BY AYSEL YUCEL
Turkish shipyards, which have become world brands by blazing the trail in special-purpose shipbuilding, face the risk of losing their global leadership. Shipyards are shifting their investments abroad due to rising costs and financing problems.
They have also begun to lose the tenders they join in Europe to their rivals.
Cem Seven, President of the Ship, Yacht and Services Exporters’ Association (GYHIB) said, “Some of our shipyards have started to shift their production lines into Eurozone to maintain their global competitiveness.”
Speaking to the EKONOMI daily in recent weeks, sector representatives had warned that it was urgent to provide special financing support to exporters and to bring the exchange rate to a competitive level, otherwise much greater losses to the sector were inevitable. Unable to find solutions to domestic problems, Turkey’s leading shipyards have started to invest in shipyards in Europe to maintain their global competitiveness.
Labor costs in Europe is no longer a decisive problem
Cem Seven, President of GYHIB, stated that both access to financing and letter of guarantee problems continue in the sector and said, “Those who access financing are also experiencing difficulties due to high interest rates. The fact that the foreign currency has not devalued as much as inflation continues to increase labor costs. Some of our shipyards have started to shift their production lines into Eurozone.” Stating that the companies operating in Europe have moved away from the risk of letters of guarantee and high-interest loans, Seven said, “High labor costs in European countries are no longer a problem.”
Tersan acquires Norwegian Havyard Leirvik
Tersan, one of the export leaders of the Turkish shipbuilding industry, recently announced the acquisition of Havyard Leirvik, one of Norway’s well-established shipyards. Tersan officials speaking to EKONOMI daily summarized their reasons for acquiring this well-known Norwegian shipyard as follows: “We decided to make this investment in order to maintain our global competitiveness and to create a new working structure for our potential customers. The ships will be built in Turkey, but for example, some of the machinery will be installed in Tersan in Norway. In this case, since the ship is finished in Norway, it will be seen as Norwegian-built and will be easier for buyers to finance. Although this is not a very definite method, we will be able to put new working structures there thanks to this investment. Norwegian shipowners and design companies are very happy with this investment decision. So we will be able to develop new working partnerships and structures to the advantage of the buyers. We will see in time how this investment will provide a cost advantage in shipbuilding processes.”
Acquisition will contribute to after sales as well
Tersan officials stated that having a shipyard in Europe will provide significant advantages to customers in terms of after-sales services and added, “Having a shipyard there will provide better support, especially in warranty processes.”
Hicri Ercili invested in Norden in the Netherlands
Another company that invested in shipyards abroad this year was Hicri Ercili Shipyard. The company acquired Norden Shipyard, which is located in the Netherlands and serves on an area of 40 thousand square meters. Hicri Ercili officials made the following statement regarding the investment made in Europe: “Norden Shipyard, which we incorporated into Hicri Ercili Group in 2023, will be at the service of our business partners with a more developed capacity in all areas of the shipyard with its geographical location and planned investments in the coming period.”
Moreover, Turkey’s ship and yacht exports fell by 54% to some USD 97m in October, year-over-year, according to the Turkish Exporters Assembly (TIM).
