CEE Oct-Dec 2012

TURKISH CEMENT SECTOR IN 2011 Kerem ER EN, Esra BOYOKYAZICJ T9MB, Ankara, Turkey Cement sector Cement production and consumption volumes are pushing up though the troubles in some developed countries. USA, EU, Japan and Russia, mostly affected from 2008 crisis, heads in these troubled countries. which 52 .2 million tonnes were realized by member plants of T~MB . In 2010 , domestic sales were 50 million tonnes in total and 47.7 mil lion tonnes of total domestic sales were realized by T~MB member plants. Domestic sales increased by 11 per cent on an industrial basis and by 9 per cent basing on T~MB . With the negative effect of Arab Spring, exports of Turkish cement industry to the primary export markets; Iraq, Syria, Libaya, Egypt and Algeria decreased dramatically. At the end of the year cement exports were realized as 12 .0 million tonnes and 0.95 million tonnes of this f igure were 70 000 000 -- - Spain and Italy are the other examples of the countries with trouble. Consumption in Spain declined from 55 million tonnes in 2007 to 20 million tonnes in 2011. Also Italy' s consumption dropped from 47 million tonnes to 30 million tonnes. Turkish cement industry showed great performance in the year 2011. The industry occupies significant position in national economy with 4 billion Dollars turnover, 900 million Dollars export revenue and direct employment volume for 15,000 people. 60 000 000 50 000 000 40 000 000 30 000 000 f- ... - f- ... 0 2005 • 2006 02007 0 2008 •2009 D ~U1U •2011 20 000 000 10 000 000 0 1- f ... ~ t- Clmtn10 u... dln I Cimen10 It Sob. I Kllnl<tr U•••m I CementProduction Cemenl S.IH CUnkerProducton Cement industry grew around 11 per cent in domestic sales. Roughly 17 per cent of cement produced within this period was exported. ------- Cement production of member plants of T~MB 63.4 million tonnes growing by 1 per cent in 2011. Adding non-member plants of T~MB , total production of Turkish cement industry reached over 67.8 million tonnes in 2011 . Domestic market became locomotive of production growth. It is attempted to make up for the dramatic downfall in exports with the growth in domestic market realized above 11 per cent. Capacity utilization realized by 90 per cent in 2011 was provided with the contribution of growth in domestic markets. In 2011 , total domestic sales of the industry are forecasted to realize as 55.7 million tonnes, of 16000 000 ~ekil I I Figure I exported by non-member plants of T~MB . Cement production reached 73.4 million tonnes growing by 1.06 per cent compared to 62.7 million tonnes recorded in 2010. Increase in clinker production also continued; clinker produced 52.8 mill ion tonnes in 2010, grew by 2.73 per cent and reached 54.3 million tonnes in 2011. As shown on Figure 1, the industry indicates rising trend in cement and clinker productions since 2005. Clinker imports that started to meet domestic consumption in 2006 decreased due to adequacy of clinker production in 2007 and 2008. In 2009, 2010 and 2011 there weren't any cl inker imports to our country. In 2011, decline in exports is witnessed because of the boom in domestic market (Figure 2). 14 000000 +------..1 1----------- 12000000 1----- f---------- o2005 Clinker exports realized as 2.77 million tonnes in 201 0, decreased by 12.7 per cent and decl ined to 2.42 million tonnes in 2011. 10 000 000 o2007 6000 000 o2008 6 000 000 • 2009 Sharp decrease was realized on cement and clinker exports in total. While total exports were 17.8 mi ll ion tonnes in 2010, exports in 2011 dropped by 24.42 per cent and declined to 13.5 mill ion tonnes. 4 000 000 02010 2 000 000 •201 1 Ci,.nlo ltneot I Klinlc... ltnat I Klinlc...-ilt>olat I cement Exoon Cllnl<.,.Elcpon Cllnl<or lmpon ~ekil 2 I Figure 2 53