The 63rd General Assembly Meeting Held in Ankara

The 63rd General Assembly Meeting of TÜRKÇİMENTO has been held. At the general assembly meeting attended by representatives of the sector, Fatih Yücelik, Chairman of the Board of Directors, said that they would keep serving the country.  

 TÜRKÇİMENTO, the umbrella organization of the cement sector, has held its 63rd Annual General Assembly Meeting for 2020 in Ankara. Cement producers representing 94% of the sector participated in the General Assembly Meeting.    

Giving a speech at the inauguration of the general assembly meeting, Fatih Yücelik, Chairman of the Board of Directors of TÜRKÇİMENTO said, “With our projects, we will both support our sector and spearhead the development of our members through the vision we will put forward. We will continue to create added value for the country's economy, with the understanding of national unity that we have continued since the establishment of our country.“  Mentioning that they became obliged to postpone the General Assembly, which had been held every year in February, due to the pandemic this year, TÜRKÇİMENTO President Yücelik added that 2020 was the scene of firsts in a negative sense in our country and in the world, and made the following evaluation concerning the sector:  “As the Turkish cement sector, we continued our activities in 2020 under challenging conditions. In a year we started with hope following the years, in which we experienced contraction one after another, difficulties like sales cancellations, loss of income, and working restrictions due to the impact of the pandemic, the hopes were replaced with the struggles against risks. While increases started to appear in figures as of January 2020, we once again experienced a contraction in the domestic market in the following four months.  The return to normal life as of June 2020 and the reanimation experienced in the construction sector as well as the increase we observed in sales showed their positive impacts until the end of the year. We ended 2020 with an increase in domestic sales and production figures.”  Fatih Yücelik, Chairman of the Board of Directors of TÜRKÇİMENTO, evaluated the first six months of 2021 in his speech at the General Assembly as follows:  

• While the cement production of the TÜRKÇİMENTO members, who represent 94% of the sector, increased by 26% to 37 million tons in the six-month period of 2021 year-on-year, domestic sales climbed to 28,3 million tons with an increase of 29%.  

• As in recent months, increases in domestic sales were seen in all regions. Approximately 80% of the cement produced in the first six months of the year went to domestic sales.  

• In addition, according to the temporary data of the Exporters' Associations, the total exports of the cement sector increased by 12,3% on a value basis and reached US$836 million in the January-August period of 2021. Nevertheless, the total export amount declined by 2,9% year-on-year and became 20,8 million tons.  

• 12,3 million tons of the exports in the first eight months of this year consisted of cement and 8,5 million tons consisted of clinker.  

• Despite all such developments, the prices in the sector navigate highly below the cost increase.  

• In August 2021, while petcoke prices increased by 270% compared to August of the previous year, electricity and imported coal prices rose by 62% and 197% respectively.  

• Also in July 2021, an increase of 43% was experienced in domestic lignite.    

• The dollar currency exchange rate, which was 7,27 TL in August 2020, increased to 8,49 TL.  In his speech, Fatih Yücelik, Chairman of the Board of Directors of TÜRKÇİMENTO, specified that approximately 80% of cement costs consist of energy inputs like foreign currency-based fuel and electricity, and said, “Nevertheless, we continue our endeavors by not reflecting the increases in prices exactly and without compromising our contribution to the economy of the country with the understanding of national unity that we have maintained since the establishment of our country.”    

Volkan Bozay, TÜRKÇİMENTO CEO, highlighted the fact in his speech at the General Assembly Meeting that they do not consider the export quota practice for the cement sector right and pointed out that exportation is substantially important for Turkey to cover its current account deficit. Bozay said, “Wanting the enforcement of a restriction on cement exports at a time when the industry already has a 30-35 million-ton excess capacity; in other words, failure to take the added value to be provided to our economy into account; means letting the resources of the country become idle. This status will pose a negative impact on the capital operating with the focus on exports in our country.” On the other hand, the fact that the current discussions are included in the agenda at a time when annual export connections are made gives birth to the risk that our national commercial interests cannot be safeguarded. Expressing that the impact of the crises experienced can be eliminated in that fashion by way of ensuring the continuity of employment in the sector owing to exports, Bozay said, “As always, our cement plants keep supporting the local workforce. The continuation of our employment is among our most important priorities.”    

During the General Assembly Meeting, Fatih Yücelik, Chairman of the Board of Directors of TÜRKÇİMENTO, presented a plaque of appreciation to the former Chairman Tamer Saka due to his contributions to TÜRKÇİMENTO and the sector.