Ufuk Durgut
Technical Director (Deputy GM)
Sintek BV
As Sintek Group, you are gradually expanding your structuring abroad. Lastly, you have founded a company in the Netherlands. What were the reasons for you to choose the Netherlands?
As you know, since its establishment, Sintek Group, successfully provides services in the fields of engineering, construction, turnkey industrial plant projects and raw material sales. Sintek, which proved its success in the fields it operates, has turned its strategic development goals into African projects in 2009. After many successful operations the company Sintek Cote d’Ivoire was established in Abidjan, Ivory Coast, to carry out African projects at its headquarters. Again, our group owns subsidiaries and companies in Dubai for activities in the Middle East and Tashkent for Central Asian opportunities, and finally in the Netherlands.
The reasons why many investors prefer the Netherlands are the lucrative tax system, business environment, strong financial sector, geographic location, quality of life, and more importantly, the probusiness Dutch government. While international companies prefer the Netherlands for their subsidiaries and commercial structuring, due to the favorable business environment of the Netherlands that facilitates imports and exports, they also benefit from the advantages of the VAT system. Thanks to these and other similar advantages, more than 1,000 American and Asian companies have centralized their European distribution activities in the Netherlands.
In addition, the Netherlands offers a competitive corporate tax rate in Europe (15% on the first €245,000 and 25% for taxable profits exceeding €245,000) and an attractive financial environment for companies operating internationally with a range of attractive incentive schemes. The Netherlands is the only country with a large network of tax treaties (Double Tax Treaty) to provide special measures and the most advantageous tax configurations for highly skilled migrants or expats.
What strategy are you following as a group abroad? What are your general approach and growth targets in this field?
The Turkish market alone may not provide the necessary opportunities to ensure the sustainable development and growth of our group. Presenting the momentum, we have achieved in our country for more than 16 years, the rightful reputation we have gained in the market and the synergy of our team that has achieved these successes, with the right market, the right solution and services exceeding customer satisfaction to foreign investors has become inevitable. Our increasing references with projects we have realized Africa, the shining star of the last period, strengthen our position in the market.
Although it may seem the opposite of Africa, very important opportunities are also emerging in the European continent with the effective implementation of the United Nations Framework Convention on Climate Change. In particular, the upcoming sanctions beyond all expectations regarding the reduction in CO2 emissions, carbon tax, and free carbon trade show how things will be for industries with high CO2 emissions. According to EU-ETS data, carbon pricing per ton was at the level of 5 Euro/ton in 2013. Now it has reached 70 Euro/ton with a climbing trend especially in the last year.
It has become a necessity for the cement sector players, for which Sintek provides services, to invest in CO2 reduction due to the high tax risk, increasing CO2 price and the accompanying incentive opportunities. Therefore, a European-based organization is a very important opportunity for a young and dynamic Sintek to seize for growt.
What advantages does having your company in Central Europe provide for you and your customers?
Our customers in Africa, where we have come a long way as a target market, will benefit from the financial power of Europe, which opens credit and grant channels for investment in this continent,
through Sintek BV.
With our close relations with main companies of European origin that direct the technology, our dynamic team with a high level of overseas and field experience, international quality standards, and manufacturing ability that offers reasonable prices we will offer our potential customers in the European market a very good alternative to our Chinese and European competitors. Moreover, we will bring this solution to the center of Europe, right to their feet.
You will be closer to your customers in the Dutch and European markets. What is the importance of Europe in the areas you serve?
With the cement sector predominant in Sintek Group’s genes from its establishment, a structuring has been created to also serve the energy, and iron and steel sectors. In fact, despite it being only short period of time, the c onstruction works of four different c omplex lots at the Akkuyu Nuclear Power Plant and the Coke Crushing and Screening plant construction contract for an important iron and steel plant were signed. Our company, which has also signed new projects in the cement sector, has managed to sign significant contracts in the energy, and iron and steel sectors, which it had set as its target a year ago. Our company continues to increase and develop its staff and machinery-equipment park with the projects we have received.
How do you aim to grow for the next period, especially abroad?
Sintek BV, which primarily aims to increase its financial power with service alternatives in Sintek Group’s domestic and international projects, will reach the power to get projects on its own with increasing references. Recognition of Sintek Group by both customers and main suppliers, its international experience, and knowledge of the team will give us power.
The mutual trust gained over the years, advantages to be provided by both our supplier and manufacturer business partners in the global class, EPC based contracting works of group companies, skills in manufacturing and assembly, and the advantage and support of our in-house logistics company, will provide us with great business opportunities.
I would like to state that with the participation of Sintek BV, which was established in Amsterdam, the center of Europe after Ivory Coast, UAE, Lithuania, and Uzbekistan, we will continue with solid and strong strategies to add new worldwide references to our portfolio. With the business we will take up in Europe and our increasing credibility, we can see that we also will be competitive in other geographies of the world.
We know our market, we know that we have customers, and we see that they need our offers and are inclined to buy. We will continue with firm steps on a path that requires patience to convince the customer that our brand is reliable and better than its c ompetitors.
