• Germany's news in English
 
app_header_v3

German firms wooed by Turkish boom

The Local · 7 Aug 2012, 08:27

Published: 07 Aug 2012 08:27 GMT+02:00

The Turkish economy is the envy of the crisis-wracked eurozone: its gross domestic product (GDP) has expanded by an annual average 5.4 percent over the past 10 years. Its public debt has fallen below 40 percent of GDP, much lower than the majority of European countries. And inflation, which was once dizzyingly high, is now under control.

"Flattening growth in (Europe) will trigger new growth and foreign direct investments in Turkey, making it an indispensable part of long-term strategic planning for European firms," consultancy Roland Berger wrote in a recent study.

Turkey has a population of 74 million, of whom more than 60 percent are 35 years old or younger. And with purchasing power growing from year to year, there is strong demand in areas such as infrastructure, energy, cars and the financial sector.

These are precisely the sectors where German companies excel: out of around 30,000 foreign companies in Turkey, nearly 5,000 are German, according to the German-Turkish chamber of commerce in Istanbul.

Indeed, the number of new German-funded companies set up in Turkey last year shot up by 14 percent to 534.

Tedrive Steering, a maker of steering systems and components for the automobile industry, is one of them. The small specialist engineering firm, based in Wülfrath in Germany's industrialised Ruhr region, has selected Turkey as the site for its first overseas assembly plant.

The Turkish automobile market is "growing fast" and "German technology enjoys an excellent reputation there," said the company's chief executive Thomas Brüse.

"A lot of German companies have long been present in Turkey, but new subsidiaries, branches and joint ventures are signing up to the chamber of commerce," a sign that they are expanding their activities in the country, said Ralph Jäger, deputy chief of the chamber of commerce and finance chief of RWE Turkey.

RWE, Germany's number two power supplier, is investing 500 million euros ($615 million) in the construction of a gas-fired combined cycle power plant at Denizli, in the south west of Turkey, to supply some 3.5 million households with electricity.

The plant is scheduled to be up and running at the end of 2012.

RWE and other German companies can benefit from the close social and economic ties that Turkey and Germany have enjoyed for decades.

Germany is in fact Turkey's main trading partner, accounting for 10.3 percent of its exports and 9.5 percent of its imports, according to data published by the Germany Trade & Invest development agency.

Germany invited hundreds of thousands of Turkish "guest workers" to come and work during the country's economic miracle back in the 1960s. They stayed and some three million Turks now form the largest immigrant population in the country.

Indeed, it is the younger generations of those immigrants - Germans of Turkish origin who are equally at ease in both the Turkish and German languages and cultures - who are increasingly being recruited by German companies for their Turkish operations, said Jäger.

Story continues below…

A private training centre in Kreuzberg, a multicultural district in the heart of Berlin, offers apprenticeships in German, English and Turkish in industry and in the hotel sector, with placements in German companies in Turkey.

"We want to train young people who will eventually be beneficial to the German economy," said the centre's chief Nihat Sorgec, himself of Turkish origin.

"At the same time, it helps to dispel the image of Turks being socially underprivileged. So it's a win-win situation," Sorgec said.

AFP/bk

The Local (news@thelocal.de)

Your comments about this article

11:16 August 7, 2012 by smart2012
Some considerations:

- Turkey is doing a great job, this also thanks to favourable uncompetitiveness of its neighbours due to Euro being too strong eg Greece on tourism and agricaltural product

- Now Germans will start to emigrate to Turkey :-)

- Am sure the head of german companies in Turkey will be a German German (to be clear, this driven by German German decision, for me Turkish German or Turkish Turkish would be better as they speak the language)

- This article should say that soon turkish company will buy german conmpanies (eg Grundig), but of course they do not say this.....

- Soon Germany will ask Turkey to come part of the Euro, to make them less competitive....

Lets wait and see
Today's headlines
Germany-denying beauty king fights cops with guns, teeth
Left: Adrian Ursache in his glam days as the 1998 Mr. Germany. Right: Police trying to evict him from his own 'country'. Photos: DPA.

Former Mr. Germany winner and founder of a group that denies the existence of Germany refused to be evicted, provoking a shootout - and bite-out - with police.

Politicians renew call to bring Snowden to Germany
Photo: GUARDIAN / GLENN GREENWALD / LAURA POITRAS.

Green and Die Linke (Left Party) politicians are asking that NSA surveillance whistleblower Edward Snowden be allowed into Germany for an ongoing investigation.

Merkel urged to address Turkmenistan rights record
Angela Merkel with Turkmen President Gurbanguly Berdymukhamedov. Photo: DPA

Human Rights Watch on Thursday urged Chancellor Angela Merkel to bring up major rights violations, including a "policy of disappearances", when Germany hosts the president of Turkmenistan next week.

Epic father-daughter comedy picked for Oscars success
A scene from film Toni Erdmann. Photo: DPA

German Films has chosen Toni Erdmann, a beefy comedy about a father's struggle to save his daughter from her isolating career, as its 2017 Oscars choice.

Germany mulls pullout from Turkish airbase: report
A German Tornado jet at the Incirlik base in Turkey. Photo: Bundeswehr/DPA.

Germany's military is preparing to pull out from a Turkish airbase as a row between the two NATO partners escalates, Der Spiegel magazine reported on Thursday.

German man arrested over Bali meth lab
Bali. Photo: DPA

A German man has been arrested on Indonesia's Bali island for allegedly making crystal methamphetamine in a secret lab, officials said Thursday, with authorities seizing bags of powders and bottles used to produce the drug.

Giant 2-metre catfish attacks woman in Bavarian lake
A wels catfish. Photo: DPA

When a young woman went for a swim in an idyllic south Bavarian region, she got more than she bargained for.

Mayor fires refugee project intern for wearing headscarf
File photo: DPA.

A Palestinian who was hired to work as an intern on a refugee project was fired by a town hall this week because she wouldn't take off her headscarf.

President who pioneered Moscow ties dies aged 97
Former Cold War President of West Germany Walter Scheel. Photo: DPA.

Former West German president Walter Scheel, who helped pave the way for his country's rapprochement with the communist East, has died aged 97, his party's spokesman said on Wednesday.

Former East to lag behind West for years to come: study
Poverty in eastern Germany. File photo: DPA

Eastern Germany remains economically anaemic with little prospect of catching up with the rest of the country by 2030, a study published on Wednesday said.

Sponsored Article
Why you should attend an international job fair
Gallery
Germany's 17 Olympic gold medals in pictures
Sponsored Article
Why expats choose international health insurance
Culture
7 American habits that make Germans very, very uncomfortable
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Sponsored Article
Why you should attend an international job fair
Culture
Eleven famous Germans with surnames that'll make your sides split
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Lifestyle
The best ways to get a visa as an American in Germany
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
What's on in Germany: events for August 2016
Sponsored Article
Five things Americans should know about voting abroad
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
Sponsored Article
Jordan Pass: your ticket to the experience of a lifetime
International
German scientists prove birds can sleep while flying
Sponsored Article
Jordan: where history meets adventure
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Sponsored Article
6 reasons expats use TransferWise to send money
Travel
Enter if you dare: Berlin's best abandoned haunts
Sponsored Article
Why you should attend an international job fair
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
Sponsored Article
Five things Americans should know about voting abroad
National
How to get German citizenship (or just stay forever)
Sponsored Article
Jordan: where history meets adventure
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Sponsored Article
6 reasons expats use TransferWise to send money
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Features
How two gay dads cut through German red tape to start a family
8,576
jobs available
Toytown Germany
Germany's English-speaking crowd