Chairman and Managing Director of Şişecam

Prof. Ahmet Kırman

“Intensity of our operations renders us a global player” 

Planning to engage rather in international operations upon the prediction that domestic demand will be limited, Şişecam aims to get larger market shares in more countries. Ahmet Kırman says that due to this vision, investments and acquisitions will be on their agenda.

  You have realized both domestic and overseas large-scale investments. Do you have a new investment plan? 

In accordance with its vision, Şişecam Group continues its quick growth process by realizing large investments, especially in recent years. The driving force behind this growth is our competence in this line of business and the need to increase our international operations as required by globalization, expanding our scale. In fact, the ratio of international sales -including exports- to the total sales reached such a high figure as 44% and the figure keeps rising. Doubtlessly, further expanding our regional production operations, which comprise 8 countries currently, at a strategic level and attaining larger shares in regional markets necessitate implementing a comprehensive and effective investment program. We are going to commission soon a glass packaging facility in Russia which neared completion. On the other hand, we are carrying on some large investments again in Russia, Bulgaria and Ukraine paying attention to actual conditions. 

Şişecam is one of the most ambitious companies in Turkey with respect to becoming a global player. Do you plan to take steps toward this purpose by turning the crisis into an opportunity?

 Today, we envisage our company not as a global player but as a regional player, despite all our experience, strength and self-confidence. However, there is concentration in some parts of our line of business to such an extent that this makes us one of the few glass producers and brings the identity of a global player along with. Global glass industry is a quite small community as to the number of players. Globalization and the overriding importance of economies of scale are the main reasons for this. That being the case, our industry itself requires us to consider growth and scale expansion as a vital strategy for raising Şişecam’s level as a global player. Depression periods are undoubtedly periods of ‘adjustment’ when in every sector unsuccessful companies are wiped out and successful ones proceed on their course with increased productivity and performance. The 2008 crisis which is the worst financial crisis since the Great Depression will naturally lead to consolidations in glass industry as it does in other industries. Accordingly, we intend to realize investments that are compatible with our group’s vision knowing that the economy will sooner or later return to its usual functioning. In this regard, we always make use of opportunities for direct investment or acquisition. 

What are you doing as a company in order to become stronger in international competition? What contributions can the government make to this effort? 

For a company, to be strong in international competition means conducting all its operations within global standards, in other words, “implementing the right industrial works.” In fact, Şişecam has been conducting its operations in accordance with certain principles for a long time. First of all, adoption of company targets by employees and the willingness again of employees to be a part of the team which strives for these targets are extremely important. Another issue is corporate structure and transparency. Within this context, being always an active producer, using the most advanced technologies, focusing on R&D and embracing modern management principles are the cornerstones of these principles. As Şişecam has been operating in close contact with overseas markets since 1961, being one of the earliest exporting industrial companies, the above mentioned principles have become integrated into our structure. Getting involved in international competition has forced Şişecam to operate within global standards and this requirement was met while enjoying the support and confidence of employees and shareholders. Under the present conditions, it is difficult to say that government fully lives up to its responsibility toward increasing the competitive power of industry. Because the structural reform side of the adopted economic program has not been sufficiently implemented, national industry remained under heavy cost pressures and it became impossible for our country to be a center of attraction for industry. I would like to express, however, that we try to maintain our optimism under these circumstances which affect all industries. It must be noted that this optimism is qualified as to attaining the expected results. 

What are the targets Şişecam has set for itself in the short and long run? 

Either in the short run or long run, Şişecam’s main goals are based on growth. The chief target is, however, to double our consolidated sales as per 2007 and raise them to the level of $5 billion. When it is thought that domestic demand for our products will increase at a much smaller scale, our operations will be carried more on an international basis in the future. For this purpose, essential issues like investments, strategic assessments and acquisitions will be on our agenda. We will carefully maintain our strategy of having a presence in more countries, particularly in the surrounding regions, with larger market shares. One of the chief targets among all these orientations is to keep our financial performance at a high level as is always. It will assume further importance in the current economic conjuncture. In the medium and long term we aim to make investors proud of holding our shares and feel that they are part of a profitable investment.