As part of our sustainability approach, we prioritize investing in renewable energy sources. According to the data of the Cement Sector Report in the World and in Turkey prepared by PwC, we have the highest capacity of solar plant-based power generation among publicly traded companies in the sector. We generate approx. 80 million KWh annually with our 6 solar energy investments in Ankara, Izmir and Manisa with an installed capacity of 49 MW on 750 decares. This corresponds to the annual energy needs of about 16,000 households.
Dr. Önder Kırca
CEO of Çimko Çimento ve Beton Sanayi
What do you think about Çimko’s position in the cement and concrete sector today? What is the mission and vision that guide your operations?
Çimko is a cement and ready-mixed concrete producer operating in 7 different regions in Türkiye, standing out in the sector with its modern facilities and wide product range. We have 3 integrated cement mills in Kahramanmaraş/Narlı, Adıyaman and Bartın, 1 grinding mill, 2 packaging facilities in Gaziantep and Kilis, as well as 40 ready-mixed concrete plants in 13 cities across Türkiye. With more than 1,500 employees serving our customers, we are one of the top 5 companies with the largest production capacity in Türkiye, according to the Cement Sector in the World and Türkiye Report of PwC. We are among the top 3 ready-mixed concrete producers in terms of sales revenues among publicly traded companies.
With an annual capacity of 9.4 million tons of cement and 5.4 million tons of clinker, we maintain our strong position in the sector and continue to grow.
Our success is shaped by our strong product and service portfolio, the importance we attach to customer satisfaction and our continuous innovation-focused approach. With our investments in R&D and innovation, we offer high quality products and services to meet customer expectations, aiming to create value with our efficient facilities and sustainable growth strategy.
We recovered 17.6 percent of our total water consumption in 2023 by reusing rain and drainage water in our plants
What key strategies and technologies do you use to produce sulfate-resistant oil well cement? Also, can you tell us more about the results you have achieved in laboratory testing and field trials of the cement?
Our main strategy in producing oil well cement was to take into account the oil well conditions and ensure that the product maintains its performance characteristics under high temperature, high pressure and corrosive effects. For this purpose, we started the production of oil well cement that will be resistant to corrosive environments and chemical reactions that may occur in wellbores, providing the desired performance in dynamic and static conditions. We have been producing Class G HSR (High Sulfate-Resistant) type well cement in our Adıyaman Cement Mill since 2018. This type of cement is used in oil drilling wells, mineral water wells and geothermal power plants.
What is the position of Çimko Çimento ve Beton Sanayi in the international market? Can you inform us about your international expansion strategies?
Exports account for one third of our revenues. However, in 2023, the share of exports in our total sales was limited to 18 percent as we focused on meeting the domestic demand created by the earthquake. We anticipate that exports will continue to be one of our major sources of income in the coming period. Our exports cover a wide range in terms of product diversity, number of countries and the type of our customers. We carry out our export operations by sea from İskenderun Ports and Sanko Port in Yumurtalık, wholly owned by our Group. With its storage and shore crane facilities, ability to berth high-draft vessels and fast loading operations, Sanko port provides Çimko and therefore our customers with superior logistics capabilities. We make best use of the accessibility to Türkiye’s most efficient and leading ports, so exporting clinker and cement to more than 20 countries in 5 continents.
Do you have any investment plans in the near future?
Çimko is committed to realize sustainability-focused and futureoriented investments that will enable us to respond to the demand in the market. We play an innovative role in the cement industry with our existing and planned projects. These projects include digital transformation, renewable energy power plants, energy generation from waste heat and R&D works.
The transformation project initiated at our Adıyaman Plant, primarily to produce white cement, is under way. By converting the existing gray clinker line into a dual system, we will have the flexibility to produce both gray clinker and white clinker to respond to the changing market conditions. We plan to commission the project in 2025.
We opened our second aggregate plant thanks to which we use our own resources to obtain the aggregate, the second most important input, on top of our high quality cement, in ready-mixed concrete production. As a result, we achieve a cost advantage in aggregate supply and ensure the continuity and quality of the supply. We are also developing this business line through direct selling to our customers from our facilities.
As part of our sustainability approach, we prioritize investing in renewable energy sources. According to the Cement Sector in the World and Türkiye Report of PwC, we have the highest capacity of solar plant-based power generation among publicly traded companies in the sector. We generate approx. 80 million KWh annually with our 6 solar energy investments in Ankara, Izmir and Manisa with an installed capacity of 49 MW on 750 decares. This corresponds to the annual energy needs of about 16,000 households.
We have also collected answers to our request for proposal for the installation of 4 solar power plants with a total installed capacity of approx. 55 MW in Kahramanmaraş Pazarcık and İzmir Dikili. In addition, we plan to increase our current installed capacity of 49 MW to a total of 170 MW solar energy portfolio by collecting the proposals for the installation of a solar power plant with an installed capacity of 65 MW. With all these investments, including future ones, our goal is to meet 100 percent of our energy requirement from renewable energy within 10 years. These investments will not only reduce our company’s electricity costs but also contribute significantly to our de-carbonization and sustainability goals.
In addition to electricity generation from solar energy, we are increasing the energy efficiency of our plants with waste heat energy generation and waste heat recovery projects. In this way, too, we not only reduce our energy costs, but also our impact on the environment. With the Power Generation from Waste Heat (ORC) system we built for the Narlı Plant and the Waste Heat Recovery (WHR) system we implemented for our Bartın Plant, we meet 10 percent of our entire electricity consumption from waste heat. We aim to increase this ratio to 12.5 percent with the ORC plant upgrade investment planned to be completed in Narlı in 2025.
Finally, we continue to work on new product research and development. Composite technologies are of great importance for innovation and sustainability in the cement industry. As Çimko, we take this field seriously. We focus on obtaining more durable, eco-friendly and cost-effective products by using alternative raw materials and additives as well as conventional materials in cement production. While gaining competitive advantage, we also fulfill our responsibility to the environment.
Could you inform us about the sustainability policies and practices of Çimko Çimento ve Beton Sanayi? What steps does your company take to reduce its environmental impact?
We are acutely aware of our responsibilities for the future of our planet. We aim to create positive change by managing the impact of our products and operations on our planet. With effective use of natural resources, we minimize our energy consumption as well as our carbon footprint.
As part of the ISO 50001 Energy Management System, the certification of which was completed in 2018, we focus on practices such as the selection of energy-efficient equipment at every stage of production, process improvement studies, prevention of losses and leaks, and reduction of fossil fuel use in order to reduce energy intensity in production. We established a similar 154 kv switchgear plant at our Narlı Plant in Bartın in 2023 and in Adıyaman in 2024. Thus, while working continuously and safely, we use our energy resources more efficiently and reduce our operating costs.
Further, we develop long-term strategies focusing on reducing water consumption, monitor consumption to ensure saving and cost optimization, and take the necessary actions as per evaluation of data. We calculate our water footprint every year, effectively monitor water management and take measures against possible losses and leaks. We reuse rain and drainage water in our plants. In 2023, 171,071 m³/year of water was recovered and saved in our plants. In other words, we recovered 17.6 percent of our total water consumption. In ready-mixed concrete, we recycle and reuse 45 percent of our water consumption. We are working to reduce water consumption in line with the targets we have set for 2026 and 2034.
In order to reduce the use of natural resources and fossil fuels and to minimize the negative impact of hazardous wastes on the environment, the Narlı Plant received the Waste Incineration Environmental Permit and License in 2016, the Bartın Plant in 2017 and the Adıyaman Plant in 2022. We aim to minimize treatment sludge, non-recyclable packaging waste, textiles, end-of-life tires and biomass waste generated from production processes and to recover them at the maximum level by separating them at source before disposal of them. We use various methods for the reduction, energy recovery, recycling and disposal of all wastes in accordance with the management hierarchy. We currently meet 18.5 percent of our fuel needs from alternative fuels in all our plants. With the investments we will make in our plants, we aim to meet 60 percent of our fuel consumption from alternative fuels in 2034.
Occupational Health and Safety is a key priority in our company’s sustainability approach, and we instantly capture occupational health and safety violations with artificial intelligence-supported software.
After the earthquakes in Kahramanmaraş, we supported the relief and recovery efforts. In Kahramanmaraş-Narlı and Adıyaman regions, we aimed to meet the basic needs of women and children, and to ensure their participation in life through social activities. We have built prefabricated buildings and container cities that can accommodate 105 families in our Narlı Plant and 128 families in our Adıyaman Plant. Libraries, parks and playgrounds with internet access were created for children in both locations, while wood painting and sewing workshops were established for women.
Finally, we supported the establishment of the Skill Development Center (BEGEM), which aims to provide psychosocial support and prevent the loss of physical and social skills in children by delivering SosyalBen Foundation workshops prepared by expert psychologists to children in the earthquake zone. Çimko Invention Workshops, established in Hatay and Çimko Adıyaman container cities, will enable children between the ages of 7-13 to solve problems, express themselves, develop self-confidence and learn from each other.
Occupational Health and Safety is a key priority in our company’s sustainability approach. With this mindset, we use the state-ofthe- art technology to maximize the safety standard in our plants.
Every year, we calculate our water and carbon footprint and plan for reduction, and meet our electricity consumption by using Waste Heat Recovery (WHR) in our plants.
Hi-tech artificial intelligence-supported software is integrated into our process cameras, enabling us to instantly detect and intervene in occupational health and safety violations. In this way, we can respond quickly in case of any risk and danger. With our visitor and subcontractor software, we ensure that all our stakeholders are aware of potential dangers and risks before entering our plants, and we can instantly view the number of people in our plants in case of emergency.
We also support more sustainable living for future generations through zero paper initiative. We make digitalization investments to plan processes in ready-mixed concrete more efficiently and effectively. We optimize production processes by processing large data sets from software on a single platform with our “Smart Planning” application to manage and optimize all processes of ready-mixed concrete orders, from the production to the delivery. By collecting and processing the data generated on the Navigation Mobile (Vehicle Tracking System) via web service and combining the data generated in production automation and equipment information, we ensure that order entries are automatically generated. With the artificial intelligence-supported material recognition system, we ensure that product receiving processes are managed quickly and accurately.
We release annual sustainability reports to regularly report on our sustainability commitments and progress. In 2021, we presented our Sustainability Report which sheds light on our 2020 environmental, social and governance performance, to our stakeholders. We develop the steps, achievements and goals in our sustainability journey based on the principles of transparency and accountability in accordance with the Global Reporting Initiative Standards (GRI Standards).
How do you assess the impact of the Net-Zero Industrial Code on your company’s competitiveness and what strategies are you adopting to help your company achieve its Net-Zero goals?
Every year we calculate our water and carbon footprint and plan for reduction. We remain dedicated to our commitment to reduce electrical energy consumption and promote sustainable production practices. In this context, we meet our electricity consumption from our own waste heat by using Waste Heat Recovery (WHR) in our plants. In 2023, we will meet approx. 29 percent of our electricity consumption at our Bartın Plant and 10 percent at our Narlı Plant. We also reduced energy consumption values through energy efficiency investments and technological improvements.
We are reducing our carbon footprint by increasing share of alternative fuels in our three plants to reduce our fossil fuel consumption. We aim to meet 60 percent of our annual energy needs from alternative fuels.
We are adopting various strategies to ensure preparedness for the challenges and opportunities presented by environmental regulations such as the Net-Zero Industrial Code. We are taking important steps in the transition to green cement by investing in R&D to develop eco-friendly products and solutions.
We are aware that you are taking important steps to realize sustainable development and promote social diversity. We would like to understand more about these efforts, especially those focused on increasing women’s participation in business life. What strategies have you adopted to increase your female employee ratio and what steps have you taken to achieve this goal?
We care about the presence of women in business life, and we believe that no strategy that ignores women, who make up half of society, can bring sustainable success. In line with our principle of social diversity and equality, which we take seriously, we support women’s employment in the cement industry, which has been a male-dominated sector. Thanks to the actions we took in this regard, we increased our ratio of senior female executives from 12 percent in 2021 to 22 percent in 2023. In 2022, the number of female employees increased by 30 percent compared to the previous year. Increasing the number of female employees in all categories is among our prioritized targets. For this purpose, we focus on positions where female employees are less frequently employed, especially in ready-mixed concrete. In order to increase the number of female employees, we improve physical conditions and make the facilities suitable for female engineers.
Considering the recent developments in the construction industry, could you share the strategic growth targets of Çimko Çimento ve Beton Sanayi?
There is a direct correlation between the growth in the construction industry and growth of the cement industry. After the massive earthquake in 2023, we mobilized our resources to rebuild the region. The growth rate of the earthquake zone in 2024 exceeded the overall growth rate of Türkiye. First publicly funded construction projects and infrastructure investments for the reconstruction of demolished and heavily damaged buildings, followed by urban transformation projects planned before the earthquake and steps for the renovation of moderately damaged buildings, indicate that the demand in the earthquake zone will remain above total cement demand in Türkiye for the next 5 years. As a company operating in the earthquake zone, we will continue our production to meet this need.
We aim to have control over raw material supply and production costs by making investments in aggregate supply, which is an important input in ready-mixed concrete. These investments will reinforce our leadership in the ready-mixed concrete sector and ensure its long-term growth.
We see digital transformation as an important opportunity for the coming period. We will increase efficiency in our business processes through the adoption of digital technologies such as smart production processes, data analytics, AI-powered operations and logistics optimization. By following the technological and material developments in the construction industry, we will continue to make R&D and innovation investments and develop new products and solutions.
In addition, we have an IPO agenda, which is of great importance for our company. We are going public to realize our ambitious goals both nationally and internationally. We aim to share with investors the value we derive from our deep-rooted history in the cement industry.
We will channel 40-60 percent of the proceeds from the public offering to investments such as modernization of production facilities, sustainability, mobile equipment for the ready-mixed concrete segment to respond to the demand in the earthquake region, production of cement, ready-mixed concrete, aggregate and other building materials in Türkiye and abroad, increasing share of renewable energy and alternative fuels, maintenance of production facilities, research and development, as well as production of specialty products in our Adıyaman Plant. Thus, we will further consolidate our position in the sector both nationally and internationally.
