He is one of the most important business actors in Turkey. He put his signature to almost everywhere in Turkey. He built many significant infrastructures and superstructures of our country either with his own company or together with its partners. He is also one of the largest manufacturers of the cement sector. There is a lot to mention about him; but it is enough if you just say Nihat Özdemir. Besides many tasks he undertakes he took office as the chairman of Cement Manufacturers Union in the recent months. Explaining that a fall is being experienced in the housing sector, however, particularly with the statement of our government to continue with the infrastructure investment, emphasizing that he does not expect adverse events with regard to the sector, Nihat Özdemir kindly discussed the cement sector and what he will do for the sector.
Can you evaluate the cement sector?
An increase of 4.45% was realized in cement production in January-June 2018, compared to the previous year. Nearly 9.9% of the cement manufactured in the same period was exported. In the first half of 2018, an increase of 5.4% was realized in domestic sales and a decrease of 9.96% has occurred in cement export. Very high increases has occurred in production and sales in the first months of this year with the weather temperatures being unexpectedly above the seasonal normals. These rates of increase returned to monthly normals during March and April; however, sales were decreased on monthly basis during May and June with the impact of Ramadan.
We are expecting the cement consumption and production to increase by 3% in 2018 considering the continuity of the infrastructure projects which are an important item where cement use is intensive, as in the recent years. We are expecting that, in 2018, cement export will be nearly at the same level with 2017 export figures.
It is mentioned that the construction sector is recessing and the market has saturated. How does this effect the cement sector? What are your estimations for the following years?
According to the latest growth figures that are announced, the construction sector began the second quarter of the year with recession with a growth of 0.8% and anticipations for recession in the sector have increased for the remaining months of the year. Housing sales have become 875 thousand with a decrease of 1.7% in the first 8 months of 2018. Housing first sales which are among the leading indicators for the construction sector paced a horizontal line. The fall which is expected to occur in the construction sector in the following months will impact the cement sector closely. However, with the continuity of infrastructure investments, which the government is placing particular importance to in the recent years and absence of recession in the export markets, we are not expecting an adverse outcome for our sector.
Can you provide detailed information about the investments of Turkish cement companies in foreign countries?
Some of the Turkish cement companies also continue their investments abroad with Africa continent being in particular. While the investments are realized as milling plant in Africa continent, it is in form of terminal investment in Europe. Hence, we also have companies which make investment in the USA. It won’t be surprising when more companies take part in the foreign markets in the following period. Some of the investments of our sector in the foreign countries are as follows: Milling plant in Mozambique and Cameroon, milling-packaging and Ready Mixed Concrete plant in Ivory Coasts, packaging terminals in Romania, Germany, Italy, Spain, TRNC and Russia. Our country is at the 1st place in Europe and at the 4th place in the world in cement production, which is the main constituent of Concrete roads. Turkish cement sector plays an important role in decreasing the current deficit with its 600 million dollar annual export and cement plants are available in all of the regions of our country and are readily accessible.
How did our relationships with other countries affect the cement sector?
Cement export was realized as 5.2 million tons and $ 274 million in January-August 2018. Countries which we most export to are the USA, Israel, Syria, Haiti and Bulgaria, respectively. An increase of 50% was realized in our export to the USA. Israel has taken the 2nd place by overtaking Syria compared to the same period in the previous year. On the other hand, export of our cement sector to Syria is also increasing and such increase is expected to go on. Export of 3.8 million tons and $ 140 million was realized in clinker group and principal markets were Ghana, Senegal, Ivory Coast, Guinea and Colombia. Remarkable increases were realized in export to Senegal and Guinea.
Can you provide information about the studies you are assuming regarding concrete roads as TÇMB?
TÇMB is sharing its fund of knowledge regarding the latest technological advancements in concrete roads and barriers with General Directorate of Highways, Municipalities, Special Provincial Administration and universities through promotion of concrete roads and concrete barriers and awareness raising studies throughout the country. “Concrete Roads” as the new path of Turkey is a practice which is not dependent to oil and uses domestic resources in building unlike the available roads. In other words, while our Country is deprived of crude oil reserves, it is a major player in the world for Cement and Concrete production. Our country is at the 1st place in Europe and at the 4th place in the world in cement production, which is the main constituent of Concrete roads. Turkish cement sector plays an important role in decreasing the current deficit with its 600 million dollar annual export and cement plants are available in all of the regions of our country and are readily accessible.
As TÇMB, we are actively working for extensification of Concrete Roads which we consider to be very important in terms of effective use of our national public resources and minimization of current deficit. Released by General Directorate of Highways in December 2017, Concrete Road Technical Specifications and tendering process of which has been completed in the same year, Kemaliye-Dutluca Concrete Road are promising developments. Together with that, we are expecting that concrete roads which are more economical throughout the country, longer lasting and do not require import products, will be more widespread on routes which host heavy vehicle traffic, intersections and tunnels. Another concrete road technology which TÇMB has brought to our country is Roller Compacted Concrete Roads. Roller Compacted Concrete (RCC) Roads which is a more economical, longer lasting and more durable option for rural roads are becoming widespread quickly every other day. One of the most significant advancements in this context is the release of RCC Roads Technical Specifications, Unit Price Analysis and Schedules and Design Guide within this year by General Directorate of Local Administrations. Besides that, we are organizing seminars and trainings in order to inform public institutions and organizations regarding the Concrete Roads. We are following up the publications on Concrete Roads throughout the world and we are examining the best practices on site together with the highway authorities. We are following concrete road practices on site and provide technical support at each stage. We are preparing technical documentation and supporting academic studies in order to establish the technical infrastructure required for extensification of Concrete Roads in our country.
What are the benefits that the technical seminars organized by TÇMB for sector employees, offer to the sector?
These seminars are of great importance for us. Becoming a brand in the sector and international platforms, in our technical seminars which bring the world leading company and brand representatives, specialists together with the actors who lead our sector. Our purpose is to communicate what is experienced in the cement sector in the global world to the representatives here through presentations. We realize our technical seminars with a environmentally aware motto every year. Organized with the main theme of “Frugal Innovation” last year, our seminar was organized for the 14th time at Kaya Palazzo Golf Resort, Belek Antalya with the on October 10-13, 2017. TÇMB will organize the 15th International Technical Seminar and Expo again at Kaya Palazzo Golf Resort,
Belek Antalya on October 8-11, 2019