German machinery industry turns to Turkey
03 April 2012
With demand from the BRIC states and Germany’s neighbours currently slowing down, Germany's machinery and equipment industry is increasingly focusing on Turkey.
According to Germany Trade & Invest experts now is the time for Turkish companies to expand in Germany. Jerome Hull, machinery industry expert at Germany Trade & Invest in Berlin, said: "Germany is traditionally one of the most important destinations for Turkish FDI. The two countries have inseparable ties that span several decades. With Turkey's booming economy and Germany’s reputation for high quality machinery, the timing couldn't be better."
Currently, machinery leads all other goods imported from Germany. According to the industry association VDMA, 36% of machines in Turkey come from Germany and this figure continues to grow.
However, Turkish companies are also looking to Germany for more than just trade. "The Made in Germany" label is one of the keys to success in this industry. A growing number of companies from rapidly developing countries like Turkey are interested in investing in Germany to obtain the seal of quality for their products," continued Hull.
Although FDI from Turkey in Germany pales in comparison to German investments in Turkey, the trend is upward. Since 2003, over 40% of Turkish investment projects in western Europe went to Germany. Currently approximately 600 Turkish companies are registered in Germany.
"Just as Turkey is a hub between Europe and the Middle East, Turkish companies can invest in Germany and serve the entire European market from a central location," concludes Hull.
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