80% of Top Manufacturers in Turkey’s Aegean Region Posted Losses in Q1 2024, Says EBSO
manufacturing
The Aegean Region’s industrial sector kicked off 2024 with alarming financial results, as 80% of the top 100 industrial companies reported losses in the first quarter, according to data released by the Aegean Region Chamber of Industry (EBSO).
“Industry Is Struggling to Survive, Not Just Produce”
EBSO Chairman Ender Yorgancılar called the figures “a red flag,” emphasizing that 2024 has become a lost year not only in terms of economic performance but also in terms of industrial motivation.
“80 of the 100 largest companies posted losses. This is not just a balance sheet crisis—it signals a weakening production capacity and loss of industrial motivation,” he warned.
He urged the government to implement a new production-centered economic strategy focused on industry and agriculture to avoid a repeat in 2025.
Top Firms: Star Refinery, Tüpraş, and Petkim Lead the List
Based on sales from production, the region’s top industrial firms in Q1 2024 were Star Refinery, Tüpraş, and Petkim. Other names in the top 10 included Izmir Demir Çelik, Philip Morris, JTI, Abalıoğlu Yağ, Lezita, Kardemir, and Ravago.
Despite their scale, the majority of these firms were hit hard by rising input costs, reduced exports, and sluggish domestic demand.
Rising Costs, Weak Exports, and Currency Pressure
Yorgancılar cited several reasons behind the losses:
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High financing costs
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Currency appreciation hurting exports
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Diminishing domestic demand
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Tight monetary policy weakening cash flow and limiting credit access
“The real appreciation of the Turkish lira puts exporters in a tough position. Producers are simultaneously affected by shrinking domestic and international demand.”
Supply Chain Shock: +50% Cost Hikes from Suppliers
Yorgancılar also pointed to input cost inflation, noting that despite an official 36.5% gap between PPI and CPI, suppliers have imposed price increases of 50–55% on industrial buyers since the beginning of the year.
“This creates cost pressures that feed into consumer prices and inflation,” he explained.
VAT Refunds Shrink to €6.4 Billion
Delayed VAT refunds are another major issue for industrialists. According to EBSO, the total VAT receivables of the top 100 firms dropped 15% to €6.4 billion. Yorgancılar stressed that this capital should be injected back into the economy to support much-needed working capital.
“Industry Is Being Sacrificed for Inflation and FX Targets”
Geopolitical risks and Trump-era U.S. trade uncertainties are also weighing on Turkish exporters, Yorgancılar warned.
“In the EU, industrialists face pricing pressure, and at home, domestic demand is vanishing. Manufacturers are being sacrificed for FX and inflation targets,” he said.
EBSO’s 7 Strategic Pillars for Industrial Revival
To prevent another lost year and restore Turkey’s industrial strength, Yorgancılar outlined seven strategic actions:
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A rational economy, political consensus, and a culture of tolerance
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Education reforms to involve youth in production and innovation
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Trust, predictability, and macroeconomic stability
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Meritocracy in institutions
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A secure, investor-friendly environment
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Fast and effective judicial mechanisms
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Green and digital transformation as a nationwide priority
“Growth is not sustainable without production. The time to act is now—before 2025 becomes another year of losses,” Yorgancılar concluded.
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