According to Ekonomim, Mustafa Talha Pepe, Chairman of the Board of the Ship, Yacht and Services Exporters’ Association (GYHİB), stated that Türkiye is at risk of losing nearly 20 years of efforts in the Northern European market. Pepe noted that some shipyards have been unable to sign new contracts for approximately a year and said that the sector expects the exchange rate to increase at least in line with inflation.
Türkiye ranks 12th globally in the shipbuilding industry, while the sector’s average export value per kilogram stands at approximately $25. Türkiye ranks 10th in the world in terms of overall export value and volume, second only to Italy in mega-yacht production, and first in fishing vessel production and exports.
Following the 2008 global financial crisis, Turkish shipyards strengthened their position in the Northern European market by shifting toward more qualified and value-added projects. Approximately four years ago, 35% of orders in the region were placed with Turkish shipyards, while current cost conditions are reported to be weakening their competitiveness in this market.
Sector Expects $2.5 Billion in Exports in 2026
Pointing out that shipbuilding projects span multiple years, Pepe stated that a significant portion of the projects currently underway at shipyards consists of orders received one or two years ago. He noted that since the completion of these contracts will be reflected in exports in 2026, the sector expects a record in exports this year, while the outlook for 2027 and 2028 is not positive due to the current order situation.
Pepe said that the sector expects to reach approximately $2.5 billion in exports by the end of the year, adding that more than 90% of this amount will result from previously secured projects being reflected in 2026.
Spain Has Become 20% Cheaper Than Türkiye
Pepe stated that rising costs are reducing the competitiveness of Turkish shipyards in new projects and said that Spain, one of the biggest competitors in the Northern European market, is currently approximately 20% cheaper than Türkiye. He noted that the prices of the two countries were similar three to four years ago, while six years ago Türkiye was approximately 15% cheaper than Spain.
Pepe stated that previously signed contracts had also resulted in losses due to current costs, despite which shipyards continued to carry out the projects.
Turkish Shipyards Maintain Quality Advantage in Northern Europe
Pepe stated that South Korea, China, and Japan stand out in large-volume vessel projects, while niche markets requiring specialized and custom production, such as Canada and Northern Europe, are important for Türkiye.
Noting that European shipowners are satisfied with the level of specialized production and quality offered by Turkish shipyards, Pepe emphasized the importance of competitive pricing in maintaining the Northern European market.
Pepe stated that despite the slowdown in new orders across the sector, no shipyard has currently closed, adding that although some companies are experiencing difficulties, the situation has not reached the point of closure. He also noted that mergers and acquisitions are on the agenda in the sector.
Pepe also referred to the Ministry of Energy and Natural Resources’ work on offshore renewable energy power plant platforms and stated that Turkish shipyards are ready to contribute to such projects.
Source: Ekonomim
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