Dr. Cengiz Çelik / Arkoz Ağrı Cement General Manager
How did the cement sector spend the year 2022 in local, regional and global terms?
We have gone through one of the biggest economic crises in the history of the world in 2022. In the first 3 quarters, we took the right decisions for the future by maintaining our current situation together with our esteemed dealers. With these decisions we made, we started a recovery trend in the last quarter. Due to the impact of the Russian-Ukrainian war, coal supply, which is one of our most important expenses, has reached an all-time high value. And what is worse, there has been a huge increase in the cost of electricity. Despite all these negativities, we finalized the year 2022 with great lessons learned.
Although cement production recorded an increase in exports in 2022 on a general basis, there was a recession in the domestic market. There was also a decline in regional sales due to fluctuations in the economy.
What sector-specific issues do you foresee will be on the agenda for the year 2023? What are your general predictions for this year?
2023 will be the year of hope in all sectors. At least we wish so. I am in the opinion that 2023 will be an even better year by reducing the traces of the crisis with the measures taken by our state and the start of projects (social housing projects in every province, etc.). As is known, there were decreases in domestic sales in the first 9 months of 2022. There was a decrease in cement and clinker exports. Therefore, a shrinkage in the construction sector occurred in the domestic market. We are expecting a movement in the second half of 2023 with the hope that the Russian-Ukrainian war would come to an end.
What are your projects and strategies in general for 2023 and beyond?
As you know, the costs of energy costs have increased dramatically in 2022 and this situation has directed many sectors and companies to different alternatives. As Arkoz Madencilik, we have already prepared an activity plan for this situation. In order to minimize the increasing energy costs in 2023 and with our environmental identity, we have finalized our environmental projects, 24 mw GPP and 5 mw WPP project feasibility. we will move to the implementation phase in the first quarter of 2023.
We are also working on our product diversity. We will complete our new works in the first quarter and share them with our esteemed dealers.
As we have stated in our company policy, our important activities include the aim for the lowest environmental impact and resource waste, and improvement of energy efficiency in a sustainable manner. “Respect for environment” is one of our biggest slogans. Therefore, we are aiming for a national vision on this issue with Carbon Footprint studies in 2023.
