Turkey is a democratic Republic at the crossroads of Eurasia. Although 98% of Turkey's 75.9 million people are Muslim, Turkey has a secular constitution that dates back to the 1920s when Turkey was first established as a modern country. As a result, Turkey is the only country where the vast majority of the population is Muslim but Islam is not a state religion.
Turkey, an emerging market economy as defined by the International Monetary Fund, had a gross domestic product of $857.7 billion in 2016, down slightly from $859.7 billion in 2015. Its per capita GNP fell from 10979 dollars per person in 2015 to 10787 dollars per person in 2016. Turkey's contribution to GDP is 65.5% for services, 28.5% for industry and 6.1% for agriculture. In 2016, Turkey's working population was 30.5 million, and the unemployment rate rose from 9.2% in 2014 to 10.9% in 2016.
Turkey is a net importer of goods. In 2016, Turkey imported nearly $207 billion worth of goods, including machinery, chemicals, fuel and equipment. Although Turkey has a strong industrial and manufacturing level, it relies on imports for 97% of its oil and gas. In 2016, Turkey exported $143 billion of goods, mainly textiles, food and services. In addition, Turkey is also a big exporter of cement.
I. Introduction to Turkey's Cement Industry
According to relevant data, Turkey currently has 52 integrated cement plants in operation, with a total capacity of 95.6 million tons per year. In addition, four cement plants are under construction, five cement plants are preparing for upgrading and expansion of production capacity, and one cement plant will be relocated as a whole. In addition to integrated cement plants, Turkey has 16 grinding stations in operation with a total grinding capacity of more than 8 million tons per year. According to the information released by Turkish Cement Manufacturers Association (TCMA) in 2016, Turkey's cement production capacity in 2016 was 132 million tons per year.
Figure 1: Cement production and sales in Turkey (10,000 tons)
Source: Turkish Cement Association
II. Development of Turkey's Cement Industry in the 21st Century
According to the data of Turkish Cement Association, cement production in Turkey has increased significantly since the beginning of the 21st century. In 2000, Turkey's cement production capacity was only 64 million tons per year, cement production was 35.9 million tons, and Turkey's domestic sales were 31.5 million tons. By 2016, Turkey's cement production had reached 75.4 million tons, with domestic sales of 66.8 million tons. In 16 years, Turkey's cement production has increased by 110% and domestic sales have doubled.
Turkey is one of the most important cement exporters in the world. First of all, Turkey has a large reserve of high-quality limestone, secondly, Turkey has a large number of deep-sea ports, which are convenient for large transport vessels to enter and exit, and Turkey is close to a mature and growing cement demand market. Turkey can provide high-quality cement to the EU, which directly weakens the cement supply capacity of local enterprises in the EU; in addition, Turkey can also easily transport cement products to Africa and the Middle East. Back in 2000, Turkey exported a surprising 4.5 million tons of cement, mostly in bulk. In 2010, the export scale of cement reached a small peak of nearly 15 million tons, and then the export volume dropped. By 2016, the export volume of cement in Turkey was about 7.4 million tons. In terms of cement exports, Turkey was the world's fourth largest cement exporter in 2016, accounting for 5.5% of the world's total cement exports, about $494 million. China is the world's largest cement exporter in 2016, accounting for 7.6% of the world's total cement exports, and its foreign exchange earnings from cement exports are 692.4 million US dollars. Figure 2 shows the main countries of Turkey's cement exports in 2016.
Figure 2: Major cement export countries of Turkey in 2016 (10,000 tons)
Source: Turkish Cement Association
Turkey's cement industry has undergone significant changes in production areas from 2000 to 2016. The most striking thing is Turkey's proximity to the Mediterranean region. In 2000, Turkey's cement production was mainly concentrated near Istanbul, which is the outlet of the Black Sea, close to the important transportation hub and the capital, an important cement demand market. But on the map of production capacity distribution in 2016, we can see that, in addition to the original main production area near Istanbul, the cement production capacity along the Mediterranean coast has expanded dramatically, and is now the largest cement production area in Turkey. Although the Mediterranean region is not traditionally densely populated in Turkey, the drive of overseas markets has led directly to this result. On the whole, the smallest changes are in East Anatolia and Southeast Anatolia.
Figure 3: Regional evolution of cement production in Turkey (million tons)
Source: Turkish Cement Association
III. Production of Turkey Cement Industry in 2017
In the first six months of 2017, Turkey's cement production decreased by 4.2% year-on-year to 36 million tons compared with the same period in 2016. Among them, domestic consumption was 31.6 million tons, down 4.2% from the same period last year, while cement exports rose by 1.2% to 4.12 million tons compared with the first half of 2016. In the first half of 2017, the largest cement production region in Turkey was the Marmara region, with 9.37 million tons of cement production, accounting for 26% of the country's total output, followed by the export-dependent Mediterranean region, with 8.7 million tons of cement production, accounting for 24% of the country's total output. Compared with the same period last year, the cement output of the two places has declined to varying degrees. The cement output of the Mediterranean region has dropped by 9.6%, and the cement export of the Mediterranean region accounts for 32% of its total cement production. In addition, the regions with less cement production are Love Sea, East Anatolia and Southeast Anatolia, whose cement production is 2.8 million tons, 2.4 million tons and 2.7 million tons respectively.
Figure 4: Cement production in Turkey in 2017
Source: Turkish Cement Association
IV. Introduction to Major Cement Manufacturers in Turkey
In Figure 5, we can see the distribution of cement enterprises in Turkey, and in Table 1, we summarize some of the main cement production enterprises in Turkey. Due to the large number and dispersion of cement enterprises in Turkey, no enterprise can obtain more than 25% of the market share. This has obviously led to fierce market competition among cement enterprises in Turkey. Some Turkish cement companies began to expand their production capacity and make overseas acquisitions.
Figure 5: Distribution of cement companies in Turkey
Source: Turkish Cement Association
At present, the largest cement producer in Turkey is OYAK Group, which has seven integrated cement plants with an annual capacity of 16 million tons. The company's main source of funding is the pension fund of the Turkish Armed Forces, the Commander-in-Chief of the Gendarmerie, the Coast Guard Command and other personnel. In addition to the cement industry, the Group has numerous subsidiaries in the minerals and metals industry.
The second largest cement producer is Akcansa, a subsidiary of Heidelberg Cement in Turkey. At present, the company has three cement plants in western Turkey, with a total capacity of 9.4 million tons. The Cnakkale cement plant near Istanbul for export has a design capacity of 5.5 million tons per year, and the B Büyükcekmece cement plant has a design capacity of 2.8 million tons per year. Akcansa was founded in 1996 as a joint venture, with Sabanci Holdings and HeidelbergCement each holding 39.7% of the shares and the remaining 20.6% in the hands of private investors.
Limak Group is the third largest cement producer in Turkey, with 8 cement plants in Turkey, with a total capacity of 9.3 million tons per year. The history of the company can be traced back to the establishment of Limak Construction in 1976. At that time, cement was not the main business of the company, but an extension of its construction business, which was used to support the development of its construction industry.
Cimsa Cimento is the fourth largest cement company in Turkey. At present, the enterprise has four comprehensive cement plants in operation, with a total cement production capacity of 7.5 million tons per year. Its fifth cement plant, Afyon Cimento, is currently being upgraded and will be relocated to the nearby Halimoru area. Upon completion, its production capacity will be expanded from the current 600,000 tons to 1.2 million tons per year. In addition, Cimsa has a grinding station with a grinding capacity of 500,000 tons per year in Ankara.
Askale Cmento is the fifth largest cement enterprise in Turkey, which currently has five integrated cement plants with a total capacity of 6 million tons per year. The company was founded in 1971 and went into commercial production in the same year.
Table 1: Major Cement Companies in Turkey
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