Orhun Çavdar
Somer International, Managing Partner
How was the year 2019 for your company in consideration of your sector and Turkey in particular?
Cement sector is directly contingent upon development and growth of construction sector. In 2019, there was 10% shrinkage in the construction sector while Turkish economy shrunk by 3%. Such shrinkage encountered in the global and Turkish economies had a gradual impact on the construction sector which is the locomotive of the economy, and our cement production in 2019 was reduced by 25% comparing to the previous year. Despite all such adverse developments in domestic market, the domestic market loss was compensated to certain degree as result of 50% increase in exports to our main cement export market, USA beside Israel, and Middle East, as well as African countries which is our clinker export market.
In 2019, Somer International continued to provide its solution partnership-oriented services in mineral, iron & steel, petrochemistry sectors, and particularly Turkish cement sector along with those companies for which represent in Turkey, such asFives/Pillard, Fives/FCB, Vecoplan, Brokk, Bricking Solutions, Tema, Cınar, and Standard Industrie. Shrinkage encountered in the sectors we serve to in connection to the global and Turkish economies also adversely affected us; however, Refused Drived Fuels (RDF) project continued along other saving projects, and we were able to complete the Votorantim Hasanoğlan, and Limak Trakya, Pınarhisar projects.
What are the developments of your company in this year, such as investments, new products, launchings, etc.?
We participated, with the stands of the companies we act as representative in Turkey, to 15th Turkish Central Bank International Technical Seminary held in Antalya on October 8-11, 2019. Bringing together the participants from the leading companies of Turkish cement industry and our company executives, we had the chance of providing elaborate information on the products we represent for and producing solutions for future feasible projects as well as exchanging ideas. Furthermore, during the seminary section, one of the latest projects was presented by Tim Hamer, Regional Sales Director of Vecoplan Turkey, under the title “high Performance RDF/TDF handling systems for Votorantim Hasanoglan” as part of “Shredding Technology, The Quality gate for RDF Production”. The participants was deeply interested in the suspended maintenance platform made out of T6061 Aluminum, designed by our American partner, Bricking Solutions in recent years for allowing safe and practical maintenance works carried out on silos and cyclones.
In general, what are your expectations in 2020? What are your targets and general strategies for this year?
Turkish economy spent the year 2019 in search of a way out of the crisis. Growth forecasts of 3-5% in Turkish economy for 2020 improve the expectations for future. In addition to capacity drops in cement production, positive developments for exports caused reconsideration of investments. Particularly, refused derived fuels (RDF) projects in times of increased energy costs became rather crucial. Many project feasibility studies carried out with Vecoplan, a world leader in the fields of RDF/TDF preparation, transmission, and storage. We anticipate realization of many of such projects postponed to 2020 due to budget constraints in 2019. In line with increasing importance attached to occupational health and safety in the sector, we aim and expect widespread utilization of highly-light but strong safety cages and tunnels manufactured by our Bricking Solution Company out of T6061 Alimunum as well as Brokk machinery, a remote-controlled disassembly robot made in Sweden, in every factory without exception. We will continue provide to those factories not purchased a Brokk machinery with rental Brokk services. Somer International will maintain its position in the sector as a solution partner besides supplying products.
What sectorial developments do you expect this year?
In 2020, we expect positive reflections of growth rate forecasts for Turkish economy on the locomotive construction sector and accordingly on the cement sector. The trend of reductions on housing interest rates and increases in mortgaged housing sales, increase in housing sales to foreigners, acceleration in urban transformation projects, restarting Istanbul Metro and other infrastructure construction projects, and increases in cement and clinker exports to new oversea markets will support the sector.
