According to a Hürriyet newspaper report, two Turkish aluminium processing companies, Teknik Alüminyum and Burak Alüminyum received bankrupt protection in early September. Notably, both the companies are listed among Turkey's top 100 exporters.

Both companies once successfully exporting to a number of countries have been struggling to repay their loans and have applied for bankruptcy protection recently to avoid distraint warrants.

Burak Alüminyum is a manufacturer of aluminium profile, aluminium extrusion and aluminium surface processing started operating officially in the aluminium sector since 1984.  First established in the northern province of Trabzon, the plant was later shifted to Maltepe, Istanbul. It has also been facing cash crunch in repaying its 300 million lira (US$47,9 million) debt.

Teknik Alüminyum, which was Turkey’s first aluminium coil and sheet producer, has an outstanding debt of 400 million Turkish lira (US$63,8 million). In the bankruptcy protection filing, the company said, it was supposed to be sold to another Turkish aluminium company four months ago, however the deal did not see the light of the day.  

The Turkish lira fell to record lows against the dollar in August leading many of the companies to incur losses increasing the number of firms applying for bankruptcy protection. Interest rate hikes have made it difficult for companies to borrow new loans from financial institutions.

Turkish aluminium sector has been affected by a recent diplomatic clash between Turkey and the US over the detention of an American pastor and other U.S. nationals in Turkey leading the U.S. government to double up tariffs on Turkish aluminium and steel as retaliation. The increasing bankruptcy filing is being considered as another fallout of the trade wars and protective diplomatic policies of the Trump administrations.