27 2.5%

Exports ($ Mn) 14 14 15 15 16 3.0%

Imports (m3) 1,067 1,142 1,222 1,308 1,399 7.0%

Imports ($ Mn) 238 261 286 313 343 9.5%

Consumption (000 m3) 7,992 8,344 8,713 9,098 9,502 4.4%

Consumption ($ Mn) 2,062 2,167 2,278 2,395 2,519 5.1%

(e) estimate

(f) forecast


Industry sources state that production is expected to increase by 4% in quantity with

regard to increasing awareness on the necessity of plantation forestry accompanied by

the forestry reclamation policies of the Government. Construction will continue to be

the main driver of sawn wood demand. Please see Section 2.2 for trends in the

construction sector.


Turkey is a party to the “Action Plan for the Forest Sector in a Green Economy”

initiated by UNECE. The Government has declared that the Action Plan will be

implemented by 2014. The Action Plan will encourage production and consumption of

forest products in a sustainable way through more rigid certification and labelling

procedures and procurement practices. The aim is to enhance sustainability and legality

of trade in wood and forest products. Officials say that this plan will contribute to the

productivity of Turkish forests and improve the quality and quantity of forestry products

Consumption of sawn wood has increased in recent years due to growth in the

construction and furniture industries.

Sawn wood competes with alternative building materials, for example, concrete and

steel. For windows and doors, sawn wood competes with aluminium and plastic.

Sawn wood is currently used for a variety of purposes, and demand will continue to

grow as new uses are developed. In order to compete with both wood and non-wood

IBS 74

competitors, some Turkish companies have started to invest in improving product

quality and longevity through chemical (impregnation and coating) and heat treatment.

Consumption of sawn wood is forecast to continue to grow slowly. The primary drivers

of construction, residential and non-residential, followed an upward trend in Turkey in

2013 and forecasts are positive for the coming years.


Canadian sawn wood exports to Turkey amounted to only 1,278 tonnes in 2013. Most of

this was ash lumber – with industry experts saying it provides the highest quality of this

species in the world. However, Canada supplied virtually no coniferous lumber, which

is the main category imported by Turkey.

Table 78: Turkish sawn wood imports from Canada, 2008-2013

Product name 2008 2009 2010 2011 2012 2013

Tonnes

440710 Lumber, coniferous (softwood) 6mm and thicker 269 27 22 52 3 6

440729 Lumber, tropical hardwood nes, sawn lengthwise >6mm 0 0 0 0 0 7

440791 Lumber, oak 201 85 70 186 45 31

440794 Cherry Prunus spp., sawn or chipped lengthwise, sliced or peeled, whet 5 0 0 21

440795 Ash Fraxinus spp., sawn or chipped lengthwise, sliced or peeled 0 0 0 44 245 1,049

440799 Lumber, non-coniferous nes 199 4 0 145 298 185

$‘000

440710 Lumber, coniferous (softwood) 6 mm and thicker 274 79 75 26 10 27

440729 Lumber, tropical hardwood nes, sawn lengthwise >6mm 0 0 0 0 0 12

440791 Lumber, oak 185 70 77 194 36 35

440794 Cherry Prunus spp., sawn or chipped lengthwise, sliced or peeled 14 0 0 42 0 0

440795 Ash Fraxinus spp., sawn or chipped lengthwise, sliced or peeled 0 0 0 47 269 1,065

440799 Lumber, non-coniferous nes 524 7 0 259 308 186


One apparent opportunity is in sawn oak lumber. In 2013, Turkey imported 18,300

tonnes of this. Only 31 tonnes of sawn oak lumber came from Canada, while 5,500

tonnes came from the USA. Industry sources state that there is a considerable demand

for high-quality US and Canadian oak lumber, particularly for use in furniture.

One of the prominent sawmills in the Black Sea region told IBS that log trade from

Russia, Ukraine, Romania and Bulgaria is dominated by non-conventional relations.

According to this source, representatives of the sawmills go to the country and have to

pay in advance. Logging from Russia is made without any supervision, there are no

standard terms of trade, and delivery is never on the date agreed, IBS was told.

Introduction of the requirement that all imports of sawn wood (and of roundwood) come

from certified forests would be to the advantage of Canada. Canada has more certified

forests than any other country in the world13.

13

Forest land certified by the FSC is around 180 million hectares, according to a FSC report

published in April 2014. Of this area, Canada has the largest share with 55 million

hectares representing 30% of all FSC certified forest land in the world.

IBS 75

4.6 WOOD-BASED FLOORING

Turkey’s wood-based flooring industry has been growing relatively slowly due to

increasing usage of cheaper alternative flooring options such as laminated parquet made

from MDF and rubber-based flooring.

The market for wood-based flooring was estimated at $150 Mn in 2013 and is forecast

to be $17 Mn in 2017 with 3% CAGR.

This section concentrates on such flooring made from solid and multilayered wood.

This is generally described called as “massive parquet” or “solid parquet”. Flooring of

laminates (laminate parquet) made from MDF is described in section 4.1.

4.6.1 SUPPLY

Production

Turkey’s flooring production capacity is estimated at 3 Mn m2,

according to IBS

interviews with the Association of Parquet Industrialists (PARSAID). The association

states that the flooring industry is fragmented and exact production figures can only be

estimated since there is no official data. PARSIAD estimates that the flooring market in

Turkey was $150 Mn in 2013 and that only 12% was met through imports.

Turkish parquet floor manufacturing takes two main forms. In the manufacture of solid

wood flooring, home-grown species used in local manufacturing include oak, European

beech and red pine. Sapele and iroko are the main tropical species used.

PARSIAD claims that 90% of flooring producers are manufacturing it using sawn

wood. Another 10% of them are manufacturing parquet blocks from cut lumber.

Manufacturers

The leading manufacturers of wood products in Turkey are also active in flooring

production. The remaining flooring manufacturers are SMEs.

Table 79: Major flooring producers in Turkey, 2009


No of

personnel

Starwood Bursa 402

Bil Mobilya Eskişehir 350

Kastamonu Entegre Kastamonu 239

Devrektaş Zonguldak 181

Yorüs Karabük 108

Abant Parke Bolu 102

Bayraktar Bursa 102

Aksun Bursa 95

Ayançlı Orman Ürünleri Sinop 90

SEKA Akkuş İşletmesi Ordu 89

Borüs Bartın 66

Sancaklı Düzce 60


The manufacturers are concentrated in Duzce, Bursa, Kastamonu and Bolu provinces.

IBS 76

Species

The species used in flooring are similar to those described in the section on sawn wood

at 4.5

Imports

Turkey imported 11,270 tonnes of flooring in 2013 valued at $17.8 Mn. Turkish imports

of flooring increased at 2.6% CAGR in volume and 1.6% in value during the 2008-2013

period.

Italy, Romania and Russia were the major flooring exporters to Turkey; together they

constituted approximately half of Turkey’s total flooring imports in value terms, $9.2

Mn. In the last five years, France and Croatia have recorded the highest growth of

imports to Turkey with respective CAGR of 180% and 116%. Turkish imports from

China have been decreasing as of 2011. The highest decline in country imports to

Turkey has been from Indonesia, i.e. from $4 Mn to $1 Mn due to the anti-dumping

levy applied by Turkey to imports from China and Indonesia as of 2012 which will

expire in 2017.

Table 80: Flooring imports by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Italy 2,032 853 1,377 3,906 3,121 4,223 24% 15.8%

Romania 113 71 241 75 2,080 2,850 16% 90.7%

Russia 123 459 1,387 2,019 1,040 2,158 12% 77.3%

Croatia 20 0 25 890 583 940 5% 116.0%

Germany 1,383 703 1,356 1,107 1,194 853 5% -9.2%

Bulgaria 715 980 671 930 734 842 5% 3.3%

Ukraine 0 66 373 381 1,601 624 4% 75.4%

Indonesia 4,089 2,682 3,112 2,496 1,011 617 3% -31.5%

Luxembourg 808 0 0 0 0 612 3% -5.4%

France 3 77 3 40 163 512 3% 179.5%

China 932 526 312 948 277 481 3% -12.4%

Finland 1,761 521 433 443 369 396 2% -25.8%

USA 742 229 370 470 244 339 2% -14.5%

Others 3,706 1,061 2,673 2,524 2,043 2,378 13% -8.5%

Total 16,428 8,228 12,336 16,229 14,461 17,824 100% 1.6%


In quantity terms, Romania, Russia, Bulgaria and Ukraine were the leading flooring

exporters to Turkey. The four countries together realized 67% of total Turkey flooring

imports.

IBS 77

Table 81: Flooring imports by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

(2012)

Romania 89 114 294 155 2,316 2,970 26% 101.7% 898

Russia 141 596 1,554 2,077 1,187 2,374 21% 75.9% 876

Bulgaria 1,109 1,682 1,120 1,321 1,077 1,198 11% 1.6% 682

Ukraine 0 98 692 523 1,841 970 9% 77.4% 870

Italy 296 163 268 634 540 811 7% 22.3% 5,780

Germany 1,191 496 878 539 559 345 3% -21.9% 2,136

Croatia 6 0 6 180 222 330 3% 122.9% 2,626

Finland 934 237 195 173 200 305 3% -20.1% 1,845

Indonesia 2,758 1,773 1,884 1,441 477 297 3% -36.0% 2,119

China 404 313 171 397 129 206 2% -12.6% 2,147

USA 168 51 147 205 129 195 2% 3.0% 1,891

Others 2,821 594 1,193 1,319 1,177 1,268 11% -14.8%

Total 9,918 6,115 8,403 8,965 9,855 11,270 100% 2.6% 1,467


Hardwood accounted for one-third of wooden flooring imports by volume and 62% by

value in 2013, indicating a possible opportunity for hardwoods such as Canadian maple.

Turkey also imported a very limited amount of bamboo products for flooring purposes.

Table 82: Segmentation of Turkish flooring import from the world, 2008-2013

Product name 2008 2009 2010 2011 2012 2013

(tonnes)

440910 Wood (lumber) continuously shaped coniferous (softwood)* 2,367 1,454 3,244 3,538 6,305 7,130

440929 Wood, incl. strips and friezes for parquet flooring, not assembled, co 7,353 4,486 5,070 5,266 3,335 4,084

440921 Bamboo, incl. strips and friezes for parquet flooring, not assembled 198 174 89 162 215 56

($’000)

440929 Wood, incl. strips and friezes for parquet flooring, not assembled, co 12,606 6,133 8,796 11,643 7,614 10,621

440910 Wood (lumber) continuously shaped coniferous (softwood) 3,543 1,807 3,394 4,289 6,422 7,078

440921 Bamboo, incl. strips and friezes for parquet flooring, not assembled 279 288 146 297 424 126

* Planed, tongued, grooved, rebated, chamfered, v-jointed, and the like but not further moulded


IBS 78


Flooring products are generally sold by sawmills and sawn wood traders. Retailers and

distributors that sell fibre board, particle board and plywood sell flooring products as

well.

Figure 22: Flooring distribution chain

Large-scale wood product manufacturers like Starwood and Kastamonu Entegre also

sell flooring.


There is no regular data on flooring production in Turkey. Turkey’s domestic flooring

consumption in 2012 was 2.5 Mn m2 which accounts for 18,750 tonnes14, as stated by

industry sources. IBS estimates that flooring production in 2012 was 16,200 tonnes.

The flooring industry enjoys a small and stable market as more dynamism occurs in the

laminate parquet industry which was analysed in section 4.1: fibreboard industry. The

production growth of the flooring industry was 1.5% annually between 2008 and 2012,

which, in return, was translated into 3.4% growth in consumption due to increasing

imports as of 2010, according IBS interviews and research.

Table 83: Flooring industry market size, 2008-2012, tonnes

2008 2009 2010 2011 2012

CAGR

2008-12

Production 15,276 15,505 15,737 15,973 16,213 1.5%

Imports 9,918 6,115 8,403 8,965 9,855 -0.2%

Exports 8,800 12,408 6,860 7,078 7,318 -4.5%

Consumption 16,394 9,212 17,280 17,860 18,750 3.4%


14

an average weight of one m2 flooring is approximately 7.5 kg., explained by a producer to

IBS

IBS 79

Sector experts estimated that total flooring consumption in 2012 was $125 Mn and $150

Mn in 2013.

Forecasts

In 2013, flooring production was accounted at $153 Mn and consumption was $150

according to industry sources and IBS estimate.

Table 84: Flooring industry growth forecast 2013-2017, $ Mn

2013 2014e 2015e 2016e 2017e

CAGR

2013-2017

Production 153.0 157.1 161.4 165.7 170.1 2.7%

Exports 20.9 21.3 21.7 22.1 22.6 2.0%

Imports 17.8 18.6 19.5 20.3 21.3 4.6%

Consumption 150.0 154.5 159.1 163.9 168.8 3.0%

(e) estimate


The industry does not expect fast growth in the flooring industry since this industry is

mostly penetrated by MDF flooring (laminate parquet). Solid wood flooring is preferred

only in relatively expensive housing projects and by higher income level consumers.

Industry sources foresee that annual growth in consumption of 2.4%, reaching $170 Mn

by 2017, can mostly be attributed to a growing consciousness about more organic and

sustainable production. To note, this demand will be raised by higher income

consumers.


Flooring production has been stable in the last five years. In the flooring industry,

increasing demand for lower priced laminate parquet, which has relatively higher raw

material costs, adversely affected the demand for solid flooring. Even though IBS does

not expect higher growth in solid flooring demand, based on some comments from

industry sources IBS expects that the rate of increase for laminate parquet demand will

slow down due to increasing awareness of the hazardous characteristics of laminate

parquet15

. This situation will result in increasing demand for solid flooring products,

deliberately if accompanied by lower costs and higher household income.

PARSIAD told IBS that they have been planning to increase domestic demand for

flooring:

Nation-wide marketing activities to inform the market about alternative flooring

options which are also traditional, and can replace laminate parquet

15

Laminate flooring is often made with melamine resin, a compound made by polymerizing

melamine and formaldehyde. There has been increasing concern about the impact on

indoor air quality of releases of volatile organic compounds from building materials,

including releases of formaldehyde used in bonding materials for composites. Once

installed, laminate floors may release toxic substances into the air, affecting the health of

those living in buildings with such floors.

IBS 80

Information campaigns for end-use consumers about not choosing artificial floor

coverage materials, i.e. laminate parquet, because of their negative health effects

Organization of training events for flooring installers to make installation and

finishing more efficient.


There is limited flooring trade between Turkey and Canada. The main product that

Canada exported to Turkey was coniferous wood lumber for flooring. However, no

trade has been recorded in the last two years in this product group. Turkey has not

exported any flooring products to Canada in the last six years.

Table 85: Turkish flooring import from Canada, 2008-2013

Product name 2008 2009 2010 2011 2012 2013

Tonnes

440910 Wood (lumber) continuously shaped coniferous (softwood) 21 3 21 51 0 0

440929 Wood, incl. strips and friezes for parquet flooring 0 0 0 5 0 0

$’000

440910 Wood (lumber) continuously shaped coniferous (softwood) 48 10 41 51 0 0

440929 Wood, incl. strips and friezes for parquet flooring 0 0 0 41 0 0


Turkey’s flooring imports from Canada reached $51,000 in 2011. In the same year

Canada made $159 Mn worth of global flooring sales in which Turkey’s share was

negligible.

Given that Turkish flooring imports in 2011 were $16 Mn, this is an open market for

Canadian manufacturers, particularly in high quality flooring products.

Flooring parquet from Canadian oak in particular is considered as high quality in the

market. IBS expects that the demand for higher quality flooring will increase over the

next years, even if it will be limited to relatively higher income level consumers on the

grounds that awareness of more organic, healthy and resistant flooring is on the rise.

Given Turkey’s hardwood flooring imports increased to $10.6 Mn in 2013, maple from

Canada also represents another opportunity to Canadian wood industry.

IBS 81

4.7 FURNITURE

Furniture production in Turkey dates back to the 19th

century and used to be produced in

small artisan workshops. Today, furniture is produced both in workshops and industrial-

scale manufacturing facilities. Furniture production is highly fragmented, with a large

number of small workshops which play an important role in producing handmade

furniture. They are flexible establishments and have enough capacity and labour to

expand their production lines to supply large orders.

Large-scale furniture producers generally use automated mass-production techniques for

standardized models for export.

In 2012 furniture production was realized at $16.3 Bn, according to TURKSTAT and

the Ministry of Industry. The furniture sector employs approximately 150,000 people

and the industry has around 35,000 companies manufacturing various furniture

products, according to the recent General Census of Industry and Business

Establishments (2010).

4.7.1 SUPPLY

Production and market size

Over the last 10 years, the sector has been one of the driving forces of the Turkish

economy. Even in the period of economic crisis, the production of furniture in Turkey

and its influence in the international market continued to increase. Furniture production

grew at an average yearly rate of 10% in the last decade. The export/production ratio

was in the range of 30% in 2012, while the production capacity is in line with growing

demand for Turkish furniture.

In the last five years, Turkish furniture industry production performed a stable growth of

16% CAGR in value terms. According to 2012 figures, the Turkish furniture industry

produced $16.3 Bn in value. In 2012, the Turkish domestic furniture market increased to

$15.2 Bn, nearly twice the level of 2007.

Table 86: Turkish furniture industry market size, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

2007-12

Production 9,000 10,500 12,500 14,000 16,300 16.0%

Import 776 568 738 941 817 1.3%

Export 1,387 1,198 1,415 1,658 1,899 8.2%

Consumption 8,389 9,870 11,823 13,283 15,218 16.1%

Source: TURKSTAT, 2012

Demand for home furniture is mostly driven by new construction and higher personal

incomes, whereas office furniture rather depends on the construction of new office

spaces and, therefore, indirectly on increases in employment.

Turkish furniture producers have also raised their production capacity during this period

in line with the rising demand for Turkish furniture. Now, the urbanization of Turkey’s

population stands at around 70%, with the rate of urbanization predicted at 1.7%

annually until 2015.

IBS 82

Manufacturers and geographical concentration

Istanbul Chamber of Industry’s list of the top 1,000 industrial establishments in Turkey

(2012) includes 13 furniture companies listed in the following table:

Table 87: Top furniture companies, 2012

Rank

2012 Company name Province

Net

sales

revenue

($ Mn)

Export

($ Mn)

# of

employees

Capital (%)

Private

(local)

Private

(foreign)

84 Boytaş Mobilya Kayseri 462.4 44.8 3,672 100 0

141 Merkez Çelik Kayseri 290.6 46.1 2,531 100 0

280 İstikbal Mobilya Kayseri 160.6 14.6 607 100 0

314 AGT Ağaç Sanayi Antalya 143.6 73.9 701 100 0

537 YATAŞ Kayseri 86.5 - - 100 0

541 Kilim Mobilya Kayseri 86.0 18.3 850 100 0

597 DOĞTAŞ Mobilya Biga 77.7 25.3 695 50 50

635 Grammer Koltuk Sistemleri Bursa 73.2 58.0 545 0.63 99.37

757 Mondi Kayseri 61.4 6.1 521 100 0

839 Merinos Mobilya Ege Bölgesi 54.1 10.8 710 100 0

947 Çilek Mobilya Inegöl 46.4 19.7 578 100 0

980 Gürkan Ofis Mobilyaları Kayseri 42.7 42.0 445 100 0

996 Tosunoğulları Mobilya Konya 41.8 - 342 100 0

Source: Istanbul Chamber of Industry, 2012

Furniture production in Turkey is concentrated in Istanbul, Ankara, Bursa (Inegöl),

Kayseri, Izmir and Adana.

Table 88: Provincial distribution of furniture companies, 2010

Province

# of

Companies

Share

(%)

# of

Employees

Share

(%)

Istanbul 6,458 22.0 23,633 25.5

Ankara 5,361 18.3 14,622 15.8

Bursa 2,130 7.3 8,996 9.7

Kayseri 740 2.5 8,942 9.2

Izmir 2,379 8.1 6,328 6.8

Adana 900 3.1 2,369 2.6

Antalya 823 2.8 20 2.1

Samsun 640 2.2 1,757 1.9

Konya 757 2.6 1,746 1.9

Canakkale 91 0.3 1,865 20.0

Others 9,067 30.8 20,863 22.5

Total 29,346 100 92,567 100

Source: TURKSTAT, 2010

The best-known furniture-manufacturing district in Turkey, called “Siteler”, is located

in Ankara. In Ankara, there are many labour–intensive small enterprises manufacturing

classical handmade furniture and there are about 10 major furniture manufacturers who

have mass-production capabilities.

IBS 83

The wood industry is developing rapidly in the Bursa-Inegol area, the third most

important furniture production region, which is surrounded by forest areas. The

furniture industry in the Inegöl area is small, but has potential to develop.

Another important furniture region is Kayseri, which has a large capacity for the

production of sofa and couch beds: seven of the 22 largest manufacturers in Turkey are

established here. Izmir also has furniture production districts called “Karabaglar and

Kisikkoy” which supply furniture to the Aegean region.

Value chain

In the general furniture industry, manufacturers obtain the necessary raw material from

the sawmills, board and veneer manufacturers. Furniture and relevant products produced

are introduced to the market through dealers and retailers. Dealers are generally local

branches of the manufacturers and they sell that manufacturer’s products exclusively.

Figure 23: Furniture industry distribution chain

Retailers are rather smaller shops which sell different brands.

Species

Furniture production can be classified in accordance with the materials used as wooden

furniture (solid and veneered), metal furniture and others. Wooden furniture has a major

share in total furniture production. As Turkey’s producers are known for good quality

furniture, the types of wood used and plywood inputs have to be taken into

consideration. The main types of wood used in the manufacture of massive furniture in

Turkey are ash, beech, oak, pine, linden and mahogany. In veneered furniture, oak,

beech, walnut and mahogany are used.

Imports

The Turkish furniture market has seen steady progress over the last five years. Turkey

exported $1.4 Bn in 2008 in furniture products while the figure for 2012 was $1.9 Bn,

translating into an average annual growth rate of 6.5%.

IBS 84

Table 89: Furniture industry foreign trade, 2008-2012, $ Mn

2008 2009 2010 2011 2012

CAGR

2008-12

Export 1,387 1,198 1,415 1,658 1,899 8.2%

Import 776 568 738 941 817 1.3%


As to the imports, it is worth noting that in the last 10 years, the value of Turkey’s

furniture imports has been at a decreasing rate. In 2012, Turkish imports amounted to

$817 Mn – equivalent to 43% of exports. This represented a 14% increase from 2010

when imports accounted at 57% of exports in value terms.

The Turkish furniture industry experienced a trade surplus in 2012, with exports nearly

doubling imports. Net trade last year amounted to a surplus of slightly more than $1 Bn.

Table 90: Furniture imports by country, 2008-2012, $’000

2008 2009 2010 2011 2012

Share

2012

CAGR

2008-

2012

China 238,928 179,736 276,237 343,858 297,721 36.4% 5.7%

Italy 105,237 66,757 68,986 93,429 83,514 10.2% -5.6%

Germany 105,484 60,558 75,180 87,802 76,237 9.3% -7.8%

Poland 42,083 41,529 39,414 51,447 48,646 6.0% 3.7%

France 47,196 26,163 35,973 42,483 38,614 4.7% -4.9%

Spain 19,315 27,042 29,577 39,842 30,708 3.8% 12.3%

Romania 9,276 10,388 14,632 27,122 26,868 3.3% 30.5%

Japan 24,912 14,850 17,771 16,905 20,753 2.5% -4.5%

Vietnam 21,609 18,811 18,770 20,609 16,318 2.0% -6.8%

Indonesia 19,211 16,634 18,724 21,439 16,189 2.0% -4.2%

USA 16,919 10,222 12,569 15,351 13,094 1.6% -6.2%

United Kingdom 11,301 5,021 7,247 21,956 11,524 1.4% 0.5%

India 3,242 2,358 8,593 11,854 10,843 1.3% 35.2%

Czech Republic 7,698 3,639 5,960 8,430 9,159 1.1% 4.4%

Sweden 6,490 5,468 6,701 10,372 7,219 0.9% 2.7%

Canada 2,420 93 679 1,371 615 0.1% -29.0%

Others 94,982 78,378 101,483 127,124 109,301 13.4% 3.6%

Total 776,303 567,647 738,496 941,394 817,323 100% 1.3%


The import data in Table 87 show that China strengthened its position as Turkey’s top

provider of furniture imports. In 2012, China’s exports to Turkey reached $300 Mn,

which accounted for 36% of all of Turkey’s furniture imports. Italy, Germany, Poland

and France follow China according to 2012 data. The other countries from which

Turkey imports furniture are respectively Romania, Japan, Vietnam, Indonesia, USA

and UK.

In the top 15 furniture exporter countries only China, Spain, Romania, UK, India, Czech

Republic and India have positive CAGR and Romania has the highest rate with 27%

annually. Imports from Canada have had a fluctuating record in the last five years.

Imports from Canada in 2012 were $615,000 but $2.4 Mn in 2008.

IBS 85

Table 91: Furniture industry trade balance, 2000-2012, $’000

Year Export Import Balance

Coverage

Ratio

2000 163,923 182,744 - 18,821 -10.0%

2001 180,683 111,950 68,733 62.0%

2002 260,950 112,426 148,524 43.1%

2003 404,844 147,761 257,083 173.0%

2004 547,242 254,338 292,904 115.0%

2005 645,040 341,596 303,444 88.0%

2006 798,585 540,354 258,231 47.0%

2007 1,032,658 680,169 352,489 65.9%

2008 1,387,015 776,303 610,712 56.0%

2009 1,198,146 567,647 630,499 47.4%

2010 1,414,961 738,496 676,465 52.2%

2011 1,658,391 941,394 716,997 56.8%

2012 1,899,017 817,323 1,081,694 43.0%


Turkey has had a positive trade balance in furniture since 2001, although it was negative

between 1997 and 2000. In the last five years the average coverage ratio is 51%.

Wooden furniture and parts constitute nearly one-third of total furniture import in value.

Imports decreased from $252 Mn to $235 Mn between 2008 and 2012 with 1.8%

CAGR.

Table 92: Wood furniture import, 2008-2012, $ Mn

Code Product label 2008 2009 2010 2011 2012

CAGR

2008-12

'940161 Seats with wooden frames, upholstered 45.4 42.7 45.5 65.1 62.6 8.4%

'940169 Seats with wooden frames 30.4 22.7 24.1 24.2 18.7 -11.4%

'940360 Furniture, wooden 98.1 77.6 85.0 119.7 100.3 0.6%

'940350 Bedroom furniture, wooden 25.4 19.4 18.8 31.5 25.9 0.5%

'940340 Kitchen furniture, wooden 45.3 17.9 21.2 20.0 21.5 -17.0%

'940330 Office furniture, wooden 8.1 4.6 5.2 7.3 6.3 -6.4%

TOTAL 252.8 184.9 199.7 267.7 235.3 -1.8%

Share in total furniture import 33% 33% 27% 28% 29%


Among these items, kitchen furniture has had the largest decrease in the same period

from $45 Mn to $21 Mn between 2008 and 2012 with 14% CAGR. Seats with wooden

frames have had the highest import growth from $45 Mn to $62 Mn in the same period.

Germany and Italy are the major suppliers of office and kitchen furniture, while Italy,

Poland and Lithuania lead in bedroom products. China, Vietnam, Romania and Bulgaria

are the major exporters of wooden seats.

Future forecast

Apart from wood furniture, the overall furniture industry, along with construction, is a

major driver of the wood products industries. According to IBS interviews with leading

IBS 86

furniture manufacturers, domestic production is forecast to reach $26 Bn with 9.8%

growth annually between 2013-2017.

Table 93: Furniture industry growth forecast 2013-2017, $ Mn

2013 2014e 2015e 2016e 2017e

CAGR

2013-17

Production 17,897 19,651 21,577 23,692 26,014 9.8%

Exports 2,066 2,248 2,446 2,661 2,895 8.8%

Imports 829 840 852 864 876 1.4%

Consumption 16,660 18,244 19,983 21,895 23,995 9.5%

(e) estimate



Canadian activity in the Turkish furniture market is very limited, even though there is

an increasing trend of Canadian wood furniture exports to Turkey. While Canada

exported only $66,000 of wooden furniture to Turkey in 2010, this figure reached

$373,000 in 2012 and $643,000 in 2011.

Table 94: Wood furniture imports from Canada ($’000)

Code Product label 2008 2009 2010 2011 2012

'940161 Seats with wooden frames, upholstered nes 28 1 0 0 0

'940169 Seats with wooden frames, nes 0 1 2 5 0

'940360 Furniture, wooden, nes 1 2 64 625 373

'940350 Bedroom furniture, wooden, nes 0 2 0 11 0

'940340 Kitchen furniture, wooden, nes 0 0 0 0 0

'940330 Office furniture, wooden, nes 0 0 0 2 0

TOTAL 29 6 66 643 373


In 2012, USA wooden furniture imports to Turkey amounted to $3.6 Mn, ten times the

value of Canadian exports and an indication that Canada too could be able to compete.

USA products imported in 2012 were:

$1.9 Mn for seats with wooden frames, upholstered (HS code 940161)

$203,000 for seats with wooden frames (HS code 940169)

$126,000 for wooden office furniture (HS code 940330)

$326,000 for wooden bedroom furniture (HS code 940350)

$1.1 Mn for other wooden furniture (HS code 940360).

One furniture distributor told IBS that there are particular opportunities to supply

wooden kitchen cabinets and furniture for children’s rooms. Growing awareness of the

health implications of engineered wood furniture is increasing interest in more natural

furniture. This appears to be a niche on which Canadian exporters could focus.

IBS 87

4.8 OTHER INDUSTRIES – JOINERY & CARPENTRY

The joinery and carpentry industry includes many wood applications such as doors,

windows, a variety of panels, shingles and shakes, amongst others. Since the sector is

fragmented, IBS consulted some industry sources and concluded that the size of this

sector is around $175 Mn. The industry is mostly composed of SME manufacturers, as

well as small workshops throughout the country.

Doors and door frames, as well as other joinery and carpentry products, were also

important import items of Turkey with $29 Mn and $15 Mn import value respectively in

2013.

Table 95: Turkey wood carpentry import ($ Mn)

Code Product label 2008 2009 2010 2011 2012 2013

441810 Windows, French-windows and their frames, of wood 2.2 2.3 2.1 2.1 1.8 3.1

441820 Doors and their frames and thresholds, of wood 4.7 2.1 3.2 6.3 11.7 28.8

441840 Shuttering for concrete constructional work, of wood 9.6 3.0 3.8 5.9 5.5 9.1

441850 Shingles and shakes, of wood 0.0 0.0 0.0 0.0 0.1 0.0

441860 Posts and beams, of wood 0.8 1.0 2.4 4.7 6.1 7.8

441871 Flooring panels for mosaic floors, assembled, of wood 0.2 0.1 0.2 0.3 0.1 0.4

441879 Flooring panels, assembled, of wood 1.7 2.0 0.7 0.8 1.7 3.8

441890 Builder's joinery and carpentry of wood nes 13.4 7.3 10.5 13.1 11.7 15.1


Canada’s share in these wood product items was limited and Canada exported joinery

and carpentry products, as well as shingles and shakes. While Turkey imported $15 Mn

in joinery and carpentry products, Canada’s share in this item was 2%, valued at

$309,000, very close to the amount supplied by China. European countries, like

Germany and Austria, were the leading suppliers for this item.

On the other hand, Canada has been supplying limited quantities of shingles and shakes

to Turkey. In 2012, Turkey imported $62,000 in value of shingles and shakes, with

Canada’s share being 90%. Turkey’s imports in 2013 were of a similar value, although

Canada’s share decreased to 50%. The other half was supplied by Russia.

Table 96: Turkey wood carpentry import from Canada ($’000)

Code Product label 2008 2009 2010 2011 2012 2013

441810 Windows, French-windows and their wooden frames 0 0 0 0 0 0

441820 Doors and their wooden frames and thresholds 73 0 0 0 0 4

441840 Shuttering for concrete constructional work, of wood 0 0 0 0 0 0

441850 Shingles and shakes, of wood 0 0 0 0 56 22

441860 Posts and beams, of wood 0 0 0 0 0 0

441871 Flooring panels for mosaic floors, assembled, of wood 0 0 0 0 0 0

441879 Flooring panels, assembled, of wood 0 0 0 0 0 0

441890 Builder's joinery and carpentry of wood nes 307 9 247 166 217 309


Windows and French windows are another potential area to be considered by Canadian

suppliers. Where Turkey imported $3.1 Mn value in doors, notable USA exports for this

IBS 88

item amounted to $153,000, ranking 5th

in supply, with Austria and Poland dominating.

Austria supplied one-third of imports in value.

China was the dominant player in doors and their frames (441820) supplying 85-90% of

all door and frames imports. Similarly, Austria is the champion in shuttering for

concrete constructional work (441840) supplying nearly 90-95% of all imports.

IBS 89

V REGULATORY ISSUES

IMPORT DUTIES

Following the introduction of the Customs Union between Turkey and the European

Union in 1996, there are no import duties on trade between the EU and Turkey on

industrial products, including wood products and furniture. Duties on imports from

other countries are shown in the table below.

Table 97: Import duties on wood products

HS Code Product item Import Duty, %

EU Other

440110 Industrial wood 0 0

440130 Chips 0 0

4403 Logs 0 0

4407 Sawn wood (lumber) 0 2.5

4408 Veneer 0 3-6*

4410 Particle board and OSB 0 7

4411 Fibreboard (MDF) 0 7

4412 Plywood 0 10

4701 Wood pulp 0 0

940330-70 Wood furniture 0 0

* The rate of import duty for veneer differs according to the

thickness of the veneer.

The only tax paid by importers (on the same basis as for domestic products) is the value

added tax (VAT) of 18%.

ANTI-DUMPING DUTIES

For particle board and OSB products, US and Canadian exports are subject to an anti-

dumping duty of 24% and 15% respectively.

Turkey also initiated an anti-dumping investigation on plywood consisting exclusively

of sheets of wood, each ply not exceeding 6mm thickness (The HS codes in question are

4412.1000; 4412.3100; 4412.3200 and 4412.3900) originating in China in 2011. On

July 10, 2012, Turkey decided to extend the anti-dumping measures in force for an

additional period of five years.

Below is a list of the anti-dumping measures introduced by Turkey for wood products:

Table 98: List of anti-dumping measures, 2014

Product name HS code

Target

country

Date of entry

into force Expiry date Duty

Pre-finished engineered laminated

flooring 4418.72.00.00.00 China 31.01.2012 31.01.2017 35%

Pre-finished engineered laminated

flooring 4418.72.00.00.00 Indonesia 31.01.2012 31.01.2017 25%

Oriented Strand Board (OSB) 4410.12 USA 18.12.2008 18.12.2013* 24.10%

Oriented Strand Board (OSB) 4410.12 Canada 18.12.2008 18.12.2013* 14.93%

Laminated flooring 4411.13.90; 4411.14.90

4411.92.90; 4411.93.90 China 30.07.2008 30.07.2013*

1.60 -

2.40 $/m2

Plywood 4412.10; 4412.31;

4412.32; 4412.39 China 10.07.2012 10.07.2017 240 $/M3

Source: Ministry of Economy, 2014 * Extended pending investigation of further complaint

IBS 90

The dates above are the most recent that apply to the relevant products. The anti-

dumping measures began earlier.

Regulations that apply to pre-finished flooring products from China and Indonesia were

initiated in 2006 and implemented until 2011. Measures for Chinese laminate flooring

started in 2008 and will last until 2017.

Regarding plywood, the Turkish plywood industry applied to the Ministry of Economy

for a final expiry review of the measure early in 2012. Once the investigation to see if

an extension was necessary had been completed, the Ministry published a new

declaration in 2012 which extended the anti-dumping measures to 2017.

Similarly, the original expiry date of the anti-dumping levy on OSB imports from

Canada and the USA was the end of 2013. As the industry applied for the extension of

the anti-dumping measure, the Ministry is currently investigating the terms and

conditions. The investigation is planned to be completed in four months, according to

IBS contacts in the Ministry. The maximum duration for an investigation is 18 months.

The measures will continue to be valid during the investigation phase.

Below is a list of wood products under anti-dumping investigation:

Table 99: Current anti-dumping investigations, 2014

Product name HS code

Target

country

Investigation

start date

Laminated flooring

4411.13.90

4411.14.90

4411.92.90

4411.93.90

Germany 18.12.2013

Oriented strand board

(OSB) 4410.12 USA 13.12.2013

Oriented strand board

(OSB) 4410.12 Canada 13.12.2013

Laminated flooring

4411.13.90

4411.14.90

4411.92.90

4411.93.90

China 25.07.2013

Source: Ministry of Economy, 2014

Please see Annex VII for detailed information on how anti-dumping measures are

handled in Turkey.

COMPULSORY CERTIFICATION

1 General certification

Woods and a number of wood products are subject to compulsory certification of

relevant Turkish standards. These standards mainly cover the permitted deviations on

preferred sizes and moisture content. Turkish authorities say this procedure is to prevent

the importation of low-quality products, in particular from Russia and other countries

which have made the transition from communism. Industry sources state that due to

inefficient control and monitoring such imports have not been prevented.

The following products are subject to compulsory certification:

IBS 91

Sawn wood and lumber for general purposes (TS 51) (comprises spruce

and fir timbers used for general purposes)

Oak sawn logs (TS 276)

Waste, yield and residues coming out in sawing or sawn logs (TS 654)

Beech logs for peeled veneer (TS 1002)

Poplar logs for matches (TS 1067)

Pine logs for peeled veneer (TS 1109)

Block boards for general purposes – with peeled veneer (TS 1047)

Sliced veneer (TS 1250)

Wood panels– hard and medium boards (TS 64)

Particle board (TS 180)

Wooden stick and bush wood (TS 1215)

Glue laminated lumber structural members (TS 3842).

The regulations do not apply to logs of other types, e.g. from Africa, or furniture.

Products included on the mandatory list should be certified in Turkey, even if they have

already been certified in other countries. The related documents should be presented to a

Turkish Certification Institution before customs clearance.

2 Health certification

Import regulations require all logs to be fumigated and have a valid health certificate.

The Association of Forestry Products Importers and Exporters (TORID) informed IBS

that while importing some specific products the following health certificates are

mandatory:

For hardwood: All products should be fumigated. Fumigation certificate should

accompany the product stating that that product was fumigated.

For logs of pine: A declaration of “Free from monocamus larvae not exceeding

3 mm” should be written in the health certificate. Shells and other residue should

be removed.

For pine lumber: "KD" (Kiln Dried) should be written on the packs and health

certificate. Barks and other residue should be removed.

For fuel wood: All products should be fumigated. A fumigation certificate

should be arranged by an international fumigation company and should be

visible in the health certificate.

3 Forest Stewardship Council certification

FSC certification is a voluntary certification of forests that are managed with an

emphasis on sustainability. The GDF explained that they take this certification and

relevant adjustments to their forest management seriously since these management

standards are parallel to EU legislation on forest management. It said that its current

IBS 92

work on FSC certification is also a base for harmonization with the EU acquis, although

there is little current requirement for Turkey which is expected to negotiate and

harmonize procedures in the coming years.

2.14 Mn hectares of forests in Turkey, 10% of Turkey’s forest is FSC certified, as

indicated by GDF. It also said that any enforcement of FSC certification was hindered

by a lack of the required awareness in the wood-product industry, as well as uncertainty

on how far the Government would support such initiatives.

FSC certification stating that products are obtained from well-managed forests is

currently required by a few importers and traders in Turkey, but is not common. Only

some large-sized manufacturers of furniture and wood products who export to

industrialized countries ask for FSC certified wood in order to be able to compete in

those markets. These manufacturers market their products as using FSC-certified wood-

based, raw materials. This certification is not required in Turkish and other Middle

Eastern and Asian markets, according to TORID.

IBS 93

ANNEX I TURKEY’S WOOD PRODUCTS EXPORT

In 2013, Turkey exported $2.5 Bn of wood products and furniture. The major items

were furniture ($2 Bn) and fibreboard ($282 Mn).

Table 100: Exports of wood products and furniture, 2008-2012, $’000

2008 2009 2010 2011 2012 2013

CAGR

2008-12)

Share

2013

Fibreboard 205 215 253 287 295 282 6.6% 11.3%

Particle board 93 64 65 74 74 80 -3.0% 3.2%

Veneer 27 21 25 25 28 24 -2.3% 1.0%

Plywood 22 15 13 14 14 17 -5.0% 0.7%

Sawn wood 12 13 15 14 13 14 3.1% 0.6%

Flooring 16 22 22 21 21 15 -1.3% 0.6%

Furniture 1,387 1,198 1,415 1,658 1,899 2,066 8.3% 82.7%

Total of above 1,762 1,548 1,808 2,093 2,344 2,498 7.2% 100%

Source: IBS analysis based on TURKSTAT and Trademap data, 2014

This Annex provides details of exports of the individual items in the table above. All

figures are in US dollars.

1 Fibreboard

In 2013, Iran was the leading export market of Turkey for MDF; accounting for 30% of

Turkey’s MDF exports, followed by Iraq and Georgia.

Iran and Iraq were the two largest export destinations of the Turkish fibreboard industry,

accounting for 51% in total category exports. Even though exports to Iran have been

decreasing since 2010, from $139 Mn to $87 Mn, as of 2013 exports to Iran accounted

for 30% of total fibreboard exports. Georgia, Turkmenistan, Azerbaijan and Russia were

other major countries for Turkey’s fibreboard exports. Middle East and Central Asian

countries accounted for approximately 75% of Turkey’s fibreboard exports in 2013.

Between 2008 and 2013, the value of Turkey’s fibreboard exports showed a steady

increase at 7% CAGR, reaching $282 Mn in 2013. Though the growth rate of imports is

less than that of exports, the industry yields a trade deficit.

Table 101: Fibreboard foreign trade, 2008-2013

2008 2009 2010 2011 2012 2013

CAGR

2008-13

Export ($’000) 205,158 214,872 253,258 286,842 295,093 282,148 7%

Import ($’000) 274,492 150,103 238,788 289,802 323,336 301,876 2%

Export (tonnes) 287,289 347,861 416,473 418,098 389,377 382,068 6%

Export (000 m3) 416 491 605 639 589 584 7%

Import (tonnes) 410,058 251,393 412,559 467,014 552,427 491,946 4%

Import (000 m3) 480 297 459 515 761 602 5%

Trade balance ($’000 ) -69,334 64,769 14,470 -2,960 -28,243 -19,728 -22%

Trade balance (tonnes) -122,769 96,468 3,914 -48,916 -163,050 -109,878 -2%

Trade balance (000 m3) -64 197 146 124 -172 -18


IBS 94

Increasing penetration of Turkish construction and furniture companies into these

markets has been the major driver of expansion of the Turkish fibreboard industry’s

presence in these markets.

Table 102: Fibreboard export by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Iran 93,203 121,961 138,594 129,532 116,663 86,643 30.7% -1%

Iraq 11,005 19,143 28,244 44,896 55,847 59,425 21.1% 40%

Georgia 9,835 7,286 9,766 14,126 18,191 18,190 6.4% 13%

Turkmenistan 2,687 4,593 7,153 9,969 14,552 17,589 6.2% 46%

Azerbaijan 11,060 7,954 10,117 17,659 16,917 17,288 6.1% 9%

Russia 13,763 4,513 7,701 13,388 13,080 13,525 4.8% 0%

Cyprus 6,122 4,589 5,344 5,456 5,383 6,034 2.1% 0%

Ukraine 13,509 6,467 4,558 3,695 3,076 5,552 2.0% -16%

Libya 1,437 1,492 1,957 355 3,296 5,282 1.9% 30%

Algeria 2,198 2,021 2,039 3,379 5,227 4,587 1.6% 16%

Macedonia 4,506 3,181 3,272 4,202 4,923 4,472 1.6% 0%

Albania 3,595 4,199 2,722 3,115 3,046 4,004 1.4% 2%

Bulgaria 7,787 3,973 3,536 3,895 3,465 3,682 1.3% -14%

Serbia 4,623 3,200 3,354 3,550 2,628 3,479 1.2% -6%

Romania 2,812 1,628 1,783 2,197 2,906 3,333 1.2% 3%

Peru - - 1,249 1,651 2,188 2,674 0.9% 29%

India 358 641 2,007 2,925 2,089 2,466 0.9% 47%

Morocco 86 81 909 807 833 1,993 0.7% 88%

Canada 1 1 - 15 - 159 0.1% 176%

Others 15,288 16,969 17,897 19,987 17,239 18,263 6.5% 4%

Total 205,158 214,872 253,258 286,842 295,093 282,148 100% 7%


In volume terms, Iran and Iraq accounted for slightly more than half of Turkey’s total

fibreboard exports, reaching 215,000 tonnes in 2013 when Turkey’s total exports

accounted for 382,000 tonnes.

Table 103: Fibreboard export by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2012

Iran 131,185 210,912 239,459 199,170 164,024 132,007 34.6% 0.1% 711

Iraq 13,936 29,231 41,789 61,421 75,467 82,521 21.6% 42.7% 740

Georgia 12,658 11,347 15,030 20,204 24,743 23,177 6.1% 12.9% 735

Turkmenistan 2,781 5,566 9,687 12,271 18,017 20,354 5.3% 48.9% 808

Azerbaijan 16,960 9,416 13,378 22,246 19,711 20,287 5.3% 3.6% 858

Russia 18,131 4,182 9,968 17,670 10,479 11,174 2.9% -9.2% 1,248

Cyprus 8,433 7,424 8,554 9,173 8,648 10,181 2.7% 3.8% 622

Ukraine 23,116 16,889 10,648 5,573 2,995 8,808 2.3% -17.5% 1,027

Albania 9,073 10,095 7,288 7,563 6,973 8,133 2.1% -2.2% 437

Serbia 5,918 4,608 5,356 5,286 4,520 5,982 1.6% 0.2% 581

Canada 1 1 0 10 0 114 0.0% 157.9%

Others 45,096 38,194 55,318 57,510 53,798 59,335 15.5% 5.6%

Total 287,289 347,861 416,473 418,098 389,377 382,068 100% 5.9% 758


IBS 95

Turkmenistan, Iraq and Georgia were the other key export destinations for Turkey in

which Turkish fibreboard exports grew fastest with a respective CAGR of 49%, 43%

and 13% during the last six years. Turkey also exported 114 tonnes of fibreboard to

Canada in 2013.

2 Particle board

There was a negligible change in export volume during the six years, while the import

volume of particle board has been growing with a CAGR of 11%, reaching 266,000

tonnes in 2013. In value terms, imports of particle board doubled between 2008 and

2013, increasing from $60 Mn to $110 Mn.

After 2010, Turkey became a net importer of particle board in both value and volume

terms.

Table 104: Particle board foreign trade, 2008-2013

2008 2009 2010 2011 2012 2013 CAGR

Export ($ Mn) 93 64 65 76 74 80 -3%

Import ($ Mn) 60 59 87 90 112 110 13%

Export (000 tonnes) 214 165 176 209 200 204 -1%

Import (000 tonnes) 157 153 236 205 298 266 11%

Trade Balance ($ Mn) 34 5 -21 -14 -38 -31

Trade Balance (000 tonnes) 57 13 -59 4 -98 -62


The Middle East and Central Asian republics are the main export destinations of

Turkish particle board exporters. After a drastic decrease in 2009, particle board exports

recovered gradually, but are still below the 2008 level in value and volume terms. In

value terms, the first three countries, Georgia, Azerbaijan and Turkmenistan, accounted

for half of particle board exports, with exports to Georgia accounting for 25% of

Turkey’s particle board exports in 2013.

Table 105: Particle board export by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Georgia 32,555 16,057 18,407 20,950 23,205 20,287 25.4% -9%

Azerbaijan 13,101 6,206 6,036 11,130 8,348 12,566 15.7% -1%

Turkmenistan 1,817 2,673 3,497 5,494 9,023 9,502 11.9% 39%

Iran 3,626 7,614 8,796 6,911 4,103 8,223 10.3% 18%

Albania 3,360 4,685 4,146 4,939 4,629 7,617 9.5% 18%

Bulgaria 7,444 4,553 4,217 3,542 3,213 4,033 5.1% -12%

Lebanon 417 442 1,157 1,121 2,249 2,776 3.5% 46%

Iraq 7,420 6,246 4,329 3,527 2,824 2,525 3.2% -19%

Cyprus 4,092 2,905 2,945 2,639 2,450 2,502 3.1% -9%

Russia 861 286 52 173 88 1,313 1.6% 9%

Libya 1,247 1,022 673 206 896 1,150 1.4% -2%

Poland 301 6 - 636 1,065 1,106 1.4% 30%

Free Zones 414 393 332 598 495 745 0.9% 12%

Saudi Arabia 12 289 487 419 353 678 0.8% 124%

Bahrain - 23 105 43 148 482 0.6% 114%

Others 16,667 10,486 10,245 13,882 10,599 4,339 5.4% -24%

Total 93,334 63,886 65,424 76,210 73,688 79,844 100% -3%


IBS 96

In volume terms, Georgia, Azerbaijan, Albania, Turkmenistan and Iran were the top five

destinations of Turkish exporters. Exports to the top five countries accounted for 76% of

Turkey’s particle board exports.

Saudi Arabia, Bahrain and Lebanon are Turkey’s fastest growing export destinations

with a respective CAGR of 124%, 114% and 46%.

Table 106: Particle board export by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonnes

2012

Georgia 76,595 52,369 60,493 65,679 70,242 61,721 30.2% -4% 330

Azerbaijan 29,127 13,879 14,443 25,718 18,529 26,866 13.2% -2% 451

Albania 10,734 16,007 14,990 16,255 15,736 23,659 11.6% 17% 294

Turkmenistan 3,503 5,651 8,610 12,635 21,687 21,912 10.7% 44% 416

Iran 8,071 11,963 14,437 19,772 13,898 21,795 10.7% 22% 295

Bulgaria 15,226 10,800 10,676 8,592 8,463 10,986 5.4% -6% 380

Cyprus 8,406 6,968 7,068 6,318 5,925 6,637 3.3% -5% 414

Lebanon 858 1,179 3,233 2,958 6,128 6,502 3.2% 50% 367

Iraq 15,294 14,981 9,889 6,986 5,535 5,149 2.5% -20% 313

Libya 2,819 1,297 1,042 260 1,962 2,503 1.2% -2% 457

Poland 490 9 0 383 746 1,922 0.9% 31% 1,428

Saudi Arabia 11 1,021 1,621 1,271 800 1,573 0.8% 170% 441

Free Zones 694 640 598 1,079 890 1,485 0.7% 16% 556

Bahrain 0 59 309 114 407 1,224 0.6% 113% 364

Russia 893 265 31 131 121 1,178 0.6% 6% 727

Macedonia 8,057 7,624 7,696 9,223 7,517 880 0.4% -36% 313

Canada 0 3 0 1 0 0 0.0%

Others 33,588 20,431 21,322 31,225 21,432 8,109 4.0% -25%

World 214,367 165,150 176,461 208,608 200,021 204,105 100% -1% 368


IBS 97

3 Veneer

Table 107: Veneer export by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Italy 9,198 6,494 7,810 8,452 9,011 6,511 27% -6.7%

Egypt 5,437 4,875 6,473 6,393 5,782 4,416 19% -4.1%

Iran 458 366 1,007 1,189 2,151 2,162 9% 36.4%

Lebanon 1,253 1,440 1,592 1,176 1,978 1,386 6% 2.0%

UAE 1,587 1,151 918 1,043 1,183 1,205 5% -5.4%

Lithuania 1,376 668 841 1,026 774 889 4% -8.4%

Germany 1,270 558 761 612 1,489 748 3% -10.0%

Uzbekistan 214 357 301 344 645 723 3% 27.6%

Israel 529 341 591 788 760 595 3% 2.4%

Saudi Arabia 121 218 247 349 247 501 2% 32.9%

Others 5,470 4,854 4,628 3,815 3,761 4,660 20% -3.2%

Total 26,911 21,320 25,171 25,185 27,781 23,798 100% -2.4%


Middle Eastern countries and Italy are Turkey’s major export markets for veneer.

Turkey exported 3,300 tonnes of veneer to Egypt with a value of $4.4 Mn, and exported

2,300 tonnes to Italy with a value of $6.5 Mn. This indicates that Turkey’s exports to

Italy are mostly high-end, premium products, whereas exports to Iran were basic quality

products. Turkey’s total export volumes have declined from 13,018 tonnes to 10,935

tonnes over the last six years.

Table 108: Veneer export by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2012

Egypt 3,702 3,650 4,832 4,522 4,433 3,371 31% -1.9% 1,304

Italy 3,593 2,343 2,771 2,694 2,887 2,282 21% -8.7% 3,121

Iran 297 204 467 417 830 884 8% 24.4% 2,592

UAE 659 661 515 529 520 601 5% -1.8% 2,275

Lithuania 769 413 498 551 499 580 5% -5.5% 1,551

Lebanon 538 641 706 493 733 544 5% 0.2% 2,698

Israel 195 135 215 317 337 264 2% 6.2% 2,255

Uzbekistan 96 128 164 196 232 260 2% 22.1% 2,780

Slovakia 0 0 298 372 221 240 2% -7.0% 1,611

Kazakhstan 44 150 54 65 145 195 2% 34.7% 1,683

Others 3,125 2,476 2,289 1,579 1,706 1,714 16% -11.3%

Total 13,018 10,799 12,810 11,738 12,541 10,935 100% -3.4% 2,215


IBS 98

4 Plywood

Azerbaijan, Iraq, Turkmenistan and Iran were the top four export destinations of the

Turkish plywood industry. They accounted for nearly 60% of exports. Russia, Iran and

Algeria are the fastest growing export markets for the industry with a respective CAGR

of 36.9%, 17.8% and 16.6% in value terms during the last six years.

Table 109: Plywood export by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Azerbaijan 2,197 1,372 1,372 2,151 2,400 4,046 24% 13.0%

Iraq 1,890 1,484 1,620 1,720 2,529 2,195 13% 3.0%

Turkmenistan 1,141 1,249 898 1,699 940 1,809 11% 9.7%

Iran 667 918 1,083 1,309 2,075 1,780 11% 21.7%

Russia 203 225 568 169 406 1,337 8% 45.8%

Georgia 2,157 1,119 1,036 1,155 1,057 977 6% -14.6%

Free Zones 1,833 914 1,127 1,085 858 646 4% -18.8%

Algeria 232 290 212 406 135 584 4% 20.3%

UAE 727 296 10 18 1 331 2% -14.6%

Serbia 215 72 4 292 72 309 2% 7.5%

Others 10,179 5,362 3,234 4,187 3,401 2,304 14% -25.7%

World 22,471 14,917 12,912 14,401 14,050 16,615 100% -5.9%


Middle East and Central Asian countries were Turkey’s dominant trade partners in

plywood exports. The top four countries accounted for 64% of total exports in quantity

terms. The average price of plywood exports was $1,465 per tonne in 2013, while the

most expensive plywood was exported to Russia with a unit value of $5,139 per tonne,

mainly due to high-end construction and furniture projects in Russia where many such

projects were awarded to Turkish contractors.

Table 110: Plywood export by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2012

Azerbaijan 1,817 1,108 1,020 1,139 1,620 3,068 23% 11.0% 1,481

Iraq 1,687 1,667 1,735 1,655 2,118 2,603 19% 9.1% 1,194

Georgia 1,561 1,686 1,564 1,517 1,474 1,571 12% 0.1% 717

Turkmenistan 876 1,146 643 952 615 1,295 10% 8.1% 1,528

Iran 563 1,906 1,319 786 1,069 1,074 8% 13.8% 1,941

Russia 65 107 290 38 79 721 5% 61.8% 5,139

Algeria 163 249 140 236 54 371 3% 17.9% 2,500

Free Zones 983 486 638 552 386 348 3% -18.8% 2,223

Libya 727 1,019 862 148 104 326 2% -14.8% 1,702

Serbia 152 123 6 276 50 236 2% 9.2% 1,440

Others 5,949 3,645 2,592 3,178 2,020 1,753 13% -21.7%

World 14,543 13,145 10,809 10,478 9,591 13,368 100% -1.7% 1,465


IBS 99

5 Sawn wood

Iraq and Azerbaijan were the major export destinations of the Turkish sawn wood

industry, accounting for 45% of exports. Poland and India are the fastest growing export

markets for the industry, with respective CAGR of 200% and 85.6% in the last six years

in value terms.

Turkey also exported $348,000 of sawn wood to the Maldives, related to the investment

by a Turkish developer in a resort there, according to one industry source.

Table 111: Sawn wood export by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Iraq 893 2,387 4,052 2,483 2,878 3,219 23% 29.2%

Azerbaijan 530 740 1,473 3,418 2,125 3,112 22% 42.5%

Free Zones 2,921 1,649 1,505 1,880 2,053 1,887 13% -8.4%

Turkmenistan 604 1,627 1,106 1,325 728 1,782 13% 24.2%

Cyprus 3,021 1,594 2,071 1,273 971 724 5% -24.9%

Iran 153 40 556 956 1,113 478 3% 25.6%

Maldives 0 0 0 0 0 348 2%

Lebanon 54 39 248 223 139 220 2% 32.4%

India 10 339 66 41 104 220 2% 85.6%

Poland 0 0 7 0 40 189 1% 200.0%

Others 4,078 4,476 3,814 2,478 2,440 1,847 13% -14.6%

Total 12,261 12,894 14,897 14,078 12,588 14,029 100% 2.7%


Similarly, in quantity terms, Iraq, Azerbaijan and Free Zones were the major export

destinations of Turkish sawn wood. Those top three destinations constituted nearly 70%

of total exports. Turkey exported 16,600 tonnes of sawn wood in 2013 and exports to

Iraq alone constituted 32% of this.

Turkish exports of sawn wood reached 22,800 tonnes in 2010, but subsequently slipped

to 14,000-17,000 tonnes.

Table 112: Sawn wood export by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonnes

2012

Iraq 1,571 4,998 7,384 3,679 3,736 5,281 32% 27.4% 770

Free Zones 3,573 3,042 1,825 2,656 3,470 4,100 25% 2.8% 592

Azerbaijan 408 482 1,399 2,123 1,733 1,805 11% 34.6% 1,226

Turkmenistan 649 2,114 1,111 676 410 1,248 8% 14.0% 1,776

Cyprus 4,247 2,559 2,910 1,666 1,085 916 6% -26.4% 895

Iran 71 90 937 855 902 560 3% 51.1% 1,234

India 11 684 98 11 171 286 2% 91.9% 608

Maldives 0 0 0 0 0 283 2%

Lebanon 93 63 264 249 161 239 1% 20.8% 863

Djibouti 11 138 0 6 13 188 1% 76.4% 462

Others 5,658 7,078 6,901 3,581 2,187 1,664 10% -21.7%

Total 16,295 21,252 22,831 15,504 13,870 16,568 100% 0.3% 908


IBS 100

6 Flooring

Turkmenistan, Azerbaijan and Iraq accounted for 56% of Turkey’s flooring exports in

value terms. Turkmenistan’s flooring imports were worth $4.5 Mn, constituting 31% of

Turkey’s exports.

Exports to Tajikistan and Germany had the fastest growth track with respective CAGR

of 66.6% and 26.1% in the last five six years in value terms.

Table 113: Flooring export by country, 2008-2013, $’000

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

Turkmenistan 2,638 5,029 6,159 4,043 3,636 4,496 31% 11.3%

Azerbaijan 1,495 5,550 2,163 2,463 2,052 2,041 14% 6.4%

Iraq 580 340 1,132 1,753 2,147 1,677 12% 23.7%

Cyprus 941 502 765 555 865 927 6% -0.3%

Russia 303 107 1,212 273 182 710 5% 18.6%

Germany 170 284 264 261 56 542 4% 26.1%

Macedonia 203 520 191 199 22 438 3% 16.6%

Georgia 1,497 1,855 1,113 852 518 369 3% -24.4%

Tajikistan 27 6 20 34 18 347 2% 66.6%

Iran 787 1,755 2,159 6,524 7,567 342 2% -15.4%

Others 7,021 6,385 6,733 3,789 3,781 2,479 17% -18.8%

Total 15,663 22,337 21,911 20,749 20,850 14,369 100% -1.7%


Central Asian countries were major export markets for Turkish flooring manufacturers.

One-fourth of Turkey’s total flooring product exports were to Turkmenistan totalling

1,310 tonnes. Turkey also began to export flooring to Denmark. Initially, Turkey

exported only three tonnes of flooring to Denmark, but as of 2013, the amount exported

to Denmark has reached 134 tonnes.

Table 114: Flooring export by country, 2008-2013, tonnes

2008 2009 2010 2011 2012 2013

Share

2013

CAGR

2008-13

$/tonne

2012

Turkmenistan 1,306 2,552 1,476 1,106 1,163 1,310 26% 0.1% 3,126

Iraq 224 205 623 985 1,171 751 15% 27.4% 1,833

Azerbaijan 1,042 1,443 676 805 779 583 12% -11.0% 2,634

Cyprus 421 349 466 333 448 350 7% -3.6% 1,931

Tajikistan 26 1 11 25 6 334 7% 66.6% 3,000

Georgia 1,241 1,547 862 573 269 232 5% -28.5% 1,926

Iran 881 1,422 327 1,212 1,545 179 4% -27.3% 4,898

Russia 53 17 94 65 45 137 3% 20.9% 4,044

Denmark 0 17 0 3 41 134 3% 67.6% 1,488

Bulgaria 968 905 185 132 90 121 2% -34.0% 1,178

Others 2,639 3,945 2,139 1,835 1,759 900 18% -19.4%

Total 8,800 12,408 6,860 7,078 7,318 5,030 100% -10.6% 2,849


IBS 101

7 Furniture

Turkish furniture manufacturers also increased their production capacity during this

period, in line with growing demand. In spite of the global financial crisis, the industry

continued to stand strong and posted year-on-year growth in production even in 2009.

Turkey presently exports furniture and furniture products to 180 countries across five

continents. The top 15 countries represent nearly 75% of all Turkey’s furniture exports.

China, Germany, Poland and Italy are the other major international furniture exporters.

Iraq has continued to be Turkey’s top export destination since 2010. In 2012, exports to

Iraq amounted to $396.3 Mn, a 30% CAGR from the 2008 export value of $105.1 Mn

with 20% share in total exports.

Libya has a considerable share in 2012 exports, mostly due to a striking increase in the

export of other furniture and parts, whereas until 2012 Libya did not rank in the top 15.

Apart from Libya, major export destinations which have showed the largest annual

growth rate have been Iraq, Azerbaijan, Saudi Arabia, Turkmenistan and Georgia. By

contrast, export growth rates for European countries, for example Germany, the

Netherlands, United Kingdom, and Austria, have been decreasing due to economic

contraction and lower demand.

Furniture exports to Canada constitute a minor share (0.1%) in Turkey’s total furniture

exports at $1.9 Mn. The main products exported to Canada are seats and parts and other

furniture such as kitchen, bedroom, and office items.

Table 115: Furniture export by country, 2008-2013, $’000

2008 2009 2010 2011 2012

Share

2012

CAGR

2008-12

Iraq 105,103 137,687 209,287 286,471 396,298 20.9% 39.3%

Libya 21,191 42,845 75,410 17,494 167,243 8.8% 67.6%

Germany 161,912 122,108 135,369 168,837 152,823 8.0% -1.4%

Azerbaijan 51,162 71,398 82,964 108,478 131,509 6.9% 26.6%

France 82,022 66,868 73,809 91,390 85,450 4.5% 1.0%

Iran 77,146 73,949 91,359 110,755 71,545 3.8% -1.9%

Saudi Arabia 28,088 23,386 29,928 42,623 66,676 3.5% 24.1%

Turkmenistan 23,798 38,676 47,018 76,134 61,209 3.2% 26.6%

Russia 49,503 17,901 36,235 49,113 59,347 3.1% 4.6%

Netherlands 59,636 49,658 46,637 56,553 53,180 2.8% -2.8%

UK 62,581 46,468 42,214 40,776 49,672 2.6% -5.6%

Georgia 17,401 15,020 16,818 28,539 32,126 1.7% 16.6%

Italy 23,467 26,501 31,063 34,100 30,356 1.6% 6.6%

USA 22,204 19,166 22,719 26,833 30,334 1.6% 8.1%

Austria 30,695 20,759 19,702 25,475 22,634 1.2% -7.3%

Canada 1,232 836 1,343 1,721 1,893 0.1% 11.3%

Others 506,200 376,866 410,690 460,259 467,286 24.6% -2.0%

Total 1,387,015 1,198,146 1,414,961 1,658,391 1,899,017 100% 8.2%


IBS 102

The main export products were wooden furniture, excluding offices, kitchens and

bedrooms, and chairs, wooden furniture for bedrooms, excluding chairs, and seats for

motor vehicles.

In recent years, Turkish furniture companies have been establishing showrooms and

depots in increasing numbers in most major export destination countries. The Turkish

contracting sector is one of the major sectors in exporting services. Turkish contractor

companies which have undertaken construction work abroad have completed many

housing complexes, tourism projects, hospitals and health centre projects, most of which

were furnished with Turkish products.

IBS 103

ANNEX II DISTRIBUTION OF TREE SPECIES BY AREA

Forest formations in the country include species belonging to different floristic regions,

namely Irano-Turanion, Mediterranean and Euro-Siberian. Approximately 800 woody

taxa occur in the country's forests. The predominant species are Pinus brutia, Pinus

nigra, Pinus silvestris, Abies spp. (A. cilicica, A. nordmanniana, A. nordmanniana

subsp equi-trojani), Picea orientalis, Cedrus libani, Juniperus spp., Pinus pinea (Stone

pine), Cupressus sempervirens, Pinus halepensis, Fagus orientalis, Quercus spp., Alnus

spp., Castanea sativa, and Carpinus betulus.

Figure 24: Distribution of some main tree species

Among these, Turkish pine (Pinus brutia), oak (Quercus sp) and Crimean or Black pine

(Pinus nigra) constitute 72% of the forest area in Turkey. Turkish pine grows mostly

along the Mediterranean, while Crimean pine grows in the Black Sea region. Oak,

however, is widespread all over Turkey, with the exception of central and eastern

regions.

IBS 104

Table 116: Distribution of areas by main tree species, 2012 (hectares)

High forest Coppice forest Total forest

TOTAL 17,260,805 4,417,538 21,678,343

Coniferous 13,222,799 1,003,584 14,226,383

Calabrian pine 5,527,804 326,868 5,854,672

Crimean pine 4,288,778 404,281 4,693,059

Scotch pine 1,291,881 187,766 1,479,647

Fir 635,511 34,878 670,389

Eastern spruce 324,452 10,020 334,472

Cedar 457,691 6,059 463,750

Juniper 547,346 27,968 575,314

Stone pine 87,122 1,905 89,027

Cypress 1,469 0 1,469

Aleppo pine 715 0 715

Maritime pine 59,829 3,839 63,668

P. Radiata 57 0 57

Duglaz 87 0 87

Other coniferous 57 0 57

Broad-leaved 4,038,006 3,413,954 7,451,960

Beech 1,944,424 17,234 1,961,658

Oak 1,782,530 3,370,030 5,152,560

Hornbeam 19,961 0 19,961

Alder 139,608 1,510 141,118

Poplar 6,546 0 6,546

Chestnut 90,303 20,740 111,043

Ash 9,443 0 9,443

Lime 11,522 0 11,522

Hop hornbeam 52 0 52

Eastern plane 691 0 691

Eucalypt 972 1,556 2,528

Turkish sweetgum 498 0 498

Corylus 496 0 496

Birch 161 0 161

Laurus 1,857 0 1,857

Buxus 12 0 12

Walnut 12,626 0 12,626

Cermes oak 1,051 0 1,051

Strawberry tree 16 0 16

Scrub 2,431 0 2,431

Tamarisk 332 0 332

Cyprian acacia 927 1,424 2,351

Black locust 64 0 64

Mountain ash 268 0 268

Other broad-leaved 11,215 1,460 12,675


IBS 105

Table 117: Forest area by tree species, 2012 (000 hectares)

Tree type groups Total Productive Degraded Share

Turkish pine (Pinus brutia) 5,855 3,208 2,647 27.0%

Oak (Quercus sp) 5,153 2,106 3,047 23.8%

Crimean pine (Pinus nigra) 4,693 2,580 2,113 21.6%

Beech (Fagus orientalis) 1,962 1,621 340 9.0%

Scots pine (Pinus sylvestris) 1,480 751 729 6.8%

Fir (Abies nordmanniana) 670 407 263 3.1%

Juniper 575 91 484 2.7%

Cedar 464 220 243 2.1%

Spruce 334 230 104 1.5%

Alder 141 100 41 0.7%

Chestnut 111 75 36 0.5%

Stone pine 89 61 28 0.4%

Hornbeam 20 15 5 0.1%

Lime tree 12 10 2 0.1%

Ash tree 9 8 1 0.0%

Poplar 7 2 5 0.0%

Eucalyptus 3 2 0 0.0%

Other species 102 70 32 0.5%

Total 21,678 11,559 10,119 100%


IBS 106

ANNEX III ACTIVITIES OF THE GOVERNMENT

The General Directorate of Forestry (GDF) is an organization under the Ministry of

Forestry and Water Works which has a special budget with public entity status. It is

responsible for management of the forests with a view to ensuring their protection,

development and expansion. It works via decentralized management.

The main duties and responsibilities of the directorate are as follows:

To manage and protect forest resources

To carry out procedures and tasks related with ownership of forests, cadastral

services, permission and easements

To operate forests in accordance with technical, socio-cultural, ecological and

economical requirements by ensuring the continuity of forest products and

services

To conduct reforestation, erosion control, forest-related pasture improvement,

and work to combat desertification

To produce and support the production of the seeds and saplings of plant species

for forest trees.

International commitments

Turkey continues its efforts to develop productivity in its forests through reclamation

and is party to a number of international commitments. These include “The Action Plan

for the Forest Sector in a Green Economy” initiated by the United Nations Economic

Commission for Europe (UNECE). The Government has said that the Action Plan

would be implemented by 2014. The Action Plan16 for the forest sector in a green

economy consists of five pillars with respective areas of activity:

A. Sustainable production and consumption of forest products

Strategies for sustainable production, consumption and trade of forest products

including non-wood forest products include:

1. certification of sustainable forest management and related labelling as well

as other standards for sustainable forest management

2. procurement practices, both public and private

3. wood mobilisation and increasing the potential sustainable wood supply

4. innovation in forest management and in the production and use of forest

products

5. Life cycle assessment

6. policies and standards for green building

7. ensuring and monitoring the legality of forest products.

16

Draft [ECE/FAO] Action Plan for the Forest Sector in a Green Economy,

http://www.unece.org/fileadmin/DAM/timber/meetings/20131209/ECE_TIM_2013_12__

FO_EFC_2013_12.pdf

IBS 107

B. A low carbon forest sector

Strategies for the low carbon forest sector include:

1. substitution of non-renewable materials and energy

2. efficient production, processing and use of wood, eliminating waste from

forest to consumer

3. adaptation of the forest to a changing climate

4. carbon sequestration and storage.

C. Decent green jobs in the forest sector

Strategies for decent green jobs in the forest sector and gender equality include:

1. a skilled workforce

2. safety and health of the forestry workforce

3. efficient forest operations

4. socio-economic impacts of green economy policies

5. forestry education to prepare specialists for future challenges.

D. Long-term provision of forest ecosystem services

Strategies for the long-term provision of forest ecosystem services include:

1. valuation of forest ecosystem services

2. payment and markets for forest ecosystem services, moving from theory to

practice

3. forests in relation to human health and wellbeing.

E. Policy development and monitoring of the forest sector in relation to a green

economy

Strategies for governance and monitoring of the forest sector in the green

economy include:

1. policy instruments and institutional frameworks for the forest sector in a

green economy

2. implementation and improvement of criteria and indicators of sustainable

forest management

3. assessment of sustainable forest management in the region

4. communication, promotion and raising of awareness of sustainable forest

management, the forest sector and their role in a green economy

5. cooperation and coordination with other parts of the green economy.

IBS 108

The GDF has carried out the following:

Forest management plans

During 2011, a management programme was prepared for the renewal of the forest

management plans in an area of 2.1 Mn hectares. As of 2012, the programme was

implemented in 2.4 Mn hectares which exceeded the area proposed in 2011.

In order to increase efficiency and productivity from the forests, an inventory survey

was prepared for a total of 2.8 Mn hectares of total forest area in line with multi-purpose

use. The management plans for this area were renewed during 2010 and 2011.

Silvicultural practices

Information on the measures taken to improve productive forests and increase

productivity is given in below table with the results and increases over the values of the

previous year.

Table 118: Silvicultural applications, 2009-2012, (000 hectares)

2009 2010 2011 2012

Regeneration 98 105 107 118

Culture care 151 190 192 252

Thinning 138 159 168 205

Coppice 80 79 82 93

Pruning 11 8 10 16

Source: General Directorate of Forestry, 2012 Annual Plan

Rehabilitation work is carried out in closed and degraded forest areas in order to convert

these forests into productive grove forests. In 2012; rehabilitation works were carried

out in 347,719 hectares of forest.

Also in 2012, “The Project for Rehabilitation of Burned Areas and Establishing Fire

Resistant Forests (YARDOP)", launched in 2010, was completed in 48,473 hectares of

forest area, close to the target.

Afforestation

The demand for wood in the form of raw material is increasing in the country in parallel

to an increase in population and industry. In order to be able to protect natural forests

and biological diversity, as well as meeting this demand, the Government attaches

significant importance to ensuring existing productive forests are operated within the

framework of sustainable forest management principles and that afforestation is carried

out in degraded forest areas, in forest glades and in the lands outside the forest regime.

Table 119: Afforestation studies, 2008-2012 (000 hectares)

2008 2009 2010 2011 2012

Survey/project 104 90 84 110 121

Afforestation 14 23 22 22 30

Rehabilitation

90

Private afforestation 9 10 17 9 5

Source: General Directorate of Forestry, 2012 Annual Plan

During 2012; 121,029 hectares of land were surveyed, a total of 30,371 hectares was

afforested, and 89,960 hectares of land was rehabilitated.

IBS 109

ANNEX IV DISTRIBUTION OF INDUSTRIAL ROUNDWOOD

Production of industrial roundwood for fibre and chip (particle) is concentrated in the

Black Sea region in which Kastamonu produces 10% of the total.

Table 120: Industrial roundwood production by province, 2012 (m3)

Total

Fibre-chip

wood Share

TR821 Kastamonu 1,341,654 568,349 10.5%

TR823 Sinop 604,626 245,296 4.5%

TR832 Tokat 318,993 241,258 4.4%

TR831 Samsun 309,755 200,143 3.7%

TR323 Muğla 593,521 199,782 3.7%

TR322 Denizli 451,595 196,141 3.6%

TR422 Sakarya 344,469 195,125 3.6%

TR611 Antalya 631,918 190,914 3.5%

TR310 İzmir 402,427 180,372 3.3%

TR424 Bolu 793,646 175,656 3.2%

TR333 Kütahya 570,481 172,197 3.2%

TR213 Kırklareli 296,482 167,426 3.1%

TR902 Ordu 235,110 159,311 2.9%

TR331 Manisa 434,010 153,906 2.8%

TR812 Karabük 462,530 126,414 2.3%

Others 7,155,037 2,377,814 43.8%

TR Turkey 14,424,365 5,424,794 100%


IBS 110

ANNEX V PORTS OF ENTRY

TURKSTAT, the Turkish statistical institution, last published a detailed report on vessel

and sea transportation in 2007. The later statistics published by the Ministry of

Transportation do not show loads per port. The figures for 2006 show the predominance

of the two east Marmara ports of Izmit and Gemlik. These are close to the heartland of

the wood industry in the area stretching from Bursa east to Bolu.

The 2006 figures show that 3.5 Mn tonnes of forestry products entered Turkey by sea

and that 67% of these were unloaded in Izmit, followed by Gemlik with a 12% share.

Industry players told IBS that Izmit and Gemlik ports remain the major ports of entry of

forestry products to Turkey.

Table 121: Ports by forestry products unloaded, 2007

Port name

Number

of vessels

unloaded

Tonnes

unloaded Share

Izmit 6,653 2,332,987 67%

Gemlik 1,824 435,052 12%

Fatsa 79 82,327 2%

Antalya 321 78,697 2%

Iskenderun 1,150 73,661 2%

Ünye 129 61,516 2%

Bartın 131 60,131 2%

Aliaga 1,804 48,261 1%

Samsun 1,050 40,084 1%

Karadeniz Eregli 606 38,297 1%

Mersin 2,693 10,442 0%

Trabzon 653 5,740 0%

Zonguldak 363 4,964 0%

Bandırma 417 380 0%

Istanbul 1,631 380 0%

Tekirdag 630 83 0%

Ambarlı 3,102 0 0%

Botas 376 0 0%

Çanakkale 86 0 0%

Hopa 176 0 0%

Izmir 2,105 0 0%

Karabiga 202 0 0%

Mudanya 92 0 0%

Silivri 86 0 0%

Tuzla 517 0 0%

Others 5,934 110,564 3%

Total 32,810 3,488,020 100%

Source:

TURKSTAT, 2007

IBS 111

ANNEX VI PROFILES OF KEY PLAYERS

Istanbul Chamber of Industry’s list of Turkey’s top 1,000 industrial establishments in

2012 (published in November 2013) includes 11 companies active in wood products.

The table below summarizes details of these companies:

Table 122: Top particle and fibre board companies, 2012

Rank

2012 2011 Company name Province

Net

sales

revenue

($ Mn)

Export

($ Mn)

# of

Employees

Capital (%)

Public

Private

(local)

Private

(foreign)

42 52 Kastamonu Entegre Istanbul 825.9 121.7 2,060 0 100 0

45 45 Yildiz Entegre Izmit 779.9 57.8 1,733 0 100 0

226 173 Yildiz Sunta Izmit 204.2 17.9 679 0 100 0

400 434 Çamsan Entegre Istanbul 115.2 6.8 331 0 100 0

517 642 SFC Entegre Istanbul 89.9 - 340 0 100 0

528 655 Vezirkopru Orman Ürunleri Samsun 87.9 4.0 418 0 100 0

578 - Teverpan MDF Istanbul 80.2 12.8 430 0 100 0

655 689 Çamsan Poyraz Ankara 70.6 8.0 397 0 100 0

735 751 Orma Orman Isparta 63.2 11.2 289 0 100 0

740 749 Gentas Bolu 62.7 22.1 447 0 100 0

778 806 Isik Ahsap Profil Gaziantep 60.1 11.3 347 0 100 0

Source: Istanbul Chamber of Industry, 2013

Kastamonu Entegre has a 14.5% market share in the wood products industry. Yildiz

Entegre, combined with its particle wood company, Yildiz Sunta, has 17.1% market

share. The shares of other companies in the above top 1,000 list varies between 1-1.5%.

Figure 25: Market shares of key players

This section includes analysis of top three manufacturers, Kastamonu Entegre, Yildiz

Entegre, and Çamsan in the light of production capacities provided in the previous

sections. IBS will also provide a profile of Starwood which does not feature in the list,

but which has considerable capacity and penetration in the wood products market.

Kastamonu

Entegre

14.5%

Yildiz

Entegre

13.7%

Yildiz Sunta

3.6%

Camsan

Entegre

2.0% SFC Entegre

1.6%

Others,

64.6%

IBS 112

I KASTAMONU ENTEGRE

Kastamonu Entegre was established under Hayat Holding in 1969 to compete in the

forestry and wood products sector. The company generated a consolidated turnover of

$850 Mn in 2012 and aims to reach a turnover of $1.1 Bn in the next three years with

new investments.

Kastamonu Entegre produces the particle board, yongalam, MDF, medelam, laminate

flooring, door skin and other relevant added-value products needed by the furniture,

decoration and construction sectors.

Timeline of the company

1937 Hayat: The foundations of Hayat Holding were laid.

1969 Kastamonu Entegre was established in Istanbul.

1971 The first particle board factory started production in Kastamonu.

1994 The first continuous MDF facility started operating in Gebze.

1998 The S.C. Prolemn S.A. Company was purchased from the Romanian Privatization

administration and a door skin facility was constructed in Romania

1999 Laminate flooring started being produced in Gebze under the FLOORPAN brand.

2000

The Gabrovnitsa facility in Bulgaria’s Kazanlık region was purchased and a 150,000 m3/year

capacity particle board facility was established in Bulgaria. The facility began operating in

2001.

2002 In the first facility of its kind in Europe and one of the most modern facilities in the world,

DORPAN door skin production started in Romania.

2004 The Natron Paper factory was purchased from the Bosnia Herzegovina privatization

administration and the Natron Hayat Company was established.

2005 The particle board facility in Balıkesir started operations.

2007 The Tever Wood particle board facility in Gebze was purchased.

2008 MDF and laminate flooring production started in the new MDF facility established in the

Kastamonu organized industry zone.

2009 The Yontaş particle board facility with a 150,000 m3/year capacity in Samsun was purchased.

2010 The Samedoğlu particle board facility established in Tarsus started producing for Kastamonu

Entegre.

2010 A 1,600 m

3/day capacity particle board facility started operations within the Gebze facility at

the end of 2010.

2012 The MDF facility located in the Adana Hacı Sabancı organized industry zone with a capacity

of 1400 m3 daily and 420,000 m

3 yearly started production.

2012 The 500,000 m

3/year capacity Romanian particle board factory started production on June 2,

2012.

IBS 113

Key brands

Key products and relevant brands of the company are outlined below:

Laminate

flooring

Doorskin

Painted MDF

Coated MDF

Uncoated

particle board

Coated particle

board

Painted MDF

and particle

board

High

gloss (shiny)

panels

Moisture

resistant panels

Light panels

Production facilities

Kastamonu Entegre, which has a particle board and MDF factory in Kastamonu, an

MDF factory in Adana, and an MDF and particle board factory in Gebze and particle

board factories in Balıkesir and Samsun for a total of six factories in Turkey, also has a

particle board factory in Bulgaria, an MDF factory in Russia, a door skin factory in

Romania and a Kraft paper factory in Bosnia Herzegovina, making a total of four

facilities abroad.

IBS 114

The table below summarizes the plant details of Kastamonu Entegre:

Location Product/Service Capacity

MDF and particle board

facility

77,000 m2 outdoor

135,000 m2 indoor

Izmit

(Turkey)

MDF

Particle board

Laminate parquet

340,000 m3 / year

480,000 m3/year

10,000,000 m2/year

Particle board facility

100,000 m2 outdoor

30,000 m2 indoor

Kastamonu

(Turkey) Particle board 240,000 m

3/year

MDF facility

100,000 m2 outdoor

400,000 m2 indoor

Kastamonu

(Turkey)

MDF

Laminate flooring

390,000 m3/year

18 Mn m2/year


420,000 m2 outdoor

75,000 m2 indoor

Balikesir


3/year


83,000 m2 outdoor

22,000 m2 indoor

Samsun


3/year

MDF facility

288,000 m2 outdoor

74,000 m2 indoor

Adana

(Turkey) MDF 460,000 m

3/year

Kastamonu Romania S.A.

400,000 m2 outdoor

121,000 m2 indoor

Reghin

(Romania) Door skin 17 Mn pcs/year

Kastamonu Bulgaria A.D.

230,000 m2 outdoor

41,000 m2 indoor

Sahrane

(Bulgaria) Particle board 200,000 m

3/year

Tatarstan (Russia)

(To be operated in 2014)

Tatarstan

(Russia)

MDF

Particle board

OSB

Door skin

550,000 m3/year

800,000 m3/year

500,000 m3/year

8 Mn pcs/year

Distribution

Kastamonu Entegre has around 200 distributors throughout the country and has

nationwide presence. Even though the company has not revealed the breakdown of its

distributors, it was mentioned that the majority of the distributors are in the Marmara

region, including Bursa.

Other important areas of regional presence are Ankara and Kayseri where furniture

industries are concentrated.

IBS 115

II YILDIZ ENTEGRE

Yildiz Entegre, one of the largest manufacturers in the world, has a production capacity

of 8,500m3/day. The company claims that the Kartepe facility with its integrated

structure is the largest MDF complex in the world under a single roof.

Yildiz Entegre manufactures MDF, melamine coated MDF, particle board, melamine

coated particle board, MDF profile, laminate flooring, MDF doors, MDF baseboard,

painted MDF, MDF cabinet covers, door skin, impregnated decor papers and glue in the

forestry products sector in its facilities established on an area of total 1,832,000 m2.

Timeline of the company

1890 Hasan Yildiz started timber trading in Trabzon.

1930 The first timbering workshop was established.

1957 Besides timber trading activities, other forestry products started to be sold.

1972 Being structured as Yildiz Mobilya A.S., the first step to become a corporate company was

taken.

1990 The first glue factory and formaldehyde facility were established in Samsun.

1994 The second formaldehyde facility was established in Samsun.

1996 The second glue factory and the third formaldehyde facility were established in Basiskele –

Kocaeli.

2000 The forth formaldehyde facility was established in Basiskele- Kocaeli.

2001 The first MDF facility with a capacity of 1,000 m

3/day and the first melamine press investment

were completed in Kartepe – Kocaeli.

2002 For the electric power demand of the company, a power production investment of 19 MW was

completed.

2003 The first, second and the third MDF profile investments and the second melamine press

investment were completed in Kartepe Kocaeli.

2004 The first laminate flooring production was launched under the brand of Varioclic and in

Basiskele Kocaeli the fifth formaldehyde facility was established.

2005

In Kartepe Kocaeli, the second MDF factory with a capacity of 1,000 m3/day started to operate,

the third and the forth melamine press investments were completed and the sixth formaldehyde

facility was established in Basiskele – Kocaeli.

2006 In Kartepe Kocaeli, production of MDF door was initiated under the brand of Variodor and the

second laminate flooring investment was completed.

2007 In Kartepe Kocaeli, the investment of the third MDF facility with a capacity of 1,000 m3/day.

2008 In Kartepe Kocaeli, the investments of printed laminate flooring facility, two impregnated

paper facility and the fifth melamine press investment were completed.

2009 In Kartepe Kocaeli, the investment of the first door skin facility of Turkey was completed.

2010

In Basiskele Kocaeli, the seventh formaldehyde facility, in Kartepe-Kocaeli the forth profile

facility, the third and the forth impregnate facility, the third laminate flooring facility and the

first cabinet cover facility investments were completed and the certificate of CE was obtained.

2011

In Kartepe Kocaeli, the seventh melamine press facility was completed and the investment of

the eighth formaldehyde facility in Baseski Kocaeli commenced. All of the shares of Masstas

factory, which manufactures particle board and melamine coated particle board of 620 m3 in

Mudurnu Bolu, were purchased.

2012

In Tarsus – Mersin, an MDF facility with a production capacity of 1,500m3 /day, laminate

flooring facility and glue facility investments were completed.

In Akhisar – Manisa the investment of a particle board facility with a capacity of 2,000m3/day

was completed. In Mudurnu – Bolu, the investment of a particle board facility with a capacity

of 1,000m3/day was completed.

IBS 116

Key brands

Key products and relevant brands of the company are outlined below

MDF door

MDF profile

Medium

density

fibreboard

Melamine

coated MDF

Painted

backrest

Melamine

coated light

MDF

Glue

Doorskin

Impregnated

décor paper

MDF cabinet

bover

3-Dimension

MDF

Particle board

Melamine

coated

particle board

Laminate

flooring

IBS 117


Yildiz Entegre launched its activities in forestry products in 2001 and now produces in

seven facilities. .

Location Product/Service Capacity

Kartepe MDF Facility

500,000 m2 area

Izmit

(Turkey)

MDF, melamine coated

MDF, melamine coated

particle board, MDF

profile, laminate

flooring, MDF door,

MDF baseboard,

painted MDF, MDF

cabinet covers,

doorskin, impregnated

decor paper and glue

production.

4,200 m3/day

Akdeniz MDF Facility

65,000 m2 outdoor

166,000 m2 indoor

Mersin

(Turkey)

MDF

laminate flooring

urea formaldehyde

460,000 m3/year

7 Mn m2/year

55,000 ton/year

Akhisar Particle Board

Facility

80,000 m2 outdoor

227,000 m2 indoor

Manisa


3/year

Mudurnu Particle Board

Facility (Masstas)

40,000 m2 outdoor

100,000 m2 indoor

Bolu


3/year

Basiskele Glue Facility

6,914 m2 outdoor

52,568 m2 indoor

Kocaeli

(Turkey)

Formaldehyde, urea

formaldehyde

concentrate (Ufc),

water based urea

formaldehyde glue,

urea formaldehyde

resin, melamine

formaldehyde resin

300,000 ton/year

Tekkekoy Glue Facility

30,000 m2 area

Samsun

(Turkey)

Urea formaldehyde

glue 40,000 ton/year

Yildiz Entegre acquired Masstas, a particle board and melamine coated particle board

manufacturing facility in Mudurnu / Bolu in 2011, which has 1,000 m3/day production

capacity.

Yildiz Entegre (Yildizlar Investment Holding) acquired a facility at the North Carolina

State Ports Wilmington Port, USA, to process the wood into chips and incorporated a

company with the commercial title of Yildiz Entegre USA Inc as of August 1, 2011. It

turns the wood purchased from the American wood suppliers into chips and sells

woodchips to the group companies in Turkey and other panel board producers. The

woodchips produced in these facilities are shipped, by a woodchip carrier belonging to

the group.

IBS 118

Yildiz Entegre has also a nitrogen facility in Kutahya that produces the following:

Ammonia Nitrate Fertilizer (ANG)– 26% with a capacity of 338,500 tonnes/year

Ammonia Nitrate Fertilizer (ANG) – 33% with a capacity of 240,000

tonnes/year

Technical Ammonia Nitrate (TAN) with a capacity of 216, 000 tonnes/year

Prill Porous Ammonia Nitrate (PPAN) with a capacity of 216,000 tonnes/year

Diluted Nitric Acid (SNA) with a capacity of 201,300 tonnes/year

Concentrated Nitric Acid (DNA ) with a capacity of 15,000 tonnes/year

Dolomite Ammonium Nitrate Fertilizer with a capacity of 100,000 tonnes/year

as filling material.

Distribution

Yildiz Entegre has a nationwide distribution with its dealers. Out of 81 provinces, the

company has 304 dealers in 54 provinces. The breakdown of dealers is as follows:

Table 123: Breakdown of Yildiz Entegre dealers, 2014

Province Number

Istanbul 57

Ankara 45

Samsun 19

Antalya 10

Bursa 10

Kastamonu 10

Kocaeli 9

Ordu 8

Tokat 8

Mersin 7

Others 121

TOTAL 304

Yildiz Entegre also has two dealers in Iran.

IBS 119

III ÇAMSAN

Çamsan Entegre Agaç Sanayi became operational in 1978 and carries out

manufacturing of MDF, MDFLAM and Parkelam (flooring) products.

Çamsan mainly exports to Iran, Syria, Iraq, Northern Cyprus, Azerbaijan, the Russian

Federation, Greece, Georgia, Turkmenistan and Kazakhstan.

Çamsan has an integrated facility in Sakarya with its manufacturing units for melamine

coated plate and laminate parquet, as well as bare MDF boards of various qualities and

dimensions.

The integrated facility of Çamsan was established on 200,000 m2 area of land of which

60,000 m2 is indoor space, and includes:

MDF manufacturing plant

three lamination (coating) plants

three laminate parquet plants

impregnation plant

chemical plant.

Its paper impregnation capacity is 45,000,000 m2/year.

Key brands

Çamsan’s product range includes:

particle board

o MDF

o MDFLAM

flooring.

The company trades its products under its own trade mark ‘Çamsan’ with the exception

of ‘Parkelam’, the parquet flooring brand of the company.

Distribution

Çamsan Entegre has a nationwide distribution with its dealers. The company has 304

dealers in 54 of Turkey’s 81 provinces. The breakdown of dealers is as follows:

Table 124: Breakdown of Çamsan dealers, 2014

Region Number

Marmara + Aegean 30

Black Sea 26

Istanbul 23

East and Southeast Anatolia 16

Ankara + Central Anatolia 12

Mediterranean 6

TOTAL 113

IBS 120

IV STARWOOD

Starwood, a family company, has been engaged in forestry products trade and

manufacturing for over 80 years. The company is among Turkey’s largest 150 industrial

firms in terms of production capacity.

The company, which supports its own production with five impregnated systems and

custom manufacturing, also produces the resin which is used in the production of

chipboard, MDF and paper impregnation. It has a 150,000 m2/day capacity press-

painting production line which can operate at a speed of 60-80 m/mins.

On this line, which has a sheet painting feature from 1.5 mm to 22 mm, almost 25

colour paints can be done for the standard size sheets between 210 and 420cm and 170-

220cm width.

Starwood, which has press gas suction systems in all its production lines and

electrostatic filter/dust separators for chipboard plants, uses a pneumatic separator

system in the ultra thin MDF production process against the background of its nature

friendly structure and awareness of the importance of clean air quality.

Key brands

Starwood’s product range includes:

fibreboard

o melamine coated fibreboard

o printed fibreboard

particle board

o MDF

o painted MDF

o MDFLAM

impregnated paper.

The company trades its products under its own trade mark ‘Starwood’.


The company, which produces the largest volume of particle board under a single roof

in Inegol / Bursa, has specialized in particular in producing thin MDF from 1.5 mm to 8

mm, while carrying out production of 3,300 m3/day of particle board, the thickness of

which varies from 6mm to 38mm, width 122cm to 244cm, length 200cm to 420cm, and

also 750 m3/day MDF production in four particle board production lines.

Starwood, which carries out production in a total area of 220,000 m2 of which 180,000

m2 is a closed area, has a production capacity of 25,000 sheets daily which are 183 and

210cm in width with its six melamined board-plating presses and a melamine press.

Starwood has another production facility, a 15,000 m2 closed area in Batumi / Georgia.

The company, under the brand name STAR ARGE in Batumi Georgia sells its products

IBS 121

to the Georgian domestic market and Commonwealth of Independent States (CIS). The

largest part of the transportation to the CIS is undertaken by railway transportation.

Distribution

Starwood distributes its own products through:

four regional stores (Istanbul, Ankara, Bursa and Konya)

39 DIY stores

o 36 in Turkey (Istanbul (five), Izmir, Ankara (two), Konya, Adiyaman,

Tokat, Adana, Mugla, Isparta, Elazig, Erzurum (two), Canakkale,

Corum, Eskisehir (two), Gaziantep, Giresun (two), Antalya, Nigde,

Tokat, Balikesir, Mus, Trabzon, Ordu, Kastamonu, Erzincan, Mersin,

Bursa, Usak)

o three abroad (Azerbaijan, Turkmenistan, Iran)

around 250-300 dealers in Turkey.

Most of the DIY markets are operated by Starwood itself, while others are franchised.

Relevant wood and construction materials are also sold in these stores.

IBS 122

ANNEX VII COMPANIES IMPORTING WOOD

Submitted as a separate Excel file.

IBS 123

ANNEX VIII CONTACT LIST - SELECTED INTERVIEWEES

Category Organization name Tel Province Website

Company/Wood products Kastamonu Entegre +90 216 554 3000 Istanbul www.kastamonuentegre.com.tr

Company/Wood products Yildiz Entegre +90 262 316 6100 Kocaeli www.yildizentegre.com

Company/Wood products Starwood +90 224 294 3200 Bursa www.starwood.com.tr

Company/Wood products Novawood +90 212 670 3825 Istanbul www.novawood.com.tr

Company/Wood products Yalcin Orman Urunleri +90 262 724 8812 Kocaeli www.yalcinorman.com

Company/Wood products Ercan Orman Urunleri +90 312 348 6034 Ankara www.ahsapurunler.com

Company/Wood products Fiskarheden Orman Urunleri +90 216 446 9937 Istanbul www.fiskarhedenturkey.com

Company/Wood products Arin Orman Urunleri +90 216 420 3939 Istanbul www.arin.com.tr

Company/Wood products Milano Kaplama +90 266 281 1190 Balikesir www.milano.com.tr

Company/Wood products Hasep Kaplama +90 380 537 5486 Duzce www.hasep.com.tr

Company/Wood products Erbaa Kaplama +90 356 715 1568 Tokat www.eksforest.com

Company/Wood products Abant Parke +90 374 243 94 55/56 Bolu www.abantparke.com.tr

Company/Wood products Vezirköprü Orman Ürünleri +90 362 647 1740 Samsun www.turanlargroup.com/veziragac

Company/Wood products Pelit Arslan Kontrplak +90 212 698 8992 Istanbul www.turanlargroup.com/pelitarslan

Company/Wood products Kapsan Kaplama +90 380 514 2134 Duzce www.kapsankaplama.com

Company/Wood products Gentas +90 312 353 0206 Ankara www.gentas.com.tr/index

Company/Wood products Alanyali Entegre +90 242 258 1858 Antalya www.alanyaliahsap.com.tr

Company/Wood products Deska Orman Ürünleri +90 224 524 7510 Bursa www.deska.com.tr

Company/Wood products Metropol Yapı Malzemeleri +90 262 724 9422 Kocaeli www.metropolyapi.com

Company/Wood products Koyuncuoğlu Ağaç +90 216 354 5555 Istanbul www.koyuncuoglu.com.tr

Company/Wood products Yaprak Yapı ve İnşaat +90 212 670 1919 Istanbul www.yaprakyapi.com.tr

Company/Wood products Güleç Orman Ürünleri +90 212 670 0280 Istanbul www.gulecorman.com/

Company/Wood products Eksioglu Forestry Products +90 216 671 1600 Istanbul www.eksiogluorman.com.tr

Company/Wood products Balcioglu Mumessillik +90 212 444 8878 Istanbul www.balcioglu.com.tr

Company/Wood products Huni Parke +90 212 283 5151 Istanbul www.huniparke.com

Company/Prefabricated Fin Ahşap +90 312 284 7044 Ankara www.finahsap.com.tr/

Company/Furniture Bellona Mobilya +90 352 207 1800 Kayseri www.bellona.com

Company/Furniture Dogtas Mobilya +90 216 425 0002 Istanbul www.dogtas.com

Company/Furniture Teleset Mobilya +90 212 698 9889 Istanbul www.teleset.com.tr

Company/Furniture Kelebek Mobilya +90 216 322 0090 Istanbul www.kelebek.com.tr

Sector Association ORSIAD (Association of Forest Industrialists) +90 212 292 5834 Istanbul www.orsiad.com.tr

Sector Association KONUDER (Association of Plywood Producers) +90 533 467 4393 Istanbul

http://www.arin.com.tr/

http://www.gentas.com.tr/index

http://www.dogtas.com/

IBS 124

Sector Association TORID (Association of Forestry Products Exporters and Importers) +90 262 724 9524 Kocaeli www.torid.org.tr

Sector Association MOBSAD (Association of Furniture Industrialists) +90 216 680 2770 Istanbul www.mobsad.com/

Sector Association MOSDER (Association of Turkish Furniture Manufacturers) +90 212 465 6917 Istanbul www.mosder.org.tr

Sector Association PARSIAD (Association of Parquet Industrialists) +90 212 283 5151 Istanbul

Governmental body TURKSTAT (Turkish Statistical Institution) +90 212 469 2200 Istanbul www.turkstat.gov.tr

Governmental body General Directorate of Marine Merchant +90 312 203 1000 Ankara www.denizticareti.gov.tr

Governmental body General Directorate of Forestry +90 312 296 4000 Ankara www.ogm.gov.tr

Governmental body Ministry of Economy (Import Department, Damping branch) +90 312 204 7710 Ankara www.ekonomi.gov.tr/

Customs clearance Tekiner Gümrükleme +90 216 463 1348 Istanbul www.tekinergumruk.com

Certification Bureau Veritas +90 216 518 4050 Istanbul www.bureauveritas.com.tr

http://www.torid.org.tr/

http://www.ogm.gov.tr/

IBS 125

ANNEX IX LIST OF FAIRS

Start date End date Name of the Fair Subject Province Venue Organizer WEB E-MAIL

16-01-2014 19.01.2014 8.Uluslararası Kapı Fuarı Wood, steel and industrial doors Istanbul İstanbul Fuar Merkezi Yeşilköy Demos Fuarcılık www.demosfuar.com.tr [email protected]

28-01-2014 02.02.2014 İSMOB 2014 İstanbul Mobilya Fuarı Home furniture Istanbul İstanbul Fuar Merkezi Yeşilköy İstanbul Fuarcılık www.itf-exhibitions.com [email protected]

13-02-2014 15.02.2014 4.Prefabrik Fuarı Türkiye Prefabricated, steel, wooden structural elements Istanbul İstanbul Fuar Merkezi Yeşilköy Demos Fuarcılık www.demosfuar.com.tr [email protected]

13-02-2014 15.02.2014 3.İskele Kalıp Fuarı, Scaffold, mould systems Istanbul İstanbul Fuar Merkezi Yeşilköy Demos Fuarcılık www.demosfuar.com.tr [email protected]

13-02-2014 16.02.2014 Adana İnşaat 2014 Construction materials Adana Tüyap Adana Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

13-02-2014 16.02.2014 Adana Kent 2014 Urban furniture, landscape arrangements Adana Tüyap Adana Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

13-02-2014 16.02.2014 Yapıda Ahşap ve Ahşap Ürünleri Fuarı Wood in construction Istanbul İstanbul Kongre Merkezi Küre Fuarcılık www.kurefuar.com.tr [email protected]

26-02-2014 02.03.2014 MODEKO 2014 Furniture and decoration Izmir Uluslararası İzmir Fuar Alanı Efor Ege Fuarcılık www.eforfair.com [email protected]

26-02-2014 02.03.2014 Bahçe Dünyası 2014 Garden furniture and other systems Istanbul Tüyap Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

05-03-2014 09.03.2014 MODEKS 2014 Home and office furniture, decoration Bursa Bursa Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

06-03-2014 09.03.2014 8.Uluslararası Yapıdecoor Ankara 2014 Construction materials, building renovation Ankara ATO Kongre ve Sergi Sarayı CYF Fuarcılık www.cyffuar.com.tr [email protected]

20-03-2014 23.03.2014 ZOW 2014 Furniture industry, design and equipments Istanbul İstanbul Fuar Merkezi Yeşilköy Clarion Events www.clarionevents.com.tr [email protected]

27-03-2014 29.03.2014 İç Mimari & Dekorasyon 2014 Interior architecture, decoration, furniture Istanbul Lütfi Kırdar Kongre Merkezi Fiera Milano İnterteks www.interteks.com [email protected]

02-04-2014 06.04.2014 Bursa 26.Uluslararası Yapı Construction materials Bursa Bursa Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

02-04-2014 06.04.2014 BURSA KENT 2014 Urban furniture, landscape arrangements Bursa Bursa Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

10-04-2014 13.04.2014 Kayyapı 2014 Construction materials Kayseri Kayseri Dünya Ticaret Merkezi Tureks www.tureksfuar.com.tr [email protected]

15-04-2014 20.04.2014 MODEF 2014 Furniture and decoration Bursa İnegöl Belediyesi Fuar Merkezi Modef Fuarcılık www.modef.com.tr [email protected]

17-04-2014 20.04.2014 Ortadoğu 6.İnşaat Fuarı 2014 Construction materials Diyarbakir Tüyap Diyarbakır Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

23-04-2014 27.04.2014 K.MOB 2014 Furniture and decoration Kayseri Kayseri Dünya Ticaret Merkezi Tüyap www.tuyap.com.tr [email protected]

30-04-2014 04.05.2014 BOAT SHOW 2014 Yacht and leisure boats and equipment Istanbul Haliç Kongre Merkezi UBM NTSR www.ntsr.com.tr [email protected]

06-05-2014 10.05.2014 Turkeybuild İstanbul 2014 Construction materials Istanbul Tüyap Fuar ve Kongre Merkezi Yem Fuarcılık www.yapifuari.com.tr [email protected]

07-05-2014 10.05.2014 Ortadoğu 4.Mobilya Yan Sanayi Fuarı Furniture and decoration Diyarbakir Tüyap Diyarbakır Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

14-05-2014 18.05.2014 Karmodef Fuarı Furniture and decoration Trabzon İpekyolu Fuar Alanı Mercan Fuarcılık www.mercanfuarcilik.com [email protected]

25-06-2014 29.06.2014 International Bodrum Yacht Show 2014 Yacht and leisure boats and equipment Muğla Bodrum Doğuş Turgutreis Marina Fiera Milano İnterteks www.interteks.com [email protected]

04-07-2014 07.09.2014 5.Van İnşaat ve İnşaat Malzemeleri Construction materials Van Tuşba Fuar ve Kongre Merkezi Ajansasya www.vanfuar.com [email protected]

04-07-2014 07.09.2014 Belediye İhtiyaçları Urban furniture, landscape arrangements Van Tuşba Fuar ve Kongre Merkezi Ajansasya www.vanfuar.com [email protected]

13-08-2014 17.08.2014 4.Yapı ve Dekorasyon Fuarı Construction materials Malatya Mişmiş Park Fuar Alanı Malatya Municipality www.malatyakultur.com [email protected]

28-08-2014 31.08.2014 Kastamonu Ahşap Fuarı Wood products and forestry industry Kastamonu Kuzeykent Kapalı Pazar Yeri Alanı Sedef Fuar www.sedeffuar.com.tr [email protected]

23-09-2014 28.09.2014 BOAT SHOW 2014 Yacht and leisure boats and equipment Istanbul Marintürk İstanbul City Port -Pendik UBM NTSR www.ntsr.com.tr [email protected]

24-09-2014 28.09.2014 Adana 8.Mobilya - Dekorasyon Home and office furniture, decoration Adana Tüyap Adana Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

23-10-2014 26.10.2014 Turkeybuild Ankara 2014 Construction materials Ankara ATO Kongre ve Sergi Sarayı Yem Fuarcılık www.yapifuari.com.tr [email protected]

04-11-2014 08.11.2014 MODEF EXPO Furniture and decoration Bursa İnegöl Belediyesi Fuar Merkezi Modef Fuarcılık www.modef.com.tr [email protected]

04-11-2014 09.11.2014 MODEKS 2014 Furniture and decoration Bursa Bursa Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

05-11-2014 08.11.2014 Yadex 2014 Construction materials Muğla Marmaris-Beldibi Kapalı Fuar ve Sergi Alanı Marmaris Fuarcılık www.marfo.com.tr [email protected]

06-11-2014 09.11.2014 20.Yapı Fuarı - Turkeybuild İzmir Construction materials Izmir Uluslararası İzmir Fuar Alanı Yem Fuarcılık www.yapifuari.com.tr info@yapıfuari.com

13-11-2014 15.11.2014 Kentsel Dönüşüm ve Yapı Malzemeleri Construction materials Kahramanmaraş Kahramanmaraş Belediye Fuar Merkezi ECR Fuarcılık www.ecrfuar.com.tr [email protected]

13-11-2014 16.11.2014 22.Uluslararası Yapex Construction materials Antalya Antalya Fuar Merkezi Akdeniz Reklamcılık www.yapex.com [email protected]

13-11-2014 16.11.2014 MERYAPI Construction materials Mersin Yenişehir Fuar Merkezi Forza Fuarcılık www.meryapi.com [email protected]

19-11-2014 23.11.2014 Gaziantep Mobilya Fuarı Furniture, decoration and wood products Gaziantep OFM Ortadoğu Fuar Merkezi Erexpo Fuarcılık www.erexpo.com.tr [email protected]

20-11-2014 23.11.2014 Ortadoğu 5.Mobilya ve Dekorasyon Furniture and decoration Diyarbakır Tüyap Diyarbakır Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

04-12-2014 07.12.2014 Kalıp Avrasya 2014 Mould technologies Bursa Bursa Uluslararası Fuar ve Kongre Merkezi Tüyap www.tuyap.com.tr [email protected]

IBS 126

opportunities for canadian wood producers to …opportunities for canadian wood producers to expand...

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