Burhan Ergene, Şişecam Chemicals Group President

In this issue, we hosted Burhan Ergene, Group Head of Şişecam Chemicals, in our interview feature. We conducted an enjoyable interview touching upon the company founded in 1969 with Soda Sanayi A.Ş., its advanced technology, areas of operation, and new investment facilities.

Could you provide information about Şişecam Chemicals?

Şişecam Chemicals is the chemicals division of Şişecam Group, one of Turkey's most established organizations. Today, Şişecam Group is a global player in all basic glass sectors such as flat glass, household glass items, glass packaging and glass fiber, as well as in soda and chromium compound businesses. Besides Turkey, Şişecam Group operates production facilities in 13 countries across three continents: Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia and Herzegovina, Russian Federation, Georgia, Ukraine, Egypt, and India. Şişecam Chemicals, representing one of the four main business areas of the Group, is a company that ranks among world leaders in its field and produces global solutions for customers with environment-friendly technologies. Şişecam Chemicals operates in the fields of soda, chromium chemicals, glass fiber, mining, Vitamin K3 derivatives, and sodium metabisulfite products. In addition to its world leader position in chromium chemicals, it is Europe's fourth and the world's tenth largest soda producer. Şişecam Chemicals continues its operations with production facilities in Turkey, Egypt, Bulgaria, Bosnia and Herzegovina, Italy, and a company in China. The chemicals it produces provide main raw materials to more than 100 different product types at world standards, ranging from glass, detergents, chemical industry, to leather and pharmaceutical industries.

Could you briefly tell us the founding story of your company?

Şişecam Chemicals, which has a say in Turkey and the world in the production of soda ash, chromium chemicals, glass fiber, and industrial raw materials, was founded in 1969 with the establishment of Soda Sanayi A.Ş., which was created to produce soda ash, one of the main raw materials for the glass industry. The chemicals we produce at the Soda Sanayi Factory operating in Mersin and the Kromsan Chromium Compounds Factory, which joined the Group in 1982, are used as main raw materials in many products ranging from detergents to chemical industry, from leather tanning to pharmaceutical production, and metal coating, in addition to glass.

Could you provide information about your position in the overseas market?

In 2017, Şişecam Chemicals achieved production of 2.3 million tons of soda and 4.2 million tons of industrial raw materials at its facilities in Turkey, Bulgaria, Bosnia-Herzegovina, Italy, and Egypt. Şişecam Chemicals, which produces soda at its facilities in Turkey and Bulgaria, conducted 78 percent of total soda sales to international markets last year. In the chromium chemicals field, Şişecam Chemicals produces at the Kromsan Chromium Compounds Factory and at the Cromital S.p.A. facility in Italy. Besides being the world's leading producer of sodium dichromate and basic chromium sulfate, it is the world's fourth largest chromic acid producer. Our facility in Italy, which is advancing towards becoming a center meeting the European Market's liquid-based chromic acid, basic chromium sulfate and dichromate demand, holds an important global position in high-value-added specialty chromium III chemicals.

Could you tell us about your production in the chemical sector besides soda and chromium?

Besides soda and chromium chemicals, we continue our production in the chemical sector in Vitamin K3 derivatives and sodium metabisulfite fields. Oxyvit Kimya, Europe's sole Vitamin K3 producer, maintained its strong market position in 2017. In Vitamin K3 sales, primarily targeting the European market, the export share reached a high level of 93 percent, with exports realized mainly to Europe. Our other product, sodium metabisulfite, also had approximately 70 percent of last year's production exported to overseas markets.

You are setting up a new glass fiber investment facility in Balıkesir. Could you provide information about this facility?

Our Group has made a strategic investment decision in the glass fiber field, which is a basic input for Turkey's locomotive sectors, particularly automotive, construction, and infrastructure. In this direction, Şişecam Chemicals is rapidly proceeding with work to establish a new production facility in Balıkesir with an investment exceeding EUR 100 million. Through the new production facility, which will initially have an annual production capacity of 70,000 tons, it is aimed to substitute Turkey's glass fiber imports and convert local resources, particularly boron, into high-value-added products. The investment in the glass fiber field, which has become increasingly important, particularly for wind energy, electronics, aerospace, and defense industries, is expected to come online this year.

You also have activities in the mining field. Could you provide information about your operations in this area?

The mining companies operating within Şişecam Group Chemicals Division (Camiş Mining Inc., Mining Ind. and Trade Inc., Camiş Egypt Mining Co., and R.K. Vijenac d.O.O) continue their activities to ensure medium and long-term raw material supply continuity to meet the raw material needs of production facilities within the Group domestically and internationally, while also playing important roles in meeting industrial raw material demands of companies outside the Group. In 2017, at more than 60 mining sites in Turkey, Egypt, and Bosnia and Herzegovina, and with 600 employees at 17 facilities we operate, we produced a total of 4.2 million tons of limestone, dolomite, feldspar, and kaolin of various qualities, primarily sand glass. In addition to Şişecam Group companies and numerous firms we serve domestically, we supply raw materials to our customers in Italy, Spain, Egypt, Bulgaria, Saudi Arabia, and the United Arab Emirates overseas.

Could you tell us about your company's sustainability strategy?

As Şişecam Chemicals, the Şişecam Group to which we belong, with its "Sustainability Strategy," aims to be an effective stakeholder on an international scale by adding long-term value to future generations and derives its strength from the company's historical heritage and the competence to go beyond conventional approaches. Besides being a global, reliable, and financially stable company, our Group, which adopts a transparent management approach, has announced its support for the United Nations Sustainable Development Goals. In this context, our commitment to the 10 principles of the Global Compact is also aligned with our goal of managing economic, social, and environmental sustainability.

"Şişecam Group's method followed on the sustainability path is built on sustainability pillars titled 'Protect,' 'Empower,' and 'Develop.'"

The "Protect" approach developed by Şişecam Group within the global agenda implements sustainable environmental and natural resource management practices with specific focus on water and terrestrial resources. The "Empower" approach leads to the integration of diversity and inclusion issues at both corporate and operational levels into daily practices, while also promoting digital intelligence and societal progress. The "Develop" approach accelerates the process of being an active player in combating climate change and implementing circular models on operations. The company's medium and long-term vision is to create an appropriate environment in terms of corporate heritage responsibility, be an international supporter and advocate of sustainability, and operate factories with minimal impact on climate change using a 360-degree circular model approach.

What is your approach to environmental protection as Şişecam Chemicals?

Şişecam Chemicals, parallel to its objective of being one of the sector's leading organizations in all areas in which it operates, follows and implements best industry practices in all its activities, from production processes to environmental management.

Our environmental approach is fundamentally focused on the most important environmental impacts comprising energy, emissions, and waste. Ongoing work covers the following areas:

• Production techniques aimed at reducing environmental impacts, • Development of energy efficiency projects to reduce climate change effects, • Expansion of waste recovery and recycling activities, • Evaluation of fuel and raw material alternatives, • Responsible energy and resource management, • Treatment of wastewater and evaluation of recycling opportunities. Şişecam Chemicals successfully implements environmental, health, and occupational safety management systems under the "Responsible Care" program, a voluntary initiative specific to the global chemical industry. Furthermore, as an organization conducting significant exports in both soda and chromium products, we continue to fulfill our obligations under the REACH Regulation, which is of great importance to the European Union.