With a large degree of its industrial gas still captive-produced, and a favourable geographic position, strong potential awaits in the Turkish gases business.
That’s the verdict of Önder Koyuncu, President of the Turkish Industrial and Medical Gas Association (Gazder Sınai ve Tibbi Gazcılar Derneği).
Founded in 2008, the association is ready to guide new entrants into the Turkey market, the number of which is increasing as international companies switch on to the attractive prospects the country presents.
Koyuncu told gasworld, “The industrial gas market in Turkey is a bit different from other countries. For instance, the largest manufacturing capacity belongs to the steel industry, instead of well-known international gas companies. All 23 iron and steel companies have at least one ASU.”
“After providing for their own needs, surplus is placed on the market. Following the iron and steel industry, the leading manufacturer is a local company with ASUs in several locations. There are also four well-known international players in the Turkish gas industry, while we are informed that there will be other international companies planning to make investment in near future.”
A recent gasworld Business Intelligence report on Turkey highlights a number of opportunities in the country’s gases business in the 2012-2020 timeframe, including rising industrial gas intensity over the last decade and the potential conversion of its currently captive gas production. Koyuncu affirmed the current dynamics of the market and its growing stature, “Some of the 144 industrial gas filling stations in Turkey are autonomous and supply liquid product directly from iron and steel manufacturers. Besides them, more than 400 retail dealers are active in market.”
“Since Turkey is rich in carbon dioxide source, eight companies extract the gas and distribute within Turkey and also export it. Turkey is still producing acetylene from carbide, while there are seven plants producing acetylene and only one carbide manufacturer. Meanwhile, Turkey is very prominent in the cryogenic tank market, and is an active player in exporting cryogenic pumps, vaporizers, gas cylinders, valves, manifold bundles and other gas equipment.”
“The importance of the geographical position of Turkey makes local manufacturers and suppliers powerful in exporting worldwide.”
Looking ahead, he adds, “We foresee that the market needs investment in high purity and specialty gases, food grade gases, liquid argon, helium, and natural gas filling stations. High transportation expenses make investment in ASUs for remote locations vital. Guiding the companies willing to invest in the Turkish gas market is among our responsibilities.”
Focus on Turkey
Koyuncu was talking to gasworld ahead of its Focus on Turkey in the upcoming December issue of gasworld magazine.