Dyo Boya Fabrikaları General Manager Serdar Oran Answers Our Questions

In our interview, Serdar Oran, General Manager and Vice Chairman of Dyo Paint Factories, answered our questions. Oran described Dyo Paint's development process and the factors behind its success.

Could you briefly tell our readers about yourself, your education and professional background?

After completing my higher education in the Chemical Engineering Department at Ankara University, I finished my master's degree at California State University. I began my career immediately after as a research engineer for industrial paints at DYOSAD A.Ş., joining the Yaşar Group in 1988. Until 2000, I held positions including Industrial Paints Research Specialist, Factory Manager, Technical General Manager Assistant, and Sales and Marketing Director. In 2001 I left the group to establish my own company, operating in financial investment instruments. Between 2007 and 2008 I provided management consulting in Azerbaijan. My return to the Yaşar Group took place in 2009. I currently hold the positions of General Manager of Dyo Paint Factories and Vice Chairman for international operations. I also serve on the boards of various industry associations, including membership on the Management Board of the Paint Manufacturers Association, the Management Board of the Turkey Petroleum, Rubber and Plastics Industry Employers Union, Chairmanship of the Aegean Region Delegation, Membership in the Aegean Region Chamber of Industry Board of Directors, and the Management Board of the Turkey Quality Association.

Could you provide information about Dyo Paint's founding process and the stages it has gone through to the present day?

Dyo has deep roots as a brand founded in Izmir in 1941. It holds the position of sector pioneer and leader. In the first paint manufacturing facility established by Durmuş Yaşar, our first products "Yaşarin" and "Ready-Made Paint" secured their place in the market. In 1954, Selçuk Yaşar, founder of the Yaşar Group, established Turkey's first and only paint factory in Bornova, Izmir. Dyo's establishment gained momentum over the years through new investments. The founding story behind the strength of Dyo's current position unfolded in this manner.

Considering production facilities, machinery equipment and number of employees, as well as turnover and production volume, what is Dyo Paint's current structure?

Dyo, ranked among Turkey's largest industrial enterprises, operates three production facilities within the country. One is located in Çiğli, Izmir, another in Dilovası, Kocaeli, and a third in Turgutlu, Manisa. Abroad, we have two factories in Russia and Egypt. We provide employment to a total of 1,100 people. Our turnover for 2016 was TRY 773.3 million. Our production volume exceeds 160,000 tonnes.

Which sectors does Dyo Paint primarily serve, and what types of products does it supply? Could you provide information about Dyo Paint's products, brands and services?

We manufacture products in many sub-sectors including decorative paints and thermal insulation systems, industrial paints including powder coatings and coil coatings, furniture paints, automotive refinish and marine paints. Our industrial paints (including coil coating production) are manufactured at our Izmir Çiğli facility, decorative paints along with water-based wood paints and varnishes at our Dilovası facility, and our powder coating production at our Turgutlu facility. We also produce resin, one of the main inputs for paint, in our own facilities. In decorative paints we market under the Dyo brand alongside Casati, in furniture paints under Dewilux, and in thermal insulation under the Klimatherm brand. Dyo holds a special position in the paint sector in terms of the richness of its production portfolio. Our extensive sales and dealer network, our after-sales service, our business approach that places customer satisfaction at the core, our openness to development and our innovative products constitute our power to dominate the sector. As Dyo, we are at very high levels in customer satisfaction. We always target excellence. Each year we evaluate Consumer Advisory Line data focused on customers. Results from 2016 show that 96% of our customers are satisfied with us.

What kind of work do you conduct in the areas of innovation and R&D? Do you have projects developed under university-industry cooperation, and if so, what are they?

Our R&D centre has been selected by the Ministry of Science, Industry and Technology as the "Most Successful R&D Centre in the Chemical Sector" based on its performance over the last three years. We are a strong company in R&D and innovation. Every year we spend 2.2 to 2.5 percent of our turnover on R&D. This ratio is above the Turkey average and close to the level of developed countries. At the Dyo R&D Centres located at our Izmir Çiğli and Kocaeli Dilovası facilities, 94 specialists and engineers are employed. In the sectors in which we operate, we launch an average of 30 new products to market annually. We have always had university and industry collaborations and will continue to carry out such joint projects.

Could you discuss your domestic and international sales activities? What types of products are you primarily selling to which regions domestically and internationally?

Dyo Paint is a brand that markets its products to 40 countries. Rather than the geographies affected by crises, we prefer to pursue initiatives in alternative markets in Europe and Africa and to establish production on-site. We have production facilities in Russia and Egypt. As Dyo, we will continue to invest in foreign markets on a global scale.

Could you provide information about DYO Paint's environmental policy and sustainability approach? What can you say about your work regarding worker health and safety?

In 2007, Yaşar Holding signed the "UN Global Compact," one of whose four main pillars is "Environment." We as Dyo became part of this commitment. We have adopted these items as our principles. By adopting fundamental environmental and management principles, we pay attention to the efficient use of energy and natural resources. When designing products, we ensure they are environmentally friendly and sustainable. An important part of our quality processes consists of efficient energy use and environmental protection. We manage these processes using ISO 14001 Environmental Management System and ISO 50001 Energy Management System standards. We are very meticulous about worker health and safety, implementing all standards required by occupational safety. We also hold the TS 18001:2008 "Occupational Health and Safety Management System Certificate." This certificate carries very serious penalties. We protect our employees' health and safety in accordance with the requirements of this legislation.

Could we learn your thoughts about the paint sector in Turkey? What do you think are Turkey's advantages and disadvantages for this sector?

Paint consumption in Turkey is above the global average. While we have not yet reached the level of developed countries, we could say we are at about half that level. Per capita annual consumption figures range between 11 and 12 kg. Paint consumption shows an increase depending on national income. Interest in quality paint in our country is growing, which directly affects sector dynamics. In recent times, a conscious consumer attitude has begun to take effect. The most important problem in the sector is dependency on foreign sources for raw materials. And of course, there is unregistered paint production, which we refer to as "under the table." This form of production, which threatens product quality and creates unfair competition, accounts for around 10 percent of total paint volume. What criteria are prioritized when Dyo Paint formulates investment plans? Does Dyo Paint have investment plans for the coming periods, and if so, what are they? When formulating our investment plans, we consider the current market situation, consumer demand, regional conditions, and developments in the country and globally. Regarding Dyo Paint's investment plans for the coming periods, we will speak about them, but this requires a bit more time.