Crisis: Salzburg companies switch to Turkey
Business
Turkey is becoming more and more important as a trading partner for Salzburg. Compared to 2019, exports from Salzburg companies to Turkey have increased by more than 37 percent. Economic connections were severed as a result of the Ukraine war, which is why new transport routes are now emerging between Europe, Asia and Africa, including Turkey.
In Turkey, the inflation rate is more than 60 percent, and the situation is difficult for the population. The first reaction was that purchasing power has fallen, and yet the country is one of the few in the world where the economy has grown despite the pandemic.
Salzburg jump on Turkey train
Politicians are pursuing a low-interest policy, bringing a lot of money into circulation and wanting to further expand trade relations. Salzburg companies take advantage of their opportunities, including the Pinzgau plastics manufacturer Senoplast. “We don’t produce finished products, we produce high-quality plastic sheets and films, which are then further processed in Turkey. The low labor costs give us an advantage,” explains Ismail Keser from Senoplast.
More locations in Turkey
The Austrian Chamber of Commerce is observing that supply chains are currently shifting and companies are deliberately settling in Turkey. “Some companies set up production there or buy more. The crisis will accelerate it, but that’s already happening independently of the Ukraine war,” says the Economic Delegate of the WKÖ, Georg Karabaczek.
Other markets accessible with Turkey
Because of the war, transport routes to Russia and Ukraine are blocked. New company branches and logistics centers have been set up in Turkey. The country is increasingly taking advantage of its favorable strategic location. “Turkey is not called the China of the West for nothing, it is very interesting geopolitically and also from a market point of view. Due to the high logistics costs, the radii of salt are getting smaller and smaller and thanks to our involvement in Turkey, we can address completely different markets than we could from Austria,” says Kurt Thomanek, CEO of Salinen Austria AG.
Turkey as an important trading partner for Salzburg
Companies use nearby transport routes
Because China supplies far fewer machine parts and microchips, there are major supply chain problems worldwide. Companies are therefore trying to use transport routes that are closer to home. Austria mainly exports machinery and vehicles to Turkey. Due to the strategically favorable location, the importance of the country as an economic partner will continue to increase.