1. General Overview

2. Industrial Zones

     2.1. Samsun Industrial Zone
             2.1.1. Activities in Industrial Parcels
             2.1.2. Sectored Distribution of Facilities Actively Involved in Manufacture in Samsun Industrial Zone
             2.1.3. Facilities in Consideration for the Area of 48.162 m2 Allocated in the Region for Administrative and Social Facilities Construction
             2.1.4. Factories in Operation in Samsun Industrial Zone            

     2.2. Samsun-Kavak Industrial Zone
             2.2.1. Foundation and Enterprise Organization
             2.2.2. Location
             2.2.3. Nationalization
             2.2.4. Ground Plan
             2.2.5. General Land Use
             2.2.6. Distribution of Industrial Parcels
             2.2.7. Distribution of Parcels in Social Facilities Land
             2.2.8. Construction of Infrastructure
             2.2.9. Comparison to the Whole of the Area of 50 Hectares
                        2.2.9.1. Comparison of Roads
                        2.2.9.2. Comparison of Potable Water Networks

     2.3. Samsun-Bafra Industrial Zone
             2.3.1. Foundation and Board of Entepreneurs
             2.3.2. Land Acquisition by Industrial Zone       
             2.3.3. Shore Edge Line and Readily-Made Maps of 1/1000
             2.3.4. Inclusion of Bafra in the Industrial Zone and Ground Plan Approval
             2.3.5. Infrastructure, Study-Project and Engineering, Ag-Og Elektrik İnşaatı and I.Stage (100 Ha.) Infrastructure Construction Tenders
                        İnşaatı İhaleleri

3. Small Industrial Estates

    3.1. Evaluation on the Basis of Scales

    3.2. Status of Existing Businesses in the Province
            3.2.1 Samsun 1.Section (Old) SIE
            3.2.2. Gülsan SIE 
            3.2.3. 19 Mayıs SIE
            3.2.4. İlkadım SIE
            3.2.5. Örnek SIE     
            3.2.6. Bafra 1. Kısım SIE
            3.2.7. Bafra Kızılırmak SIE
            3.2.8. Terme SIE
            3.2.9. Vezirköprü SIE
            3.2.10. Çarşamba SIE
            3.2.11. Ladik SIE
            3.2.12. Havza SIE
            3.2.13. Havza 25 Mayıs SIE
            3.2.14. Havza Güven SIE

    3.3. Major Problems of Small Industrial Estates

    3.4. Contributions of SIEs to Provincial Economy

4. Evaluation of SE Businesses in terms of Sectors

    4.1. Food-Beverage and Tobacco Industry
            4.1.1. Bakery Products Food Industry
            4.1.2. Companies Manufacturing Sugar Products

    4.2. Wood Products and Furniture Industry

    4.3. Textiles and Leather Industry

    4.4. Metal Goods Machinery and Equipment Casting Manufacture Industry
           4.4.1. Casting Manufacture Industry
           4.4.2. Non-ferrous Casting Industry
           4.4.3. Cupola and Induction Partnered Facilities
           4.4.4. Facilities with Arched Heaters
           4.4.5. Machine Manufacture Industry

     4.5. Chemical-Oil-Rubber-Plastic Goods

     4.6. Industrial Companies in Groups
             4.6.1 Employment Provided in Sectors and Employment Figures

     4.7. Public Facilities of Manufacturing Industry
             4.7.1. Ballıca Tobacco Factory
             4.7.2. Çarşamba Sugar Factory
                        4.7.2.1. Manufacturing Capacity

5. Samsun Free Zone
     5.1. Manufacturing Activities in Free Zone

     5.2. Commerce and Service Activities in Free Zone
             5.2.1. Progress in Trade Volume in Years ($)
                        5.2.2. Distribution of Trade Volume over Good Transactions (end –year 2006)

     5.3. Distribution of Free Zone Activities in Terms of Activity Focus  

1. General Overview

Samsun is the largest metropolis of Northern Black Sea. The population density in Samsun enables the emergence of a vivid commercial and industrial life in the city. The city settlement and production areas are more convenient for future investments than other Black Sea cities. With its strategic importance, Samsun is in a position more advantageous than other cities. Its role as the first marine door leading to the Black Sea basin and the first land door leading to Central Anatolia also allocates to Samsun a very important place in the trade structure of the region.

Due to its position as a destination for immigration, employment in Samsun has been facing growing difficulties. Recent nationalization of certain public services in the region are of utmost importance in terms of the channelization of the people and enterprises in the region into more convenient and profitable investments.

For the aforesaid properties of the province, although since the foundation of the Republic there have been considerable efforts to found Black Sea Copper Businesses, Nitrogen and Tobacco Factories and other big industrial businesses, Samsun has yet to become a wholly industrialized city and witness its central industrial facilities gain sufficient momentum in the development of the region’s small businesses due to the prominence of an agriculture-based economy in the region. The position of the city as the first geographical door to both Black Sea and Central Anatolia has enabled its trade life to maintain its vividness. However, especially since agriculture-based manufacture is predominant and thus employment is mainly focused on this area, qualified man power has not been able to reach sufficient levels.

Especially after the year of 1980, as a remedy to the restrained employment in the city, small industrial estates have been provided both around the city and in suburbs and the employment has thus been channelized into relatively capital-intensive small businesses.

The most important of those products manufactured in Samsun and its whereabouts are cement, fertilizers, artificial jute, auto replacement parts, pumps in various sizes, furniture and textile and medical equipment.

Along with medium- and large-scales businesses, there are, furthermore, labor-intensive small facilities manufacturing heating boilers, plastic PVC facilities, agricultural equipment and machinery, copper products, construction iron, plastic bags, various sweets, jam and industrial-type kitchen appliances and refrigerators within small-scale businesses.

There are 16 small industrial estates in the region, 5 in the city center and 11 in suburbs. The total number of business offices in the city is 5.279.

There are 404 cooperatives in the city. The Chamber of Commerce has 6.145 registered members.

According to the observations of the Directorate of Customs, as of December, 2006, an import volume of 125 million $ has been reached in Charcoal, Scrap Iron, Tobacco, LPG, Timber, Electrode, Blue Flow Project Equipment and Instruments, Phosphate, Diesel Oil, Grubber, Wheat, Bran, Carbamide, Lumber, Fertilizers, Copper Ore, Medical Equipment and Sesame .

Similarly, an export volume of 125 million $ has been reached in Crystal Sugar, Valve, Citrus Fruits, Nuts, Copper, Wet Yeast and Bread Additives, Wheat Flour, Snail and Snail Shelves, PVC Pipes, Chipboard, Spring Beds, Pipe Connection Pieces, Frozen Anchovy, Frozen Chicken and Silvery Thread.

2. Industrial Zones           

2.1. Samsun Industrial Zone

2.1.1. Activities in Industrial Parcels

Source: Directorate of Industrial Zones

Within Social Facilities and with the cooperation of Small and Medium Industry Development Organization and Industrial Zones, the Internet Café has been completed in construction and opened for business. Samsun Chamber of Commerce has initiated and is currently proceeding with the construction of Anatolian Technical High School. The construction of Technology Development Center and SMIDO Regional Laboratory and Administrative Building was tendered on 10 March 2000, initiated in 07 May 2000 and upon completion, opened for business in July, 2001. There are 2.330 people working in the recently opened offices. 21 Companies are currently under construction whereas another 5 are in project process.

2.1.2. Sectored Distribution of the Facilities in Manufacturing Operation

Construction Application Area is of an actual area of 1.606.522 m2 and a percentage of 100%. Its distribution is as the graph below.

  Source: Directorate of Industrial Zones

The currently constructed factories are envisaged for the manufacture of textile products, canvas, automotive side industry, fiberglass cabins, playground for children, cast-iron sphero, frozen food and marine products. These factories are estimated tin feasibility reports to employ 734 people when opened for operation.

The firm currently in project design will be involved in cast-iron sphero casting. When this facility is completed, it is estimated to employ 60 people.

When all factories in the region are completed and opened for business, the employment is estimated to reach 4.460 people.

2.1.3. Facilities in Consideration for the Area of 48.162 m2 Allocated in the Region for Administrative and Social Facilities Construction

                Yapılması Öngörülen Tesisler

Within the Social Facilities, under the Article 18 of the Industrial Zones Code No. 4562, provided that the property remains in the possession of Industrial Zones, a land o 4.100 m2 has been provided to SMIDO, which completed the construction of service building of 1610 m2 in this area in March, 2001. The service building currently serves as the Directorate of SMIDO and SMIDO Laboratory.

Turkish Standards Institute has been allocated an area of 5.040 m2 for the purpose of the construction of a service building and a laboratory, the first stage of which was initiated in April, 2004 with the construction of the service building on an area of 600 m2 and completed and commences operation in January, 2005.

Samsun Chamber of Commerce was also allocated land, on which the construction of the Anatolian Technical High School was initiated in February 2000. The construction, which is still in progress, was entrusted to the Chamber of Commerce. When the construction is completed, the high school with a capacity of 720 students will be serving in three areas of Computerized Numeric Control, Hydraulic-Pneumatic Technology and Medical Electronics.

Within Social Facilities and with the cooperation of Small and Medium Industry Development Organization and Industrial Zones, the Internet Café was completed in construction and opened for business in May 2000. The regional Internet access was linked with ADSL connection in November, 2003.

Regional Directorate Service Building was completed as a building of 1.116m2 on an area of 6.883 m2 and opened for operation in October, 2004.

Use of natural gas has been aimed in efforts initiated in October, 2003, which has been predominated by the network construction wholly financed by the Industrial Zone participants and cost 750.000 €. The construction was completed in January, 2004 and endowed with Gross Natural Gas Disposition Contract with Turkish Oil Pipes Corporation. As of today, 31 companies are utilizing 1.200.000 m3 of natural gas both in processing and heating.

Black Sea Region Metrological Laboratory was completed in construction and opened for operation in January, 2007 on the land allocated to the Provincial Directorate of Industry and Commerce

2.1.4. Factories in Operation in Samsun Industrial Zone

Source: Samsun Directorate of Industrial Zones (March 2007)

Factories in Project Process (March – 2007)

     Source: Samsun Directorate of Industrial Zones

 Factories in construction (Mart – 2007)

Source: Samsun Directorate of Industrial Zones

2.2. Samsun-Kavak Industrial Zone

2.2.1. Ministry of Indus

Samsun-Kavak Industrial Zone was included in the 1993 investments of the Ministry of Industry and Commerce under the communiqué No. 1620 of 5.4.1993 issued by State Planning Organization of Prime Ministry. Enterprise Organization was designed to included the bodies below under the Chairmanship of State Governor on 8.7.1993;

Samsun Administrative Province
Samsun Chamber of Commerce
Municipality of Kavak.

Each institution participated in the Organization with a ratio of 1/3.

Under the Industrial Zones Code No. 4562 effective upon publication in official journal No. 24021 of 15 April 2000, the formation of the Board of Entepreneurs was made compliant to this code and the Foundation Protocol was registered with the registration number of 27 into the Industrial Zones Registry upon approval by the Ministry of Industry and Commerce on 04.12.2000.

The Board of Entepreneurs constituted 13 persons, Directors’ Board of 5 persons and Board of Supervisors of 2 persons

2.2.2. Location

The location study was conducted by the Ministry of Industry and Commerce on 27.7.1993. Among alternative locations, the land in Çamlık was deemed appropriate by the Ministry of Industry and Commerce on 23.1.1995 and the construction on this land of the zone on the land of planned size of 104 hectares was approved of by the State Planning Organization

2.2.3. Nationalization

In nationalization procedures, Government-owned lands within the region were acquired under the Article 30 of Nationalization Code No. 2942. For lands registered on individuals, the procedure was initiated after the nationalization decision was granted by the Permanent Committee of the Province; however, the decision of nationalization was revoked upon the realization that the unit land costs would be much higher than expected as a result of cost biddings. Then, acting on the approval of the Ministry of Industry and Commerce, purchase by mutual consent was chosen as the course of action..

2.2.4. Ground Plan

The structured map scaled 1/1000 of the region was prepared by the 16. Regional Directorate of the Province Bank. The ground plans of the region were prepared free of cost by the Turkish Chamber of Commerce Department of Industry upon the efforts of Samsun Chamber of Commerce.

The ground plan scaled 1/2000 was presented to the Ministry of Industry and Commerce for opinions. The new ground application plans scaled 1/1000 prepared with regards to the conclusions of the Ministry of Industry and Commerce were endorsed with due appraisal with the communiqué No.3861 of 24.03.1996 by the Ministry of Industry and Commerce.

Ground application plans were then definitively endorsed with the decision No.11 of 31.03.1998 by the Municipal Council of Kavak.

According to the final parcels plan approved by the Ministry of Industry and Commerce, the general land use is designed as follows.

2.2.5. General Land Use

Toplam Arazi Alanı 1.393.617 m2 dir. Bunların 772.892 m2 si yani % 55,46 sı Sanayi Parsellerine, 48.926 m2 si yani % 3,52 si Sosyal Tesis Alanı, 16.952 m2 si yani % 1,21 si Rekreasyon Alanı, 16.446 m2 si yani % 1,18 si Tedaş Teknik Alt Yapı, 61.620 m2 si yani %4.42 si Yollar ve Trafik, 431.456 m2 si yani % 30,96 si Çevre Koruma Bandı ve Yeşil Alanlar’dır.

2.2.6. Distribution of Industrial Parcels

2.2.7. Distribution of Social Facilities Area

2.2.8. Construction of Infrastructure Facilities

Tendering of the construction of infrastructure facilities pertaining to the first stage of 50 hectares in Samsun-Kavak Industrial Zone which in total possesses an area of 140 hectares was deemed appropriate by the Ministry of Industry and Commerce in January, 2001.

According to the assessment – quantification file approved by the Ministry of Industry and Commerce on 16.01.2001, the total cost of operation is 1.599.000.000.000-TL with the Unit Costs observed in 2001.

With fund shares estimated in 2001 as 500 Billion, in 2002 as 500 Billion and 599 Billion in 2003, the estimated completion time of the operation is 31.12.2003. The construction od infrastructure facilities was determined with the consent No.8062 of 25.06.2001 of the Ministry of Industry and Commerce to proceed under protocol by the Municipality of Kavak which is one of the founding bodies of the Board of Entepreneurs. The building contractor received the land upon signing the land minutes on 17.07.2001. During the operational process, upon the examination and approval of comparative assessments, acting on the approval of the Ministry of Industry and Commerce, the completion date was determined to be 05.04.2006 and the fund shares to be 501.854,50 YTL in 2001, 505.187,11 YTL in 2002, 414.422,69 YTL in 2003, 644.624,13 YTL in 2004 and 47.308,02 YTL in 2006. The infrastructure constructions were temporarily endorsed on 13.06.2006.

The infrastructure of the region constitutes 53 industrial parcels on an area of 50 hectares. The total area of these parcels is 419.595 m2. In industrial parcels, buildings of desired heights can be constructed on the condition that they do not exceed 60% of the parcel area and comply with the building approach limits. The connecting road of15 mt in width and 3 km in length was completed in construction to provide direct connection to the region with the Samsun-Ankara state road.

Costless land allocation is implemented in the region under the code No.5350, as well as its regulations, published in the official gazette No.25819 of 18.05.2005 and under the code No.5084, and its regulations, published in the official gazette No.25365 of 06.02.2004.

In this process, 8 companies have received 15 parcels free of charge since the effective date of the code.
These 8 companies presented their commitment letters in notarized document form as demanded by the regulations. 2 of these companies are currently in operation and the remaining 6 are awaiting the factory constructions. When these companies start operation, they are estimated to employ 272 persons

2.2.9. 50 Comparison to the Whole of the Area of 50 Hectares

2.2.9.1. Comparison of Roads

 2.2.9.2. Comparison of Potable Water Network

2.3. Samsun-Bafra Industrial Zone

2.3.1. Foundation and Board of Entrepreneurs

Samsun-Bafra industrial zone was included in the 1997 investments under the decision No.10229 of 06.08.1997 of the Ministry of Industry and Commerce. The board constituted under the chairmanship of the Governor of Samsun on 13.11.1997 of Administrative Province (10%) and Bafra Chamber of Commerce (90%).

The Board of Entepreneurs was revised according to the Industrial Zones Code No.4562 published on 15 April 2000, registered with the registration No.14 and comprised 29% share of the Administrative Province, 35% share of the Municipality of Bafra and 36% share of Bafra Chamber of Commerce.

2.3.2. Land Acquisition of the Industrial Zone

Since the land allocated for the region is wholly in the possession of the Ministry of Finance, m2 unit cost was established as 15-TL and total cost as 34.200,00 YTL by the Treasury, whole land was nationalized on 09.11.1998 and the land registry was registered on the Provincial Legal Persona. Under the Industrial Zones Code No.4562 in effect as of 15.04.2000, the land registry of the area was registered in the name of the legal persona of Industrial Zones on 12.07.2000.

2.3.3.

Shore Edge Line and Readily-Made Maps of 1/1000

Since the land of the region has a shore on the River of Kızılırmak, the shore edge line was established on the existing maps of 1/5000. The 1/1000 maps of the region were structured for the VII. Regional Directorate of GWW for a cost of 1.500,00-YTL on 06.08.1998 upon the consent of the Ministry of Industry and Commerce. The transfer of the shore edge line onto the maps of 1/1000 was completed upon the consent No.4189 of 1 March 2000 by the Ministry of Public Works and Settlement.

2.3.4. Inclusion of Bafra Industrial Zone into the Protected Zone and Ground Plan Approval

After the inclusion of the Kızılırmak Delta into the Protected Zone by the Trabzon Board of Cultural and Natural Assets Protection under the Ministry of Culture, a certain part of the Industrial Zone remained in the 1. Degree Protected Zone. As a result of appeals, this issue was brought to the agenda; however, the resulting decision was the slight narrowing of the Protected Zone. Another appeal was issued to the Directorate of Cultural and Natural Assets Protection with the communiqué No.86 on 09.08.2000 and the issue is decided to be reconsidered as an item of agenda. The Protected Zone was removed from the Region with the communiqué No.219/144 on 13.10.2000.

According to the Industrial Zones Code published in the official gazette on 15 April 2000, the Health Protection Band was expanded from 50 meters to 250 meters. As a result of the appeals to the Directorate General of Basic Health Services under the Ministry of Health, the cadastral status of the region was taken into consideration to narrow down the Health Protection Band to 50 meters with the communiqué No.1606 of 05.02.2001. The problems related to the Region’s Ground Plan were solved and the Ground Plans were approved by the Ministry of Industry and Commerce.

2.3.5. Infrastructure Study-Project and Engineering, Ag-Og Elektrik İnşaatı ve I. Stage (100 Ha.) Infrastructure Construction Tenders

Upon the tender of Infrastructure Study-Project and Engineering services on 11.940 YTL (without VAT), the services were concluded to be entrusted to TEKSU MÜH. İNŞ.TİC ve SAN. LTD. ŞTİ upon the consent No.17518 of 22.12.1998 of the Ministry of Industry and Commerce. The agreement was concluded with the entry No.324 of 06.01.1999 in the II. Notary of Bafra between our Enterprise Organization. The contracting firm has delivered the operation upon the completion of all operations within the context of the agreement as of today. The cost paid to the contractor is 43.159,65 – YTL.

3. Small Industrial Estates

There are 16 small industrial estates in Samsun, 5 of which is located within the metropolis boundaries.

In these industrial estates, there are about 7.000 small-scale businesses, 3.600 of which are located within the metropolis boundaries.

The number of offices in SIE within the metropolis boundaries is 3.620, in which 12.575 persons are employed.

The occupancy rate of existing industrial estates within the metropolis boundaries is about 50%.

3.1. Evaluation on the Basis of Scales

3.2. İldeki mevcut işletmelerin Durumu

Among Black Sea provinces, Samsun is the home of the densest population of small- and medium-scale businesses. The number of employees in these businesses proves Samsun to be the city that provides the highest rate of employment.

3.2.1 Samsun 1.Section (Old) SIE

In the 1958 foundation of this industrial estate, no credit was used. Parallel to the development of the city, there are nor 486 offices in this industrial estate, which is located in the city center, most of which are involved in Furniture, Auto Maintenance and Repair, Car Replacement Parts and Turners and Levels

3.2.2. Gülsan SIE

In the 1975 foundation of this industrial estate, no credit was used. Parallel to the development of the city, there are nor 780 offices in this industrial estate, which is located in the city center, most of which are involved in Furniture, Auto Maintenance and Repair, Car Replacement Parts and Turners and Levels, Various Casts, Disposition of Construction Equipments and Hardware.

3.2.3. 19 Mayıs SIE

 Located at 12 km from the city center and adjacent to our Samsun Industrial Zone, 19 Mayıs SIE, within the context of our service area, was founded in 1958 with credit support. Originally hosting 1162 offices, the occupancy rate of this SIE is a mere 410 offices due to the currently incomplete Social Facility and infrastructure. Offices in operation specialize mostly in Furniture, Outer Plastic Coating, PVC Woodwork, Fluted Cardboard and Box Production, Cast Production and PE Bag Production

3.2.4. İlkadım SIE

Founded in 1980, İlkadım SIE has a capacity of 678 offices, 55 of which are currently in operation, even though all offices have been delivered to their partners. The offices in operation are mostly those involved in furniture production and disposition.

3.2.5. Örnek SIE  

Founded in 1980 without any credit support, this SIE comprises 582 offices all completed and delivered to their owners. 70 offices are currently in operation and mostly specialize in Wood Products, Furniture Production, Food Production and Packaging, Car Replacement Part and Industrial Equipment Production

3.2.6. Bafra 1.Section SIE

With a capacity of 211 offices, this SIE has an occupancy rate of 100%.

3.2.7. Bafra Kızılırmak SIE

Founded in 1984, this SIE constitutes of 220 companies with 217 partners. Total area is 50.000 m2.

3.2.8. Terme SIE

With a capacity of 281 offices, this SIE has an occupancy rate of 100%.

3.2.9. Vezirköprü SIE

With a capacity of 151 offices, this SIE has an occupancy rate of 100%

3.2.10. Çarşamba SIE

With a capacity of 381 offices, this SIE has an occupancy rate of 286 offices, the remainder of which is currently under construction.

3.2.11. Ladik SIE

With a capacity of 95 offices, this SIE has an occupancy rate of 82 offices, the remainder of which is currently under construction.

3.2.12. Havza SIE

With a capacity of 128 offices, this SIE has an occupancy rate of 113 offices, the remainder of which is currently awaiting operation

3.2.13. Havza 25 Mayıs SIE

This SIE was founded in 1995 on an area of 13.000 m2 with 53 partners

3.2.14. Havza Güven SIE

Founded in 1985, this SIE is currently awaiting construction.

3.3. Major Problems of Small Industrial Estates

With the abolition of the Code No.2982 on 01.01.1998, Small Industry Estates lost such exemptions as Duties or Fees. In registration procedures such as Building Use Permission, Construction Registration Unification and Allotment, cooperatives face with costs reaching billions. Small industrial estates survive in power under very harsh conditions. We believe that efforts should be directed towards the reenactment of the same Code. Irregular transaction of funds also creates a major problem and should be solved.

3.4. Contributions of Small Industrial Estates to Provincial Economy

These estates contribute to the creation of a problem-free city via enabling planned urbanization with such structured elements as Industrial Zones.

Apprentice Training Schools and Social Facilities, included in the project contexts, provide major contributions to the development of employment via creating qualified man power directed towards the needs of the industry.

These estates pave the way for the creation of a goods and services infrastructure for the large-scale industry and thus contribute to its development.

4.Sectored Evaluation of Small- and Medium-Scale Businesses

4.1. Food-Beverage and Tobacco Industry

This sector witnesses intense operations of SEE (State Economic Enterprise). Parallel to the tobacco production potential of the province, there are constant efforts towards sustainable development and modernization. Ballıca Tobacco Factory was founded and started operation in 1998. Small-scale businesses in this sector are mostly focused on food industry

4.1.1. Bakery Products Industry

There are about 10 bakery factories and feed industries in this sector. The merger of bakery companies in this sector paved the way for the foundation of a foreign trade company. The sector maintains its energy, which will further increase along with employment and export potential as the bakery products will be transformed into a final product sector and the new facilities will provide for more intense production of such goods as pasta, biscuits and wafers.

4.1.2. Companies Manufacturing Sugar Products

These companies maintain their manufacturing activities mostly addressing the needs of the province’s consumers. More emphasis on export and CIS market will increase employment in this sector. There is currently a quality problem facing this sector. As we have entered the Customs Union, the sector is in dire need for equipment support providing urgent quality to provide or appropriate production and packaging services.

4.2. Wood Products and Furniture Industry

Most of the small- and medium-scale businesses within out province operate in this sector, which is mostly located in newly opened small-scale industrial estates and industrial zones.

Small- and medium-scale businesses in this sector in general manufacture semi-finished or finished product. The most important problem in this sector is the lack of a furniture artisans’ industrial estate where the sector as a whole shall operate. This problem also hinders the dissemination of sectoral development onto smaller businesses. In order to prevent environmental pollution, convention of these sectors’ members in one location will facilitate the delivery of supplied services.

Major problems of the sector: There are certain marketing problems in this sector. Neighboring provinces and CIS might be appropriate markets as the sector is provided with modern manufacturing techniques and product systems. There Is also a need for qualified manpower in these sectors, which are more active in towns than in the city center.

4.3.Textile and Leather Industry

This sector possesses a very significant potential not only for Turkey in general but also in urban level. Especially due to its role as the locomotive power of textile industry, this sector should be established in out province within the shortest time possible. In this industrial zone and small industrial estates, there are a number of small-scale businesses specialized in this sector. Provision of support to this sector, especially via the facilities manufacturing raw materials and technology transfer, marketing and cooperation will accelerate the development process of textile sector. The important markets of this sector are EU countries, CIS and big cities.

4.4.Metal Goods Machinery and Equipment Production Industry

4.4.1. Casting Manufacture Industry

This industry is in a position more advantageous in our city than in the other coastal provinces.

4.4.2.Non-Ferrous Casting Industry

This sector is in a fairly good position in terms of non-ferrous products. Especially two medium-scale companies are currently in operation in the industrial zones, both of which are in the process of founding the ISO 9000 system with confirmed quality via extending investments and fulfilling the sector’s potential.

4.4.3. Cupola and Induction Partnered Facilities

In Samsun, there are nearly 20 small- and medium-scale companies operating in this sector. These companies mainly focus their manufacturing activities on state tenders and large SEEs and enjoyed a great increase in their export activities. The medium-scale company, in particular, is a leading company in ductile casting and pipe connections.

4.4.4.Facilities with Arched Heaters

In our industrial zone, there is one facility with arched heaters with a capacity of 40 ton/hour.

4.4.5. Machinery Manufacture Industry

This sector also specializes in water pump manufacture and has facilities in the industry zone that invest in the region with high production potential and quality manufacture output. There are also potential companies that are involved in the manufacture of transfer and transport systems for our industry.

Companies Manufacturing Industrial Kitchen Appliances will, in the near future, have the opportunity to become leaders of their own sector in Samsun. There are facilities in the province that have great potential in this respect. In order to prevent the forthcoming “CE” protocol brought out by the EU standards from damaging the manufacture activities of these companies, it is of utmost importance and urgency that these companies revise their production processes to comply with relevant standards.

Boiler Industry: The facilities in operation are mostly those small- and medium-scale companies manufacturing fuel oil or food tank. There is a growing need for quality products and qualified manpower.
Manufacture of Forged Hand Tools and Medical Devices:  Manufacture of medical devices is a commercial activity with great potential. This sector is very labor-intensive and thus it development will not only enable Samsun to become a specialized province in this matter but also enable small-scale businesses with little demand for investments to be supplied with employment. This sector has various small-scale businesses in Samsun, two of which are relatively significant with their ISO 9000 certificates. If this sector is planned and supported within the context of a project, it will not only contribute to employment, but also help decrease the growing import volumes observed in health sector.

4.5. Chemical-Oil-Rubber-Plastic Goods

In our province, there is a large SEE, namely Azot Industryi (TÜGSAŞ). In Samsun, this sector has not been able to demonstrate sufficient momentum in providing the side industry required by small- and medium-scale industry businesses for developing agriculture-based products. This business was included in the context of privatization at the end of 1998. Especially rubber and plastic goods are predominant in the sectors’ small and medium-scale businesses. This sector has both small-scale addressing the needs of regional markets and medium-scale businesses posed as side industries for automotive sector with their export potentials.

 The fact that the companies within this sector are currently investing in the industrial zone for the purposes of growth and environmental factors shows that this sector has the potential to become one of the leading sectors in the near future. When we overview the manufacturing industry in Turkey from a general perspective, Samsun has an undeniably considerable percentage, namely 25%. The economic conditions affecting Turkey also affect the businesspeople and industrialists in Samsun. The constant action and project development manifested by the businesspeople and industrialists, as well as the constant demand for new project and enterprises manifested by the young businesspeople guarantee a bright future for Samsun. In fact, Samsun is in its current potential and position, an Anatolian Tigers in terms of the added value the province has created.

Samsun is a city where the industry has a growth rate of 9.7 and small- and medium-scale businesses are constantly developing despite the growth rate average of 7.2 as established by the SSI figures of 1996.

4.6. Industrial Companies in Groups

4.6.1 Employment Provided in Sectors and Employment Figures

As can be seen in this table, total number of industrialists is 504 whereas the total number of employed persons is 11.590. Machine manufacturers are the industrialists that create most employment.

4.7. Public Facilities of Manufacturing Industry

Our city hosts two public facilities of industry, namely Ballıca Tobacco Factory and Çarşamba Sugar Factory. Karadeniz Bakır İşletmeleri, Samsun Gübre Sanayi CORP (TÜGSAŞ), Ladik Çimento Fabrikası, Samsun Yem Sanayi, Vezirköprü Orüs Kereste Fabrikası and Bafta Devlet Kereste Fabrikası have been privatized.

4.7.1. Ballıca Tobacco Factory

With a capacity of 10.000 ton/year filter cigarettes; this factory is in operation in the district of 19 Mayıs under the Directorate General of TEKEL Enterprises.

4.7.2. Çarşamba Sugar Factory

Founded in 1977, this factory started operation in 1989.

4.7.2.1. Manufacturing Capacity

5. Samsun Free Zone

The operating authority of Samsun Free Zone was entrusted for a period of 30 years to Sasbaş-Bayındır-Samsun Serbest Bölgesi Kurucu ve İşleticisi A.Ş. on the basis of the build-operate-transfer model upon the determination of its area as 73.150 m2 under the Board of Ministers Decision No.95/7523 of 14.12.1995. On the other hand, after the limit and wire fences, as well as the main entry, of the zone were completed, the public units’ personnel of the Free Zone took office on 20.03.1998 upon the official opening.

According to the exploitation contract, Sasbaş will build infra- and super-structures and put into service sufficient number of offices, storage rooms and open spaces on the condition that the provided facilities do not fall short of the requirements of at least 10 offices (100 m2 each) and at least one storage room of 5.000 m2, as well as other user demands. In the context of such commitments and in parallel to the Settlement Project of Samsun Free Zone, the constructions mentioned below have been completed.

Administrative Building for Public Units and Sasbaş Administrative Building were completed in December 1998 and opened for operation in January, 1999.

Closed storeroom of 5.000 m2 and 28 offices of a total area of 850 m2, bank building and control and security building, substation building, weighing facility and heating center were completed and activated in operation.
Rough construction works pertaining to 10 offices of an area of 1.125 m2 were completed and the construction process is underway. Sasbaş declared to have invested a sum of 5.500 million $ for the aforesaid processes.

One of the two investing users in manufacture is under construction, whereas the other has completed the construction of the factory and service building. Another manufacturing company is trying to solve the energy problem within the ring system and to proceed with its manufacturing processes on a temporary energy line. A user in our Free Zone, who focuses on drug bulb and thus affecting positively the region’s trade volume, completed most of the construction activities formerly initiated for the purpose of expanding its field of operation by adding a filling facility to its drug bulb facility and initiated manufacture trials.

The fields of operation of the Samsun Free Zone were determined by the Supreme Planning Council:

5.1. Manufacturing Activities in Free Zone

All types of agricultural and industrial manufacturing activities within Manufacture Industry, such as manufacture of textile goods, raw materials, confection and especially electronic, optic, medical electronic, electrical measurement tools, calculators, computers and related equipment and confection accessories, on the condition that the said activity contributes to both domestic consumption and export.                    

5.2. Trade and Service Activities in Free Zone

Operations facilitating trade activities including packaging, storing, classification, labeling, repair, assembly and similar operations.

Service activities such as banking, insurance, accounting and engineering services.

Samsun Free Zone currently hosts a storeroom of 5.500 m2, 28 offices of a total area of 850 m2, manufacturing open space of 5.732 m2 and open store fields of 7.290 m2. There are 4 renting users, 5 investing users operating in manufacturing, 12 regional companies with 1 storage permission, 2 rental permissions and 1 operating permission

5.2.1. Development of Trade Volume in Years ($)

Source: Directorate of Samsun Free Zone

As can be seen in the table, the trade volume has been recorded to be 1.957.971$ in 1998, 4.384.230$ in 1999, 16.844.857 $ in 2000, continuing to increase until today. The total trade volume since the free zone was founded in 1998 reached a great figure of 263.528.177 $. In offices of registered users in the zone, 61 persons have been employed.

5.2.2. Distribution of Trade Volume on Good Transactions (end of 2006)

Source: Directorate of Samsun Free Zone

The table clearly shows that the good transactions are predominated by transactions from free zone to Turkey and from Turkey to free zone (91.61%). Of course, this does not mean that this table is not significant. However, parallel to the essential mindset supporting the foundation of our free zone, this table helps to manifest that the free zone has yet to reach the required level of performance

5.3.Distribution of Free Zone Activities in Terms of Activity Focus

Source: Directorate of Samsun Free Zon