Organized Industrial Zones ( OIZs ) In Turkey

1. OrganizedIndustrialZones (OIZs) In Turkey Rebuplic Of Turkey Ministry of Science, Industry and Technology General Directorate For Industrial Zones

2. Directorate General ForIndustrialZones Constitutepoliciesregardingplanninganddevelopment of industrialzones. Takeactionsregardingestablishment, site selection, zoningandparcelingplansof industrialzones. Allocatecreditsforinfrastructureandzonedirectorate service buildings of industrialzonesandindustrialsites, andallocatecreditsforsuperstructure of industrialsites. Design supportproggrammesforclusterinitiatives. General Directorate For Industrial Zones

3. OIZ Definition General Directorate For Industrial Zones

4. OIZ Factory Factory Health facilities Factory Factory Administration Factory Factory Education facilities Social facilities Factory Support facilities Factory Factory General Directorate For Industrial Zones

5. Administrative, social and education facilities Management center, Apprenticeship school, Technical high school, Union building Meeting rooms and exhibitioncenters, Fairgrounds, Restaurants, Cafeterias, Mosque, Security buildings, Banks Sport centers, Day-care centers, Filling stations etc. General Directorate For Industrial Zones

6. Support facilities Transformer station, Energy production facilities Telecommunication facilities, Treatment facilities, Fire brigade, Heliport, Car parksetc. General Directorate For Industrial Zones

7. Present situation OIZ applications have started first in 1962. There are 265OIZs in Turkey. Out of 265OIZs, 153OIZs (28.065hectares) completed their infrastructure and put into the service of industry. In the completed OIZs, the employment is 1.191.000 in 41.895 lots. 2.000.000 jobs are expected to be created when all OIZs complete their infrastructure and fully in service. General Directorate For Industrial Zones

8. Predominat sectors Facilities that are established by special law and regulation such as cement factories, LPG filling and storage facilities, crude oil refineries etc. may not be placed in OIZs. Machinery and equipment Iron and steel Textile Chemical products Food Forestry products Building material Leather and leather products Printing products Electronic General Directorate For Industrial Zones

9. OIZ for to prevent unplanned industrialization, preventthe usage of agricultural lands in industry, divert industrial investments towards less developed regions, decrease the environmental pollution by constructing waste water treatment plants, increase employment and contribute to national economy, bring industrial plants together in order to maximize benefit from public investments. General Directorate For Industrial Zones

10. There are benefits Cost reductionby the construction of common infrastructure services such as energy, natural gas, water, communication, transportation, with low interest and long term loans. Concerningall about licenses and permissions, OIZ is an one stop office. General Directorate For Industrial Zones

11. One stop office General Directorate For Industrial Zones

12. One stop office Factory Factory (Construction of facility) Factory Health facilities Factory Factory Administration Factory Factory Education facilities Factory (Operating license) Social facilities Factory Support facilities Factory Factory General Directorate For Industrial Zones

13. Benefits General Directorate For Industrial Zones

14. Benefits General Directorate For Industrial Zones

15. Legal framework OrganizedIndustrial Zones Law Organized Industrial Zones Implementation Regulation Organized Industrial Zones Site Selection Regulation Regulation for Free Allocation of Partial or Entirely Parcels to the Real or Legal Persons in Organised Industrial Zones General Directorate For Industrial Zones

16. Types Mixed OIZ, is the zone, which includes facilities operating in different sectors. Specialized OIZ, is the zone, which include facilities that operate in the same sector group or in its sub-sectors. Private OIZ, is the zone that is requested to be established by the private legal entities or real persons. Recovered OIZ, is the zone, which has been constructed with regard to existing plans before 12/04/2011 and established according to the provisional article 8 of 4562 numbered OIZ Law. General Directorate For Industrial Zones

17. EstablishmentSteps Step 1 – Application Step 2 – Site selection Step 3 – Legal personality Step 4 – Expropriation Step 5 – ZoningandParcelingPlans Step 6 – Infrastructure General Directorate For Industrial Zones

18. Establishment Factory Factory Empty Lot Infrastructure Factory Education facilities Factory Administration Factory Application Support facilities Factory Factory Factory Site selection Empty Lot Health facilities Social facilities Factory Empty Lot General Directorate For Industrial Zones

19. Administrative Structure General Directorate For Industrial Zones

20. Management by own General Directorate For Industrial Zones

21. Incentives and supports Land, infrastructure and zone directorate service building construction and general management costs of the OIZ’s in underdeveloped regions, Land, infrastructure and zone directorate service building construction and general management costs of the specialized OIZ’s which needs improved technology, Infrastructure, zone directorate service buildingconstruction and general management costs of the OIZ’s in normal and developed regions are being funded by Ministry of Science, Industry and Technology. General Directorate For Industrial Zones

22. Incentives and supports In underdeveloped cities, interest rate of 1 %, the grace period of 15 years of which 5 years of non-payment. In normal cities, interest rate of 3 %, the grace period of 11 years of which 3 years of non-payment. In developed cities, interest rate of 6 %, the grace period of 9 years of which 2 years of non-payment. General Directorate For Industrial Zones

23. Tax exemptions for OIZ Starting from the next budget year of the completion year of the construction,5 years of real estate tax. From the tax of electricity and natural gas depending how much it consumes. From VAT (Value Added Tax) in the concession of land and offices, From the fee of building construction and certificate of occupancy. From the corporation taxes. From the fee of joinery and allotment operations. From the waste water price where there’s working waste water treatment plant. General Directorate For Industrial Zones

24. Supports to firms Tax Exemptions • Starting from the next budget year of the completion year of the construction 5 years of estate tax • From the fee of building construction and certificate of occupancy • From the fee of joinery and allotment operations • From the waster water price where there’s working waste water treatment plant General Directorate For Industrial Zones

25. Partial and entirelyfreeland allocations Empty landlots existing in OIZs are allocated at no charge in the scope of the Regulation. Allocated to investors between2004and2010. Significant employmenthas been provided. By the amendment in OIZ Law on 29/03/2011, allocation of free lands in OIZ is now possible for investors granting from % 50 up to %100 of land costs. General Directorate For Industrial Zones

26. Hasim Cihan DEMİRKÖPRÜLÜ Industry and Technology Asistant Expert cihan.demirkoprulu@sanayi.gov.tr THANK YOU General Directorate For Industrial Zones