Mr. Burhan Ergene, Group President of Şişecam Chemicals

In this issue we had a pleasant interview with Burhan Ergene, Group President of Şişecam Chemicals. We discussed advanced technology, fields of activity, and new investment facilities of the company, which was established in 1969 as Soda Sanayi A.Ş..

Can you provide some information about Şişecam Chemicals?

Şişecam Chemicals is a division of Şişecam Group, which ranks among Turkey's most established enterprises. Şişecam Group operates in all major areas of glass including flat glass, glassware, glass packaging and fiberglass, as well as chemicals including soda and chromium compounds. As a global player, Şişecam has production facilities in 13 countries (Turkey, Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia and Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt and India) across three continents. Şişecam Chemicals, which represents one of four main business divisions within Şişecam Group, is ranked among the world leaders in its field and produces global solutions for its customers using environmentally friendly technologies. Şişecam Chemicals operates in areas including soda, chromium chemicals, glass fiber, mining, vitamin K3 derivatives and sodium metabisulfite production. As the world leader in chromium chemicals, it is the fourth largest soda producer in Europe and the 10th largest globally. Şişecam Chemicals' production facilities are located in Turkey, Egypt, Bulgaria, Bosnia and Herzegovina and Italy. The company also operates through a trading company in China. It supplies essential raw materials for over 100 products ranging from glass and detergents to pharmaceutical and skincare products, meeting international standards.

What is the brief establishment history of your company?

Şişecam Chemicals was founded on the basis of Soda Sanayi A.Ş., a leader in soda and chromium chemical production, as well as fiberglass and industrial raw materials production in Turkey and globally. Soda Sanayi A.Ş. was established in 1969 to produce soda ash, a key raw material for the glass industry. The chemicals produced at the Kromsan Chromium Compounds Factory and the Soda Sanayi Plant operating in Mersin are used as essential raw materials in numerous products ranging from detergents and chemicals to tanning agents, pharmaceuticals and metal plating.

Can you tell us about your position in international markets?

Şişecam Chemicals produced 2.3 million tons of soda and 4.2 million tons of industrial raw materials at its plants in Turkey, Bulgaria, Bosnia and Herzegovina, Italy and Egypt in 2017. With soda ash production facilities in Turkey and Bulgaria, Şişecam Chemicals sold 78 percent of its total soda output to international markets last year. In chromium chemicals, Şişecam Chemicals is the world's fourth largest chromic acid producer, as well as the world's leading manufacturer of sodium dichromate and basic chromium sulfate. Our facility in Italy, which is becoming a center serving European demand for liquid chromic acid, basic chromium sulfate and dichromate, holds a key position globally for high value-added chromium chemicals.

Can you tell us about your chemical sector production beyond soda and chromium?

In the chemicals sector, we continue to produce vitamin K3 derivatives and sodium metabisulfite alongside soda and chromium chemicals. Oxyvit Kimya, Europe's sole vitamin K3 producer, maintained its strong market position in 2017. Exports account for 93 percent of vitamin K3 sales, which are primarily targeted at the European market. A further 70 percent of our sodium metabisulfite production was exported to overseas markets last year.

You are building a new glass fiber facility in Balıkesir. Could you tell us about it?

Our Group has decided to make a strategic investment in glass fiber production, which is a key raw material for Turkey's leading sectors, particularly automotive, construction and infrastructure. To this end, Şişecam Chemicals is working to establish a new production facility in Balıkesir with an investment of over EUR 100 million. The new facility, with an annual production capacity of 70,000 tons, is intended to replace glass fiber imports and transform local resources, particularly boron, into value-added products. This investment in glass fiber, which is particularly important for wind energy, electronics, aerospace and defense industries, will become operational this year.

You also have operations in mining. Could you tell us about those activities?

The mining companies operating under Şişecam Group Chemicals (Camiş Madencilik A.Ş., Madencilik San. ve Tic. A.Ş., Camiş Egypt Mining Co. and RK Vijenac d.O.O) continue their activities to ensure raw material supply continuity for the medium and long term to meet the needs of production facilities within the Group in Turkey and abroad. They also play a key role in meeting demand for industrial raw materials from non-Group companies. We have produced 4.2 million tons of limestone, dolomite, feldspar and kaolin of varying qualities, primarily glass sand, employing over 600 people at 17 facilities and over 60 mine sites that we own in Egypt, Bosnia and Herzegovina and Turkey. In addition to serving Şişecam Group companies and numerous domestic customers, we supply raw materials to clients in Italy, Spain, Egypt, Bulgaria, Saudi Arabia and the United Arab Emirates.

Can you tell us about your company's sustainability strategy?

Şişecam Group, with which Şişecam Chemicals is affiliated, aims to be an effective stakeholder on an international scale by creating long-term value for future generations through its "Sustainability Strategy." It draws strength from its established heritage and its ability to operate beyond conventional approaches. In addition to being a global, reliable and financially stable company, our Group has adopted a transparent management approach and committed to supporting the United Nations Sustainable Development Goals. In this context, our commitment to the 10 principles of the Global Compact aligns with our goal of managing economic, social and environmental sustainability. Şişecam Group's sustainability approach is based on three principles: "Protect," "Empower" and "Develop." The "Protect" approach, developed within the context of the global agenda, implements sustainable environmental and natural resource management practices with special focus on water and terrestrial resources. The "Empower" approach promotes the integration of digital intelligence and society, while incorporating diversity and inclusion into daily practices at both institutional and operational levels. The "Develop" approach accelerates efforts to combat climate change and implement circular models in operations. The company's medium and long-term vision is to create an appropriate environment for corporate heritage responsibility, serve as an international supporter and advocate of sustainability, and operate factories using a 360-degree circular model approach with minimal climate change impact.

As Şişecam Chemicals, what is your approach to environmental protection?

In line with its goal of being one of the leading companies in its sector across all business areas, Şişecam Chemicals follows and implements best industry practices in all its activities from production processes to environmental management.

Our environmental approach focuses primarily on key environmental impacts involving energy, emissions and waste. Ongoing studies cover the following areas:

•Production techniques to reduce environmental impacts, •Development of energy efficiency projects to reduce climate change impacts, •Expansion of waste recovery and recycling activities, •Evaluation of alternative fuels and raw materials, •Responsible energy and resource management, •Wastewater treatment and assessment of recycling opportunities. Şişecam Chemicals successfully applies environmental, health and occupational safety management systems under the "Responsible Care Commitment," a voluntary initiative specific to the global chemicals industry. Additionally, as a major exporter of both soda and chromium products, it continues to meet its obligations under the REACH Regulation, which is of significant importance to the European Union.