Western Black Sea with Its Industry

There are two basic sectors that determine economic activities in the Western Black Sea Region. The first of these is mining, which dates back to the mid-19th century, and the second is the iron and steel industry. In the region, which generally has an economic structure dependent on these two sectors, it is of great importance to create and develop sectoral diversity, improve the investment environment and increase the capacity and capabilities of existing enterprises.

According to 2022 data received from the Provincial Directorates of Industry and Technology, there are a total of 1,373 industrial facilities in the region. 49.5 percent of these facilities are located in Zonguldak, 32.6 percent in Karabük and 18 percent in Bartın. The districts with the most industrial facilities are Karabük Center (215 facilities), Kdz. They are listed as Ereğli (203 facilities), Bartın center (191 facilities), Çaycuma (160 facilities) and Safranbolu (138 facilities). On the other hand, there are relatively few industrial facilities in Ovacık, Amasra, Eflani, Ulus and Kozlu districts.

67,357 people are employed in industrial facilities in the region. Approximately 57.6 percent of those employed are in Zonguldak, 24.4 percent in Karabük and 18.01 percent in Bartın. The districts that stand out in terms of employment numbers are as follows: Kdz. Ereğli (15,518 people), Karabük Center (12,322 people), Bartın Center (10,343 people), Kilimli (6,352 people), Çaycuma (5,676 people) and Zonguldak Center (3,560 people). Kdz. Ereğli, Karabük Center and Bartın Center districts are the prominent districts in terms of the number of industrial facilities and employment.

The majority of industrial enterprises operating in the region are micro and small-scale, parallel to the country in general. While the rate of micro-scale enterprises is below the country average in Bartın and Zonguldak, it is seen that the rates of small, medium and large enterprises are higher than the country average. In Karabük, micro, medium and large scale enterprises are above the Turkish average, while small scale enterprises are below the Turkish average. Approximately 85 percent of the businesses in the region are micro and small-scale enterprises, and the rates of medium and large-scale enterprises are above the country average. This situation can be attributed to the prominence of sectors related to mining, iron and steel and forest products in the region.

When the sectoral distribution data of Zonguldak province is examined, the number of enterprises in the mining and iron and steel sectors attracts attention. The number of enterprises in coal extraction and other mining and quarrying sectors reflects Zonguldak's prominent position in traditional mining activities. The iron and steel production infrastructure in the province is especially effective in sectors such as the basic metal industry, fabricated metal products manufacturing (except for machinery equipment) and machinery equipment manufacturing not classified elsewhere, and this is also reflected in the number of enterprises. In addition, it is seen that the rich forest wealth of the province is reflected in the number of businesses in sectors such as wood and wood products and furniture manufacturing. The manufacturing of food products and rubber and plastic products are other prominent sectors of the province.

When the number of enterprises in Karabük province is examined, the main metal industry, fabricated metal products manufacturing (except machinery equipment) and machinery and equipment manufacturing sectors not classified elsewhere, which are sectors related to iron and steel, similar to Zonguldak province, stand out. In addition, since Karabük province has the highest proportion of forest assets in our country, the wood and wood products manufacturing and furniture manufacturing sectors in the province also attract attention in terms of the number of enterprises. Food product manufacturing, other mining and quarrying and clothing manufacturing sectors are other leading sectors of the province.

When we look at the number of businesses in Bartın province, it is seen that the wood and wood products manufacturing and furniture manufacturing sectors come to the fore in Bartın, depending on the presence of forests, as in other provinces. In addition, the manufacturing sectors of food products, clothing, other means of transportation and other non-metallic mineral products are other sectors of Bartın with a high number of enterprises.

In summary, it can be said that in terms of the number of enterprises in the TR81 Region, in addition to mining, iron and steel related sectors and forest industry related sectors, the manufacturing of food products, textile and clothing manufacturing and partly the manufacturing of other transportation vehicles stand out. It is considered that integrated iron and steel facilities such as TTK, Erdemir and Kardemir, the presence of hard coal and the wide forest cover in the region are effective in this distribution.

In line with the changing perception of time and space due to globalization, direct capital investments made by businesses have begun to increase. In direct foreign investments and national investments made by large and multinational enterprises, the competitiveness level of the region where the investment will be implemented is expected to be high. In order for a region to be preferred for investment purposes, its accessibility must be high, it must be close to raw material resources, its logistics facilities must be developed and its human capital must be competent.

The advantages of the Western Black Sea Region in terms of investment ecosystem can be listed as follows.

Proximity to Energy Resources and Production Capacity; The Western Black Sea Region is an important actor in the energy sector in terms of its existing installed facilities, planned investments in the region and proximity to energy resources. Fossil resources are mostly used in electricity production in the region, and 5.7 percent of the installed power for electricity generation is met by renewable energy sources and the rest is met by fossil resources. There are 3 thermal power plants in operation in the region, and these three power plants are in Zonguldak province. In 2022, the total installed power capacity of the region is 3,640.9 MW, the total production capacity is 19,990 GWh, and the total consumption amount of the region is 2,561 GWh. In addition, Zonguldak province ranks first in Turkey in terms of the ratio of electricity production to consumption, with a rate of 1.512 percent. According to EMRA 2023 data, 6.0 percent of Turkey's electricity production, 1.0 percent of electricity consumption and 3.8 percent of installed power belong to the Western Black Sea Region. 94.6 percent of the total electricity production in the region belongs to Zonguldak, 4.5 percent to Karabük and 0.4 percent to Bartın. 93.2 percent of the total electricity installed capacity is in Zonguldak, 5.5 percent in Karabük and 1.2 percent in Bartın. Electricity consumption data among the provinces of the region are proportionally;Zonguldak with 49.1 percent, Karabük with 24.1 percent and Bartın with 26.8 percent. Proximity to energy can provide a significant cost advantage in the supply of energy inputs in industrial investments to be made in the region. The share of the regional provinces in energy production, installed capacity, production/consumption ratio and installed power rankings in 2022 are shown below.

Region's Share in Electricity Production in 2022 (Percent) and Türkiye Ranking   

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Proximity to Main Axes and Metropolises;The Western Black Sea Region is on average 110 km from all provinces to the Istanbul-Ankara highway, which is the main highway axis of Turkey. It is 350 km away from Istanbul, the financial center of Turkey, one of the largest metropolises, and 250 km from Ankara, the political center of Turkey. away. It stands out due to its location, being close to the Marmara Region, where industrial activities are concentrated, and considering the tendency for industrial activities to shift out of Istanbul within the scope of decentralization of industry. The presence of strong enterprises such as Erdemir and Kardemir that can supply materials to the automotive industry in the region, the ability to build industrial parcels and investments at more affordable costs, and the existence of the Filyos Valley Project make the region suitable for high and medium-high technology investments.

Diversity of Transportation and Logistics Possibilities;In addition to location advantage, diversity and integration of transportation networks are also of great importance for competition. One of the strongest aspects of the Western Black Sea Region is its transportation infrastructure with all transportation modes. The Western Black Sea Region has an important logistics potential due to its coastline on the Black Sea and its appeal to Ankara and Central Anatolia hinterland. Çaycuma Airport, which is international and operates domestic and international flights, is 54 km from Zonguldak, 87 km from Karabük and 33 km from Bartın, and has a location that can be considered the middle point of the provinces and can benefit from import and export opportunities at the highest level.

Integrated Iron and Steel Facilities and Intermediate Product Producers;In the Western Black Sea Region, Erdemir, one of Turkey's largest integrated iron and steel producers, Kardemir, one of the long products iron and steel producers, and industrial enterprises that supply and develop depending on these organizations are densely located. Due to the development of integrated iron and steel facilities, steel service centers and machinery manufacturing sector, the region has become one of the most important points of the iron and steel industry. In the iron and steel sector, production is carried out primarily for construction and automotive, pipes, profiles, durable consumer goods, fuel vehicles and equipment, rail systems, agricultural vehicles, tin consumers and the shipbuilding sector. Developments in these sectors directly affect the iron and steel sector, and the progress made in the iron and steel sector also affects these sectors.

Trained and Qualified Workforce;There are many qualified personnel in the Western Black Sea Region due to its deep-rooted iron and steel industry history. As of today, industrial activities are still mainly based on mining and iron and steel industry. Depending on the iron and steel sector and the workforce there, the shipyard sector is also quite developed in the region. The fact that some of the machinery manufacturing and auto sub-industry production, which have high added value within the scope of sub-industry products, are carried out in the region shows the knowledge and experience of the people of the region in the industrial sector.

The Western Black Sea Region is one of the first industrialized regions of Turkey. When the share of industrial areas in the total areas of the provinces is examined, Zonguldak ranks 14th with 0.70 percent, Karabük ranks 35th with 0.26 percent and Bartın ranks 50th with 0.14 percent.

Although there is one free zone in the region, it has not started operating yet. Filyos Free Zone, located within the borders of Çaycuma district of Zonguldak, has a size of 1,044 hectares. There is also an area of ​​620 hectares defined as a development area just south of Filyos Free Zone.

There are three industrial zone investment areas in the region and these industrial zones are; Filyos Industrial Zone with a size of 344 hectares, TPAO Filyos Industrial Zone with a size of 253 hectares and Eren Holding AŞ Zonguldak Private Industrial Zone. Pre-investment preparations continue in Filyos Industrial Zone. With the discovery of natural gas in the Sakarya Gas Field, the gas purchase and processing facility installation works for the natural gas being extracted from the Black Sea are continuing in the TPAO Filyos Industrial Zone, which was separated from the Filyos Industrial Zone and allocated to the Turkish Petroleum Joint Stock Company. Eren Holding AŞ Zonguldak Private Industrial Zone has an area of ​​176.53 hectares and was declared an industrial zone by the decision published in the Official Gazette No. 32392 dated December 7, 2023.

There are 5 active mixed OIZs in the region, with a total size of 920 hectares, with a total of 171 enterprises and 15,339 employees on 269 parcels. These are Kdz. They are Ereğli OIZ, Alaplı OSB, Çaycuma OSB, Karabük OSB and Bartın OSB. Expansion works for Bartın and Çaycuma OIZ continue.

However, there are also projects whose legal process has been completed, infrastructure investments are ongoing, or site allocation and determination procedures are being carried out. These projects, with a total size of 456 hectares; The infrastructure investments of Zonguldak Çaycuma Specialized Agricultural OIZ have been completed, and the infrastructure application project process of Eskipazar OIZ is at the completion stage. The location determination process of Gökçebey mixed OIZ, which is approximately 65 hectares in size, has been completed and its establishment protocol has been approved by the Ministry of Industry and Technology and it has gained legal personality.

In addition, efforts to bring new OIZ areas to the region continue. Ereğli II. There are initiatives to develop the OIZ project, to start the second stage of the Çaycuma Agriculture-Based Specialized OIZ, to establish an agriculture-based specialized OIZ in Bartın, to establish a furniture and forest products OIZ in Yenice, and to establish Çaycuma-Saltukova OIZ and Abdipaşa OIZ. In addition, although there is no concrete development yet, there have been efforts in the past years to establish a reclamation OIZ in the area where the existing industrial facilities are located in Alaplı.

Other factors affecting the investment environment in the region are technology development zones, R&D, design and innovation centers. In addition, transportation and logistics facilities, road, railway, air and port facilities constitute important parts of the investment ecosystem. Below is a map showing the investment environment of the region.

Investment Environment of the Region

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In Türkiye, studies are carried out to increase the competitiveness of the industry, increase its efficiency, and produce high value-added and advanced technology products. For this purpose, appropriate physical infrastructure and facilities for production and trade have begun to be created. Filyos Industrial Zone, Türkiye's first mega industrial zone, Filyos Free Zone in the south and Filyos Port, one of Türkiye's largest ports, are also located in the Filyos Investment Basin and are a national investment project that Turkey attaches great importance to. With the project, it is planned to create new transportation corridors, reduce the traffic load of the Istanbul and Dardanelles Straits, increase qualified production, and develop national and international transportation and trade. This investment basin, which includes Filyos Port, Filyos Industrial Zone, Filyos Free Zone and Free Zone Development Area, is called Filyos Valley Project.

Filyos Port:Türkiye has the longest coastline among the countries neighboring the Black Sea. Filyos Port, located on the Black Sea coast, has a capacity of 25 million tons/year and a large hinterland area. Filyos Port constitutes an important transportation network for the export of leading industries and their by-products in the region. Filyos Port is of great importance for the country's national and international trade, especially with the Black Sea Basin and Eastern European countries. Filyos Port contains the necessary port facilities to handle containers, bulk cargo and dry cargo. However, due to the presence of natural gas reserves off the Black Sea coast and its landing in a location close to Filyos Port, the use of the port was temporarily given to the Turkish Petroleum Joint Stock Partnership (TPAO). This situation has led to uncertainty for the regional industry waiting for the completion of the port project. For this reason, solutions such as an additional large port that will make maritime transportation possible in the region or a safe area in the existing port to be made available to the industry are needed. In addition, the port's transportation connections to main roads and arteries also need to be improved.It is also very important to ensure the connection of regular industrial areas in the region to the railway transportation network. Filyos Port complements the investments coming to the region along with the free zone and industrial zone investments.

Filyos Industrial Zone:Industrial zones are special production zones allocated for industry by being equipped with the necessary infrastructure services. It is aimed to include larger-scale integrated investments in these regions. A fertilizer factory investment is planned by Tosyalı Holding, the managing company, in the 344 hectare area defined as Filyos Industrial Zone.

Filyos Free Zone:It is a 1,166 hectare area located just south of the Filyos Industrial Zone and extending towards the Çaycuma district center, passing by Zonguldak Airport. Just south of Çaycuma district, there is a "Free Zone Development Area" extending to the Ankara-Zonguldak road and measuring 620 hectares. Free Zones are special areas located outside the scope of customs zones. These regions are designed to increase the number of export-oriented investments. The main advantages of free zones and the conveniences they provide create significant added value for investments in this region.

Filyos Valley Project

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