News

$400 MILLION INVESTMENT PLAN FOR 2013 FROM BORUSAN GROUP!

At the Public Information Meeting evaluating Borusan Group’s performance in 2012 and laying out its objectives for 2013, it was announced that Borusan’s consolidated turnover for 2012 was $4 billion, while its operating profit stands at $286 billion. For 2013, Borusan Group will aim for an increase of 8% in its turnover and a rise of over 25% in its operating profit. 

At the meeting it was stated that Borusan Group, which has recently purchased Balnak and signed up to new projects in the energy sector, invested a total of $352 million last year, a figure that is aimed to increase to $400 million in 2013. 

Kocabıyık: “2013 will be a huge milestone for Turkey.” 

In a speech, Borusan Board Chairman Ahmet Kocabıyık pointed out that the ongoing problems in developed country markets continued in 2012 and that the contribution of developing country economies to the world growth is decreasing due to tighter demands. 

“Even though we’ve lost some of the strong growth momentum we’ve been experiencing in recent years, I think we should be happy with our country’s performance under these conditions. Our economic management was mainly focused on reducing the current deficit and we succeeded in this challenge by demonstrating a decisive performance in this regard. We anticipate that we will continue to reap the positive results of that strategy in 2013 as well. 

On the other hand, 2013 will be a huge milestone for our country, in particular with the developments that are occurring on the political and social front and that will obviously continue. Turkey is making a difference in the world with its strong vision and accordingly confident but equally rational policies. More importantly, it gets results with these policies and shows a strong leadership in reshaping the terrain on which it is located. 

In 2013, the most important and historical test for Turkey will undoubtedly be finding a permanent solution to end the internal conflict that is directly affecting the lives of our people, both materially and spiritually, and has been ongoing for 40 years having cost tens of thousands of lives. 2013 can be the moment when we leave the problems and debates behind that have wasted so much time and the year when Turkey focuses on its national economic development, allowing us to mobilize our social potential in every area. 

By positively contributing to the development of our country and region, we will ensure positive results and that is why Borusan will continue to fulfill the duties expected of it.” 

Agah Uğur: “We are allocating a team of 50 people to our Innovation Department and a budget of $10 million in addition to our project investments” 

Agah Uğur, CEO of Borusan Holding, noted in his speech that Borusan is in the middle of undergoing a comprehensive transformation process in developing new business models in the sectors in which it operates. Giving their investment in high added value products in the field of steel pipe production as an example of this transformation, Agah Uğur stated that port operations has stood out as one of the most profitable sectors in the sectors where the Group operates and in this sense, the majority of the investment that will increase the container handling capacity of Borusan Gemlik Port from 250,000 TEU to 400,000 TEU has been completed. 
Agah Uğur also noted that solutions oriented to the needs of the customer are being created in distributorship, one of the most important business areas of the Group. He reflected that they have succeeded in keeping their consolidated turnover at a level of $4 billion, despite the decline in steel prices and the recession in the automotive sector. 

Uğur stated that they were planning to make a total investment of $400 million in 2013, primarily in the fields of steel pipe production and energy. 

“I believe that the challenging environment of market conditions, market dynamics and competition is permanent,” he continued. “Quality and high capacities are not enough to provide a sustainable competitive advantage anymore, these are side factors. The whole business world needs to focus on high value-added, innovative products and services as in order to be fast adapting and provide lasting competitive advantage. In 2013, we will focus on the healthy processing of the new product and innovation processes that we have created. We have identified the necessary performance indicators for this. Beyond increasing customer satisfaction, we will focus on identifying the needs that even they do not realize they have. This year, we are also working on 20 new product/service and business model development projects within our Group. We have founded a new product development and innovation team of 50 people. We have allocated a budget of $10 million for these efforts, in addition to the other projects we carry out.” 

Innovation Department’s First Successes: ETA and Rock Gas Drilling Pipes 

Having created a scale economy with the acquisition of Balnak and become leader in the sector, in 2012 Borusan Logistics established ETA as the first and only company in Turkey aimed at carrying out an innovation project with a $5 million investment. With its innovative business model, ETA turns truckers into the biggest fleet of drivers in Turkey with the most efficient and cutting-edge technology and offers reliable, traceable and affordable transport services to small and medium-sized businesses. 

Meanwhile, Borusan Mannesmann, the first Turkish steel company to invest in the US, has made a remarkable breakthrough on a global scale by designing innovative products and technologies that are resistant to difficult conditions for the rock gas drilling that is the focus of the energy sector. Investing $150 million into this project, Borusan Mannesmann decided to become a “local producer” in the US and move its brand to the world market to be closer to the market and its customers. 

A total investment of $410 million for energy! 

The cumulative investments of Borusan, which develops renewable energy sources in Turkey, reached $410 million by the end of 2012 in the energy sector. With the commissioning in 2012 of Aksu Hydroelectric Power Plant, the second phase of the Erzurum investment, Borusan’s installed power in energy has reached 110MW. In addition, the purchase of two new licenses for 170MW wind turbines has boosted its total portfolio size to 700 MW. 

CSR policies oriented to empowering women 

Borusan has carried out important social responsibility projects in 2012. “In line with Borusan’s transformation process, we are taking on responsibility in areas that need addressing in Turkey through out social responsibility projects,” said Agah Uğur, noting that the first example of their innovative projects was the My Mum’s Job is My Future project. 

Borusan carried out this innovative social responsibility project in 2012 with the cooperation of the Ministry of Family and Social Policies and the Ministry of Industry, Science and Technology to increase women’s employment in the industry. Under the My Mum’s Job is My Future project, kindergartens and daycare centers will be built for the children of working women. The kindergartens that will provide services to children between the 0-6 age bracket will be established in 10 organized industrial zones all over Turkey under the name “Borusan Joy Factory”. 

Meanwhile, Borusan will continue to expand its support for entrepreneurial women through micro loans. In the meeting where it was stated that 820 women were provided with loans by Asım Kocabıyık Microfinance Branch opened in Afyonkarahisar, it was also revealed that in 2013 a similar Asım Kocabıyık Microfinance Branch will be opened to support female entrepreneurs in Gemlik.