Date: 15 February 2022
Şişecam announced its financial results for the year ending 31 December 2021. Şişecam's 2021 consolidated net sales totaled TRY 32 billion while investment spending in the reporting period amounted to TRY 2.6 billion. In 2021, Şişecam produced 5.6 million tons of glass, 2.3 million tons of soda ash, and 4.5 million tons of industrial raw materials.
Creating sustainable value despite global uncertainty
Şişecam Chairman of the Board Prof. Dr. Ahmet Kırman indicated that Şişecam strengthened its position as a playmaker during the year. Şişecam took major steps to create sustainable value for its entire ecosystem in 2021, a time of extraordinary conditions due to the pandemic and global uncertainty. “Our consolidated net sales climbed to TRY 32 billion in 2021. We further contributed to the economic growth of our geographies and the driver sectors that we serve, with our products, investments, and employment opportunities. We are always ready to effectively respond to risks that arise in an environment dominated by global uncertainty and to capitalize on investment opportunities. We passed all the stress tests we have faced. The true extent of the pandemic effect remains uncertain even today. However, Şişecam will always conduct its activities by leveraging its strong competencies while creating sustainable value for all its stakeholders,” Prof. Dr. Ahmet Kırman stated.
In 2021, Şişecam reported a planned capital investment of two new float lines worth TRY 5.2 billion (EUR 344 million) in architectural glasses and automotive glass. Furthermore, the company announced its plans to commission a new glass packaging facility in Eskişehir. The total value of new investment plans announced for Turkey in 2021 exceeded TRY 6.5 billion (EUR 428 million). Şişecam reported net profit of TL 9.13 billion in 2021. The company recorded TRY 2.6 billion in investment spending in 2021. In addition, a series of new investment plans have already been announced.
“Şişecam is capitalizing on the right investment opportunities”
Prof. Dr. Kırman pointed out that Şişecam is growing thanks to seizing the right investment opportunities and implementing effective risk management. He added: “Şişecam continued its investments with the aim of creating sustainable value in its current business lines throughout the year. At the same time, we also created new value by entering new business areas. Currently, we are managing many successful investment projects in line with our sustainability and continuity-oriented strategy. Our strategy is supported by our management approach which is based on a common mindset.”
Şişecam is a global player in the chemicals market as well as the glass industry. In 2021, Şişecam and its partner Ciner Group took their natural soda ash joint venture, founded in 2019, to a new phase with a major leap forward. Under the new investment plan, Şişecam will become a 60 percent shareholder by acquiring an additional stake in the Pacific Project. In addition, Şişecam will purchase a 60 percent stake in the Atlantic Project and Ciner Resources, the existing natural soda ash production facility of Ciner Group in Wyoming, USA. Ciner Resources Wyoming Plant has been in production since 1962 with a current capacity of ~2.5 million metric tons/year. The Pacific and Atlantic development projects have a targeted combined production capacity of ~5 million metric tons/year. These facilities are expected to start production in 2025 and are planned to gradually reach full capacity by 2027. With these large-scale investments, Şişecam's controlled soda ash production capacity is set to exceed 10 million metric tons per year. Prof. Ahmet Kırman remarked that the soda ash investment in Wyoming is the largest investment made in the US by a Turkish company ever. The US investment is also one of the biggest overseas investments from Turkey in history.
Şişecam also selected Kaposvár, Hungary for its first European glass packaging production plant in 2021. Şişecam’s greenfield glass packaging project in Hungary features two furnaces. The EUR 220 million investment will have an annual net production capacity of 330,000 tons. The Hungarian facility is planned to be commissioned in 2023 and reach full production capacity in 2025. In addition, Şişecam announced its first-ever investment in biotechnology last year. “Hungary offers attractive opportunities and advantages to support our growth in the European glass packaging market which has a total volume of about 20 million tons per year. Our first glass packaging facility investment in Europe is scheduled to start operations in 2023 and reach full capacity by 2025. Additionally, Basalia Technology, Şişecam's first-ever investment in biotechnology, yielded positive results in our initial testing. We believe that this innovative solution will mark a revolutionary breakthrough in the emerging field of bioeconomics. We signed a memorandum of understanding with 7CBasalia, a biotech start-up, to found a global joint venture in order to help develop and distribute this technology globally,” Prof. Dr. Kırman said.
Seeing the fruits of strategic decisions and the right steps forward
Şişecam is seeing the fruits of its transformation efforts, digitalization practices, and strategic decisions it realized during a time when business models have changed profoundly due to the global pandemic. Prof. Dr. Ahmet Kırman elaborated: “As a result of the challenges accompanying the pandemic, organizations were presented with an opportunity to test their decisions and practices and even revamp their structure to align with the new market conditions. The successful initiatives and competencies we developed on our digitalization journey played a pivotal role in managing this process effectively. In addition, Şişecam's strategic positioning – with production activities spread across 14 countries on four continents – enabled us to navigate the negative effects of the disrupted global supply chain much more easily. In the coming year, we plan to further boost the economic value we generate and our global competitive edge with forward-looking investments and projects that will prepare Şişecam for the future.”