The Turkish foundry sector, having expanded its production capacity to 5 million tons, is enhancing its production volume in high-value markets. Successfully doubling its share of total casting production in Europe from 10% to 21%, the sector is now focusing on manufacturing high-profit products due to rising costs.

Lesedauer: min

Experiencing significant growth in recent years, the Turkish foundry sector achieved production and export records in 2022, positioning itself as the second largest metal casting producer in Europe and the seventh globally. Kadir Efe, Chairman of the Turkish Foundry Association (TÜDÖKSAD), emphasized that the sector has experienced its most successful period in terms of growth and production, especially in Europe, over the last decade.

With capacity reaching 5 million tons, the Turkish foundry industry has witnessed considerable growth, particularly in the non-ferrous casting sector. The shift towards electric vehicles in the automotive industry has increased the importance of non-ferrous casting. However, challenges such as price expectations matching those of the Far East and India are pressuring the sector's quality and cost balance. The industry faces significant quality issues with cast products sourced from these regions.

TÜDÖKSAD's focus on renewable energy investments and energy efficiency projects marks a critical aspect of the sector's strategy, especially in light of the upcoming National Emission Trading System. However, rising energy and labor costs pose challenges to green and digital transformation efforts. Ensuring appropriate financing conditions for investments in renewable energy sources, particularly for melting processes in foundries, is crucial. The sector is increasingly taking advantage of programs like KOSGEB and TÜBİTAK Green Transformation Support Programs to facilitate this shift.

Source: (Kaynak: Nasıl Bir Ekonomi)