The
chemical industry is one of the fastest developing industries in
Turkey. At the beginning of the 20th century, there were a few
chemical establishments producing soap, liquorice extract, valonia
extract, etc., within the boundaries of the Ottoman Empire. After
the establishment of the Republic of Turkey until the 1950's, these
chemical works passed through a process of corporation and
production involving the final stages only. Later, they started in
some fields such as explosives, medicines, agriculture chemicals,
detergents, printing ink and textile dyes. It was only after the
1950's, especially during the planned economy period, that the
development of the chemical industry in Turkey gained momentum. In
the period between 1960 and 1980, economic policies were based on
import substitution. Public sector investments were directed to
petrochemicals, fertilizers and basic organic and inorganic
chemicals, fields which need high investment cost but have low
profitability whereas, private sector and foreign investments were
directed to pharmaceuticals, synthetic yarns, soap and detergents.
In 1980, Turkey started to follow a new outward-oriented economy
policy. As a result, the manufacturing sector, and exports in
particular, boomed with these successful economic stabilization
policies. The chemical industry, which benefited from the new
economic policy, showed an impressive increase in exports.
At present, Turkey has a well
established petrochemical and fertilizer industry and the sector has
achieved considerable success in the production of various inorganic
and organic chemicals. Chemical production has accounted for 5.7% in
the total manufacturing industry in 1994 and the exports of the
chemical sector was $1.060 million US.
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