63rd General Assembly Meeting Held for the Cement Sector

TÜRKÇİMENTO, the umbrella organization of the cement sector, held its 63rd General Assembly for the 2020 fiscal year in Ankara. Cement producers representing 94% of the sector attended the General Assembly.

  TÜRKÇİMENTO Board Chairman Fatih Yücelik stated: "Through our projects, we will support our sector and lead our members' development with the vision we will establish. With the national unity approach we have maintained since the founding of our country, we will continue to create added value for our country's economy." TÜRKÇİMENTO Chairman Yücelik said they had to postpone the General Assembly, which normally takes place in February each year, this year due to the pandemic, and noted that 2020 was marked by unprecedented negative developments both in our country and worldwide. He continued his remarks as follows: "As the Turkish cement sector, we continued our operations under challenging conditions in 2020. Following years of successive contraction that we experienced with hope at the beginning of the year, difficulties such as sales cancellations, income losses and work restrictions caused by the pandemic's impact meant that hopes gave way to risk management. While we began to see increases in figures as of January 2020, we experienced renewed contraction in the domestic market over the following four months. From June 2020 onwards, the return to normal life and the recovery in the construction sector showed their positive effects on sales through year-end. We completed 2020 with increases in domestic sales and production figures," he said.

TÜRKÇİMENTO Board Chairman Fatih Yücelik presented the following assessments regarding the first six months of 2021 in his speech at the General Assembly:

• TÜRKÇİMENTO members, representing 94% of the sector, increased cement production to 37 million tonnes in the first six months of 2021, a 26% increase compared to the previous year, while domestic sales reached 28.3 million tonnes with a 29% increase.
• Increases in domestic sales were observed across all regions, as in previous months. Approximately 80% of cement produced in the first six months of the year was subject to domestic sales.
• Furthermore, according to preliminary data from the Exporters Associations, total cement sector exports in the January-August 2021 period increased by 12.3% in value terms, reaching USD 836 million. However, total export volume declined by 2.9% compared to the same period of the previous year, falling to 20.8 million tonnes.
• Of the exports in the first eight months of this year, 12.3 million tonnes consisted of cement and 8.5 million tonnes of clinker.
• Despite all these developments, prices in the sector are trending well below the increase in costs.
• In August 2021, petroleum coke prices showed a 270% increase compared to August of the previous year, while electricity and imported coal prices increased by 62% and 197% respectively.
• Domestic lignite also experienced a 43% increase in July 2021.
• The dollar exchange rate, which stood at TRY 7.27 in August 2020, has risen to TRY 8.49.

TÜRKÇİMENTO Board Chairman Fatih Yücelik noted in his remarks that approximately 80% of cement costs consist of energy inputs such as foreign currency-based fuel and electricity, adding: "In response, without fully passing these increases through to prices, we continue our operations with the national unity approach we have maintained since the founding of our country, without compromising the contribution we provide to our country's economy." TÜRKÇİMENTO Chief Executive Officer Volkan Bozay stated: "Seeking to impose restrictions on cement exports at a time when the sector currently has excess capacity of 30-35 million tonnes, in other words, disregarding the added value that will be provided to our economy, means leaving national resources idle. This situation will also have a negative impact on foreign capital operating export-oriented activities in our country." On the other hand, the emergence of current discussions at a time when annual export agreements are being finalized creates a risk that our national commercial interests cannot be protected. Bozay emphasized that employment continuity in the sector is ensured through exports and that the impact of crises is mitigated in this way, stating: "Our cement plants continue to support the local workforce as they always have. The continuation of our employment is among our highest priorities." During the General Assembly meeting, TÜRKÇİMENTO Board Chairman Fatih Yücelik presented a plaque of appreciation to former Chairman Tamer Saka for his contributions to TÜRKÇİMENTO and the sector.