Interview with Ersin Kenan Kayalar, Chairman of the Board of Directors of Kayalar Kimya

Kayalar Kimya Chairman Ersin Kenan Kayalar spoke with us. Kayalar provided information about the products and brands they offer and emphasized the importance they attach to sustainability and occupational safety.

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

I was born on 24 November 1970 in Erbaa, a district of Tokat. I graduated from the Business School of Richmond University in London. Between 1998 and 2010, I served as General Manager at Kayalar Kimya Companies and held the position of Vice Chairman of the Board of Directors. Since 2010, I have been serving as Chairman of the Board. I also serve as a member of the ISO 29 Group Professional Committee, a Board Member of Chemport, a Board Member of Bosad and a delegate of TİM.

Could you provide information about the establishment process of Kayalar Kimya, the investments it has made and its current structure?

Kayalar Kimya began production in 1976. Shortly after its establishment, it produces furniture paints and varnishes under the GENÇ brand that it developed. In 1995, to meet the raw material needs of the production sector in Turkey, Kayalar Kimya Raw Materials was established. In 2005, through a partnership with Meffert AG, one of Europe's largest companies, it introduced the Düfa brand to Turkey and entered the construction paints sector. In 2009, it acquired all rights of the partnership, becoming the owner of production and sales rights in Turkey and 18 countries. Following the opening of an office in Spain in 2007, in 2012 it acquired the Gralsa brand and production facilities operating in the furniture paints and varnishes sector. Through a strategic partnership with Noroo Paint, one of South Korea's leading brands, it made investments in the industrial paints sector and in 2012 began industrial paint production under the GençNoroo brand. In 2017, it added a new brand to the sector with the Woodsol brand in the exterior wood paints and varnishes sector. Kayalar Kimya is the owner of the 5th largest production facility in Europe in its sector, operating with full automation in Turkey and equipped with the most advanced technology.

Could you tell us about your domestic and foreign sales activities? Which regions do you primarily sell to domestically and abroad, and what types of products?

Kayalar Kimya exports to approximately 60 countries. Our exports account for 35 percent of our total sales. This ratio is constantly increasing. We have exports to many countries including Russia, Algeria, Uzbekistan, Iraq, Georgia, Israel, Qatar, Spain and Poland. In the countries where we export, we are either the market leader or among the top three companies. We have a wide range of export sales including furniture paints and varnishes, exterior wood paints and varnishes and construction paints. As a result of the successes of our export efforts, as of December 2016, the GENÇ brand was included in the TURQUALITY program by the Turkish Ministry of Economy, the world's first and only state-supported branding program. The GENÇ brand became the first and only brand in its sector to be included in this program.

What kind of work do you do in the areas of innovation and R&D as Kayalar Kimya?

By decree signed by the Ministry of Science, Industry and Technology on 17 November 2011, we became the first paint company in Turkey to be awarded an R&D Centre Certificate. With our 1,700 m² laboratory space and a professional team of 35 people, we are signing joint projects with numerous national and international universities, research institutes and scientific organizations, primarily TÜBİTAK, and we produce over 100 of our own binders. Could you provide information about Kayalar Kimya's environmental policy and sustainability approach? What can you say about your work regarding occupational health and safety? Within the scope of environmental legislation and obligations, Kayalar Kimya fulfills its obligations, resumed operations following an EIA Not Required decision, and is an organization with an Emission-Related Environmental Permission Certificate. No banned or restricted chemical substances are used in products. Hazardous and non-hazardous waste generated as a result of production are separated at source and disposed of or recovered at facilities with Temporary Activity Permits or Environmental Permissions/Licenses from the Ministry of Environment and Urbanization. In accordance with the Environmental Permission and regulations, emission measurements are conducted every two years from chimneys prepared in compliance with regulations, keeping air pollution under control. To ensure and maintain occupational health and safety, we give this matter the necessary importance with the services of a full-time Class A occupational safety specialist, occupational physician and other health personnel. Through risk assessments and emergency response plans, hazards and risks are identified and preventive measures taken; situation evaluations and controls are provided through action plans, site inspections and emergency drills with a proactive approach. We can summarize our occupational health and safety work under the following headings: annual occupational health and safety work plans, annual occupational health and safety training in accordance with legislation, toolbox training tailored to the work performed and risks, evacuation training, theoretical and practical fire training, occupational health and safety internal regulations, monthly occupational health and safety board meetings, explosion prevention documentation, annual evaluation reports, entry and periodic health screening tests and reports, periodic measurement/testing and maintenance of machinery and equipment, occupational health and safety procedures and instructions, professional training certificates, corrective/preventive activities, hazardous work permit forms and similar.

What criteria are given priority when Kayalar Kimya formulates investment plans? Does Kayalar Kimya have investment plans for the coming periods, and if so, what are they?

In 2015, we completed our new factory with state-of-the-art automation. Apart from this facility, we are not considering any investment in the short term. However, our market investments in export markets will continue.