We Held an Interview with Ahmet Yiğitbaşı, Chairman of the Board of Bosad

The Turkish paint industry, with an economic size of around 3 billion dollars, is being advanced through important work by the Paint Manufacturers Association (Bosad), the sector's leading organization. In an interview we conducted, Bosad Board Chairman Ahmet Yiğitbaşı provided information about the association's activities. Ahmet Yiğitbaşı noted that the paintistanbul & Turkcoat fair and congress, which holds a significant place among these activities and will be held for the second time in 2018 in collaboration with Artkim Fuarcılık, will comprehensively address the sector's expectations.

Mr. Ahmet Yiğitbaşı, could you briefly tell our readers about yourself, your education and your professional background?

I was born in Izmir in 1958. I studied Mechanical Engineering at Aachen University of Technology (Germany) and completed my Master's degree in Fuel Engineering. I began my career in 1987 at Union Kraftstoff in Germany. Between 1989 and 2015, I worked as a senior executive in Yaşar Holding companies. Between 1996 and 2001, I served as Vice President responsible for different business units in the Yaşar Holding Paint Group, including Automotive, Industrial, Construction Paints and Printing Inks; between 2006 and 2009, I was Head of Yaşar Holding Foreign Investments and New Projects; and between 2001-2006 and 2009-2015, I served as Head of the Paint Group. Since 2015, I have continued as Board Member at DYO Boya A.Ş, TOYO Printing Inks A.Ş. and DESA Energy A.Ş. At Yaşar University, I served as Board of Trustees Member and Vice President between 2003 and 2010, and have served as Board of Trustees President since 2010. At the Turkish Paint Manufacturers Association (Bosad), I have served on the Board of Directors since 2003 as a founding member. I served as Board Chairman between 2007-2009 and in the 2015-2017 period. I am married with 2 children. I speak English, German and French.

Could you provide information about the history, activities and events of the Paint Manufacturers Association (Bosad)?

Considering the need for a professional organization for the paints and raw materials industry, the Bosad establishment process was completed in July 2003 through the initiatives of sector representatives. Starting its work with 9 founding members, Bosad has today reached significant representation power with over 70 organizations in the paints and raw materials sector within the formal economy. Following its establishment, Bosad has continued its professional and sectoral work in 3 main areas, and its relations with bureaucratic, sectoral and civil society organizations have reached a significant dimension. As the sole representative of the paints and raw materials sector in our country, we have organized our professional organization with a contemporary understanding in order to provide solutions to the fundamental, structural and current problems of our sector, and we continue our work at an effective and results-oriented level. In addition to high-level sectoral participation in Bosad's work, nearly 20 Bosad Working Groups have been established in professional and technical areas to address sector problems, and professional views and recommendations are formulated through broad sectoral participation and presented to relevant authorities. Throughout its 14-year working period since its establishment, it has gained the status of an exemplary organization, particularly through its bureaucratic work, and the sectoral views and assessments it has created have gained wide acceptance in all areas. Bosad also holds important representation power internationally as an observer of the European Coatings Association (CEPE) and as Turkey's member of the World Coatings Federation (IPPIC). It conducts effective activities for the development and promotion of the paints sector and our organizations. It continues its work through projects developed within the framework of the goal of becoming an investment and production base for the paints and raw materials sector in Turkey's EU integration process. It creates diverse projects to increase paint consumption in Turkey and develop paint culture, and continues the joint project implementation process with corporate and sectoral-based social responsibility understanding.

Mr. Ahmet Yiğitbaşı, the paintistanbul & Turkcoat was first organized in 2016 through cooperation between Bosad and Artkim Fuarcılık, and the second edition will be held in 2018. Could we learn about your impressions and comments on the 2016 fair and congress, as well as your expectations and thoughts for the fair and congress to be held in 2018?

Bosad has been conducting congress and fair activities since 2009 with the aim of contributing to the promotion of the paints and raw materials sector at both national and international levels. Until now, we have continued the congress and fair project under the name paintistanbul in 2010-2012 and 2014. In 2016, following demand from the sector, we merged with Turkcoat, another sectoral fair in the same field, and launched the project as paintistanbul & Turkcoat under Artkim Fuarcılık organization with larger participation. Our fair and congress project for the second edition to be held in 2018 under the same name with Artkim Fuarcılık aims to comprehensively address the expectations of Bosad and our sector. By combining two separate fairs into a single organization, the participation and representation power of our sector is increased and it continues as a high-level project in terms of sectoral efficiency. Through our joint project, the paints and raw materials sector's highest-participation project in terms of representation and participation both internationally and nationally.

Mr. Ahmet Yiğitbaşı, as Bosad, you published the Turkish Paint Industry Strategic Development Report. Could you comment on the impact of this research on the sector?

Given Turkey's position in the global paint industry, along with EU countries and other regional geographic areas, it is understood that the sector possesses significant potential and competitive power. To evaluate and address the development processes of our sector in the economic, commercial and technological fields covering the 2016-2026 period, Bosad has prepared the "Turkish Paint Industry Strategic Development Report." The sector report prepared includes important contributions and assessments from A.T. Kearney in the section covering international developments. Our sector report contains the risks and expectations that will emerge in national and international areas during the next 10-year period, as well as the sectoral measures and actions that need to be taken in response. Our strategic development report also aligns with our goal as Bosad of making the Turkish paint industry a regional attraction center, and supports creating a roadmap toward this objective.

Many regions in our country are being restructured through urban renewal applications. How does this situation affect the paint sector?

Urban renewal in Turkey affects our sector mainly in two areas, particularly in construction paints. The first of these areas is the stagnation of the existing building stock renovation market due to uncertainty in urban renewal, with consumption not developing at a sufficient level, despite expectations. On the other hand, the entry of new buildings into service along with urban renewal also creates relative growth. The renovation market, as mentioned above, holds great importance in terms of construction paints consumption. Considering that the existing building stock has reached close to 20 million units, the urban renewal model will have a positive impact on the growth of new construction areas and consequently on increased construction paints consumption.

Could you provide information about paint production data for the world, Europe and Turkey? What position does Turkey hold? What advantages and disadvantages does our country have in terms of paint production? How can current problems be overcome?

According to the latest data, the global paint market encompasses approximately 45 million metric tons of annual production. This volume consists of 55% decorative paints and 45% industrial paints. The total global value is approximately 130 billion dollars. Turkey holds approximately 2% of global paint market production. The economic size of the Turkish paint industry (including domestic market and exports) stands at around 3 billion dollars. In 2015, production of 915 thousand metric tons was achieved in the sector. We estimate that 2016 will close with growth at 2015 levels. The total paint industry production consisted of 60% decorative (construction) paints and 40% industrial paints. On a value basis, construction paints have a 37% share while industrial paints hold 63%. On the other hand, significant progress is occurring in industrial paints as well. With our total paint production figures, we are Europe's 5th largest producer. We are very close in numbers with Italy in 4th place, and our target is to become the third largest sector player in the near term. As an industry producing at European quality standards and continuously developing its technology, we are a strong regional player. All of this is extremely positive for the paint industry's development in coming years. Therefore, we are hopeful about the sector's future years. The Turkish paint industry has elevated its recent economic and technical development to a high level, reaching a competitive sector position. Using this advantage, today it exports paint products to approximately 50 countries. Our significant proximity to regional markets due to our geographic location is another advantage. As an industry developing in technological dimensions, the paint sector must continue its work at higher levels to create high-value-added products for presentation to world markets. Our paint industry stands out as a sector dependent on imports for basic raw materials, and broad-scale investment in basic input production is needed to overcome this import-dependent sector position.

How can paint products be developed in terms of variety, efficiency and technology? What types of responsibilities fall to the private sector, public institutions and universities in this regard? Do you think it is possible for Turkey to have a say globally in paint technology, particularly in R&D and know-how?

Paint industry development in terms of productivity and technology, as you also mention, depends on developments in domestic and foreign markets. In recent years, the development of our country's manufacturing industry has affected the diversity (in terms of areas of use) and R&D aspects of paint industry products. Parallel to global developments in this area, R&D and product development work continues. Our paint industry continues its work in integration with bureaucratic institutions in order to contribute to this development. Additionally, we continue our joint work with our universities in R&D and technological development. For Turkey to have a say globally in paint technologies, it is necessary to place particular emphasis on innovation and product development along with production technologies.

Could you provide information about Bosad's environmental policy and sustainability approach? Could we learn your thoughts about recovery and recycling issues in paint production? What can you say about your work related to worker health and safety?

Recent technological developments in the chemical and paint sectors have led to innovations and responsibilities in product portfolios regarding human health and environmental issues in production areas. In our country as well, the paint industry is increasingly developing environment-friendly product varieties and meeting new sectoral demand in this area. We believe that the industrialization criteria of the coming century will further develop production concepts in terms of environment and human factors. Important developments have been recorded in recent years in paint industry production regarding recovery and recycling processes along with the process of compliance with environmental regulations. Our organizations are making significant investments in environmental and human health issues, and awareness levels in this area are rising.

Mr. Ahmet Yiğitbaşı, what types of activities does Bosad plan to conduct for 2017 and beyond?

As the Paint Manufacturers Association, we aim to elevate our work toward the economic and commercial development of our sector to higher levels. Particularly, we are planning various activities within the framework of increasing per capita paint consumption and continuing our production structure on the basis of efficiency. As Bosad, we will also make increasing the international promotion and representation power of our sector an important item on our agenda. Additionally, we wish to elevate our work in our sector's process of adapting to international regulations to higher levels.