Interview with Kemal Ersudaş, Paints and Coatings Solutions Director at Organik Kimya

We conducted an enjoyable interview with Kemal Ersudaş, Division Director of Organik Kimya's Paints and Coatings Solutions unit, discussing his professional background, the solutions the company provides to its customers, research and development and innovation investments, and sales activities. Mr. Ersudaş shared his views on Turkey's paints sector with us.

Mr. Kemal Ersudaş, could you briefly tell our readers about yourself, your educational background, your position at your company and your professional experience in the sector?

I was born in Bursa in 1983. I completed my undergraduate degree in business administration and my MBA at Istanbul Bilgi University. I began my career in the foreign trade operations department at Ege Kimya; after six years of experience in logistics and export sales divisions, I joined the Organik Kimya family in 2010 in the position of Export Regional Sales Manager. Following my roles as Export Director and Division Manager, I have been serving for the past 1.5 years as Paints and Coatings Solutions Division Director. Throughout my 13-year career, I consider myself fortunate to have had the opportunity to work with highly valued managers and colleagues.

Could you provide information about Organik Kimya's development process and the sectors it serves?

Organik Kimya began operations in 1965 in Istanbul with an annual capacity of 6,000 tons, producing polymer emulsions and specialty chemicals; in line with its sustainable growth objectives, it has brought production facilities into operation in Rotterdam (Netherlands), Balerna (Switzerland) and Tuzla through investments in strategically located sites alongside its Kemerburgaz facility. As of 2017, Organik Kimya, which has reached production capacity of 250,000 tons, provides products and services in the paints, construction, leather and textiles, pressure-sensitive adhesives, industrial adhesives and life sciences sectors using different technologies. As Turkey's leading polymer emulsion manufacturer, Organik Kimya is a global player in its focused markets with an innovative solutions approach, operating a customer network exceeding 2,000 across 80 countries.

What type of activities are you conducting related to your research and development and innovation investments?

Over more than 50 years, Organik Kimya has implemented many innovative projects and investments. With innovative products resulting from these projects, we continue to increase our market share year after year in sophisticated and stable markets like Europe. We allocate approximately 2% of our annual revenue for product innovation projects. Our Research and Development Center, registered as the first in the chemical sector in 2009 and staffed with approximately 80 people, operates with fully equipped analysis, synthesis, application and scaling laboratories and pilot facilities.

Could you tell us about your product groups for the paints sector and product characteristics?

Polymer emulsions, in terms of chemical structure, can be classified under three different technologies: pure acrylic, styrene acrylic and vinyl acrylic polymers. Our entire product portfolio of over 300 items with different chemical properties complies with international standards and features high performance and environmentally friendly characteristics. Organik Kimya's production, approximately 70% of which is supplied to a wide geography, particularly Europe. While maintaining our market leadership in Turkey with our product portfolio for decorative applications, we are rapidly continuing product development work for industrial applications, particularly in emerging application areas such as water-based wood and metal coatings.

Could you provide detailed information about the solutions you offer customers related to your polymers?

The chemical industry, by its nature, has longer solution processes compared to other sectors. In this sector where differentiation is difficult, customers need suppliers who can make faster decisions and produce innovative projects for niche applications. Organik Kimya meets this need of the sector. In recent years, we follow the ecological trends initiated in Europe; we review all our products and processes accordingly. Our primary objectives in this regard are to minimize formaldehyde use and minimize VOC (volatile organic compound) ratios. Within the framework of this improvement policy, we cooperate with DCMR (Rijnmond Environmental Authority), Rotterdam Ministry of Labor and Turkey Chemistry and Manufacturers Association.

Could you tell us about your domestic and export sales activities? Which regions do you primarily sell to and what types of products do you provide?

As a commercial directorate unit, we conduct sales to 80 countries with an experienced team responsible for domestic and export sales activities. As head of the Paints and Coatings Solutions unit I oversee, we maintain our market leader position in Turkey while continuing activities in line with our European-focused growth objectives internationally. Because we have a global sales portfolio, we participate as exhibitors or visitors at strategically important sectoral trade fairs in various geographies. Today, Organik Kimya has achieved a balanced portfolio in domestic and export sales ratios within the framework of its investments, planned growth strategy, innovation and sustainability focus. This enables us to easily balance any potential demand decline or seasonal demand fluctuations that could occur in Turkey with export sales.

How is 2017 going for you? What would you like to say about your company's goals and projects?

We began 2017 facing global monomer supply shortages and resulting sudden price fluctuations, and we anticipate these problems will continue through year-end. Although the long winter period we experienced in Turkey in the first quarter caused a short-term contraction particularly in the paints sector, with the resolution of political uncertainties and strong demand from both Turkey and export markets beginning with the second quarter, we plan to complete the first half of the year above target. In line with our European market growth objectives, we plan to continue product development work targeting niche applications.

Could you provide information about Organik Kimya's employee profile and career opportunities? Do you have training activities for employee development?

Organik Kimya's average employee age is around 34. In other words, we have a very young and dynamic team. This is one of the most important factors in our innovation strength, balanced growth and superior performance. Organik Kimya creates opportunities for employees to realize their potential and offers new possibilities. The best example that this is not just rhetoric but action in practice is my own career opportunity of becoming a Division Director at age 32; having the chance to lead an experienced and successful sales team. Organik Kimya is a company that invests not only in professional training supporting employees' work lives, but also in social activities related to personal development and areas of interest.

What are your future goals as the Paints and Coatings Solutions Division?

Our goal is to maintain our leading position in Turkey in our prioritized applications and become the most preferred solution partner by increasing our market share in Europe. To this end, we invest in the development processes of sustainable innovative products and solutions we offer to the market. With the knowledge and experience we have gained in the European market, we prioritize formulation support and product development work for water-based paint applications to Turkey and developing countries.

What are your views on Turkey's paints sector? What can you say in a general assessment of the sector?

In terms of the paints sector, Turkey occupies a position as a country with a voice in Europe in terms of volume given its current position. However, the strategic development report prepared by BOSAD clearly shows that when evaluated in terms of per capita consumption and average product selling price, unfortunately the sector falls short of the desired level. Companies facing increasingly deteriorating balance sheets with the goal of selling more at lower prices than competitors need to participate in joint projects aimed at creating added value with other sector representatives to break out of this vicious cycle. Considering the growth in the construction sector and the increase seen in the young population and income levels, growth in the paints sector is expected to continue. The most important investment to accelerate this momentum is to determine policies that will increase per capita paint consumption and take rational steps in raising end-user awareness. At this point, we at Organik Kimya continue to conduct joint projects with our stakeholders.