Mr. Gürsel Usta, the CEO of Ciner Group said that “Turkey ismore attractive in terms of investment when compared with other countries. In 2022 our export will be 1.1 billion dollars. In 2025, though, our export will be 1.55 billion dollars.”
In an interview with AA about the activities of Ciner Group and the new economic model applied in Turkey, Mr. Usta told that, 2021 started in the shadow of 2020, and there were serious obstacles in production all over the world because of the pandemic, and Ciner Group navigated through those hard times with fewer loss thanks to their flexible company structure, and that they lost only a tiny percentage of production.
Stating that the world saw a significant demand growth in 2021, and most of them stemmed from the fact that big funds were trying to pile commodities, Mr. Usta also said “Just because the demand was so enormous, we did the best we can in terms of production to meet that demand, and we ended the last year with approximately700 million dollars worth of export. In the end, it was a successful year. The demand growth which we saw in 2021, will take us to higher export targets in 2022. There are two reasons for this. First is the increase in production, and the second one is the increase in price all over the world.”
Saying that the biggest issue for exporters is the transportation costs, Mr. Usta also said that global freight costs affected the Turkish export market negatively withthe price more than doubled for bulk products and more than tripled for containers, and there were up to 5 times price increases. However apart from that, 2021 was generally a good year, and they positioned themselves for 2022 accordingly.
“We have 4 billion worth of investment in Turkey between 2015-2020.”
Gürsel Usta also told that their export target for 2022 is 1.1 billion dollars and added “This is not something impossible, it is the result of our calculations.”
He said that the chemical sector is the second biggest one for Turkish exports after the automobile sector, he also said that they were the leaders of inorganic chemistry in Turkey and that they were the biggest company in the world in this area.
Mr. Usta said that they invested 4 billion dollars into Turkey between 2015-2020, and continued his words with the following remarks; “The conjuncture does not affect us so much. This of course does not mean that I am ignoringrate and foreign exchange policies, but we do not look too much to cyclical things, we keep investing. Currently, we have 50 million euros worth of deka and caustic investment and its production is still going on. With it, an investment plan that is to be completed in 2022. We will increase the production by approximately 300 thousand tonnes, and at the same time, we started a newinvestment of about 600 thousand tonnes. This is 200 million euros worth of investment. The contracts were signed and it started. The investment of it will be completed in 2.5 years. The production will go into markets at the end of 2024 or at the beginning of 2025. The 300 thousand tonnes will approximately beequal to 75 million dollars, and the upcoming 600 thousand tonnes will add 150 million dollars to our export. These are our investments for soda.”
Highlighting that they are the biggest glass packaging producer after Şişecam in Turkey, he said that “we are building a new facility in the Organized Industrial Zone in Bozüyük, Bilecik. We had already 2 furnaces there, this facility can produce 500 tonnes of glass packaging daily. Moreover, we are building a new glass factory. It will have 2 furnaces with each of them having 650 tonnes of capacity.”
Highlighting that these facilities will be more export-focused, Mr. Usta mentioned that the current foreign exchange policies, lower production costs in Turkey when compared with the costs in European markets, the qualified products that they produce, their mastery in tech, their lower carbon footprint again when compared with the facilities in Europe, make their company more preferable.
He said that they will export to those markets from Turkey, and he said “The total export value of glass packaging products will more or less 120 million dollars. We will complete 1.1 billion dollars worth of export. In 2025, our export will be around 1.55 billion dollars. We have been supporting the policies for reducing the current account deficit from the very beginning. We are doing this both for our country and for our company.”
Turkey is much more attractive for investment when compared withother countries.”
Mr. Usta said that Ciner Group employs 6 thousand people directly, and 12 thousand people indirectly.
He said that with their new investment their support to employment would grow bigger and that with the investment to soda company in Kazan, they would employ 100 people directly, and 150 people would be affected indirectly from this. He alsosaid that they would employ 1000 people in the glass packaging business, too.
He continued his word as follows; “If you are doing something good, and if the international demand for this is good, then the situation balances itself, the product finds its value. As a group, we sell our product and then invest. Turkey is much more attractive in terms of investment when compared with other countries. I mean, in terms of production costs. If the gas price in Turkey is lower than in Europe, you have the advantage. If the employment is less costly, you have the advantage. So there is this one difference, and it is the transportation cost of the product to international markets.
What was the biggest problem in the last couple of years? The fluctuation in fx markets. Then the volatility decreases so does the problem. The fx level is not important, the market will find an equilibrium point, however, what is important is a stable fx level with which the people can prepare their balance sheets, plan their futures. Secondly, I believe that freight costs will again come back to normal levels till the end of this year. If so, it will support our export and our desire to do so. Maybe it will enableus to achieve our targets and maybe to do more than that.
”When the welfare level is high in a country, the business people can invest more.”
Stating that everyone would like to see more production in Turkey and less current account deficit, Mr. Usta also said that for years they have been supporting these goals and said “As Mr. Nebati, the Minister, has stated, the new policies are the ones that people are not accustomed to. So, we will see the results altogether.”
He referred to an academician by remembering their words: “Whichever monetary or fiscal policies you apply, it does not matter. What defines the markets is the consumer behaviors.” He also said that consumer behaviors may affect the economic results.
Mr. Usta said that there are enough investment and patent incentives in Turkey, that the value-added products shall be incentivized. He mentioned that the main problem in Turkey is financing.
He said that maintaining trust is the key in order to get more investment, increase employment and increase welfare levels. He said “The common objective for everybody is to increase production and decrease the current account deficit. This will increase the welfare level of our country. If the welfare level is high, the business people can invest more, in an easier fashion. They can find cheap financing.”
He said that they are focused on export, their vehicles are making so much way that is enough travel around the world 5.5 times a day. He added “Just because our new investment will also be export-focused, we will be supporting to decrease the current account deficit, and we will take our company’s export volumes to higher levels. Support and incentives are what we all want and wish asexporters. Particularly, I believe that the fx levels are supporting the fast increase in export.”
Highlighting that qualified and high value-added products’ export is important, he continued his remarks by saying; “Our soda ash export is 100% value-added export. I mean it is done without any import output. Our export was 700 million dollars last year. If there had been 340 more companies like us, we would have made all the export of Turkey on our own. I hope that this number will decrease to 250 when we will be successful in realizing our 1.1 billion dollars worth of export. I mean when our export hits 1.1 billion dollars, and if there are 250 companies like us, then we will be doing the total export of Turkey on our own.”
