• 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
Merkel party leader admits sexism is a problem
Jenna Behrends complained that a member of CDU's Berlin government had called her a "big sweet mouse" in front of a large group. Photo: Sophia Kembowski/dpa

A leader of German Chancellor Angela Merkel's conservative party admitted Sunday that it has a problem with sexism in its ranks.

Ethiopia's Bekele nears record as wins Berlin marathon
Participants in the Berlin marathon take to the streets on Sunday. Photo:Paul Zinken/dpa

Kenenisa Bekele narrowly missed out on the world record on Sunday as the Ethiopian won the Berlin marathon ahead of former winner Wilson Kipsang.

Europe needs deals to send migrants home: Merkel
Angela Merkal poses with Bulgaria's Prime minister Boyko Borissov (L) and Austrian chancellor Christian Kern (R) in Vienna. Photo: Joe Klamar/AFP

Europe needs to secure more deals to send rejected migrants home, German Chancellor Angela Merkel has told counterparts in Vienna.

Germany sees 'turning point' in birth rate decline
Children at a a kindergarten in Swabia. Photo: Nikolaus Lenau/Flickr

Is Germany's three-decade decline in birth rate now over?

Trump protesters rebuild and tear down 'Berlin Wall'
The 'Stop Trump' protest at the Brandenburg Gate. Photo: DPA.

US expats gathered at the Berlin's iconic Brandenburg Gate on Friday "rebuild" the Berlin Wall and protest US presidential candidate Donald Trump's own proposed wall-building.

Accusation of sexism within Merkel's party creates uproar
Defence Minister Ursula von der Leyen and Chancellor Angela Merkel, two leading women in the CDU party. Photo: DPA.

A young politician from the ranks of Angela Merkel's Christian Democratic Union (CDU) has caused a storm by suggesting that the party is institutionally sexist.

EasyJet 'in talks to buy German airline' to duck Brexit
Photo: DPA

EasyJet is in talks to acquire TUIfly, a board member of the German carrier said Friday, as the British no-frills airline looks for ways to keep flying freely within the EU after Britain quits the bloc.

Symbols of migrant plight to go on show in Bonn museum
Photo: DPA

A people smugglers' car, a dinghy and a life jacket are among items related to Europe's migration crisis due to go on display at a German museum.

Brexit
Green party demand 'quick and easy' citizenship for Brits
Photo: DPA

The Green party has called for Brits living in Germany to be offered a painless path to obtaining dual citizenship as to "reassure them over the future".

Berlin the new London? 10m2 flat to rent for €750 a month
Photo: Immonet.de.

This shoebox apartment in the gentrified Bergmann-Kiez neighbourhood may be a sign that the tides are turning for Berlin’s comparatively cheap housing market.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
6 things about Munich that’ll stay with you forever
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Six reasons why Berlin is now known as 'the failed city'
National
15 tell-tale signs you’ll never quite master German
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
Life in Jordan: 'Undiscovered treasure'
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Travel
Enter if you dare: Berlin's best abandoned haunts
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
5,753
jobs available
Toytown Germany
Germany's English-speaking crowd