Demand for Packaging and Paper Cartons Rises

Cemalettin Tunç Efe, General Manager of Konya Kağıt Anonim Şirketinin, a subsidiary of BERA Holding, noted that despite the pandemic affecting every sector, e-commerce has increased demand for packaging paper and cardboard. Efe stated, "The rise of e-commerce, online shopping and similar methods has increased demand for packaging paper and cardboard." Cemalettin Tunç Efe, General Manager of Konya Kağıt A.Ş., which ranks at the top of the ISO second 500 list, said that every sector was negatively affected by the pandemic but continued production nonetheless. He noted, "Global paper demand, with the exception of certain paper types (tissue and hygiene papers, packaging papers), was negatively impacted by consumption due to travel restrictions, school closures, reduced industrial production, the halt of the service sector and advertising, promotion, marketing and trade fairs coming to a standstill. In addition to this decline, there was a significant drop in printed materials due to office closures, conference cancellations, other business activities and university shutdowns. With tissue and hygiene papers, production has faced serious demand in parallel with increased global consumption due to hygiene considerations. The paper industry as a whole, despite leading to reduced employment globally, did not experience employment decline specifically in Turkey."

"SIGNIFICANT CHANGES OBSERVED IN CONSUMER PREFERENCES"

Emphasizing the shift in consumer preferences, Efe stated: "The rise of e-commerce, online shopping and similar methods has increased demand for packaging paper and cardboard. Due to China, the world's largest consumer, restricting plastic material use in 2020, many plastic-based products have been converted to paper-based products. This situation will cause significant growth in demand for single-use paper products in 2021 and beyond. Additionally, since China has restricted waste paper imports, it is importing large quantities of packaging bobbins from abroad."

"TURKEY MUST TRANSITION TO CELLULOSE PRODUCTION"

Addressing the most common issues encountered in Turkey's paper and cardboard production, Efe said, "The main problem is that the primary raw material, cellulose, is an imported input. Cellulose production in Turkey is only around 60,000 tonnes at OYKA, with the remaining amount sourced entirely from abroad. It is necessary to implement the required legal regulations, open plantation areas and transition to cellulose production in Turkey. Furthermore, waste paper, the primary raw material for cardboard packaging, is supplemented through imports as the amount collected in Turkey is insufficient. Due to difficulties in waste paper imports, some production facilities are experiencing serious challenges. Total production of corrugated kraft papers and cardboards in Turkey is approximately 3 million 600 thousand tonnes, while domestic sales are around 4 million 425 thousand tonnes. As seen, packaging paper production falls short of consumption. Even if Kipaş Holding's packaging paper and cardboard facilities with 450,000 tonnes/year capacity in Söke, which will come online in June 2021, are added, a shortfall still remains visible."

Efe said, "Our export strategy is 'Think Global, Act Local'. Exports represent 15% of our total sales. Although COVID-19 has limited our export opportunities, the countries we export to include the United States, Ireland, Georgia, Iran, Iraq, Libya, Ethiopia, Turkmenistan and Cyprus."

Noting that Turkey's paper and cardboard production capacity in 2020 was 5 million 754 thousand tonnes and consumption was 6 million 698 thousand tonnes, Efe stated, "Per capita paper consumption was 80.1 kilograms. Konya Kağıt A.Ş. has writing paper mills, printing and packaging facilities in Konya and Istanbul Güneşli, and a notebook production facility in Konya, and has been operating in the sector for over 30 years. Konya Kağıt A.Ş., including our head office and Güneşli branch, employs 478 people. Our employees continue to create value for our sector and company through their knowledge, experience and expertise. We produce offset paper and are among the primary paper suppliers of the Ministry of National Education. We have an installed capacity of 99,000 tonnes/year and supply 25% of Turkey's offset paper production. Our product range includes offset reel paper, cut-size paper and photocopy paper. We also produce various sizes of corrugated boxes and coated boxes. Additionally, we have KOMEKS brand notebook varieties. Considering Turkey's young population and number of students, it is clear that writing paper is a strategic product," he stated.