Kalekim General Manager Mr. Altuğ Akbaş answered our questions.

In our interview, Kalekim General Manager Mr. Altuğ Akbaş answered our questions. Akbaş gave information about Kalekim's history and current structure.

Would you briefly mention about yourself, academic career and professional background?

I graduated from the Mechanical Engineering Department at Istanbul Technical University in 1992. That same year, I joined the Business Administration Institute program at Marmara University and started my professional career as Production Planning Officer at Kale Pazarlama, a member company of Kale Group. I continued at Kale Pazarlama until April 2003 in various roles: Planning Executive, Marketing Assistant Manager, Sales Manager, and Marketing Coordinator. In April 2003, I took the position of Marketing Group Manager at Kaleseramik, which I held until March 2008, and then became General Manager at Kaledekor. Later, in March 2011, I started as Assistant General Manager in charge of Sales and Marketing at Kalekim. I have served as General Manager of Kalekim since June 2013.

Would you give us information about the establishment process of Kalekim and its current structure? Which primary industrial sectors are served by Kalekim and what kind of products does it supply? What are the products, trademarks and services of Kalekim?

When İbrahim Bodur, the Founder and Honorary President of Kale Group, was researching adhesives for ceramic tiles in 1969, based on information obtained from his German colleagues, he became interested in 'casein', a protein present in milk, due to its adhesive properties. This led him to conduct further research on the matter. Following this research, he eventually traveled to the city of Kars, where he carried out examinations and negotiations. Kaleflex was established as a result of these studies in 1972. One year later, in 1973, Kalekim started operations. The story of Kalekim, which began with a journey to Kars years ago, continues today as a company operating across a wide geographical area.

As a pioneer in building chemicals since its inception, Kalekim produces a comprehensive range of products including ceramic tile adhesives and joint sealants, thermal and water insulation products, decorative plaster used in the construction sector, industrial flooring products, and all kinds of mortars and additives.

We continue production operations at our plants in Istanbul, Balıkesir, Yozgat, Isparta, Mersin, Erzurum and Mardin. Our building chemicals plants have a combined annual production capacity of 800,000 tons of building chemicals and 200,000 tons of paint and plaster. In terms of production and sales capacity, we rank first in Turkey.

Would you give detailed information about your recent investments, especially in paint production, and about your products in this group?

This year, Kalekim is leading the way in terms of significant innovations in the paint sector. We have launched Bi'Boya, a brand-new paint trademark under the Kalekim umbrella. We also intend to introduce our new paints, to be produced at our Balıkesir plant, to consumers across Turkey. Our new paint trademark will allow us to break new ground in the industry. With the ability to articulate the language of emotions, the Bi'Boya trademark distinguishes itself considerably from other trademarks in the market. Bi'Boya symbolizes our energetic and innovative approach. We aim to reflect the values embodied by our trademark with consumers by integrating traditional and digital channels. Under the Bi'Boya trademark, we offer customers and building professionals 'interior paints', 'exterior paints and plasters', 'decorative products', 'surface treatment products' and over 1,000 product applications.

What about your domestic and foreign sales operations? To which areas and what kind of products do you mostly sell at home and abroad? What are your priority criteria when setting up investment plans for Kalekim? Does Kalekim have any intended investment plans for coming periods, and if so, what are they specifically?

In July, we opened a new Kalekim plant with an investment of TRY 40 million in the city of Balıkesir, which is strategically located on the Istanbul-Izmir axis. With this Balıkesir facility, we have expanded into the Aegean region, adding to our existing plants in five geographical locations: Istanbul, Isparta, Mersin, Yozgat, Erzurum and Mardin. This reinforces our position in the region while supporting our operations in Marmara. At our new plant, which has the capacity to produce across all Kalekim business divisions, we manufacture tile adhesives, joint sealants, water and thermal insulation products, interior and exterior paints, decorative exterior plasters and all kinds of building chemicals, utilizing the most advanced technology. Today we have a strong distribution network in most parts of the world, supplying products to consumers and professionals in 70 countries. As for our export business, EU member countries account for 6 percent, the Middle East for 35 percent, and other countries for the remainder. We prioritize foreign investments in our near-term plans. For the building chemicals sector, particularly geographical areas near Turkey are important to us. We aim to grow further in the Middle East and Africa through new initiatives. Experience shows that export alone is insufficient.

You must establish a presence in foreign markets. In 2016, we launched an investment project in Kenya, establishing a different investment and growth model. By setting up local partnerships, we have steadily progressed through licensed production and know-how transfer.

In line with market requirements, we produce our products using raw materials from the local geography. In the coming period, we will also expand product diversity. We also handle marketing operations in these geographies. We organize training programs and instruct building professionals on the proper use of our products to achieve maximum performance and build product usage habits. Kalekim has also signed an initial investment agreement with Algeria, to be followed by others.

What kind of operations does Kalekim conduct in the fields of innovation and R&D?

One of Kalekim's most distinguishing characteristics compared to its competitors is its investment in R&D, and innovation is among our most significant strategies. We believe in the importance of innovation across all processes, from the products we produce to the services we provide. To this end, we have an R&D department established many years ago that continues to grow and develop. Today, with 45 years of history, the Kalekim Research and Development Department conducts development and improvement operations for a wide range of products including ceramic tile applications, water insulation, thermal insulation, flooring systems, paints, plasters and surface treatment materials, which contain chemicals such as cement, acrylic, epoxy and polyurethane. We established the "Kalekim Applied Research Laboratory" equipped with the latest technological equipment, with a vision to base our R&D operations not only on performance analysis research but also on physical and chemical analyses. While we continue operations with instrumental analytical equipment to conduct projects with government and universities at this technological base, we also perform all tests in accordance with European Standards to ensure quality and customer satisfaction.

As a reflection of our strong R&D capabilities and leadership in the sector, Kalekim ID technology, which is wholly owned by Kalekim under patent, enables us to produce at a quality level equivalent to that of raw materials from all parts of the world.

We test products in special cabinets with regulated temperature and moisture to simulate different climatic conditions, independent of the geography in which they are produced. We are proud to be invited as participants to many national and international platforms due to our scientific studies, where we present our innovations and are recognized worldwide for our strong R&D capabilities. Additionally, products at Kalekim laboratories are tested using equipment that is rare worldwide. The basic research operations performed in our applied research laboratories provide substantial support to product development studies, increasing our speed to develop products and enhancing our potential to create more innovative solutions. Our R&D is based not only on performance analysis but also on physical and chemical analysis, and accordingly, the applied research laboratory is equipped with advanced technological devices.

What is Kalekim's approach regarding environmental policy and sustainability? What can you say about your operations concerning occupational health and safety?

As a leader in the building sector, we are committed to fulfilling our corporate social responsibility. To respond to customer needs and expectations appropriately, we maintain the principle of being "always best" in all our activities. We recognize that sustainable growth in our country depends on continuous improvement and development. Based on the principle that "there is no other Earth, but there are many things we can do", Kalekim is very sensitive about the use of natural resources. We conduct operations to sort our waste and return it to nature. To comply with applicable regulations, we continue to be mindful of our responsibility regarding the environment, training, occupational health and safety, and customer satisfaction.