We Have the Necessary Production Capacity to Meet the Investment Needs of Türkiye on the 100th Anniversary of Our Republic.

Mr. Fatih Yücelik, the Chairman of the Turkish Cement Manufacturers’ Association, TÜRKÇİMENTO, the umbrella organization of the cement industry, has recently announced a remarkable surge in the production of the Turkish cement sector, which is currently the world’s fifth largest and Europe’s leading producer, with a notable increase of 10.5 percent in 2023, resulting in total production of 81.5 million tons, and added: “I would like to reiterate the fact that the Turkish cement industry has the necessary production capacity to meet the investments needs of Türkiye.” 

TÜRKÇİMENTO, the Turkish Cement Manufacturers’ Association, being the umbrella organization of the cement industry, recently convened a meeting at the Çırağan Palace to discuss the operating results for 2023, which marks the 100th anniversary of the Republic, to share their targets for the year 2024. The meeting was attended by Fatih Yücelik, the Chairman of TÜRKÇİMENTO, Adil Sani Konukoğlu, Vice Chairman of TÜRKÇİMENTO and Chairman of the Cement Industry Employers’ Association, ÇEİS, along with other board members. 

During his address at the meeting held by TÜRKÇİMENTO, Fatih Yücelik, the Chairman of TÜRKÇİMENTO, stated: “Cement is a strategic commodity in our world. It serves as the foundation for a reliable future through the construction of concrete, the second most consumed substance globally, following water. The earthquake disasters that struck us on February 6, 2023, proved once again that cement is not merely a commercial entity but an essential element in ensuring our safety and security. It is worth noting that the Turkish cement sector has the necessary production capacity to meet the investment needs of Türkiye”. 

Fatih Yücelik has emphasized that their organization views and will continue to view the implementation of internationally recognized production and all-time inspection standards for cement as a top priority to prevent similar disasters from occurring in the country and continued: 

“The construction sector posted a growth of 10.8% in the final quarter of 2023, culminating in an overall growth rate of 7.8% for the year. This upswing in construction activity has positive implications for key stakeholders, including the cement sector, which is a crucial component of the construction industry. In the aftermath of the earthquake disasters in 2023, a comprehensive reconstruction plan was launched for the affected region, featuring a series of urban transformation projects. As per the analysis of the previous year’s domestic sales figures, it is foreseen that there will be no further increase in the year 2024. Consequently, it is expected that the figures for domestic sales will remain consistent, similar to the levels observed in 2023, and this year’s sales are also expected to remain stable. In view of the foreign market, and barring any unforeseeable energy cost hikes or fluctuations in global markets, we anticipate a similar outlook for 2024 as that of 2023 and a corresponding year-end outcome.” 

“An Overview of Cement Sector for the Year 2023”  

Fatih Yücelik stated that the Turkish cement sector is a leader in Europe, the fifth largest producer worldwide, and the second largest exporter of cement and clinkers, serving over 100 markets. With a cement capacity of 120 million tons, the industry operates 77 factories, of which 56 are integrated, and 21 are grinding plants in Türkiye. Fatih Yücelik presented an overview of the members of TÜRKÇİMENTO, representing approximately 94% of the total, for the year 2023: 

• Our total production saw a YoY increase of around 10.% YoY, reaching 81.5 million tons.  

• Domestic sales reached approximately 65 million tons, registering a significant increase of 19%.  

• Upon viewing the export figures of both our member and non-member factories for the fiscal year 2023, we observed a foreign sales volume of 19.7 million tons, indicating a 28% year-over-year decline.  

• Of this figure, 15.7 million tons comprises cement, while the remaining 4 million tons comprises clinker.  

• Foreign sales decreased 18%, totaling 1 billion 265 million dollars.  

• Based on these data, it should be noted that Türkiye ranks again second globally in terms of both tons and value as of 2023. The US is the most significant export market, with exports to over 100 countries.  

• In 2023, the total turnover was approximately 4.7 billion dollars due to increased domestic sales and a favorable dollar exchange rate.     

“Low-Carbon Production Is The Most Critical Issue For 2024“

Highlighting the significance of cement as a strategic commodity that extends beyond mere economic data, Fatih Yücelik added: “As industrialists, it is imperative that we do not solely concentrate on production and sales figures. The primary objective of our sector is to ensure low-carbon production and to diligently work towards adapting to the Green Deal, utilizing alternative fuels and raw materials, optimizing energy efficiency, and embracing digitalization. As outlined in our low-carbon production pathway, the employment of alternative fuels and raw materials, low-clinker production, improving energy efficiency, and making technological investments are the most critical aspects for our industry on this path. 

Fatih Yücelik has stated that the Turkish cement industry is committed to supporting the “Green Development Revolution of Türkiye” with the ultimate goal of achieving net zero emissions by 2053 and continued: 

“The sector's current state is marked by an ongoing adaptation phase in the twin transition. We find ourselves in a transition period where the separation of digital green elements is no longer feasible. Moreover, social transformation forms an integral part of this transition. Thus, we have decided to revise the twin transition into a triplet transition that serves as a framework to chart our course of action.” 

“Sustainability Report: We Support The 2053 Net Zero Target”

The Initial Sustainability Report that highlights the sustainability-focused advancements in the Turkish cement sector has been disclosed by Fatih Yücelik. The report was created with the participation of 48       integrated facilities out of 52 members of TÜRKÇİMENTO, based on the activities in 2022. Yücelik provided an overview of the report, revealing the current status regarding flue gas emissions, waste management, contribution to circular economy, energy consumption, energy efficiency, renewable energy, environmental investments, and working conditions.     

The report has specifically addressed the subject of climate change and greenhouse gas emissions in the cement sector, given that the production process in this sector necessitates a significant amount of energy due to its innate characteristics, leading to inevitable greenhouse gas emissions. The report also outlines a pathway to mitigate climate change risks and reduce carbon-intensive production, along with the requisite government incentives and financial support required by the sector to attain the same. 

Konukoğlu: “We Are The Binding Force Of This Nation” 

During his address, Adil Sani Konukoğlu, the Vice Chairman of TÜRKÇİMENTO and the Chairman of the Cement Industry Employers’ Association, ÇEİS, stated: “It is imperative to institute measures that prevent a recurrence of the earthquake that occurred on February 6th last year. As the cement sector, we bear a heavy responsibility as the binding force of this nation. Cement is a product with high logistical costs. However, the price of one kilogram of cement is approximately 2 Liras and 10 cents, of which 70% is attributed to energy costs. Today, the installation cost of a cement plant is around 300 million dollars, with additional expenses incurred in the form of periodic factory revisions, valued at approximately 12-13 million dollars per year”.

During the presentation, Konukoğlu discussed the issue of surplus supply within the industry, saying: 
“The potential for Türkiye’s total per capita cement consumption may reach a maximum of 1000-1100 kilograms. Currently, the sector has a capacity of 120 million tons, which would require a population of 150 million to be consumed domestically without the need for exportation. Considering the issue of carbon reduction in our country, the decision to open new plants is in the hands of leaders. As cement factories, it is imperative that we maintain a minimum stock of 45 days.”