TR Monitor

Mergers between German-Turkish companies to increase

E BY ELIF KARACA

held its general elections on GERMANY

Sunday. Last week, we had a chance to meet Foreign Economic Relations Board (DEIK) Turkish-German Business Council President Steven Young for an evaluation of what comes next after the Merkel era. “•ur mutual ties are very strong. And this strong ground is open to further growth in line with the changes in the world. My guess is that the collaborations and mergers of companies will increase in the coming period. If we look at the manpower in Turkey and how many of them can speak German, this is another important and considered criterion. I think that commercial relations will develop with the cooperation to be made,” he said.

The ground of relations between the two countries is very strong, Young noted. “As the business world, we have very strong opportunities ahead of us and we need to make good use of it,” he said, adding that he is expecting an increase in commercial relations in the new period. “Maybe politics will follow, and positive developments can happen.”

Regarding the latest situation in trade between the two countries and the economic relations for the post-election period, Young underlined that more than 7,000 German-related companies operate in Turkey. Among them, there are very large ones - such as Bosch, Mercedes, and Siemens - and some of them have been here since the •ttoman era. The foundation of the relationship is very strong, according to Young. “When we look at Turkish companies in Germany, there are companies that create an important economy in textiles, machinery and various sectors. Mutual bonds are very strong. This strong ground is open to further growth in line with the changes in the world. My prediction is that the collaborations and marriages of companies will increase in the coming period. I expect an increase in commercial relations,” he said.

Young does not expect any risk to commercial relations with any new incoming government. There is a mutual trade volume of USD 40bn with Germany, which is the largest export destination for Turkey. Turkey ranks 7th for Germany in terms of exports. Young thinks that it will be essential to maintain balanced relations and the relationship between leaders will also be important. “As we have very important economic and cultural ties, I think the balances will be maintained,” he said.

As for the relationship in the context of a rising China, Young believes Turkey has little to worry about. “China is getting everyone’s attention but I think we can continue EU-Turkey relations on the same axis because there is an opportunity here,” he said. Seven of the 15 sectors - information technologies, robotics, aviation equipment, ship engineering, railway equipment, energy, medical equipment and agricultural machinery - included in the Master Plan published by China a few years ago, were sectors in which Germany was the leader in world markets. This shows that China is directly targeting Germany, according to Young, who thinks that very important opportunities have emerged for Turkey in Europe with the orientation to the regional supply chain after the pandemic.

“European companies like the fact that we are in the Customs Union. There are various preparations in this regard, and it is necessary to accelerate this. If we can do this, Turkey’s export economy will be more accepted in Europe and investments in Turkey will increase within 10-15 years. As the business world, we have a very strong opportunity in front of us and we need to make good use of it. Maybe politics will follow this, and there may be positive developments.”

President, DEIK Turkish-German Business Council

Turkey’s export economy will be more accepted in Europe and investments in Turkey will increase within 10-15 years if the Customs Union is updated. As the business world, we have a very strong opportunity in front of us and we need to make good use of it. Maybe politics will follow this; there may be positive developments.

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2021-09-27T07:00:00.0000000Z

2021-09-27T07:00:00.0000000Z

https://trmonitor.pressreader.com/article/281835761851135

NASIL BIR EKONOMI MEDYA HABER BASIN A.S. (Turkey)