New order pressure on Turkish shipbuilding industry
Mustafa Talha Pepe, Chairman of the Board of the Ship, Yacht and Services Exporters’ Association (GYHİB), has raised concerns about the Turkish shipbuilding industry potentially losing nearly two decades of progress in the Northern European market. Pepe highlighted that some shipyards have struggled to secure new contracts for almost a year, with the sector anticipating an increase in exchange rates to align with inflation.
Türkiye’s Position in the Global Shipbuilding Sector
Currently, Türkiye holds the 12th position globally in the shipbuilding industry, with an average export value of approximately $25 per kilogram. The country ranks 10th in the world for overall export value and volume, excelling in mega-yacht production, second only to Italy, and leading in fishing vessel production and exports.
Outlook for Türkiye’s Shipbuilding Sector
In the aftermath of the 2008 global financial crisis, Turkish shipyards made significant strides in the Northern European market by focusing on more sophisticated and value-added projects. However, recent cost conditions have diminished their competitiveness in the region, with only 35% of orders now being placed with Turkish shipyards compared to four years ago.
Sector Forecasts Record Exports in 2026
Despite the current challenges, Pepe remains optimistic about the sector’s performance, projecting approximately $2.5 billion in exports by the end of 2026. A significant portion of these exports will stem from projects initiated one or two years ago, indicating a positive outlook for the current year. However, concerns loom for 2027 and 2028 due to the prevailing order situation.
Spain Emerges as a Competitor
Pepe highlighted the rising costs affecting Turkish shipyards’ competitiveness, noting that Spain now offers prices approximately 20% lower than Türkiye. This significant price gap marks a notable shift from three to four years ago when both countries had similar pricing structures.
Quality Advantage in Northern Europe
In spite of the challenges, Turkish shipyards maintain a quality advantage in the Northern European market, particularly in niche markets requiring specialized and custom production. Pepe emphasized the importance of competitive pricing to sustain Türkiye’s presence in the region.
Pepe also mentioned ongoing discussions about mergers and acquisitions within the sector, indicating a proactive approach to navigate the current market conditions. Additionally, Turkish shipyards are prepared to contribute to offshore renewable energy power plant platforms, aligning with the Ministry of Energy and Natural Resources’ initiatives.
