Batı Anadolu Group, which has been operating for 51 years, is one of the giant corporations that meets the needs of cement not only in Turkey but many countries in the world. Putting into service the new production facility of Batısöke factory with an investment Tl 1 billion, Batı Anadolu Group doubled its cement and clinker production capacity. With Executive Committee member of Batı Anadolu Group Feyyaz Ünal we talked about Turkish Cement Sector, Batı Anadolu Group and its missions.
Will you mention about Batı Anadolu Group? About its size, what kind of structure are we talking about? How about your turnover, what is the number of employees? What is your position in the sector?
Batıçim Batı Anadolu Cement Industry Inc. established 51 years ago using 100 percent Turkish Capital. Today, we have become one of the strongest companies of the Turkish Cement Industry, which meets a significant part of cement need in our country and in the world. As Batıçim, we export cement and clinker to different markets in many parts of the world. We are a company that is well known and trusted in international markets with our experience of over than half a century.
In 1986, we, aiming to meet the increasing concrete requirement of the construction sector and to spread the ready-mixed concrete consciousness, put the Batıbeton brand into service for the industry. We strengthened our presence in South Aegean and Western Mediterranean regions with Batısöke Söke Turkish Cement Industry Inc. established in 1993 and with our facilities in Çavdır a District of Burdur established in 1998.
As Batı Anadolu Group, we employ about 1,100 people. As the end of 2017, our turnover is 700 million TL. There are 4 separate packing facilities, truck filling unit, 2 palletizing units and 2 big bag filling systems in our Batısöke production facility. We offer the advantage of exporting packed cement because Turkey’s most important export feature is the loading speed and the opportunities. We have an export capacity of 4,500 tons per day together with the clinker export and with the facilities we have established in order to make the export of packaged cement above world standards.
How was 2017 for the name of your company? How much did the sector, you, grow up?
The last year has been a year in which we strengthened our company by investing in a new furnace line that we have built in our Batısöke factory. We started 2018 with this investment to strengthen our presence in domestic and foreign markets. Total annual clinker production capacity in Batıçim and Batısöke cement factories is 4.05 million tons and cement production capacity is 5.8 million tons. 30 percent of our cement sales are exports and the rest are domestic sales. We have continued to strengthen our presence in domestic and foreign markets giving great importance to the quality of service and with the experience we have in the sector.
On the other hand the contribution of the cement industry in Turkey’s economy is indisputable. At this point, both residential or non-residential construction and infrastructure initiatives have great importance, Turkey, today has become one of the world’s top five cement producers with sectoral developments carried out especially in the last 10 years. Our country, which is the leader in cement production in Europe, continues its growth in this area without slowing down.
As Batı Anadolu Group, we are planning our investments parallel to this growth trend of the sector. With our new production line in Batısöke production facility, our group has doubled the production capacity of cement and clinker. We will be able to meet alone the 10 percent of Turkey’s total exports in this area. Our group has invested TL 1 billion between 2013 and 2018 for this capacity increase.
What was your goal for this year? How much the sector and you will be grown up through the end of the year? Do you think your estimates at the beginning of the year will coincide with the end of the year?
We have become one of the leading industrial companies in Turkey growing up with responsible industrialism for 51 years we left behind. Together with our group companies, we give importance to institutionalization, branding, technology, innovation and the philosophy of taking from this land and giving to these lands. With our existing and ongoing investments, our knowledge and our infrastructure competing with world giants; we will continue to create employment and value for our country.
I am fully convinced that we will continue to be successful with the achievements shown in inventory control in 2017 and the revival that we believe will happen in production despite the expected decrease in stocks in 2018. Along with the ongoing urban transformations, reconstruction of approximately 7 million homes in a five-year period refers to the usage of 130 to 140 million tons of cement. Beside Turkey cement sector meets the domestic demand also the place it holds in the world market is unquestionable in terms of exports. Turkey has exported in the US 1.2 million tons, in Syria 1.1 million tons and in Ghana about 1 million tons of cement and clinker. According to TurkStat data, in January-October of 2017, Haiti was the country where we increased our exports most. Another expectation for the 2018 market is that our country will also achieve the expected increase in the African market.
When we consider all these numbers the growth in Turkey’s cement industry will no doubt continue this year. The real hope here is that it will be a year in which investments are focused on productivity and our infrastructure continues to grow even stronger.
What were the most important issues in your agenda this year? In particular, on which issues you focused on, are you focusing on?
After 2018, we will have increased investments and studies intended to our quality and production standards.
In our current situation, we aim to increase our annual consumption of approximately 12,000 tons of alternative fuel consumption to 70,000 tons. As a group, we will increase our alternative fuel consumption which is in the range of 3-4% by 13-14%. We will also contribute to the reduction of carbon emissions, climate change, global warming and the protection of the environment by reducing the use of fossil fuels resulting from the use of RDF.
Batı Anadolu Group taking into consideration the increase in the cost of freight on the road transport, the negative impact on the environment, the traffic accident etc. started the railway transport transformation project.
With a total length of 700 meters and double railway connection already existing in the Batısöke factory, 60,000 tons of lignite coal is transported annually from the TCE Soma Exploitation Management.
It is planned to transport 1 million tons of clinker and 300 thousand tons of coal annually by using the railway along with Batısöke new furnace line. In order to be able to operate at this capacity, the renewal works on the existing line continuing rapidly to reach the length of 2.3 km and 4 ways.
Today, in developed countries, the share of railway, sea and inland waterway transportation is increased and a balanced distribution among industrial transportation types is being achieved. According to the data of 2014, the railway lengths used by European Union countries in freight transport are 25 km on average and the roadway length is 98 km. In Turkey, this ratio in railway is 12 km and the roadway is 234 km.
Integration is important, as it does not create road operation between loading and unloading points in order to make the railway usage attractive.
Increasing railway transport will benefit the country in terms of protecting the economy by reducing carbon emissions, which is primarily caused by road transport. In addition along with fuel saving, it will reduce traffic intensity and transportation risk.
In case of cement factories in Turkey having railway connections use the railway transportation with the appropriate load, the traffic generated from 2.4 thousand trucks will be reduced.
The existing 0-150 km standard tariff must be updated to 0-200 km in order to provide the cost advantage of railways and to be used more in freight traffic.
You are operating in a competitive environment. What are you doing for strengthening yourself, what kind of studies and investments you are planning to do afterwards in order to make your future stronger?
In the cement sector, where competition is intense, we always follow the developments in the market closely and determine our needs and continue our work in accordance with this need. The new investments we have made as Batı Anadolu Group are the result of this point of view.
As a goup considering the changing market conditions, we believe that competition advantage can be achieved not only by price policies, but also by the right customer relationships. We get satisfaction, complaint and recommendation from the primary sources by reaching end users in order to recognize and understand our customers. In addition to this, we aim to achieve maximum customer satisfaction with our products and services with our R&D studies which we carry out with a special care and giving all kinds of technical support to our customers.
We believe that the most important of the reasons for protecting our power in the markets is our ‘human first’ perspective. Our “family spirit” which we have with all employees, add productivity to our studies.
What kind of studies are you doing in terms of CSR and Sustainability?
Our group is signing many important projects in the areas of education, health, culture and environment with social responsibility studies touching on life and humanity. We opened Batı Anadolu Cement Secondary School in İzmir – Bornova in 1986, Batıçim Elementary School in 1995 and Batısöke Cement Secondary School in Aydın – Söke in 2007. We have been contributing to the Magnesia Ancient City Excavations at Aydın – Germencik for 20 years in order to contribute bringing the rich history of the region we operate to daylight. On the other hand, within the social responsibility project “Good Markets” that we have realized within the 50th anniversary of our establishment, which we celebrate since 2015, we contribute the development, adequate and balanced nutrition and gaining regular exercise habits for both adults and teenagers for maintaining a quality and healthy life. We have been a pilot company in EU-funded ‘Environmental Footprint for Business World’ (carbon footprint) project. Within the scope of the project, 50 thousand saplings were planted in the area of 40 hectares during the rehabilitation and recreation works in limestone quarries in Belkahve region.
Within the framework of our Group’s sustainable growth initiatives, we have invested for environmental and energy efficiency projects a total of TL 97 million in our Batıçim and Batısöke cement factories within 5 years. Thanks to the environmental and energy efficiency projects we have undertaken, we have prevented 41 thousand tons of carbon emissions per year and contributed to the amount of oxygen provided by 65 thousand 300 trees.
On the other hand, Turkey is one of the richest in boron reserves countries across the world. Especially in the fight against climate change, we think that boron cement produced from wastes generated during the processing of boron is an important product. With this cement we also can build more resistant and safe structures. The use of boron cement has not yet become widespread in our country. But we are producing it in Batıçim. We are also continuing our efforts to create sufficient demand for the regular sale of boron cement. In the near future, we also aim to expand the usage areas of boron cement and concentrate on its promotion.
What are employee satisfaction measures in Batı Anadolu Group? Are your employees happy? Are there happening accidents? Have you experienced worker injuries?
In our group, employee satisfaction measurements are made once every 2 years. In the last 4 years, we have seen a 15% increase in the general satisfaction and willingness of our employees in 2 survey results. Improvements in our renewed offices and social facilities, health, safety conditions and personal rights are the main factors that increase the satisfaction rates. This and the similar developments support our corporate values, which increase the commitment of employees and strengthen the labor peace, cooperation and team awareness.
Work accidents are a situation that we try to avoid with practices that will have an impact on the level of education and behavior of our employees. Because we are in a very dangerous business, we take the record of the smallest accident, we do rigorous root-cause analyzes and field evaluations, and we take precautions to prevent it from happening again.
What kind of things could be done for improving the cement exportation, on the basis of companies and government?
Turkey being in the first five cement exporting countries in the world has the greatest danger of increase in costs. Coal and electricity costs constitute more than half of the cost in the cement sector. In addition to the cost increases that are influenced by all sectors such as inflation, minimum wage increase and labor cost increase, there is a serious increase in electricity and coal, which constitutes more than half of the cost in the cement sector. Electricity prices rose by 8.8 percent in early 2018. Together with the latest supply schedule to be commissioned as of April 1, it will be 10 percent higher than the year-on-year increase. The total cost of electricity will increase by 19.68 percent in 2018 compared to 2017. In the coal, related to the increase in the prices of domestic coal, the increase in the price of imported coal and the increase in exchange 34 percent of increase is expected. Labor costs will increase by 13.8 percent in the framework of the new signed collective labor agreement. The cement prices in Turkey after Pakistan and Turkmenistan ranks third last in the world. Therefore, the cement sector will pass the year 2018 with increasing demand and falling margins.
Did the Turkish cement become a trademark in the world? What can be done for strengthening it further?
Our country is strong enough to produce an international brand in the world cement sector. Our country is at the forefront in terms of production capacity and export numbers. Turkish cement is regarded as world standard in terms of quality and speed in the process from production, transportation and export. We must keep up with technological developments in order to be one step ahead in international markets and maintain sustainability and high quality in every stage from production to the end user.
Turkey, increasing 12 percent the cement exports in 2017 reached $ 530 million and became one of the 5 most cement exporting countries in the world. In 2017, were exported cement to 115 global market.
Today, 80 million tons of cement are produced in Turkey. Turkey’s cement industry in 2017 reached 133 million tons of capacity.
The Turkish cement sector is capable of producing an international brand. While it was a sector that exports 1 billion dollars in the past years, it has become a sector that exports 500 million dollars after decline both in export prices and quantities. In 2017, there was a 12.2 percent increase in exports and a total of 12.7 million tons of cement exported from our country. As a value of $ 530 million in foreign currency was provided again. We expect exports to increase in both quantity and value in 2018.
The Ministry of Economy supports trade exposures, document purchases and other expense items related to exports but in countries where demand is high to increase exports, it is necessary to invest in storage, packaging and even production as well as selling and marketing products and supporting these investments.
What are you doing to improve energy efficiency?
Our sector has already become the solution partner of urban governments and other industries in the dissemination of sustainable development today by undertaking the energy efficiency projects and waste management have destroyed the perception of being a high environmental impact industry in the past. We are constantly improving our investments in this area. We measure all the emissions from our plant by gas analyzer continuously and send it to the Ministry of Environment and Urbanization on the internet instantly. Thus, we opened our activities 7/24 monitoring.
We are continuing to increase our environmental and energy efficiency investments in our factory in the direction of continuous improvement and continuous development principles.
We have reduced the consumption of coal, which is our primary input, through the modernization we have carried out in rotary kilns, while saving up considerable electricity energy with the steep raw material mill and waste heat recovery facility (WHR). Our factory, which is a solution partner for industrialists and municipalities, is increasing the use of alternative fuels and raw materials day by day, taking into consideration the conservation of the environment and energy saving.
Another study to reduce the environmental impact of cement production is the production of added cement using alternative raw materials to replace the clinker. Thanks to this study, emissions of greenhouse gases originating from cement production unit are minimized.
We believe that the investment and restoration works that has been mentioned and the conservation of natural resources, keeping the energy efficiency in the foreground, and thus our costs will be reduced, are the steps that will bring Batıçim to the future in an intense competitive environment.