Displaying items by tag: Türkiye
Türkiye: Exports of cement products from Türkiye to the US have decreased by 12% year-on-year to US$165m from January - March 2024, according to the Türkiye Trade Ministry. The ministry also reported that in March 2024, cement exports to the US fell to US$57.5m, representing a 28% year-on-year decrease. Overall, Türkiye's global cement product exports dropped 7.4% to US$1.1bn in the first quarter of 2024. In March 2024, exports were down 11% at US$390m. Despite these declines, Türkiye achieved cement product exports totalling US$4.5bn from March 2023 - March 2024.
Update on Türkiye, March 2024
13 March 2024TürkÇimento revealed this week that cement production in Türkiye grew by 10.5% year-on-year to 81.5Mt in 2023. In a press release describing the progress of the local cement sector, the cement association reported that domestic sales rose by 19% to 65Mt but that exports fell by 28% to just under 20Mt. Fatih Yücelik, the chair of TürkÇimento, also said that his country was the second largest exporter of cement in the world in 2023 and that its most important target market was the US. He noted that the construction sector grew by 8% during 2023, that reconstruction projects were enacted following earthquakes in early 2023 but that no further growth in domestic sales of cement was anticipated in 2024.
As is standard for these kinds of occasions, Yücelik also raised the association’s sustainability ambitions, describing his sector as one “whose main goal is to provide low-carbon production.” He added that the Turkish cement industry supports the country’s net zero target of 2053. To this end the association has also released its first sustainability report, for 2022, covering 48 of the country’s 52 integrated plants. The Hürriyet Daily News newspaper offered one reason for this enthusiasm for sustainability: the US$30bn in investment required to meet that 2053 net-zero target. It also reported that Yücelik said that the industry needed to spend US$2bn towards meeting the incoming requirements of the European Union Carbon Border Adjustment Mechanism (CBAM).
Graph 1: Domestic and export cement sales in Türkiye, January – October, 2017 – 2023. Source: TürkÇimento.
TürkÇimento’s data for 2023 currently runs up to October 2023 but it supports Yücelik’s assessment. As can be seen in Graph 1, domestic sales of cement rose sharply in the first 10 months of 2023, by 20% year-on-year to 53.1Mt, yet exports fell almost as abruptly, by 18% to 13Mt. This is noteworthy, as exports had been rising steadily each year since 2018. Italy-based Cementir provided some context here in its annual report for 2023 saying that it had decided to focus on the domestic market due to greater profitability. Heidelberg Materials’ joint-venture Akçansa echoes these comments, blaming declining exports on “historically low freight rates increasing competitiveness of southeast Asian suppliers” while emphasising that the shift to the domestic market was made to meet increasing demand.
Graph 2: Revenue of selected large Turkish cement producers, 2022 - 2023. Source: Company reports.
Financial information from the larger Turkish cement producers that have released their results for 2023 follows the same pattern. Three of the four companies included in Graph 2 saw sales revenue grow in 2023. The one that saw its revenue fall, Nuh Çimento, is a major exporter. In 2022 for example it supplied 18% of the country’s total cement exports. All of these companies saw operating profit or earnings increase though.
The other big Türkiye-based news story this week was that Taiwan Cement Corporation (TCC) completed the latest increase to its stakes of Cimpor Global Holdings joint-ventures in Türkiye and Portugal. TCC now owns a 60% stake of the business in Türkiye and a 100% stake in Portugal. With respect to the business in Türkiye this means that TCC now has control of the country’s largest cement producer, OYAK Çimento. Once again the CBAM received a mention, with TCC saying in its valedictory statement that it believed that, “whether it's domestic or imported cement, low-carbon cement will become the main competitive advantage for the cement companies entering the European market.”
The domestic market in Türkiye may have seen a bounce in 2023 but the attention of both TürkÇimento, TCC and others are firmly set on the wider market in the region. TürkÇimento’s Fatih Yücelik said that the country’s cement production capacity was 120Mt/yr and that the population would have to be 150m to eliminate the need for exports. Its population is currently just under 85m. Yücelik set a value of US$2bn for his sector to adjust to CBAM but he also remarked that the income from exports in 2023 was around US$1.3bn. This is not an easy investment ‘pill’ to swallow but one that the country will have to digest if it wants to keep its export levels up.
Cementir Holding raises earnings in 2023
12 March 2024Italy: Cementir Holding’s sales were Euro1.69bn in 2023, down by 1.7% year-on-year from Euro1.72bn in 2022. Its operating costs were Euro1.44bn, down by 8% from Euro1.33bn. As a result, the company increased its earnings before interest, taxation, depreciation and amortisation (EBITDA) by 23% to Euro411m from Euro335m. Cement and clinker sales volumes fell by 1.6% year-on-year to 10.7Mt due to a general market slowdown, though they rose in China and Türkiye.
Chair and CEO Francesco Caltagirone said “Despite an increasingly uncertain macroeconomic scenario due to growing geopolitical tensions and more restrictive monetary conditions, in 2023 the group demonstrated significant resilience, setting new records thanks to an even more diversified geographical and product mix. The general weakness in volumes, with the exception of Türkiye and China, was balanced by the improvement in operational efficiency.”
Türkiye: The Turkish cement industry needs to invest approximately US$30bn to achieve its net-zero carbon goal by 2053, according to sector representatives. Additionally, around US$2bn is required to adhere to the European Union’s Carbon Border Adjustment Mechanism (CBAM), according to Fatih Yücelik, chair of the Turkish Cement Manufacturers’ Association (TÜRKÇİMENTO).
Yücelik said “The most important issue for us this year is carbon emissions. The amount of investments to be made swiftly in transformation and efficiency work to overcome the barriers created by the CBAM is around US$2bn. However, under the current situation, it is difficult for us to find this financing.”
There are 77 factories producing cement in Türkiye, according to Yücelik. “They all use kilns which heavily consume energy. We are establishing waste heat recovery facilities. The amount of electricity generated by those units can power 618,000 homes,” he said. The industry also faces rising operational costs, with energy comprising about 80% of these expenses.
Portugal: Taiwan Cement Corporation has purchased the remaining 60% stake of Cimpor Portugal from the Turkish group OYAK, giving it 100% ownership of the company. This acquisition, valued at €480m, also includes taking over a majority stake in Türkiye, making Taiwan Cement Corporation the ‘third largest player’ in the global cement market, according to the company. The deal strengthens the group’s presence in Portugal, Cape Verde, Ivory Coast, Cameroon and Ghana, aligning with its global expansion and sustainability-focused investments in renewable energy and technology.
Cimpor's chairman Suat Çalbiyik said "This operation represents a very important step in the company's growth and makes it a world reference in cement production."
Türkiye: Aşkale Çimento has appointed Furkan Sağlam as its Marketing and Sales Chief. He has worked at the company since 2000 in sales and marketing roles. Prior to this he worked for Gözen Holding. He holds business administration degrees from Giresun University in Türkiye and Uniwersytet WSB Merito Gdańsk in Poland.
Osman Nemli resigns as head of Bursa Çimento
31 January 2024Türkiye: Osman Nemli has resigned as the general manager of Bursa Çimento. No reason for his departure has been disclosed. He had been in post for eight years according to local media. Barbaros Onulay, the head of subsidiary Bursa Beton, will act as the general manager until the company’s board of directors appoints a replacement.
Titan Cement International buys Vezirhan pozzolana quarry
30 January 2024Türkiye: Titan Cement International (TCI) has acquired concession rights to the Vezirhan pozzolana quarry in East Marmara. The quarry will help TCI to expand its low-carbon cement production capacity. By 2030, the company aims to reduce its CO2 emissions by 35% from 1990 levels, and include 50% green products in its portfolio.
Titan Group Eastern Mediterranean regional director Christos Panagopoulos said “Access to Vezirhan quarry’s strong reserves potential and high-quality material will allow Titan to further broaden the portfolio of low-carbon cementitious products available to its customers. The quarry has access to a deep port and railway transport, facilitating both land and seaborne distribution across Titan's global locations.”
Group chief sustainability and innovation officer Leonidas Canellopoulos said “Being future-ready for a net zero world is more than just an ambition for Titan, and the acquisition of concession rights in Vezirhan is part of our solid roadmap that entails over 100 initiatives, covering the entire scope of our geographic operations and span of our value chain.”
Göktuğ Aktaş appointed as Director - Africa, Mediterranean and West Asia at Heidelberg Materials
24 January 2024Germany: Heidelberg Materials has appointed Göktuğ Aktaş as its Director - Africa, Mediterranean and West Asia. He previously worked as the Performance Manager (Northern and Eastern Europe-Central Asia) for the group from late 2018. Prior to this he worked for Türkiye-based Akçansa from 2011 in quality management roles becoming Country Production and Quality Manager (RMC & Aggregates) in 2017. Aktaş is a graduate in science and civil engineering from the Istanbul Technical University and the University of Buffalo in the US. He also holds an administration in business administration (MBA) qualification from Istanbul University.
Arda Aba appointed as Purchasing Group Manager at Çimsa
24 January 2024Türkiye: Çimsa has appointed Arda Aba as a Purchasing Group Manager. He has worked for the cement company in purchasing and investment roles since 2015. Before this he held a number of similar roles in the automotive industry with positions at Pimsa Adler and Ford Otosan. He holds a master’s degree and a bachelor’s degree in mechanical engineering from the Istanbul Technical University and Yıldız Teknik Üniversitesi respectively.