Global developments may favor local cement companies

ISTANBUL

Developments in major countries, such as China and Saudi Arabia, are likely to work in favor of Turkish cement companies to help them regain Western markets, according to a business group.

Economic activity is gaining momentum in China after Beijing ended strict anti-COVID-19 measures which will encourage countries in the region, particularly Vietnam, to shift attention away from the Western markets toward the Chinese market, said Abdülhamit Akçay, the vice chair of the board of Cement, Glass, Ceramics and Soil Products Exporters’ Association (ÇCSİB).

“Those counties in the region will focus less on the Western markets, such as the U.S.”

He also noted that Saudi Arabia will launch large scale projects which will attract cement production companies in the countries in its region.

“Thus, we will be able to regain the markets which we lost due to higher energy costs.”

The increase in shipping costs in the final quarter of last year adversely affect the exporters in the Far East countries, which will also work in favor of us, Akçay said. “We will have an advantageous position in the Western markets.”

The main issue on the local cement industry’s agenda is the earthquakes which hit several provinces in Türkiye’s south in early February, according to Akçay.

Exporting cement is important for the industry, however, meeting the demand and providing cement for projects to be launched for the reconstruction of cities devastated in the earthquakes will be their target this year and in the next five years, he said.

“Meeting the local need does not mean this will hinder exports. The cement industry has annual production capacity of 120 million tons. Last year, total demand, including domestic demand and exports, stood at 80 million tons which means we have 40 million spare production capacity.”

“We will be able to both meet local cement demand when the reconstruction activities in the earthquake-hit areas reach their peak and at the same time continue to export our products,” he said.