Business and industry in Izmir

The share of industry within the gross added value that İzmir produces is 26.9%. İzmir’s industry covers 6.5% of Turkish industry on its own. The 31.1% of the employees are employed in the industry sector. Small industry sites, organized industry zones, free zones, and techno parks contribute to the development of İzmir’s industry. The development of İzmir relies upon the 1st İzmir Economic Congress organized between 17th February and 4th March 1923. After the Congress, important steps were taken for planned industrialization. Aliağa, Bornova, Çiğli, Gaziemir, Kemalpaşa, Menderes, Menemen and Torbalı are the districts, the industry investments are concentrated.

These are some important industry branches in İzmir:

Alcoholic drinks and tobacco products are the sectors that produce the highest added value in the sectors related to agriculture; they create employment and are an important branch of industry which contribute directly or indirectly to each part of society from agriculture to transportation.

The petrochemical sector, representing 25% of the total chemicals production of Turkey, is a locomotive sector which provides input for other sectors. Petkim Petrokimya Holding INC. (PETKİM) Aliağa facilities, one of the biggest petrochemical companies, in Turkey, are located in İzmir. İzmir hosts the first refinery investment realized by the private sector with the Project of Star Refinery, which is still under construction, in Petkim peninsula, of 10 million tons of capacity per year.

Besides one of the 4 petroleum refineries of Turkey Petrol Refineries A.Ş (TÜPRAŞ) which is Europe’s 7th and the world’s 28th biggest petrol refinery is located in İzmir.
The Automotive sector is among the locomotive sectors of our country. Therefore it is extremely important that the continuous growth of the sector is essential for the country’s economy, development, and employment.

There are large scaled companies in the automotive sector, operating in Izmir, and making foreign trade at high rates. The number of automotive per 1000 persons is 110. Considering that this ratio is low compared to European Union countries such as France and Germany and the fact that young population rate is higher in our country compared to other countries; the high consumption potential in the automotive sector.

Aegean Free Zone (ESBAŞ), in Gaziemir, and the İzmir Free Zone (İZBAŞ), in Menemen, are the 2 important free zones of the city. Particularly İZBAŞ is one of the OIZ’s, that has the biggest trade volume and has great a contribution to the Izmir economy in terms of employment. Aegean OIZ is operating since 1990. Moreover, currently, it is regarded as one of the most successful OIZ’s in Europe. The OIZ in Menemen, Izmir, is 16 miles away from Aliağa port area and is nearby the Çandarlı Port to be one of the biggest ports in the world after its ongoing construction period is finalized.

The number of technology zones that provide cooperation between industry and university with the aim of producing goods and services of advanced technology in İzmir increase from day to day. Especially, the Aegean Free Zone is among the biggest free zones of Turkey in terms of trade volume. The total number reached up to 4 with the İzmir Science Park founded by our Chamber, the Dokuz Eylül Technology Development Zone, the Aegean Techno Park Technology Development Zone , and the İzmir Technology Development Zone.

The city of Izmir, which has always been one of the major centers of foreign investment, exports and transportation of Turkey since the 18th century. Over the past 15 years, it has also increased its exports abroad four times. Izmir has a significant role in Turkey’s economy, with its geographic location and the infrastructure of exports and imports (land, sea and air).

İzmir has the largest indoor Turkish airport and four major container ports that have uniquely positioned the city. With more than 4 million inhabitants, the city is the third largest populated city of Turkey, with over $14,000 per capital, accounting for 6.5 percent of Turkey’s total domestic production.

Izmir has 13 industrial towns, 2 free trade zones, 3 science and technology parks and 4 international container ports, and holds 6% of the total industrial output and total exports of Turkey. According to the statistics of the Turkish Exporters’ Council, Izmir among the Turkish cities has the fourth highest export ranking. Currently, Izmir’s exports to Turkey totaled $ 9.53 billion. In the report of the Global Metropolitan Monitors 2014, the American Institute of Bowling Institute and JP Morgan Chase, Izmir has climbed to the second place in terms of economic growth among 300 cities in the world. There are now more than 2500 foreign capital companies in İzmir. On the other hand, the Kale-Pratt & Whitney Company produces fifth-generation F-35 fighter jet engines. In addition, Lisi Aerospae, PFW, Fokker and Elmo also produce many of their aircraft parts in the city.