commerce and industry in Izmir
The industrial sector contributes 26.9% to the gross domestic product (GDP) produced by Izmir. Izmir’s industries account for 6.5% of Turkey’s industrial output. Around 31.1% of the workforce is employed in the industrial sector. Small industrial sites, organized industrial zones, free zones, and science and technology parks contribute to the development of Izmir’s industry. The development of Izmir relies on the First Economic Congress of Izmir, which took place between February 17 and March 4, 1923. After the congress, significant steps were planned for industrialization. The towns of Alia?a, Bornova, ?i?li, Gaziemir, Kemalpa?a, Menderes, Menemen, and Torbal? are the areas where industrial investments are concentrated.
Key industries in Izmir include:
- Textile industry: Manufacturing of outfits and ready-made garments.
- Food industry: Production of various beverages and food products.
- Tobacco industry.
- Petrochemicals.
- Furniture production.
- Plastics.
- Construction materials.
- Medical equipment.
- Packaging industry.
- Casting industry.
- Aerospace industry.
- Defense industry.
- Renewable energy.
- Automotive industry.
- Steel and metal production.
- Shoe manufacturing.
- Alcoholic beverages and tobacco products.
These industries generate the highest value-added in sectors related to agriculture. They have a high employment multiplier effect, directly or indirectly supporting various sectors of society, from agriculture to transportation.
Petrochemical and oil-related industries:
The petrochemical sector, which accounts for 25% of Turkey’s total chemical production, acts as a locomotive, providing raw materials for other sectors. The Petkim petrochemical holding, one of Turkey’s largest petrochemical companies, is located in Izmir province. Izmir is also the host of the first privately owned refinery investment project called Star, which is still under construction and currently has a production capacity of ten million tons per year. Additionally, one of Turkey’s four oil refineries named Tüpra? is located in Izmir, making it the seventh-largest oil refinery in Europe and the twenty-eighth largest in the world.
Automotive Industry
The automotive sector is one of the leading industries in Turkey. Therefore, its continuous growth is essential for the country’s economy, development, and employment. Several large-scale automotive companies operate in Izmir, and significant foreign trade takes place in this sector. The number of vehicles per 1,000 people is 110, reflecting the high potential for automotive consumption due to the relatively young population in Turkey. Many industrial workshops are organized in industrial zones and small and large industrial sites within the city.
Industrial zones and parks in the Aegean region:
Out of the total 311 organized industrial zones in Turkey, 49 are located in the Aegean region, with 13 of them in Izmir. The Aegean Free Zone (ESBA?) in Gaziemir and the Izmir Free Zone (?ZBA?) in Menemen are two important free trade zones in the city. ?ZBA?, in particular, is an organized industrial zone with the largest trade volume and a significant share in Izmir’s economy in terms of employment. The free trade zone has been operational since 1990 and is considered one of the most successful organized industrial zones in Europe. The Menemen Industrial Park, located between the commercial ports of Alia?a and ?andarl?, is also noteworthy,
Industry and University Collaboration
The number of technology parks promoting collaboration between industry and universities for the production of advanced technology goods and services is increasing day by day in Izmir. In particular, the Aegean Free Trade Zone stands out among Turkey’s largest free trade zones in terms of trade volume. Izmir is home to four recognized science and technology parks: Dokuz Eylül Technology Development Zone, Technopark ?zmir, and ?zmir Technology Development Zone. In the export-oriented development strategy, the free trade zones play a crucial role in boosting foreign trade and contributing significantly to Izmir’s external trade.
Progress and Potential of Izmir
Izmir, which has been a major center for foreign investment, exports, and transportation in Turkey since the 18th century, has quadrupled its exports over the past 15 years. With its favorable geographic location and adequate infrastructure for exports and imports (land, sea, and air transportation), Izmir plays a significant role in Turkey’s economy. Izmir has the largest domestic airport in Turkey and four major container ports, which make its location unique. Despite tourism being the largest source of income for Turkey, Izmir, with its population of over 4 million and per capita income exceeding $14,000, contributes 6.5% to the country’s gross domestic product (GDP).
Izmir is home to 13 organized industrial zones, 2 free trade zones, 3 science and technology parks, and 4 international container ports, accounting for over 6% of Turkey’s industrial production and exports. According to Turkish exporters’ statistics, Izmir ranks fourth among Turkish cities in terms of exports. Currently, Izmir’s exports to countries outside of Turkey have reached $9.253 billion. In the Global Metro Monitor 2014 report by the Brookings Institution and J.P. Morgan Chase 2017, Izmir has climbed to the second rank among 300 cities worldwide in terms of economic growth. Currently, more than 2,500 foreign-funded companies are active in Izmir. On the other hand, the company Kale-Pratt&Whitney produces parts for fifth-generation F-35 fighter engines. Additionally, companies like Lisi Aerospace, PFW, Fokker, and Elmo produce various aircraft components in this city.
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