Covid-19 and Turkish Valve Sector

Friday 29 May 2020

After the start of the pandemic, we made a survey among our members in order to measure the effects of it. When we examine, we saw that our members got %10 less demand/orders as planned for the 1st quarter of 2020.  Their expectation for 2nd quarter is %35 less demand/orders than planned as a result of decrease in orders mostly from Europe which is our main market. When we look at the measures taken by our members; people over 65, and ones which have chronic diseases are all sent home. In order to provide social distancing workers in production decreased or workers started working alternately, all these measures caused around %30 decrease in the production.  White collar mostly started working from home with the start of the pandemic. We saw that some delays started to occur for importing of the goods needed for production, also some companies are complaining about difficulties on ground shipments for exports. Additionally; chairs at the food halls decreased, masks distributed to all personnel, shuttle vehicles being disinfected every day and personnel started to get in the vehicles with masks, all the personnel’s’ temperature is measured twice in a day and hand disinfection units put at several places in plant and administrative buildings.  
As our sector mostly employ high-skilled workers and companies can’t give up from these, none of the companies had to lay people off. Most of the companies said they are thinking of applying for short-time work measures instead. 

With the decreased production and decrease in exports in order to prevent or manufacturers customs duties became important for our sector. On 21 April 2020 for all types of valves additional customs duty rate increased to %25 from %20 till October 1st 2020. 

When we compare January-April 2020 period to previous years same period we see that Valve and Taps export decreased from 21.000 tons to 19.000 tons (%8,5). Decreased from 197 million USD to 175 million USD (%11,1). For the January-March period trade balance is -113 million USD for the secotr. So we when we examine these numbers we see that pandemic affected the export of the industry so much and as these are the numbers for the first quarter we expect more impact on the 2nd quarter, this is why additional customs duty rates are important for this temporary period. 

We wish to return to our “normal” as soon as possible and wish good health and success to our colleagues during this period.

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