White Goods Production in Turkey Plunges 15% as Export Slump Deepens

Turkey’s White Goods Sector Slides: Exports Drop 19%, Production Down 15%

Turkey’s white goods industry, the second‑largest manufacturing hub in the world and Europe’s biggest, is facing a sharp contraction. Data released by the industry association TÜRKBESD shows that in the first half of 2026, domestic sales of six key product groups fell 7% compared with a year earlier, while exports tumbled 19%. The export decline pulled production volumes down by 15%, and total sales dropped 15% to 13.0 million units.

In June alone the pain intensified: domestic sales shrank 15% year‑on‑year, exports were down 11%, and total sales slid 12% to 2.03 million units. TÜRKBESD President Alper Şengül attributed the prolonged export weakness to a loss of competitive strength and to “extra costs and burdens created by foreign‑trade policies.” He warned that the ongoing erosion of export markets would determine the sector’s future investments, employment and production capacity. With 60,000 direct and 600,000 indirect jobs and an annual output capacity of 29 million units, any sustained downturn carries broad economic weight.

The Competitive Crosswinds: Steel Tariffs and Recycling Fees Erode Pricing Power

Why Exports Keep Losing Ground

The association’s leaders pointed to two concrete policies that they say are hollowing out the industry’s international competitiveness: anti‑dumping duties on flat steel and a domestic recycling levy known as GEKAP. Flat steel is a primary input for white goods, and the anti‑dumping investigations have resulted in high tariffs that are being passed directly into manufacturers’ cost structures. Vice‑chair Mehmet Yavuz noted that “every additional cost increase in production affects our export competitiveness,” adding that while weak global demand and market uncertainty were also factors, the extra burden from raw‑material duties was a major driver of the drop in output and exports.

The GEKAP Conundrum: A Recycling Fee That Has Outpaced Inflation

A second, Turkey‑specific cost driver is the “Geri Kazanım Katılım Payı” (GEKAP), a recycling contribution fee that was introduced in 2020. Fatih Özkadı, another vice‑chair, revealed that GEKAP unit amounts have risen by roughly 15‑ to 17‑fold since then, while producer and consumer prices rose only about seven times over the same period. The result is an annual cost of around 3 billion Turkish lira for the sector, with total GEKAP collections reaching approximately $250 million between 2020 and 2025 – a charge that international competitors do not face. Özkadı argued that the current weight‑based calculation unfairly penalises durable goods such as washing machines and refrigerators, which have long lifespans and high weight but do not create proportionate recycling costs. He called for either a temporary suspension of GEKAP or a reduction of at least 50% in unit fees.

Reputation Risks on the Ground

Beyond manufacturing headwinds, board member Semir Kuseyri highlighted a reputational risk for the sector: fraudulent repair services posing as authorised technicians. With over 3,500 authorised service points nationwide, the industry is urging consumers to use only official brand websites or the government’s servis.gov.tr portal to avoid being duped. This consumer‑protection concern, while secondary to the production and trade crisis, chips away at brand trust.

What Turkey’s White Goods Industry Needs Next

The industry’s own leadership has outlined specific policy moves that would address the immediate cost squeeze. For business executives and policymakers engaged with the sector, the following steps are grounded in the numbers disclosed by TÜRKBESD:

• Press for GEKAP relief. Advocate for a temporary suspension of the recycling levy or a minimum 50% cut in unit charges. The fee has risen 15‑ to 17‑fold since 2020, far outstripping price inflation, and now costs the sector about 3 billion lira annually. Temporary relief would directly ease the cost base and help stabilise export pricing.
• Reopen the anti‑dumping discussion. Commission a sector‑wide review of the flat‑steel anti‑dumping tariffs, which are cited as a primary drag on export competitiveness. Quantifying the trade‑off between protection for domestic steel and lost white‑goods exports could build a case for tariff recalibration or quotas.
• Redesign the GEKAP formula. Lobby for a product‑specific calculation that accounts for the long life and recycling characteristics of white goods, rather than a blunt weight‑based fee. Such a change would bring domestic costs closer to those of international competitors.
• Mitigate service‑reputation risk. Intensify communication with consumers about using only authorised service channels to protect brand equity at a time when margins are already under pressure.