ETİ SODA Sales and Marketing Director Sinan Solaklar Interview

" We had an enjoyable conversation with Sinan Solaklar, Sales and Marketing Director at Eti Soda. Solaklar provided information about Eti Soda's current structure and objectives. "

Sinan, could you briefly tell our readers about yourself? Your education and professional background?

I was born in 1955. I graduated from Galatasaray High School and Istanbul University's Faculty of Economics. I started my career at Koç Group, spent 3 years there, then moved to Şişecam where I worked in Soda Sales and Marketing for 25 years. When Eti Soda was established in 2009, I took on my position here.

Could you tell us about Eti Soda's development process since its establishment? What journey has Eti Soda undergone?

The trona reserves in Beypazarı were discovered in the 1970s while searching for coal. After that, from the 1970s until 2001-2002, many companies wanted to operate this site. Due to political reasons, particularly concerning foreign firms, and technological constraints, this was repeatedly postponed. Then in 2002, Park Holding established this company. The search for technology related to this began, and to utilize these reserves in the best possible way, we employed what we call solution mining technique. The solution mining technique used here is arguably the only one of its kind in the world and the most advanced. It exists in America, but our technology here is different because in America they still enter the mine itself to extract it. They dissolve the ore underground with human effort, then pump it up. With us, it is not like that at all. Pipes go directly underground to the ore, solution is delivered there. This solution is then drawn back up through pipes. That is, no human effort is used in ore extraction. This is the only and most advanced method in the world. We started production in 2009. We have been producing since 2009. Therefore, our current capacity of 1.1 million tons will operate at full capacity of 4.4 million tons starting from the beginning of 2018. Of course, this capacity will increase from 1.1 to 4.4 during 2017. In April 2017, our new 600,000-ton line at the current factory will come on stream. Then in August 2017, the first 3 lines of our factory in Kazan will come on stream, 1.7 million tons. At the end of 2017, the remaining 2 lines will come on stream, so from the beginning of 2018 we will start producing 4.4 million tons of soda per year.

Could you provide information about Eti Soda's mission, vision and quality policy?

Our mission is to produce the highest quality soda in the world and deliver it to our customers with the highest quality and just-in-time service. This is our core mission. Of course, our objective in production is also to produce in the most economical way, because otherwise it has no meaning. So our main mission is to produce in the most economical way, and deliver the highest quality soda to our customers on time and under competitive conditions. Besides this, the characteristic of our soda is that it is environmentally friendly. Because synthetic soda production has environmental problems: waste, carbon dioxide emissions, and so on. Our soda has no such environmental issues. Therefore, it is also the soda most sought after by customers. Because as you know, in Europe there are trading taxes related to carbon dioxide emissions, waste problems arise. This 4.4 million-ton soda production in Turkey is an investment that will restructure the global soda industry.

So, could you tell us about your product variety and product applications?

We produce soda, that is, what we call soda ash. We also produce sodium bicarbonate. Both used in food and used in animal feed, we produce those as well. We will produce 1,000 tons of sodium bicarbonate over 400 years. When you mention product diversity, there are varieties within sodium bicarbonate itself; those for human food, those for animal feed, those for the pharmaceutical industry, fine and coarse grades. There are varieties within it. But ours is heavy soda and bicarbonate. And there will be varieties within bicarbonate as well. Actually, the entire soda industry is like this. Synthetic soda also has light soda. Its density is lower, but its consumption worldwide is gradually decreasing. There is a shift to heavy soda everywhere. In fact, 80-90 percent of worldwide consumption is heavy soda.

Could you provide information about your R&D activities?

Our production capacity is 4.4 million tons and our current production technology is unique in the world. We first used this technology when we built the factory in Beypazarı, but in our new factories, at the end of this 67 years of experience, we made certain modifications and created a technology tailored to us. We created a more efficient technology with greater depth. Also, particularly in the well systems from which trona is extracted, over the past 7 years we developed numerous technologies and made improvements. But generally, this production technology of ours is almost unique in the world. It is a wholly new technology.

Do you have projects related to sustainability?

One of the biggest problems of the soda industry, particularly the synthetic industry, is sustainability. Because generally this industry has liquid waste and solid waste. And these are quite troublesome problems. In our industry, there is almost no waste. Plus, our freshwater consumption is very low compared to other synthetic soda industries. Our carbon dioxide emissions are almost nonexistent compared to that of the synthetic industry. Therefore, in terms of sustainability, we are ahead to the point of being incomparable to other soda technologies. This also provides a major advantage for our customers. For all major industries, whether glass or detergent, the biggest problem for the chemical industry is sustainability. Therefore, sustainability is one of our main themes.

So, as Eti Soda, do you have social responsibility projects?

We make significant contributions to the restructuring of historic buildings in Beypazarı, and the group makes contributions in education. In addition to other industries of the company, we carry out social responsibility projects related to health. We conduct activities within the scope of explaining the benefits of glass to the public. We have activities in Beypazarı related to education and development of the region with local authorities. We have certain health-related activities directed at other industries of the company.

Do you have new projects?

We are increasing our capacity approximately 4.5 times, from 1.1 million tons to 4.4 million tons. This is our most important project. Besides this, we also acquired OCI, a company in America, in soda production. Now it is called Ciner Resources. Therefore, as of 2018, we will likely be the world's largest soda producer in our segment. Currently, Solvay produces around 7 million tons. By 2018, we will reach that level. We will probably be number 1 or 2. Let me explain it this way, for example, global soda production is around 55 million tons, half of which is in China. We will have a production capacity of 7 million tons, so this corresponds to around 13-14 percent of total production. If you exclude China, because China produces and consumes it domestically, if you consider the 27 million of other global consumption, 7 million makes 40 percent. That means in 2018, we will have produced 40 percent of world production. So then, you export to all continents in the world... We export to every point in the world.

Has the chaos in the Middle East affected you?

Political situations generally negatively affect everyone. But because our market is the entire world, the risk is very dispersed. That is, because we can sell our products to every place imaginable, from Japan to Australia, to South America, we are affected much less by such situations.

We ship products from the North Pole to Patagonia.

Do you make a distinction such as "Our products are used mostly in the chemical sector, or glass sector, or food sector"?

Yes, we do. Now approximately 45-50 percent of all soda production goes to the glass sector. 25-30 percent goes to detergent, the rest goes to the chemical and other sectors. However, soda is used in every sector you can think of. That is, paper, textile, shampoo, and so on—a very broad range. This is also an advantage; when there is a crisis in one sector, it can be used in another sector, so we also disperse the risk. Soda is like blood for the glass and detergent industries. For example, glass mixed with soda and sand has been produced this way for 3,000-4,000 years and it is impossible to produce glass without soda.

So what would you like to say about the sector, particularly about the chemical sector? When you evaluate from past to present, what is Turkey's position in Europe and the world, in your view?

The position of the chemical sector in the world is very important; without progress in the chemical sector, it is impossible to make progress in any sector. However, I do not believe that the chemical sector in Turkey is very developed; I still think there is a long way to go. Because capital accumulation is insufficient, and also the chemical sector requires important know-how technologically. Therefore, I can say that chemistry is a sector with potential for Turkey. I hope Turkey grows in this sector. We see ourselves as a pioneer of the chemical sector in Turkey. Not just in the chemical sector but in all industrial sectors in Turkey, we position ourselves somewhat differently. As I mentioned, we are the world's largest player in our own sector. We hope that development in Turkey's chemical sector will continue this way; we are going this route. There are many other new investments, and development of the chemical sector is essential.

Could you tell us about your in-house training programs?

We have a very young structure with our colleagues, because we are not only investing in soda. These colleagues of ours are the ones who will manage the soda and run this business over the next 40-50 years ahead. Let me tell you the average age—outside of me, it is 25-26. Very young; otherwise it is not possible to develop people for the future. Also, it is not possible to find ready-made personnel in this sector. Therefore, we implement an in-house training program and try to develop our colleagues that way; otherwise, it is not possible to find ready-made personnel like in other sectors. Similarly, in the production area, we currently use the factory where we are producing somewhat like an educational institution, because when production increases to 4.4 million tons, we are also training all the technical personnel of the new factory here. We have a very systematic and long-term training program; otherwise, we cannot handle the task.

Could we get information about your product inventory?

Currently, we can hardly keep up with production. Of course, the situation will be different in the coming years. God willing, by then we will sell it all.

Finally, what else would you like to add?

Our objective, as I said, is to be the number one producer in our field in the world. And the most important thing for us is customer satisfaction, zero complaints. And all our objectives are long-term. In this sector, it is not possible to pursue short-term policies or strategies. To ensure customer satisfaction in the long term, the company to make money, developing people. Also, another characteristic of ours is that our product has significant added value. Because, in the end, you sell the ore you extract from underground with added value. We can say that we conduct business by increasing this added value in some way.