Statement on the Cement Sector from Nihat Özdemir: No Need for New Factories
Stating that there is approximately a 40 percent excess capacity in Turkey's cement sector, Limak Holding Honorary President Nihat Özdemir stated that existing assets should be utilized instead of establishing greenfield facilities.
Limak Holding Honorary President Nihat Özdemir stated that Turkey's cement sector has Europe's largest production capacity, pointing out that there is nearly 40 percent excess capacity in the sector and that there is no need for a new cement factory.
Turkey's Production Position
Turkey holds the position of having Europe's largest production capacity in the cement sector and ranks sixth globally.
Excess Capacity and Demand
Although going through a period where cement demand remains high due to earthquakes, a significant portion of the existing production capacity sits unused.
It is emphasized that Turkey, including the earthquake period and exports, consumes at most 90 million tons, while there is a capacity of 135 million tons.
Investment Costs and Warnings
It is stated that a new cement plant investment cannot be realized below 250 million dollars, and due to this high cost, the excess capacity must be taken into consideration.
Investors wanting to enter the sector are advised to turn to existing facilities rather than building a factory from scratch.
Global Projects and Future Focus
The statements also touched upon the position of the Turkish contracting sector in global markets and the Camp Nou Stadium project undertaken by Limak.
It was stated that the new generation is focusing particularly on the energy sector as growth areas for the upcoming period.