"Alternative Logistics Routes Are Turkey's Greatest Strength"

PLASFED Chairman Ömer Karadeniz stated that crises in the Strait of Hormuz have disrupted production and supply chains across all industries, particularly the plastics sector. Emphasizing that Turkey's possession of alternative logistics routes such as the Middle Corridor provides strategic security, Karadeniz said, "Every increase in oil prices drives up all costs from raw materials to logistics; production slows, investments are postponed."

Ömer Karadeniz, Chairman of the Board of Directors of the Plastics Manufacturers Federation (PLASFED), noted that escalating geopolitical tensions in the Strait of Hormuz create serious risks regarding global energy and logistics security. Drawing attention to the likelihood of oil prices climbing above USD 100 again, Karadeniz stated, "Every increase in oil prices drives up all costs from raw materials to logistics. Production slows, investments are postponed. This situation both pressures manufacturers and pushes consumer prices upward." 

Karadeniz expressed that Iran's steps toward closing the Strait of Hormuz directly affect not only energy prices but also the supply of petroleum derivatives such as naphtha, one of the plastics sector's fundamental inputs. "Turkey's plastics sector has a structure largely dependent on imports. Increases in oil prices sharply raise logistics costs alongside energy and raw material expenses. For this reason, possessing alternative logistics corridors is no longer a luxury but a necessity," he said.

Middle Corridor—Strategic advantage for Turkey
Emphasizing the importance of Turkey's possession of alternative trade and logistics routes in light of recent uncertainties in Strait of Hormuz transit, Karadeniz stated, "Turkey's role as a logistics bridge between Europe and Asia, particularly through the Middle Corridor, is not only an economic advantage but also a strategic one. We must make good use of this advantage."

Referencing Transportation and Infrastructure Minister Abdulkadir Uraloğlu's Middle Corridor vision, Karadeniz assessed, "We are in a period of heightened geopolitical risks. Logistics security and supply diversification are more important than ever for the sustainability of production and exports."

Investments on hold, production risk rising
Drawing attention to how increasing uncertainties regarding energy supply security and raw material procurement are restraining industrial investments, Karadeniz noted that investments requiring long-term planning are being postponed. Pointing out that both public and private sectors need to take proactive steps to preserve production capacity in an environment where financing options are tightening and risk premiums are rising, Karadeniz emphasized the need to accelerate the transition to a circular economy. Stressing that structural reforms to reduce external dependence must be implemented, the PLASFED Chairman underlined that reshaping industrial policies has become an unavoidable necessity.

Logistics costs and consumer prices rising
Pointing out that increases in oil prices directly affect not only producers but also consumers, Karadeniz stated, "Cost increases across numerous items—from logistics to packaging, from energy to distribution—will raise the market access prices of products. This will both narrow demand in the domestic market and reduce our competitiveness in export markets."
Karadeniz emphasized that supporting domestic production and shifting toward alternative raw material sources are vital for a sustainable plastics industry.