Having closed 2018 with a turnover of TL 2.18 billion, SASA expects 30 percent growth this year. Some of the investments that started in 2017 will be effective in this growth. Mehmet Şeker, General Manager of SASA, says they will double their 200-million-dollar export.
SASA Polyester Industry is one of the world's leading manufacturers of polyester, fibers, filaments, polyester-based polymers, intermediate products and specialty products. The company manages the entire process from design to production and distribution. In 2015, Sabancı Holding sold its shares in SASA to Erdemoğlu Holding in Gaziantep. SASA has its headquarters built on 1 million 250 thousand square meters area with integrated production facilities in Adana and its own raw material storage facility in İskenderun. Mehmet Şeker, General Manager of SASA, says they aim to grow more than 30 percent both in terms of production amount and turnover this year with the effect of the newly commissioned investments. Şeker says, “We currently have an export close to 200 million dollars. In the coming period, we plan to increase our exports with the introduction of new facilities." Şeker answers our questions:
How did SASA close 2018?
In 2018, in addition to the installation and construction works of the new investments, we continued our production side without disrupting. Despite the economic fluctuations in Turkey and in the world, we closed 2018 with a growth of 32 percent in terms of turnover. In 2018, our company reached TL 2.18 billion turnover. In 2019, we plan to increase our turnover by 30 percent.
Can you tell us about your new investments?
We plan to invest about 1 billion dollars. We started investing in 2017. The fiber side of it has finished and ready for production. The investment in POY, which is the raw material of spun thread production, and in texturing started in the first quarter of 2018. At the end of this year, construction and installation will be completed and production will begin in the first quarter of 2020.
Is there an increase in your employment?
Yes. SASA Polyester, which started operating in 2018 with 250 employees, closed the year by reaching 1560 employees. Compared to 2017, we can say that we have approximately 25 percent employment increase. At the end of 2019, we are planning to have approximately 2,000 employees. We also want SASA to continue its leadership in employment in the region.
What is your policy on employment?
Our policy on employment is to continue our production and working life with experienced, successful and leading people. All our employees have to go through SASA's training policy. Sasa also has an amazing R&D center. It is a prominent industrial training school in the region. In the future, our co-workers who work with us will continue their professional life as the most knowledgeable and experienced people in this line of business.
How much production do you perform?
We have hundreds of products and we produce about 1,000 tons per day. Most of this is fiber and SPC products. We also produce a number of different chemicals.
What are your plans for 2019?
In 2019, we will increase our production capacity by 50 percent with the new investments in fiber and chips. In 2020, there will be a significant increase like 100 percent. The installation and construction side of our POY and texturing investments continues. By the end of 2019, we plan to at least finish the construction side. This year, we aim to increase our production volume, our export and our number of employees.
"Tax on raw materials has reduced our competitiveness"
"The biggest problem we had in 2018 in terms of production was the increase in prices of natural gas and electricity, and the 6.5 percent tax applied on mono ethylene glycol (MEG) which is the raw material we buy from abroad. Since the MEG production in Turkey is low, we have to import it. With this tax applied, we are losing power in the competition with China and South Korea. When conducting such taxation operations, producers in Turkey are seriously favored.”
How will your new investments affect your turnover?
After the investments, we expect 50-60 percent expansion in turnover.
How much do you export? What are your goals in exports?
SASA is the market leader in polyester and fiber production. We export 50 percent of our production to about 45 countries. Most of the countries we export to are European countries. Mostly we export to Germany. We currently have around 200 million-dollar exports. We plan to increase our exports by 100 percent by diversifying and increasing the quantity of our products with the introduction of our new facilities. Our target markets are Europe and USA.
What are your predictions regarding your industry?
Polyester production in Turkey, as well as all over the world will continue to grow in the next 20 years. In the context of this prediction, doing the math of the requirement for polyester products, we carry on our works in order to meet the polyester requirement in Turkey and also to contribute to the polyester requirement across Europe and the world. With the new investments to be made by SASA, Turkey will be able to compete with the Far East in the next 10 years, and will be the leader and the region will be the leader and polyester base in the region.
Ekonomist Magazine – 10 March 2019
