Turkish Cement Manufacturers’ Association (TÇMB) Chairman Dr. Tamer Saka made a statement regarding the COVID-19 (New Coronavirus) outbreak and the economic situation. Stating that they are working to minimize the damages that may occur in the country’s economy and employment due to the global epidemic that affects the entire world, Saka stated that it is of great importance to expand the Economic Stability Shield Package announced in this direction to sub-sectors such as cement and ready-mixed concrete.
Covid-19 (New Coronavirus) pandemic affected the cement industry like all economic sectors in Turkey. Dr. Tamer Saka, Chairman of Turkish Cement Manufacturers’ Association (TÇMB) which is the international representative of the Turkish cement industry stated that the Turkish cement industry is a strategic sector, which is the 1st largest producer in Europe, the 6th largest producer in the world, employs about 19 thousand people and contributes significantly to the country’s economy with a 2 billion dollar turnover and an export income of 900 million dollars.
Stating that they aim to minimize the damages that may occur in the country’s economy and employment with the activities carried out by TÇMB in this difficult period Dr. Tamer Saka said, “It is very important to expand the Economic Stability Shield Package announced in this direction to the sub-sectors. The Turkish cement industry is one of the most important sub-sectors of the construction sector, which is one of the strong and locomotive sectors of our economy, with a share of approximately 7% of the total GDP”.
Should be supported for international competition and employment security
TÇMB Chairman Saka underlined that they can provide foreign currency input and forward employment assurance to the country as the cement sector, if it is expanded to the sub-sectors, which are the biggest supporters of the 16 sectors in the Economic Stability Shield Package announced in the face of the epidemic, which has seriously affected the whole country.
The Figures are not Good
Pointing out that the difficulties in the sector will increase with the pandemic, Saka said, “Due to the pandemic, the sector’s supply chain started to break down and distort. As a result of the decline in debt collection practices and commercial activities, the amount of domestic demand decreases. Following the cancellation of foreign orders, export revenues fall. With this decline, there becomes serious decreases in production capacities”.
Saka also said that due to the pandemic, the problems that sector producers may experience regarding exports will both decrease the foreign currency inflow to the country and that the lost markets will be filled quickly by competing countries. Saka also warned that “The most important thing is that the capacity utilization which is currently around 65% and employment, will be seriously affected”.
Turkey is the 2nd largest cement and clinker exporter of the world with its 55 integrated plants
The Turkish cement industry is the 2nd largest cement and clinker exporter in the world after Vietnam in 2019, with its 55 integrated cement plants. According to TUIK data, in 2019, 23 million tons and 877 million dollar-worth cement and clinker were exported to more than 115 countries of the world, mainly to the USA. These data are expected to reach 25 million tons and $ 1 billion in value in 2020 and Turkey is expected to sit in first place among world exporters.