Kastamonu Entegre Invests EUR 70 Million in Recycling

Kastamonu Entegre, a global player in the wood-based panel sector, is entering a new growth phase by combining production capacity with high-technology and value-added products. The company exports to 100 countries and, through its product portfolio and global operations network, will further strengthen export performance in world markets in the coming period.

Kastamonu Entegre, pursuing sustainability targets and a circular economy focus, is also implementing a major recycling initiative to bring industrial waste back into the economy. With a EUR 70 million investment, the company will restructure all its particleboard facilities in Turkey within 2 years, converting them to production from recycled and waste materials.

As Turkey's leader in the wood-based panel sector, Europe's third-largest and the world's fourth-largest producer of MDF and particleboard products, Kastamonu Entegre is moving beyond volumetric growth in the new period to increase its "value share". The company aims to integrate science and technology into its business processes, boost existing exports to global markets and establish a presence in the mid-to-premium segment. Under this strategy, Kastamonu Entegre is planning to deepen its export presence particularly through value-added product groups and sustainability standards.

With 10 facilities in 6 countries and production capacity of 7 million cubic metres, Kastamonu Entegre alone accounts for 8% of world laminate parquet production. With consolidated revenue of USD 1.7 billion and exports exceeding USD 330 million, the company, which continues to grow in the wood-based panel sector, plans to further increase its market dominance through its new strategy.

Investment Focused on Sustainability
Placing sustainability at the centre of its business model and implementing many different products and projects in this area, Kastamonu Entegre will invest in "recycling" in the new period. The company, which operates with 100% recycling at its production facility in Italy, will apply this experience in Turkey and adapt it across all production facilities in a significant move. Through the new project it is implementing, the company will utilise wood-based waste collected from major industrial facilities and organised industrial zones in Turkey as raw material in particleboard production through recycling.
Initiating an important transformation process in line with its sustainable production vision, the company will restructure all its particleboard facilities in Turkey within 2 years with a EUR 70 million investment to operate from recycled and waste materials. Under this scope, the share of industrial waste and recycled wood raw materials in total wood raw material consumption is targeted to exceed 40%. This model will reduce natural resource use and significantly lower environmental impact through reintroducing industrial waste to the economy.

Prof. Dr. Davut Kavranoğlu: We are planning Kastamonu Entegre's second 50 years.
In assessments on the matter, Kastamonu Entegre General Director Prof. Dr. Davut Kavranoğlu stated: "Kastamonu Entegre achieved significant success in its first 50 years, grew from these lands to become global, and became a voice in the wood-based panel sector globally. We want to preserve the strong foundations laid in the past period and the success achieved, while adding new achievements and new initiatives. At a time when the world, sectors and economic paradigms are changing and transforming, and competition is changing in both structure and direction, we cannot remain the same, we cannot stand still. Now it is time to say new things, to put science, technology and sustainability at the centre and grow with value-added products. Today the world stands at an important threshold, the global economy is passing through a narrow path. We need to pass this threshold in the best way and plan our company's second 50 years. We have the knowledge, experience and expertise to compete with the world. With this accumulated knowledge, we now want to have a say in all markets from North America to the Middle East, from Asia to Africa," he said.

"Prof. Dr. Davut Kavranoğlu: Our focus is on triple transformation"
Continuing by stating that in today's world no structure that cannot convert knowledge into added value can be sustainable, Kavranoğlu emphasised that Kastamonu Entegre in the new period will take production capacity further in terms of quality, value and meaning. Underlining that triple transformation is at the centre of their focus for the new period, Kavranoğlu said:

"In the transformation age we find ourselves in, we need to move towards the future with triple transformation by putting people and culture alongside technology and sustainability. Today, technology and sustainability have become one of the main elements of competition and differentiation. International regulations and the world's current needs make transformation mandatory. We are a company that has been working in this field for many years, putting R&D and innovation at the centre and pioneering many innovations. We will now take this experience forward with more concrete steps and position our company ahead in competition. With this vision, we are now adding a recycling project to our existing green transformation initiatives. We will transfer our 100% recyclable production experience in Italy to Turkey and conduct exemplary sector work. We aim to realise all these transformation strategies with our human resources, stakeholders and our sector. Because we believe that no transformation that does not put people at its centre and disregard the needs of society can succeed. We invest in people before technology, focus on the question before the answer, and on purpose before tools. Therefore, we aim to achieve all our objectives by taking our employees to a place where they are more competent and best utilise technology."