The biggest investment from Erdemoğlu

Yeni Şafak

May 29, 2022

PREPARING FOR THE BIGGEST INVESTMENT IN TURKEY

The biggest investment from Erdemoğlu

Erdemoglu Holding, waiting for land approval for its chemical plant investment in Adana Yumurtalık. Erdemoğlu Holding Chairman of the Board of Directors, İbrahim Erdemoğlu, said that SASA Polyester has an ongoing investment of 2 billion dollars that will be completed in 2023, and that with the new investment, they aim to meet half of Turkey's chemical products imports with domestic production.

ERDEMOĞLU HOLDING WAITS FOR APPROVAL FOR THE GIGANTIC FACILITY IN YUMURTALIK

Erdemoğlu Holding is waits for land approval for its chemical plant investment in Adana Yumurtalık. Erdemoğlu Holding Chairman of the Board of Directors, İbrahim Erdemoğlu, said that SASA Polyester has an ongoing investment of 2 billion dollars that will be completed in 2023, and that with the new investment, they aim to meet half of Turkey's chemical products imports with domestic production,

Erdemoğlu Group, which has made significant investments to become one of the giants of the Turkish industry, is waiting for the approval of the land it purchased from the public for the giant investment of its company SASA Polyester in Adana Yumurtalık. Stating that they have invested 1 billion dollars in SASA, which they took over in 2016, until 2020, Erdemoğlu Holding Chairman of the Board İbrahim Erdemoğlu said, "We have an ongoing investment of 2 billion dollars that will be completed in 2023. By this way, we will have made an investment of 3 billion dollars by the end of 2023 after acquiring SASA".

IT HALVES THE IMPORTS OF CHEMISTRY

 Answering our questions in Trabzon, İbrahim Erdemoğlu said that they aim to meet half of Turkey's imports of chemical products through domestic production, thanks to their investments in SASA Polyester. Expressing that they turned their faces to the strategic investments that the country needs, Erdemoğlu said, "As of last year, the raw material import of the Turkish chemical industry was approximately 18 billion dollars. We estimate that this will increase to $25 billion by 2032. Thanks to this investment we will make in Yumurtalık, we will produce 50 percent of the raw materials Turkey imports for petrochemicals. This is why, the Yumurtalık project will be one of the most important projects in Turkey".

RAW MATERIALS OF YARN FIBER TO BE DOMESTICALLY PROVIDED

Pointing out that they are waiting for the final approval for the land in Yumurtalık, which they bought from the public for 2 billion TL, Erdemoğlu informed that the process accelerated after our President said 2-3 months ago that “finalize that transaction”. Erdemoğlu added ” "We will add a second PTA facility to the petrochemical facility that we will implement here. We produce polyester, polyester fiber, polyester yarn. For now, we have started to invest in the raw materials we need. In the first half of next year, we will produce PTA, the raw material of polyester. We aim to produce 1.6 million tons of PTA per year. As of this year, Turkey's imported PTA amounted to 1.6 million tons. In 2023, we will produce all of this at SASA. Turkey will no longer import PTA. The cost of this investment will be 1.1 billion dollars.

WE HAVE A 20 BILLION DOLLARS INVESTMENT PLAN IN 12 YEARS

Stating that they increased the investment budget of the petrochemical plant he planned in Yumurtalık from 13 billion dollars to 20 billion dollars for a 10-12 year projection, Erdemoğlu spoke assertively: "In the plan here, the investment will be realized in 2 phases. When the land transaction is completed, we will immediately make an investment of 4 billion dollars within this year. After that, we will start the refinery investment. This investment will be the biggest investment that Turkey has made,". Earlier, we announced an investment amount of 13 billion dollars, now we have expanded the project a little more. Our investment amount in 12 years will reach 20 billion dollars.

WE COUNT ON OUR CASH

Explaining that they are considering meeting the money they need for investment with their own resources, İbrahim Erdemoğlu said, "As all our sales at SASA are based on foreign currency, we are not affected by the economic conjuncture. We export 90 percent of our carpet companies’ production. This makes it easier for us to invest with our own resources. "We have a principle of keeping what we earn in the safe,"

THRE WILL BE FERTILIZER PRODUCTION

Explaining that they are also planning to make fertilizer investments, İbrahim Erdemoğlu pointed out that Turkey's annual fertilizer need is between 900 thousand-1 million tons. Erdemoğlu gave the following information: "This is what Turkey needs annually. We want to produce them all. Although ammonia investment is not a very profitable business, we do it for the benefit of the country. We aim to offer the raw materials of different product groups such as fertilizer, polyester derivatives, diapers, PWCs, acrylic and rubber in Turkey."

A rise is inevitable in July.

Stating that their employment is increasing every year, İbrahim Erdemoğlu stated that the number of employees, which was around 7 thousand in 2008, is around 15 thousand today. Stating that they will increase employment at SASA, Erdemoğlu say that they gave a salary increase of 65-75 percent at the beginning of the year, but that a minimum wage increase was inevitable in July.

This is how we climbed the steps

Providing information on the growth performance of the group, İbrahim Erdemoğlu explained how they climbed the steps with figures: "Our turnover in 1983 was 250 thousand dollars. It was $2.5 million in 1991 and $25 million in 2001. Our turnover reached 250 million dollars in 2011 and 2.5 billion dollars in 2021. This chart tells you a lot. We aim to increase our turnover to 25 billion dollars by 2030. We don't make short-term plans."