Supporting the Cement Sector with the Economic Stability Shield Package Will Provide Employment Assurance

Dr. Tamer Saka, Chairman of the Board of Directors of Turkish Cement Manufacturers’ Association, state that they are working for minimizing the damages that might be incurred by the country economy and employment due to the global pandemic that has affected the entire world, and said, “Accordingly, the expansion of the announced Economic Stability Shield Package along the sub-sectors like cement and ready mixed concrete has substantial importance.”    

The COVID-19 (New Coronavirus) pandemic has affected the cement sector negatively as in all the sectors in Turkey. Saka reminded that the Turkish cement sector is the largest producer in Europe and sixth in the world and added, “Supporting the sector is very important in order to ensure competitive superiority in the international arena, entry of foreign currency into our country, and future employment assurance.”    

Stating that they aim at minimizing the damages that might be incurred by the country economy and employment through the endeavors of TÇMB in such a difficult period, Dr. Tamer Saka said, “Accordingly, the expansion of the announced Economic Stability Shield Package along the sub-sectors has substantial importance. Turkish cement sector that is one of the strong and locomotive sectors of our economy, with its approximately 7% share in the total GDP, is one of the most important sub-sectors of the construction sector.”  

It must be supported for international competition and employment assurance    
Saka highlighted the fact that if the Economic Stability Shield Package announced against the pandemic that affected the country negatively to a serious extent is expanded to the sub-sectors that are the biggest supporter of the 16 sectors included in the package, they, as the cement sector, coIt must be supported for international competition and employment assurance   Saka highlighted the fact that if the Economic Stability Shield Package announced against the pandemic that affected the country negatively to a serious extent is expanded to the sub-sectors that are the biggest supporter of the 16 sectors included in the package, they, as the cement sector, could provide the country with entry of foreign currencies to it and future employment assurance.  

Figures are not good    
Inviting attention to the fact that the hardships experienced in the sector through the outbreak will increase, Saka said, “Deteriorations and breakages started to take place in the supply chain of the sector due to the pandemic. Declines in the domestic demand amount are being experienced due to the developments in the implementations of collection of receivables and commercial activities. Export revenues fall following the cancellations of abroad orders. With such falls, significant reductions in production capacities take place.”  Saka added that the problems that the sector producers might experience in respect of exports due to the pandemic will reduce the entry of foreign currency to the country and the markets lost will be occupied by competitor countries fast. “Most importantly, the employment and capacity utilization, which is around 65% presently, will be seriously affected,” Saka warned.  

Turkey is the world’s second largest cement and clinker exporter with its 55 integrated plants    
Turkish cement sector is the world’s second largest cement and clinker exporter in 2019 after Vietnam, with its 55 integrated plants. According to the TUİK data, cement and clinker, with the total volume of 23 million tons and value of 877 million dollars, were exported to more than 115 countries of the world, particularly to the US, in 2019. It is expected that such data will reach 25 million tons and one billion dollars and Turkey will occupy the first place among the exporters of the world in 2020.   

Saka provides his assessments in a Bloomberg HT Broadcast  
In regard to the issue, Dr. Tamer Saka, our Chairman of the Board of Directors, assessed the developments in the Turkish cement sector and the impacts of the New Coronavirus in a BloombergHT program called Finans Merkezi on April 6th, 2020.