European energy prices advantageous for Turkish manufacturers as recession poses risk: Association head

By Gokhan Ergocun

ISTANBUL (AA) - The head of the Turkish Houseware Association (Zücder) said Türkiye's relations with Russia are an advantage for Turkish manufacturers as he evaluated the energy crisis caused by a gas shortage and high prices in Europe.

Manufacturing costs are higher in Europe due to increasing energy prices but Turkish manufacturers have better conditions thanks to energy accessibility, Mesut Oksuz told Anadolu Agency.

After Russia stopped natural gas flow to Europe through the North Stream pipeline, prices significantly increased in Europe.

This winter, households are expected to have difficulties paying bills and the position of manufacturers will be tougher because of energy prices.

On the other hand, interest rate hikes of central banks in many countries, including the European Central Bank, may trigger a recession in the union, experts warned.

- Zuchex

During the International Home and Kitchenware Fair (Zuchex), organized last week in Istanbul, Oksuz said the main risk is the possibility of a recession in Europe.

He said 60% of the Turkish kitchenware sector's exports go to European countries and a recession may affect that sector.

Turning to the fair, he said it hosts 40,000 visitors from all around the world this year with 700 companies participating.

Oksuz noted that major events in Germany and China were canceled in 2022 and Zuchex became much more important.

The four-day event that began last Thursday, was organized in a 100,000-square meter area.

- Türkiye's exports

The sector's exports were $4.8 billion in 2020 and $6.1 billion in 2021, and it targets more than $7 billion this year, said Oksuz.

Türkiye was the 10th largest kitchenware exporter in 2021 but took over the eighth spot, and it wants to be fifth in five years, he said. The country became the eighth largest exporter by overtaking the UK and France in 2022.

Oksuz said Türkiye wants to overtake the Netherlands, Poland and Mexico to be the fifth largest exporter in four years.

While the sector increased 25% in 2021 globally, the Turkish sector expanded 34.5%, he said.

The Turkish sector's share in global kitchenware exports was 1.98% in 2021 and 2.13% in 2022, said Oksuz.