Starting January 1, 2025, the new regulation requires the documentation of local raw material usage to obtain a 'locally produced goods certificate.' Ömer Karadeniz, Chairman of the Plastic Manufacturers Federation (PLASFED), stated that the implementation of this condition in sectors dependent on imports for raw materials could harm industrialists and lead to disruptions in public services and requested that the regulation be reconsidered.
According to the new regulation, companies wishing to participate in public tenders will need to prove not only that they produce in Turkey but also that the raw materials used in their production are local. PLASFED President Karadeniz warned that this condition could lead to serious problems for local manufacturers, stating, "The plastic sector is an industry that is 85% dependent on foreign sources for raw materials. In fact, in some engineering plastics, this rate reaches 100%. Therefore, the requirement for local production could seriously challenge our industry."
He emphasized that a large portion of the raw materials used in the plastic industry is imported.
In his assessment of the issue, Karadeniz stated, "The local production rate for engineering plastics is negligible. Even Petkim, the largest player in Turkey's petrochemical sector, can only meet 10-15% of the sector's needs. Furthermore, large producers are struggling to work with Petkim due to supply chain and delivery issues. In these circumstances, requiring companies to prove the use of local raw materials could significantly restrict Turkish industrialists' access to many tenders, including public ones."
“Policies must align with industrial realities”
Karadeniz noted that while the regulation was prepared in good faith, if it is not adjusted to fit the industry's realities in practice, it could harm industrialists. He pointed out that the section of the regulation related to the "principles" has yet to be clarified and announced that consultations with the relevant ministries are ongoing.
Karadeniz emphasized that making it difficult for industrialists to participate in public procurements could negatively affect production capacity and employment, stating, "While it is important to promote local production policies, these incentives must be implemented considering real market conditions and production infrastructure. The obligation to prove that the raw materials used by domestic producers are also local could become a factor that further complicates production due to insufficient raw material production in our country."
“Risk of grievance in practice”
Karadeniz also provided examples of the potential impacts of the new regulation, warning:
"A municipality may open a public tender to purchase toys or puzzle-type products for orphaned children. A company that produces locally may not be able to participate in this tender due to the origin of the raw material used in its products. This can lead to disruptions in public service and grievances for industrialists."
The umbrella organization PLASFED's president stated that they will continue to draw attention to the problems facing the sector, offer solutions, and work in cooperation with relevant institutions.
Translated by Artificial Intelligence
