An Engaging Interview with Tolga Demirözü, General Manager of BASF Türk

BASF Türk's General Manager Tolga Demirözü has given us a very informative interview. He shared with us important information on product groups the company offers to the paints sector, activities at its Innovation Center, and sustainability initiatives.

Could you tell us about yourself and your academic and professional background so our readers can know you better?

After graduating from Kadıköy Anadolu High School, I completed my undergraduate and graduate education in Chemical Engineering at Yıldız Technical University. My career journey, which began in the pharmaceutical industry, continued at Nestle Turkey where I held management positions in supply chain, planning, operational excellence in international markets, and factory logistics. I then managed supply chain operations projects for consumer and manufacturing industries at Deloitte Turkey. Between 2008 and 2018, I held various positions at BASF Türk and served as Director of Operations. In 2018, I became Deputy General Manager of PETKİM and subsequently Group Director of SOCAR Corporate Ventures and New Business Areas. As of May 2022, I returned to BASF Türk as General Manager. I currently serve as General Manager of BASF Türk and Head of the Turkey-Azerbaijan-Georgia Country Group. Additionally, I hold board memberships at YASED, IMSAD, BOSAD and TKSD associations. [caption id="attachment_157708" align="aligncenter"] BASF Türk General Manager Tolga Demirözü[/caption]

Could you share with us the history of BASF Türk's establishment and its current structure?

We made our first sales in Turkey in 1880 and, following our partnership with Sümerbank in 1969, we commissioned our first factory in 1970. For half a century, we have continued to supply chemical products to many industrial sectors and have contributed to the development of many sectors and the Turkish economy since the foundation of the Republic. As BASF Türk, we employ nearly 500 people at our head office in Istanbul, regional offices, two production facilities, and our Innovation Center. Together with our other legal entities under BASF, Chemetall and Nunhems, our total employment exceeds 700.

What sectors do you serve and what product groups do you provide to the paints sector?

BASF's areas of operation in Turkey include chemicals, plastics, dispersions and pigments, maintenance chemicals, specialty chemicals and crop protection, among many others. BASF products and solutions are used across a wide range of sectors spanning electrical and electronics, automotive, construction, detergents and cleaning, pharmaceuticals and cosmetics as well as animal feed, agriculture and food. In Turkey, we conduct significant activities in automotive original equipment manufacturer paints, automotive refinish paints, and construction and industrial paints. At our Innovation Center, in a laboratory designed for automotive repair professionals, we conduct product testing and provide training on product usage, color matching and workflow. We also provide color matching and formulation consulting services through our color laboratory. At our Innovation Center, in the laboratory where construction and industrial paint formulations are developed, we provide formulation and testing support using dispersions, resins and additives, and deliver technical seminars.

Could you tell us about the features of BASF Innovation Center and the work you conduct there?

We launched BASF Turkey's Innovation Center in 2020. Operating at the Teknopark Istanbul campus, we develop tailored solutions for our local customers while taking into account the characteristics of the relevant geography. We conduct new solution development and work on customer needs in Food Solutions, Seed Solutions, Home Care and Industrial Cleaning, Personal Care, Engineering Plastics and Polyurethane, Automotive Refinish Paints, and Construction and Industrial Paints. Our Innovation Center is a platform where we generate common ideas with our customers, employees, universities and entrepreneurs, and develop sustainable innovation projects in line with our global vision. Our vision is to develop an innovation ecosystem that creates shared ideas and value and encompasses all our stakeholders.

We now live in an increasingly digitalized world, and the chemical sector has begun to benefit from digital technologies accordingly. What are your thoughts on this, and in which areas are you utilizing digital technologies?

At BASF, we use digital technologies and data to create value for our customers and improve the efficiency and effectiveness of our processes. We deploy digital solutions across all areas, from R&D to supply chain and production, to build an effective system. We follow leading practices worldwide and implement digital solutions in many areas in our country. Our Innovation Center in particular provides us with opportunities to implement these solutions. For example, at our Automotive Refinish Paints training center, we use virtual reality glasses in paint training, both shortening processes and preventing potential carbon emissions. We use the same application in training programs by our Agricultural Solutions business unit, reaching far more farmers than previous methods and enhancing expertise in proper farming practices. We also leverage digital technologies in workplace safety applications, which is a primary priority for us, to prevent occupational accidents. We have received awards for these efforts both in our country and across BASF Europe. Most recently, we launched chatBASF, an application created with artificial intelligence support, to serve all our employees. We anticipate exponential acceleration of digital transformation in all areas in the coming years.

You have a target of zero carbon dioxide emissions by 2050. Could you share your goal and the steps you have taken toward it?

As BASF, in line with our "Net Zero" approach announced globally, our company target is to eliminate CO2 emissions by 2050. As an interim target, we plan a 25% reduction in CO2 emissions by 2030. There are many investments we have deployed and projects to which we as a country organization have contributed along this path. For example, we are making outstanding efforts to transition to renewable energy at our production facilities. At our Çayırova production facility, we have reduced our carbon emissions by 65% compared to 2018. We now source our energy from 100% green energy. Through various operational excellence initiatives, we have already achieved the carbon emission reduction targets we planned for 2030. While recording these important developments for the chemical sector in particular, we continue efforts toward our primary goal of reducing the carbon emissions of our customers as well.

Could you discuss the importance of the Turkey market for BASF and how you evaluate the development of the paints sector in Turkey?

For BASF, Turkey is a trusted market with potential in many areas. Long-standing investments, the opening of our Innovation Center in 2020, and new production facility investments realized this year demonstrate this approach. In particular, with our qualified workforce, our ability to meet needs quickly and agilely, and our flexibility in both production and logistics terms, we have a significant competitive advantage in our region. The paints sector, like all other sectors, closely experienced the effects of the Russia-Ukraine war, subsequent supply chain problems and the energy crisis in 2022. However, strong paint manufacturers in our country made efforts to turn the situation in a positive direction through work aimed at increasing production. For decorative paint and construction chemical raw materials, as BASF we targeted increasing our supply share in North African and Central Asian markets this year. Additionally, we expect demand in European markets to gradually increase toward year-end. We support the export market success, which is a very strong point for our customers in Turkey, with BASF's products and solutions. We believe that in the medium and long term, our export strength will have positive reflections on the domestic market.