Turkish restrictions have pushed Israeli companies to find indirect supply routes and local production arrangements, even as Turkey has shifted from a major trade partner to a risky market. The article says the boycott has disrupted imports of iron, steel and building materials, and that the security backdrop has worsened after the IDF and Shin Bet said they foiled dozens of attacks over the past year directed by Hamas operatives from Turkey.
Several Israeli firms still operate in Turkey through subsidiaries, factories, contract manufacturing and indirect imports. Teva continues with commercial activity and manufacturing agreements with local producers for generic and specialty medicines. ICL runs production sites, sales and logistics operations there and views Turkey as an important operating base because of access to ports and proximity to Europe. Netafim, owned by Mexico's Orbia, has a Turkish site, and Delta Galil uses Turkey as a major textile manufacturing hub through local suppliers and units. Gaon Group works with Baylan under an exclusive distribution deal for water meters, but says export restrictions on the Turkish side could affect supply to Israel.
Other companies have adapted their import routes. Ralko Agencies says it still brings in Bloomberg and Grundig products regularly, but not directly from Turkey, which increases shipping costs and changes payment terms. Afcon also faces delays and higher freight costs for equipment sourced in Turkey. In contrast, Hamat has decided to scale back, and its board announced it will stop self-production at its MCP factory in Turkey while considering selling the plant, land and equipment. The company estimates termination costs for employees there at about 1.7 million shekels.
Trade data show the impact of the boycott on both sides. Imports from Turkey reached 176.1 million dollars in January and February 2026, up about 22 percent from a year earlier, but still far below pre-boycott levels. For all of 2025, imports totaled 924 million dollars, down from about 2.02 billion dollars in 2024. Exports collapsed even more sharply, with no Israeli exports to Turkey in January and February 2026, and only 10.9 million dollars in all of 2025, compared with 598.6 million dollars in 2024.
