Scottish companies target Turkey

The trade mission includes major engineering companies including Weir Group and Clyde Bergemann as well as specialist companies delivering services to the oil and gas industry, from maintenance and repair to consultancy services and recruitment.

The trade mission, led by Scottish Enterprise Chief Executive Lena Wilson, will meet with leading Turkish and international oil and gas firms based in Istanbul, Ankara and Izmir.

Although Turkey has limited oil and gas resources of its own, it is one of the world’s biggest transport hubs, with several major pipelines transporting crude oil and natural gas from the Caspian Sea and the Middle East to Turkey’s Mediterranean coast for shipping on to international markets across Europe.

Lena Wilson said: “Turkey is situated right in the middle of major European markets and some of the biggest oil and gas producing countries in the Middle East and Central Asia, meaning it is close to around 70% of the world’s proven oil and gas reserves.

“As a result, Turkish companies are becoming significant players in the region, partnering and investing in major oil and gas projects in Azerbaijan, Kazakhstan, Iraq and Libya. Decades of experience operating in the North Sea has given Scottish companies the expertise needed for oil and gas production and exploration and working with companies in the region could help Scottish firms get a stronger foothold in some of these markets.”

There are also opportunities around new pipeline development and maintenance. The new $40 billion Trans-Anatolian Gas Pipeline (TANAP) project starts construction in 2014 and when completed will have capacity to transport 30 billion cubic metres of natural gas from the Caspian Sea to Europe via Georgia and Turkey each year.

Economic growth in Turkey has outstripped almost all of its European neighbours. In 2011, it experienced growth of 8.5% and although growth fell to 2.2% in 2012 as a result of the Euro crisis, it is forecast to pick up again in 2013 with growth of 3.4% and 4.4% in 2014.

The OECD predicts it will be the fastest growing OECD economy between 2012 and 2017 and the Turkish Government has set a target of growing its GDP from $775 bn in 2011 to $2 trillion in 2023.

Scottish companies have already been capitalising on Turkey’s recent growth and winning new business. Scottish strength in shipbuilding, for example, has seen major shipyards in Turkey working with Scottish designers. In August, the Akdeniz Shipyard in Southern Turkey completed its first 13 metre Tug Ship, using designs from Aberdeenshire firm MacDuff Ship Design, while Istanbul shipyard TorGem is also working with Scottish designers for its latest fleet of ships for the Middle East market.

Other Scottish companies operating in Turkey include:

• Glasgow headquartered life sciences firm ClinTec International, who opened an office in Istanbul this year recognising the importance of Turkey as a potential hub for clinical research;
• East Kilbride based Merson Signs has been working with a leading Turkish construction firm providing consultancy services for three airport construction projects in the Middle East
• Food and drink firms Innovate Foods and Jenier World of Teas have both recently secured their first orders from the Turkish market.

Scottish Development International, Scottish Enterprise’s international arm, is looking at where there might be opportunities to build on these existing links and Ms Wilson will this week be meeting senior business leaders from the country’s technology, construction and food and drink sectors.

Ms Wilson adds: “Turkey’s economy is not just about oil and gas. It has seen remarkable growth in recent years thanks largely to a strong manufacturing base where it has been able to compete with other low cost markets in the Far East.

“For it to achieve its economic ambitions, however, it needs to invest in innovation in its manufacturing processes and develop its capabilities in higher value sectors such as financial services, life sciences and healthcare.

“Given Scotland’s capabilities in these areas, we believe Scottish companies can add real value to Turkish businesses, help them to increase productivity and improve their competitiveness. This is something I’m hoping to explore further over the next few days.”