Cement Sector Focuses on Transformation

Abdulhamit Akçay, Vice Chairman of the Cement, Glass, Ceramics and Earth Products Exporters Association (ÇCSİB), said that following the earthquake disaster centred in Kahramanmaraş, the sector's main focus has shifted to the domestic market. According to the union statement, representatives of the Turkish cement sector, operating under the "Turkish Cement" brand, held a Cement Sector Workshop in Sapanca. The workshop addressed export markets, opportunities and obstacles facing the sector, and the impact of domestic developments, particularly the earthquake disaster, on the industry. ÇCSİB Vice Chairman Akçay, who delivered the opening remarks at the summit, noted that the sector's competitive strength in some markets declined last year, particularly due to increased energy costs. He stated: "As an energy-intensive sector, it is not easy for us to compete with the low-price policies implemented by countries that either generate their own energy or obtain it at low cost. However, the decline in production costs this year, especially energy, will give us the opportunity to regain dominance in these markets." Akçay, pointing out that macroeconomic and geopolitical developments are progressing in favour of the Turkish cement sector, explained that the increase in freight rates will negatively affect exporters in the Far East, and this situation will provide an advantage to the country in Western markets. Noting that they expect economic developments in the US to positively impact the housing market, Akçay said: "The US is currently our largest export market. They are continuing their infrastructure and industrial activities strongly, and as a sector, we will see the positive effects of this more significantly from 2024 onwards."

"We have excess production capacity"

Akçay, stating that following the earthquake disaster centred in Kahramanmaraş the sector's main focus is the domestic market, spoke as follows: "Exports are always very strategic for us, but meeting the cement needs for both the reconstruction of our cities in the earthquake zone and the transformation of other cities in the earthquake belt will be our main objective this year and over the next 5 years. However, our ability to meet domestic market demand does not mean that cement exports, which are critically important in terms of adding value to our country, will be disrupted. This is because our sector has annual production capacity of 120 million tonnes. As a sector, we have approximately 40 million tonnes of excess production capacity. With our service quality, product range and the reputation our sector enjoys globally, we have the strength to achieve this."   Source