Feyyaz ÜNAL, The Vice Chairman of Cement, Glass, Ceramic and Soil Produscts Exporters’ Association:“In the first half of the year, our cement export demonstrated an increase by 45% on the value basis, compared to the same period of last year. Our total export amounts to 443 million $ and 11 million metric ton. At the year-end, we target to achieve an export increase of 30%.”
Your Association has been active for 30 years. What is your purpose and in what segments you are active?
Cement, Glass, Ceramic and Soil Products Exporters’ Association established and began its activities in 1989. It has a total of over 2.100 members from 3 industries as Cement, Glass and Ceramic and Our Association is the only association in Turkey in these segments. Our members export across a wide geographical area from Europe to Americas, from Middle East to African countries. As an Association, we bring into life the works that will clear the pave of our exporters and find solutions to their problems. We carry on our international works under the brand of “Turkish Cement on behalf of Cement industry. We organize events that will make our industry more competitive across international markets.
We rank first for Cement production in Europe and World’s fourth largest producer. What about export ranking?
Turkey again ranks first in Europe and third in the World.
We see that shrinking domestic markets lead cement firms more towards export. What is the increase compared to last year? What is your predictions for 2019-end?
In the first half of the year, our cement export demonstrated an increase by 45% on the value basis comparing the same period of last year. Our total export amounts to 443 million $ and 11 million metric ton. At the year-end, we target to achieve an export increase of 30%.
How many countries we export to what are the first five countries?
As a total of cement and clinker, we export cement to over 100 countries. The first five countries rank as USA, Ghana, Israel, Ivory Coast and Colombia.
What % of the cement is exported?
Cement industry meets domestic demand almost entirely and also exports at a considerable level. In 2018, exports
reached up to 13.76 million ton. In 2018, the established production capacity of cement industry is 141.88 million ton and the actual production realized as 75.24 million ton representing a capacity utilization of 53.0%.
What factors do reinforce the reputation of Turkish cement industry?
The use of advanced technology, strategic position of Turkey, a well-planned investments and factories as well as long-rooted experiences make Turkey more competitive. In addition to the production strength and product quality, environment-friendly approach, an exemplary performance in occupational health and safety reinforces the international reputation of Turkish cement industry.
What has the recent Intercem Conference, which also supported by your Association, contributed in cement companies? Has it met the expectations?
We felt proud of Intercem in choosing Istanbul for a meaningful events as 100th Meeting. 400 senior representatives from 32 countries attend the event. Also, around 80 people from country attended. Intercem Istanbul hosted a high-quality event among the conferences in terms of national and international attendees. The conference witnessed presentations which explicate important information such as past, today and future of cement industry, near-future developments in global cement industry and the insights generated by these meetings broaden the vision of the industry. Besides conference, business contacts established are fruitful for attendees.
As an Association, what kind of works do you have assisting the company to drive their exports?
We come together with our all members at least two times a year in order to discuss and evaluate the current developments in the cement industry as well as construction market both in Turkey and World and the problems of our industry. For the problems and solution suggestions developed in consultation with our members, we establish top level contact with relevant authorities and conduct lobby activities on behalf of Turkish Cement industry to find solutions to defined problems. Internationally, we represent our members in international events such as Intercem conference and introduce all our members and organize works to boost up export. In our presentations at international conferences, we always emphasize the strength of the Turkish cement industry.
What is your opinion about the position of Cement, Glass, Ceramic and Soil Products in construction industry in the world and especially in Turkey?
As of 2018, the industry has 55 integrated plants and 22 grinding plants. Employment reached up to 19.000 people in production area. Turkish cement industry will continue in contributing economic values to Turkey.
Cement industry integrates many specializations such as mining, production technologies, logistics, waste recycling, education, human resources management.
What are the most important problem in the Industry? As Association, what are your solution suggestions?
Our works to develop solutions are in progress at Ministry of Commerce for the countries which impose non-Tariff barriers. We are in contact with relevant Ministries and Authorities in order to solve financing problems such as energy costs, coal payment due dates.
How does the current problems related with construction industry caused by the economic slowdown reflect on your industry? What solutions are you developing?
There has been a worldwide fluctuations in prices for 10 years. However, we expect an upward movement in export prices in the period to come. There are many factors determining the pricing in the global markets and these will sit on an equilibrium at one point. As Turkish cement industry, we focus on the expansion of our market share, so that when the global prices reach at the desired level, we can clearly demonstrate the quantity-based increase with the value-based increase. In domestic market, cement industry is a self-sacrificing supplier. Despite of effects of increased exchange rates, energy costs, raw materials and financing costs, it is an exemplary industry which refrains from actions that may flame up inflation.
For you, when and how do you think domestic market shrinkage will cease?
In the last year, there were efforts to keep the decline in residence sales limited such as tax advantages and various campaigns. The recent data shows that residence sales has declined across Turkey. Increasing mortgage interests, decreasing purchasing power, and concerns about future may be the developments that will continue to limit residence purchases for some time to come. Our producers balance off the difference with their activities at abroad.
