TÜRKÇİMENTO Executives Attended Intercem in the Us

Gökhan Bozkurt, TÜRKÇİMENTO Vice President: “The Rise In Energy Prices Increased Our Costs”

Gökhan Bozkurt, Türkçimento Vice PK. Gökhan Bozkurt, Vice Chairman of the Board of TÜRKÇİMENTO, CEO Volkan Bozay, and Members of the Board of Directors attended the Intercem Americas 2021 conference held in the USA. At the conference, the situation in the global cement sector was addressed. TÜRKÇİMENTO participated as a sponsor and also with a booth in the event. resident: “The Rise In Energy Prices Increased Our Costs”

Held in Miami, the USA, Intercem 2021 became a platform where cement producers from all around the world came together. The senior management of TÜRKÇİMENTO, which is the umbrella organization of the Turkish cement sector, attended the meeting. Gökhan Bozkurt, Vice Chairman of the Board of TÜRKÇİMENTO, who was in the delegation, gave a speech at the conference. 

In his speech, Bozkurt provided information to the participants about Turkey, one of the biggest cement business partners of the USA, and the economy of Turkey.

In his speech, Bozkurt expressed that the economy of Turkey started the year with the expectation of a recovery in 2020 after the difficult years of 2018-2019 and said, “The impact of the pandemic that started in the world at the end of the first quarter of the year has also hit Turkey. Many sectors in the country became obliged to slow down or discontinue their activities. Despite it, the economy of Turkey continued its growth trend in 2020-2021. 

Drawing attention to the fact that another positive indicator of the economy of Turkey is its strong export capability, Bozkurt said, “According to the data announced by the Ministry of Trade, our exportation in September of 2021 became 20 billion 783 million dollars. This figure is the highest level reached in all times of Turkey's exports. The export figure became 160 billion 979 million dollars in the January-September period. This figure indicates an increase of 36 percent year-on-year.'' 

Also sharing the figures of the Turkish cement sector, Bozkurt stated that there are 76 cement plants operating in Turkey, that the annual production capacity of those plants is approximately 115 million tons, and that the capacity utilization rate of the plants is at the level of 68 percent. Bozkurt also added that Turkey is the fifth producer in the world and the first one in Europe in the cement sector, with its installed production capacity.

“Turkey became the second-largest exporter of the world in 2020”  

Bozkurt expressed that the cement production in the sector in 2020 reached 76.5 million tons through an increase of 27 percent compared to the previous year and an increase of 23 percent in domestic sales and 37 percent in cement exports year-on-year took place. He stated that with the said increase, domestic sales became 59.2 million tons and exports became 31.4 million tons. In addition, mentioning that the 2020 domestic market turnover of the Turkish Cement sector is approximately 1.7 billion dollars, Bozkurt shared the information that the employment of the sector is 17.2 thousand people and the indirect employment is approximately 50 thousand people.  

Gökhan Bozkurt invited attention to the fact that Turkey is successfully expanding its cement exports with its operational capabilities and port competencies. Bozkurt said, “Turkish cement producers are establishing their own port infrastructures and they have succeeded in keeping the supply and logistics problems experienced during the pandemic period at a minimum level by combining operational excellence with product quality.”

Bozkurt underlined that the biggest white cement supplier in the US is Turkish cement producers and said, "As the Turkish cement sector, we attach importance not only to production but also to sustainability issues. Within this scope, we are adapting to new technologies and we are constantly making arrangements in our plants for low-carbon production. Bozkurt stated that they have commissioned systems like the use of alternative fuels and waste heat recovery when it comes to contributing to the environment. 

Bozkurt expressed that if they increased that ratio to 50 percent, they would ensure that petroleum coke imports of approximately 550 million dollars would be prevented. 

Highlighting the fact that tires have an important place among alternative fuels, Bozkurt said, "We have prevented the emission of 865 thousand tons of carbon dioxide into the atmosphere upon the utilization of expired tires in the last five years." 

Gökhan Bozkurt continued his speech as follows: “The largest of our cost items in the cement production process comprise energy costs. The unstoppable upward trend in the energy markets, also with the impact of the high exchange rate in our country, was reflected in our costs as 78 percent in electricity, 301 percent in petroleum coke, and 422 percent in imported coal, on TL basis, in October, compared to the same month of the previous year.  Specifying that another issue they, as the sector, attach importance to is concrete pavement applications, Bozkurt pointed out that their objective is to ensure the expansion of the concrete pavement network.