We interviewed with Dr. Cengiz Çelik, Director General of Ağrı Çimento, on establishment, activities, production specifications of Ağrı Cement Factory, and the recent conditions of the sector.
Ağrı Cement Factory is one of the largest private sector investments in the region. What are the main factors influenced you in choosing Ağrı?
With our group companies overseas, we decided to transfer the power of experience, and knowledge we accumulated in years in a wide range of industries and commercial businesses such as construction, building sector, industry, food, tourism and hotel management, energy, furniture and metal works to our country by means of our investments. Accordingly, having grown up on the soils of this country, and with the sense of social responsibility for this region;
• To increase employment in the region
• To take the lead for potential investments to the region
• As a large industrial enterprise, to lead the way in development or establishment of subsidiary industries in the region
• We decided to make such investment to Doğubayazıt district of Ağrı Province in line with the instructions of our Chairman, Mr. Emin UÇAR, not remaining unresponsive to the calls of our President of Republic to invest in the eastern region of our country.
As a new facility, what kind of technology has been installed Ağrı Cement Factory?
Our factory has been established in consideration of the state-ofart equipments and processes together with a foreign contractor company with which we strongly collaborated for our factories abroad as well as our colleagues who are authority in Turkey’s leading cement sector. Our entire plant is operated with an automation system, and every stage of production is checked by an on-line control system.
What are the advantages, in terms of lowering costs, of your factory equipped with the state-of-art technology?
Our factory has been established nearly on raw matter quarries. Therefore, consumption of foreign-dependent fuel and circulation of vehicle transportation are very low. In consideration of the limited energy resources in our country, we are conscious of the importance of having a waste heat cogeneration unit not releasing the waste heat coming out of rotary furnace to the atmosphere, but converting it electric energy corresponding to about 20% of the energy our factory needs. Latest generation burner types were chosen to increase consumption of domestic and national coal resources in order to reduce the utilization of imported coal. The plant is a highly profitable facility, besides being environmental friendly, dust-free, and low noise pollution thanks to its technology.
How many employees are employed by Ağrı Cement factory?
Ağrı Cement Factory employs 333 personnel directly, however, 400 employees in total with our subcontractors and solution partners.
Would you give us some details on production capacity? Ağrı Cement Factory presently has a clinker capacity of 825,000 tons/year and a cement grinding capacity of 1,250,000 tons/year, producing 2,500 ton clinker daily. Although it has a cement grinding capacity of 3,750 tons/ day, it was designed to increase its capacity. Daily cement production varies depending on supply/demand conditions in the region. The production target is to utilize at least 80% of existing production capacity.
Would you elaborate the scope of Ağrı Cement Factory’s Roller Compacted Concrete (“SSB”) road construction project and its contribution to the sector?
Our group companies construct general structures in the fields of highways, infrastructure, supra structure, energy, food, and construction in professional practices of various sectors. In recent years in our country, highway network is gradually expanded and improved. Almost entire highway network in our country consists of bitumenbased pavements. All the bitumen used in bitumen pavements are imported from various countries. Besides bringing substantial financial burdens, this causes poor quality productions because of having no alternative. This brought forward the alternative of concrete roads, which have been in use in the world for long years. Accordingly with this conscious, the access road of our factory to the D-100 highway was built as an SSB road. In continuation of this concrete road, some parts of the roads within the factory site were also built as SSB roads. Being the first in the region increased the interest in our concrete road. Comparison of concrete roads to bitumen pavements has been started in terms of pros and cons. There were requests from public institutions and private sector companies, for presentations on our road to the factory, and as result of such presentations, actual steps are taken. The belief that bitumen flexible pavements are without an alternative is destroyed in the region.
We had noticed the generality of concrete roads among all road constructions in the world, particularly in Europe and USA (despite being an oil producing country) as well as its low initial manufacturing costs and low costs of rehabilitation. This type of works was started in our country when it was realized that building highways with entirely domestic and national resources is possible with concrete roads, and the costs thereof are low. Such works in Turkey are being applied in pilot regions by Turkish Cement Manufacturers’ Association (TÇMB), Middle East Technica University (ODTÜ), Karadeniz Technical University (KTÜ), and Directorate General for Highways (KGM);
• Implemented techniques
• Durability
• Cost analysis
• Feasibility
• Comfort
• Rehabilitation
data as well as many others are studied, and guidelines and specifications are being drawn up as to application of SSB roads in our country. It is aimed to provide contributions to the sector with its implementing identity by shedding light to such academic and institutional studies.
Would you please provide information on your products?
Our cement product portfolio in 2019 consists of such product types that are conventional and used widespread in consideration of the needs of our region and the country. These are;
• Portland Cement Clinker
• CEM I 42.5 R Portland Cement
• CEM II/A-M (P-L) 42.5 R Portland Composite Cement
• CEM II/B-M (P-L) 32.5 N Portland Composite Cement
What is your market share in Turkish Cement sector?
To increase our market share, our works presently continue, and we evaluate and address seriously to entire region and overseas market potentials. It meets the expectations to the highest extent.
Do you export? At what percentage of your productions to which countries?
We are able to serve to all the countries outsourcing suppliers overseas. We respond any needs in bulk, Big bag, 50 kg bags, 25 kg bags, or other. In general, we respond to Georgia, Azerbaijan, Iran, Russia, and other countries abiding to European Union standards.
How were you affected by the present economic conditions, and what is your strategy from now on?
In consideration of the data of Turkish Statistical Institute (TUIK) since 2018, a shrinkage is observed with respect to cement manufacturing and ready mixed concrete production in entire Turkey. Growth rates in the items of interest were observed as a reduction in sector from 48% to 30% according to August 2019 TUIK data. Naturally, investment project in construction sector, art structures, housings, and in parallel therewith, production diminishing of ready-mix concrete plants caused a demand lower than establishment expectations in our factory as in entire Turkey. However, in consideration of demands in the region and economic data, 2019 expectations of our factory was also shaped, and the forecasts of our factory were accomplished. In other words, the circumstances were projected by our experts. Alternative planning for 2020 was engineered accordingly.
What can you say about the most important issues in the sector, and what are your solution proposals?
The most important issue of our sector the costs of energy and fuel which are the highest ratio in operational costs. Particularly in this matter, revision of subsidization opportunities to protect investors will lower both cement costs and the costs in construction sector which acts as locomotive. Although our country has a rather prestigious status in world’s cement production, in recent years it has difficulties in reaching to the intermediate labor force having sufficient knowledge and competence in this field. In vocational and technical education, specialized branching is necessary for cement sector. In terms of sales potential, there is a disadvantage due to seasonal conditions comparing to the western regions; therefore, necessary incentives and supports need to be planned in consideration of regional conditions.
As Ağrı Cement factory, what are the activities you carry out in your facilities in order to maintain sustainability?
Even though Ağrı Cement factory was equipped with the state-of-art technology, new technologies are chased via R&D and P&D departments, and accordingly, implementation plans are prepared. Alternative fuel and alternative raw matter utilization opportunities are followed continuously, and any licensing works required are carried out. Our facilities has Integrated Management Gold System; continuous trainings, in and out-house, are provided to our fellow workers in order to ensure their technical and social developments. We act with the awareness of “the most important wealth of a company is its human resource”, and the foundation of sustainability is based on the systems and continuous training. In the meantime, renewable energy sources, such as wind power, solar power, etc., are studied and taken into our investment program.
Was the year 2019 a year in which your company accomplished its targets? What are your targets for 2020?
Company’s targets for 2019 have been substantially realized, and for any target deviated depending on the inadvertent sector and country circumstances, alternative plans already prepared were implemented. Our 2020 target increases the 2019 data by 30%.
Would you tell us your considerations on Occupational Health and Safety? What kind of works do you apply in this issues?
As Arkoz Madencilik A.Ş family, that is the most important matter for us. In fact, we act highly responsible in Occupational Health and Safety issues as included in our mission as well. This subject has a substantial share of our company budget. Besides having fulfilled the ISO 45001 requirements in the Integrated Management System, indepth works were performed for having our employees working in healthy and safe work environments, and accordingly, we collaborate with an external Joint Health & Safety Unit despite having Class A, B, and C Occupational Health and Safety Specialists employed in house. In order for our employees and work environments be healthy and safe, forms and safety data sheets have been put into operation with participation of all our employees. Personal protective equipments are preferred to be made out of the highest quality material for the works performed, and provided for use of our employees as well as keeping track of their effective utilization.
We would like to know you, as well. Would you please tell us about yourself?
I have held Senior Executive posts in our company for almost 18 years. I held Senior Executive posts in our company and the factories of our group companies in various industrial and commercial sectors such as construction, building sector, industry, food, tourism and hotel management, energy, furniture and metal works. I completed my academic studies up to the doctorate level; I have more than ten patented designs and applications in technical and design fields. I completed the design and manufacturing of Universal Tracked Vehicle in three and half months in 2012.This vehicle has a multi-purpose usage in agriculture, construction, and military. Presently, I hold Senior Executive position in construction, industry, and machinery sector besides continuing my academic studies. I have numerous articles published domestically and abroad in the subjects of machinery, environment, urban development, historical monuments, and architecture.