Şişecam Achieves $685 Million in Exports in 2020

A global player with production activities spanning 14 countries across four continents and sales to more than 150 countries, Şişecam achieved consolidated net sales of TRY 21.3 billion in 2020. During this period, international sales accounted for 60% of total sales, with year-end total investments reaching approximately TRY 1.9 billion and exports approximately USD 685 million.

Şişecam Vice Chairman of the Board and General Manager Prof. Dr. Ahmet Kırman stated that they continued to create value for all stakeholders in 2020, a year marked by the global pandemic's effects and extraordinary conditions. He said: "Our sales, which experienced a global decline in April due to the pandemic, began to rise in May thanks to swift decisions and effective management actions. Particularly from June onwards, with the easing of quarantine measures and the start of the normalization process in many geographies where we operate, especially in our country, our sales performance made a strong recovery and we completed 2020 on a positive note." Prof. Dr. Ahmet Kırman stated that Şişecam would continue its activities in 2021 in line with competitive objectives aimed at expanding its global footprint. He said: "In 2020, we successfully completed Turkey's largest merger in the capital markets by bringing all of Şişecam's operations under one roof. In 2021, we will implement important transformation projects centered on a holistic corporate governance approach utilizing skilled human resources and smart technology. We will continue to increase the economic value created by Şişecam and its global competitiveness through a more integrated, digital, optimized and operationally excellent organization."

A global player in all core areas of glass including flat glass, household glassware, glass packaging and glass fiber, as well as soda and chromium compounds, Şişecam achieved 2020 consolidated net sales of TRY 21.3 billion, with international sales representing 60% of consolidated sales. During this period, Şişecam, which produced 4.9 million tons of glass at its domestic and overseas facilities, achieved production of 2.2 million tons of soda and 4.1 million tons of industrial raw materials.

Şişecam Vice Chairman of the Board and General Manager Prof. Dr. Ahmet Kırman, commenting on the 2020 financial results, stated that they continued to create value for all stakeholders in 2020, a year affected by the global pandemic and dominated by extraordinary conditions. He said: "In 2020, our consolidated net sales reached TRY 21.3 billion, and we continued to contribute to the country's economy with export revenue of USD 685 million. Our sales, which experienced a global decline in April due to the pandemic, began to rise in May thanks to swift decisions and effective management actions. Particularly from June onwards, with the easing of quarantine measures and the start of the normalization process in many geographies where we operate, especially in our country, our sales performance showed a strong recovery in the second half of the year."

Noting that results were obtained in line with expectations and targets in the first quarter of the year and that the global pandemic's effects became apparent in the second quarter, Kırman continued: "During this period, our chemicals and glass packaging business lines, which supply inputs to critical sectors including food and pharmaceuticals, demonstrated resilient performance. In our flat glass business line supplying inputs to locomotive sectors such as automotive, white goods and construction, as well as in our household glassware business directly affected by the tourism sector and household consumption, significant demand contraction was experienced.

However, with the launch of steps toward normalization starting in May, activity in demand began to be observed. In June, with the acceleration of the normalization process, recovery occurred in domestic demand, and with the easing of quarantine measures and the opening of borders, recovery and momentum accelerated in exports, continuing into the final quarter of the year. In 2021, when the extent of the global pandemic's impact remains uncertain, we will continue to closely monitor all developments and create value for our stakeholders by making necessary updates to our business processes and plans." Pointing out that EBITDA margin reached 28% at the end of 2020, Kırman said: "From the beginning of the global pandemic, we rapidly implemented measures toward operational excellence and cost savings, taking swift action to minimize the pandemic's effects. Given the necessity of continuous production based on furnace technology in our current business lines, different from other industrial sectors, we updated our production plans and business processes considering developments in the sectors we supply inputs to. Due to the effects of our optimization efforts and actions taken, our 2020 consolidated EBITDA volume reached approximately TRY 6 billion. Additionally, our strong financial position enabled us to continue necessary investments for our operations without interruption, increase employment and make investments totaling TRY 1.9 billion during the same period."  

We supported a large ecosystem during the global pandemic period

Prof. Dr. Ahmet Kırman, noting that Şişecam had implemented the highest level of occupational health and safety practices in its global organization since the beginning of the pandemic and had swiftly implemented various measures to ensure business continuity, said: "During the Covid-19 pandemic, which had global impact, we supported a large ecosystem comprising our employees, customers, suppliers, business partners and all parties we came into contact with. While closely monitoring demand conditions in all our business lines, we also took action to establish a supply chain capable of responding to the conditions created by the pandemic."  

We set a new precedent with V-Block Technology

Prof. Dr. Ahmet Kırman, noting that Şişecam did not limit its pandemic response to actions taken within the company, said: "In addition to the support we provided to our stakeholders during this period, we also took responsibility through technology development work related to the protection of public health. In line with our mission of being a company that adds value to life, with the goal of contributing to human health, we developed V-Block Technology during the global pandemic period and set a new precedent by developing a 100% domestically developed coating technology that neutralizes viruses and bacteria on glass surfaces. We are preparing to introduce to the market the world's first antimicrobial household glassware product group with V-Block Technology, which has also completed official approval processes with the Ministry of Health regarding licensing and application and sales activities."  

We made Polatlı one of Europe's largest flat glass production facilities

Emphasizing that despite the uncertainty created by the global pandemic, they continued to create value for the country's economy, Kırman said: "Particularly in response to the need to increase our production capacity in line with domestic market demand, we brought into operation a new furnace with an investment of approximately TRY 1 billion at our flat glass production facility in Polatlı, Ankara during the 2018-2020 period, which we fired on 2 October 2020. The new furnace, with annual capacity of 240,000 tons, began glass drawing as of 26 October 2020, and in November we introduced to the market advanced technology products from this furnace. With our new investment, we are pleased to have made our facility in Polatlı, with annual production capacity reaching 540,000 tons, one of Europe's largest flat glass production bases."

Şişecam brought all its operations under one roof in its 85th year

Prof. Dr. Ahmet Kırman noted that 2020, the year Şişecam celebrated its 85th anniversary and brought all its operations under one roof, was a highly significant period during which critical decisions and implementations for Şişecam were carried out. He said: "Following the Capital Markets Board's approval in July of our application regarding the merger that will strengthen Şişecam's global competitive position, we held Şişecam's General Assembly meetings in August. Within the framework of relevant statutory provisions, the merger process was completed and registered at the end of September, and as of year-end 2020, we completed the first year-end financial statement closure of the companies merged under one roof. Immediately after successfully completing the merger process, which we view as a critical turning point in line with our long-term strategies and competitive objectives in global markets, we began swiftly implementing transformation projects aimed at establishing the new structure and building the future Şişecam."

We will implement multi-dimensional transformation in 2021

Emphasizing that the merger was an important simplification initiative aimed at establishing a business model appropriate to an international and competitive structure and ensuring alignment of legal infrastructure with management structure, Kırman said: "In 2021, we will implement important transformation projects centered on a holistic corporate governance approach utilizing skilled human resources and smart technology. While continuing our digital transformation journey with the use of big data, we will achieve optimization through effective resource and asset management that will create high synergy across the entire value chain. We will continue to increase the economic value created by Şişecam and its global competitiveness through a more integrated, digital, optimized and operationally excellent organization."