Turkish cement sector production reaches 81.5 million tons

Turkey Cement Manufacturers Association (TÜRKÇİMENTO), the umbrella organisation of the cement sector and representing the world's fifth-largest and Europe's leading cement producer, shared the results of Turkey's cement sector for 2023, the centennial year of the Republic, and targets for 2024 at a meeting held at Çırağan Palace. The meeting was attended by TÜRKÇİMENTO Chairman Fatih Yücelik, TÜRKÇİMENTO Deputy Chairman and ÇEIS Chairman Adil Sani Konukoğlu and Board members. Fatih Yücelik, Chairman of TÜRKÇİMENTO, announced that Turkey's cement sector, the world's fifth-largest and Europe's leading producer, reached 81.5 million tonnes in production in 2023, an increase of 10.5 percent compared to the previous year. Yücelik stated, "As the Turkish cement sector, I wish to emphasise once more that we have more than sufficient production capacity to enable the investments that Turkey needs to be realised." Speaking at the meeting organised by TÜRKÇİMENTO, Chairman Fatih Yücelik said, "Cement is a strategic product for all of us. Through concrete, the second most consumed commodity in the world after water, we are laying the foundations for a solid future. The earthquake disasters on 6 February 2023, which deeply wounded our country, demonstrated once again that cement is an inseparable part of our safety, rather than merely a commercial matter. As the Turkish cement sector, I wish to emphasise once more that we have more than sufficient production capacity to enable the investments that Turkey needs to be realised." Stating that they have always and continue to view cement production in compliance with international standards and subject to constant inspection as their first priority in order to prevent similar disasters in our country, Fatih Yücelik continued as follows: "In the final quarter of 2023, the construction sector grew by 10.8 percent and completed the year with 7.8 percent growth. This increase in the construction sector has been encouraging for the future of the cement sector, one of the most important stakeholders in the construction industry. Following the earthquake disasters we experienced in 2023, as is known, the plan for rebuilding the earthquake-affected region, particularly urban renewal projects, came into effect. In 2024, we anticipate that there will be no additional increase beyond the previous year's domestic sales figures. Therefore, we expect domestic sales to move at similar levels to 2023 and anticipate a more stable year. Looking at the external market; in the absence of energy cost increases and fluctuations in global markets, we believe that as a sector we will encounter a similar picture in 2024 to 2023 and will complete the year at the same level."

How did 2023 go?

Fatih Yücelik stated that the Turkish cement sector, Europe's leader and the world's fifth-largest producer, is also the world's second-largest exporter in terms of cement and clinker combined and serves more than 100 markets. Recalling that the sector, which has cement capacity equivalent to 120 million tonnes, operates production in a total of 77 facilities, consisting of 56 integrated plants and 21 grinding mills spread across Turkey, Fatih Yücelik provided the following information about how TÜRKÇİMENTO members representing approximately 94 percent of this figure performed in 2023: • Total production: increased by approximately 10.5 percent compared to the previous year, reaching 81.5 million tonnes. • Domestic sales increased by 19 percent, reaching approximately 65 million tonnes. • Looking at the export figures of all member and non-member factories, we realised external sales of 19.7 million tonnes in 2023, a 28 percent decrease compared to the previous year. • Of this figure, 15.7 million tonnes was cement and 4 million tonnes was clinker. • In value terms, external sales of USD 1 billion 265 million were realised, down 18 percent. • With these figures, we can say that Turkey was again second in the world in 2023 on both tonnage and value basis. The most important market in exports to over 100 countries was the United States. • Total turnover in 2023 was realised at approximately USD 4.7 billion due to increases in domestic sales and the dollar exchange rate. Emphasising that cement is a strategic product beyond economic data, Fatih Yücelik stated, "As industrialists, it is not a matter of us focusing only on production and sales figures. Our sector, which aims to provide low-carbon production, is working carefully on adaptation to the green agreement, use of alternative fuels and raw materials, energy efficiency and digitalisation. As indicated in our low-carbon production roadmap, the use of alternative fuels and raw materials, low-clinker production, energy efficiency and technological investments are our most critical issues as a sector." Fatih Yücelik noted that the Turkish cement sector supports Turkey's "Green Development Revolution" with the country's 2053 net-zero target and said: "We are in a process of adapting to the twin transition, particularly as a sector. We have entered a period where we cannot separate digital from green. Another important element in this transition is social transformation. Consequently, we are revising the twin transition process as a triple transition and drawing our roadmap within this framework." Announcing the results of the first Sustainability Report, which contains sustainability-focused developments in the Turkish cement sector, Fatih Yücelik stated that the report was prepared based on the activities of 2022 with the participation of 48 out of 52 integrated facilities that are members of TÜRKÇİMENTO. Yücelik said that the report presents the current situation regarding flue gas emissions, waste management, contribution to the circular economy, energy use, energy efficiency, renewable energy investments and environmental investments, as well as the working environment. Since the cement sector is a sector where unavoidable greenhouse gas emissions are created due to the unique characteristics of the production process and the high amount of energy required, climate change and greenhouse gas emissions were given special attention in the report. The roadmap for reducing climate risks and lowering carbon intensity in production, as well as the state incentives and financial support that the sector needs in this regard, are also included in the report.