Şişecam Makes Strategic Acquisition
Şişecam acquires Italian refractory manufacturer Refel.
Şişecam has made a strategic investment decision to ensure that new furnace investments and cold repairs it will carry out in the glass sector proceed unaffected by the globally disrupted supply chain.
Şişecam is acquiring Italian refractory manufacturer Refel, one of the world's leading producers of refractory materials that are strategically critical for the manufacture of glass melting furnaces and for bringing investments online according to their planned schedules. By acquiring Refel, Şişecam aims to mitigate the risks associated with supply chain disruptions when managing the refractory supply processes required for implementing new investments. While maintaining its competitive position by closely monitoring the high-quality AZS refractory needs of Refel's current and potential customers, Şişecam will continue to serve its customers on a global scale.
With this investment, Şişecam will further strengthen its strategic position in the European and global glass market and will become a significant player in the developing and growing refractory sector.
Şişecam Board Chairman Prof. Dr. Ahmet Kırman: "Following the emergence of the global pandemic, the world entered a major transformation process that has spared no country or sector. In this new era where conditions can change instantaneously, the ability to adapt to conditions resulting from supply chain disruptions has now become one of the most important competencies that all of us need to possess. Those capable of continuing their growth journey in such an environment will be companies that have made the necessary preparations to adapt to all conditions on their path toward their goals.
As you know, Şişecam continues its growth journey with the goal of becoming one of the world's three largest players in the core areas where it operates, and continues to implement strategically important investments to achieve its strong goals. In this period of supply chain disruption, guaranteeing the procurement of critical materials for these investments to proceed according to plan now plays an even more pivotal role."
Pointing out that removing refractory procurement risks is one of the most critical issues for glass furnace investments to proceed according to plan, Prof. Dr. Ahmet Kırman said: "The acquisition of refractory manufacturer Refel will enable Şişecam to eliminate supply risks that could arise when implementing these investments. In line with Şişecam's sustainability approach in its investments, this acquisition will also strengthen our strategic position in the European and global glass sector.
Furthermore, Şişecam's strong R&D and design capabilities extending to furnace designs will enable us to bring many innovative products and technologies in the refractory sector together with the glass sector. By being a partner in the development of glass in this field as well, Şişecam will have the opportunity through this latest vertical integration investment to broaden the scope of benefits it creates while managing its own supply processes and creating sustainable value for the glass sector. With this acquisition, Şişecam will become one of the most important players in this sector that continues to develop and grow with each passing day."
Şişecam, the only global player operating in all areas of glass worldwide, is entering the 2022 International Year of Glass with a strategic investment move that will ensure the sustainability of its investments in the glass sector. Şişecam is acquiring Italian refractory manufacturer Refel, one of the world's leading producers of refractory materials used in the manufacture of glass melting furnaces, critically important for cold repairs and for enabling new investments to proceed according to their planned schedules.
With this acquisition, while implementing new investments in the glass sector, Şişecam aims to mitigate the risks associated with supply chain disruptions in managing refractory supply processes. While closely monitoring the high-quality AZS refractory needs of Refel's current and potential customers, Şişecam will maintain its competitive position and continue to serve its customers on a global scale. The acquisition of Refel will further strengthen Şişecam's strategic position in the European and global glass market.
Regarding Şişecam Board Chairman Prof. Dr. Ahmet Kırman's decision to acquire Refel S.p.A., a leading global refractory manufacturer, he said the following: "Following the emergence of the global pandemic, the world entered a major transformation process that has spared no country or sector. In this new era where conditions can change instantaneously, the ability to adapt to conditions resulting from supply chain disruptions has now become one of the most important competencies that all of us need to possess.
Those capable of continuing their growth journey in such an environment will be companies that have made the necessary preparations to adapt to all conditions on their path toward their goals. As you know, Şişecam continues its growth journey with the goal of becoming one of the world's three largest players in the core areas where it operates, and continues to implement strategically important investments to achieve its strong goals. In this period of supply chain disruption, guaranteeing the procurement of critical materials for these investments to proceed according to plan now plays an even more pivotal role."
Pointing out that removing refractory procurement risks is one of the most critical issues for glass furnace investments and cold repairs to proceed according to their planned schedules, Prof. Dr. Ahmet Kırman said: "Refractory is a strategically critical material in glass furnace investments whose supply lead times can vary greatly, particularly during periods of intense investment activity in the sector, and which can delay the completion of investments. The unavailability of this material can increase the duration of new investments and cold repairs in glass melting furnaces by up to a factor of two.
The acquisition of refractory manufacturer Refel will enable Şişecam to eliminate the supply risks that could arise when implementing these investments and to remove obstacles to implementing our investments within the planned timeframe and reaching capacities in line with our growth projections. The acquisition will also have a positive effect on our profitability. This acquisition will ensure sustainability in Şişecam's investments and will also strengthen our strategic position in the European and global glass sector. With this acquisition, Şişecam will become one of the important players in the refractory sector that continues to develop and grow with each passing day."
Prof. Dr. Ahmet Kırman, noting that Refel's R&D capabilities are compatible with Şişecam's advanced R&D culture, said: "Şişecam is an organization that rapidly transfers R&D competence and activities into production with highly qualified workforce. Şişecam's innovation culture, advanced production capacity and corporate R&D experience have a history of nearly half a century. For 86 years, we have been adding value to life by bringing innovative solutions and applications to the sector. The Şişecam Science and Technology Center ranks among the world's leading glass sector R&D centers. Şişecam's advanced R&D capabilities, which perform not just product design but also furnace design, will contribute to Refel's development in this field as well."
Noting that Şişecam, among Italy's largest Turkish investors, attaches special importance to the country where it has a 16-year investment history, Prof. Dr. Kırman said: "Italy, with a population exceeding 60 million, an economy reaching 2 trillion dollars, and a deep industrial heritage, holds strategic importance for Şişecam in terms of both its investments and commercial activities. Şişecam currently conducts production activities in Italy in 3 different sectors, producing over 400,000 tons of flat glass, 4 million square meters of coated glass, 8 million square meters of laminated glass, and 8,800 tons of chromium compounds in the country. With its broad global footprint, Şişecam continues to take pride in being a strong representative of Turkey's technology development and production capabilities in the countries where it operates."
Announced TRY 6.5 Billion in New Investment for Turkey in 2021
Şişecam, established in 1935 to lay the foundations of Turkish glass industry, is growing in Turkey through value-adding investments. In 2021, the organization made powerful investment initiatives to contribute to the growth of Turkey and its key sectors, announcing that it would launch production on 2 new float lines with TRY 5.2 billion (EUR 344 million) in architectural and automotive glass investments, and also revealed plans to invest in a new container glass facility in Eskişehir. The total value of new investment plans that Şişecam announced for Turkey in 2021 exceeded TRY 6.5 billion (EUR 428 million).
Maintaining its priority to meet Turkey's glass demand and create value for its economy even amid the uncertainty created by the global pandemic worldwide, Şişecam has continuously carried on with investments to modernize its existing facilities with the latest technologies while also announcing successive new investment plans that will create value for all stakeholders. In the current environment of globally disrupted supply chains, prioritizing demand created in the domestic market, Şişecam invests an annual average of TRY 1 billion in facility development to align with advancing technology and cold repair processes.
