Turkey's century-long struggle with paper: Factories, foreign dependence, and soaring costs

For Turkey, paper has long been more than a commodity—it has been a symbol of the nation’s sovereignty and ambition. Yet today, rising import costs, shuttered factories, and fluctuating exchange rates threaten a once-proud industry.

The first products of the paper factory established in Izmit in the mid-1930s / Photo: AA (Archive)

Paper, which dramatically changed the form of communication when it was discovered thousands of years ago, has been at the center of debates for many years about whether it will disappear or continue to exist.

Particularly since the mid-2000s, changes in consumer habits and digitalization have led to "paper" being perceived as a costly product.

The COVID-19 pandemic intensified these pressures, disrupting supply chains and driving up raw material prices, while surging e-commerce fueled an unprecedented demand for packaging materials.

Even in 2025, global headlines asked: “Why are toilet paper prices rising?”

Statista data shows that two decades ago, printed newspapers accounted for 12% of global paper and cardboard production. Today, that figure is under 3%. While printing and writing paper production has declined by 30% since 2010, corrugated cardboard for packaging has surged by the same margin.

China leads global consumption, followed by the United States and Japan.

Turkey is reliant on imports for nearly all of its paper

In Turkey, the rising raw material prices worldwide, coupled with the fact that almost all paper is imported and the rapid rise in foreign exchange rates, have made it impossible to print some books.

Before delving into the story of paper in Turkey, let's look at the prices of "Writing and Drawing Papers," a small part of the sector used daily.

According to data from the Turkish Statistical Institute (TÜİK), the prices of writing and drawing papers increased sixfold between 2006 and 2021.

East Marmara Development Agency reports that the production value in the paper sector, which was 11.8 billion Turkish Lira in 2010, rose to 41.2 billion in 2017.

Paper and Cardboard Products Production in Turkey (Tons)
Paper Products	2009	2010	2011	2012	2014	2015	2016
Printing paper	309	316	301	278	263	233	237
Newspaper	0	0	0	2	0	0	0
Wrapping paper	23	39	31	29	96	80	75
Cleaning paper	369	371	462	525	585	660	812
Corrugatedcardboard	1126	1230	1394	1483	1842	2190	2280
Carton	411	503	564	534	460	577	615
Cigarette paper	5	5	5	5	5	5	5
TOTAL	2242	2464	2757	2855	3251	3745	4024
Source: Pulp and Paper Industry Foundation

Total paper production in Turkey, which was 2,242 tons in 2009, increased by approximately 79 percent to 4,024 tons in 2016.

Although Turkey's paper exports have increased in recent years, imports still exceed exports.

According to the report, import values ​​increased after 2000 due to the privatization.

"The most important reason for this increase is that the production of cellulose, the raw material for paper, is more expensive in the country compared to abroad" it was stated.

From Ink to Industry: A National Mission

Turkey’s first paper engineer, Mehmet Ali Kağıtçı, was born in 1899 to the son of a naval officer.

Graduating as a chemist from Istanbul University in 1922, he would go on to pioneer a domestic paper industry. His journey took him to Germany and France, where he honed his craft at universities and factories, even refusing lucrative offers, including a share of Turkey’s paper imports, to return home.

Mehmet Ali Kağıtçı during his years working as a laborer in France (left). While on duty (middle) and during his retirement (right) / Photo: K24

He returned in 1927 with his dream of launching a national paper industry. However, he faced skepticism. “Why build factories if foreign paper is cheaper?” bureaucrats and politicians asked.

But Mustafa Kemal Atatürk, the founding leader of Turkish Republic, saw the larger picture: a nation that produced its own paper could safeguard its culture and independence.

With the support of Celal Bayar, then Minister of Economy, Kağıtçı spearheaded the establishment of the country’s first paper mill.

First factory, first paper

The foundation of the İzmit Paper and Cardboard Factory, the first paper production center of the Republic of Turkey, was laid on August 14, 1934, seven years after Mehmet Ali Kağıtçı returned from France.

The factory, which was completed in January 1936, produced its first paper on April 18, 1936.

Mehmet Ali Kağıtçı, who became the factory manager and held this position until 1941, recounted that day in his book "Our Paper Industry”:

“The first sheet of paper I obtained from our number 1 paper machine at 2:30 PM on Saturday, April 18, 1936, was a testament to the achievement of the ideal I had fought for for years.

I still feel the joyful excitement of that happy moment with the same freshness and intensity today.”

April 18 is still the date, celebrated annually as Paper Engineering Day in Turkey.

Mehmet Ali Kağıtçı had the first paper produced on April 18, 1936, signed by Hamit Oskay, then Governor of İzmit. / Photo: TRT

Paper production has increased 34-fold

By 1940, the İzmit factory met a significant portion of national demand. During World War II, when global trade routes were blocked, it became a lifeline for Turkey.

New mills followed: a second in 1944, a third in 1954, and five in total within İzmit alone.

In 1955, the state consolidated these assets under Turkish Cellulose and Paper Factories Inc. (Türkiye Selüloz ve Kağıt Fabrikaları/SEKA) with a capital of 100 million lira.

Between 1936 and 1970, production at İzmit rose from 4,000 tons to 133,000 tons. By the 1980s, SEKA had expanded across the country, opening plants in Zonguldak, Giresun, Muğla, Balıkesir, Mersin, Kastamonu, and Afyon.

Privatization and controversy

The 1990s brought a sharp turn.

In 1997, SEKA was placed under privatization, igniting public protests. Workers, local communities, and municipalities rallied against the closure of mills that had long been economic and cultural hubs.

Former Finance Minister Kemal Unakıtan later explained in parliament that rising costs, outdated technology, and international competition made SEKA a financial burden.

Still, critics argued that privatizations sold assets far below their value, leaving once-thriving communities with economic and social voids.

SEKA factories were sold to private companies, often at a fraction of their historical worth:

·       Giresun (Aksu): Sold for $3.5 million to Milda, paper marketing and distributor company. However, Milda ceased production in June 2007, citing increased costs. Owing a total of $23 million to the public sector and its workers, the company put the factory up for sale in 2013. After the factory was demolished, its land repurposed for housing and stadiums.

Aksu Mechanical Wood Pulp and Paper Factory started production in 1970. / Photo: sekakagitmuzesi.com

·       Balıkesir: SEKA Balıkesir Paper Factory, which started production in 1980, ceased operations in 2000. It was sold to Albayrak Holding for $1.1 million in 2003. The employment contracts of 287 employees were terminated. It was reopened in 2019 for recycled paper production and changed its name to Varaka Inc.

In a statement made by the opposition party CHP in 2019, it was recalled that the Balıkesir Factory had cost $198 million (in the currency of the time) in 1981, but was sold for $1.1 million in 2003.

·       Dalaman: Established in 1971, the factory had an annual production capacity of 70,000 tons of paper and cardboard and was once considered one of the country’s major industrial investments in the sector.

It was sold to Mopak for $40 million. Finnish consultancy Jaakko Pöyry Consulting had estimated the factory’s value at around $200 million. Officials justified the sale by arguing that the plant had become financially unsustainable.

·       Akdeniz: The Akdeniz SEKA Factory, which began operations in 1984 in Mersin, a city in southern Turkey, produced cellulose, bag paper, timber, and wood products. However, it closed in 2003. After failing to sell in three auctions, it was transferred to Sümer Holding which has also been in liquidation since 2003. Even between 2003 and 2016 alone, more than 20 of its businesses were either sold or transferred.

·       Çaycuma: Located in Çaycuma district of Zonguldak, the factory was a packaging and cement bag manufacturer established in 1970. In 2003, it was sold to OYKA, a paper and package producer, for $15.1 million.

Today, the facility, with an annual paper production capacity of 100,000 tons, produces brown sulfate cellulose, packaging paper, bag paper, kraftliner paper, and standard kraft paper.

·      Kastamonu: Established in 1976, SEKA's Kastamonu factory was the country's only cigarette paper production facility. In 2001, the factory met 62% of Turkey's cigarette paper demand.

However, its privatization didn't take long, and in 2003, just like the Dalaman Plant, it was sold to Mopak Paper and Cardboard Industry and Trade Inc. for $9,100,000.

·      Afyon: Among all the other paper factories, Afyon held a significant place. Because the factory, which began operations in 1979, used stalks, straw, and reeds for cellulose production, providing income not only for its 1500 employees but also for 40 surrounding villages.

The population of Çay district, where the factory was located, increased from 32,000 to 45,000 by 2000. Following the privatization decision, it rapidly declined.

The first products of İzmit Sümerbank Cellulose and Paper Factory was laid on August 14, 1934/ Photo: AA (Archive)

The sale agreement for the SEKA Afyon plant to GAP Construction Company for $3.1 million was signed on May 30, 2003.

SEKA paper factories, was never merely about production. Around its mills, schools, football clubs, cinemas, and even company newspapers emerged, knitting communities together.

Mehmet Ali Kağıtçı’s legacy was not just industrial—it was social and cultural.

Yet today, Turkey faces another raw material crisis. Import costs are high, domestic production lags, and the question remains: can the country reclaim the industrial and cultural autonomy that paper once symbolized?

As Atatürk warned nearly a century ago, dependence on foreign resources threatens national culture:

“Many people told me, openly and secretly, that these factories would not work, that they would be a burden on the country, and that they would be nothing more than luxury and fantasy. However, when a country does not produce its own paper, it ties its national culture to foreign favor. This is the most dangerous kind of capitulation.”

(This article was first published in Independent Turkish on December 8, 2021)