Turkey has signed a Free Trade Contract (FTC) with Ukraine, its neighbor in the Black Sea, with which it has been maintaining a commercially strategical partnership for 30 years. Stating that investments and commercial activities of Soycan Group of Companies in Ukraine have become stronger with this contract; Yılmaz Soycan, Chairman of the Board of Directors of Soycan Group of Companies specified that Zeynela Motor Vehicles and Sarpedon Global Trade that are subsidiaries of the group have made important investments in the territory and has a target of 20 million Euro turnover in the market with their Ukrainian companies for the year 2022.
As a result of negotiations that have been being carried out for 15 years, a Free Trade Contract (FTC) has been signed between Turkey and Ukraine maintaining a number of commercial cooperations. Stating that Zeynela Motor Vehicles and Sarpedon Global Trade have realized intense commercial investments in the territory through Ukrainian companies; Yılmaz Soycan, Chairman of the Board of Directors of Soycan Group of Companies and Member of the Executive Board of DEİK/Turkey-Ukraine Business Council added that they aim to raise effectiveness of group companies with this contract. Recording that they desire to increase the share from trade in Ukraine through companies Zeynela Motor Vehicles and Sarpedon Global Trade and enhance contribution to Turkish economy, Mr. Soycan emphasized that their target for 2022 is to reach 20 million Euro as whole group.
Zeynela Motor Vehicles will maintain the investment attack in Ukraine in 2022
Specifying that they provide high-quality and long-lasting commercial vehicles at global standards with after-sales services and competitive facilities and continue being the sole authorized representative of leading Turkish brands in their fields in Ukraine and Belarus by developing brands of commercial vehicles and product ranges in its portfolio through Zeynela Motor Vehicles that is one of the subsidiary of the group, Mr. Soycan said: “With Zeynela Motor Vehicles which started its operations in Belarus companies in 2019, then expanded its product range and fields of service and activity upon establishment of Turkish companies, we have been the distributor of vehicles, equipment and spare parts for the sectors international logistics, transportation, construction, agriculture, defense sectors. Now, we reach a wide target audience that includes different segments with commercial vehicle groups in brands of Koluman, Anadolu Isuzu and Yıldız Trailer. We continue meeting with leading brands in the segment for different vehicle groups. We aim to complete our dealership structure that we initiated in 2021 in more than 20 cities by expanding our structure of teams, dealers and service networks in Ukraine where we first entered in 2022.”
Potential of wood and forest products in Ukraine trusted by Sarpedon Global Trade
Stating that they perform offline-online trade of different items thanks to the team specialized in international trade through Sarpedon Global Trade, another subsidiary of the group, Mr. Soycan said about their activities in Ukraine: “With Sarpedon Global Trade, we provide consistent and uninterrupted supply of various items in numerous branches through regional companies located in 6 countries including Belarus and Ukraine. We carry out our activities by undertaking distributorship of woodworking machines in various brands specific to Ukraine. With the FTC signed between two countries, we aim to stimulate mutual trade activities and evaluate the potential in the market of wood and forestry products.”
Target of Soycan Group Companies in the Ukrainian market is 20 million Euro
Stating that 2022 is an important year for opportunity to develop cooperation between Turkey and Ukraine, Mr. Soycan added: “As Soycan Group of Companies, we value our cooperation with Ukraine, which has a significant commercial power in the territory. FTC will also pave the way for sectors that have a potential for export to other countries. Therefore, our geographical proximity and neighborhood relations with Ukraine will turn into a long-term strategical partnership with FTC. Number of Turkish investments in the Ukrainian economy, which is growing systematically in every year and has a dynamic structure will also increase. It is seen that export of our country to Ukraine has increased at 14 percent on average in the last 5 years. The sector of machine and mechanical parts in which we have realized the most export operations has grown at 30 percent on average annually in the last 5 years and reached 175 million dollars. This sector is followed by iron-steel with 158 million dollars, electric devices and parts with 150 million dollars and automotive with a growth rate at 35 percent annually. Signed FTC offers important opportunities in terms of other companies in our country. Considering growth of paper and cellulose industry and wood and woodworking industry, export of machinery for this field makes considerable investments by Turkish companies possible. We think that these opportunities for investment in different fields will give acceleration to the volume of foreign trade as of this year. Current figures show that this will reveal better results. The part of 3,2 million dollars of the trade volume that increased at 52 percent and reached 7,4 million dollars in 2021 when compared to the previous year consists of export. We estimate that this cooperation will be more effective and break new records thanks to FTC and foresee that trade volume will reach 10 billion dollars in a short time. We plan that our group companies will obtain a great share from this trade volume with their investments and activities and target 20 million Euro turnover at the end of 2022”.