Responding to questions from Güzem Yılmaz Ertem, Aydın said, “Production in Asia has largely shifted to Turkey. Turkey also has significant production capacity; a competitive environment has been created with high-quality, skilled products, and partly competitive prices. Currently, Turkey is taking advantage of this opportunity. We, as companies and OSTİM Yatırım A.Ş., are looking for ways to benefit from this. We are trying to turn this crisis into an opportunity.”
Orhan Aydın also provided information about the OSTİM Venture Capital Investment Fund, which OSTİM Yatırım A.Ş. established with Albaraka Türk, stating that the fund offers a significant opportunity to newly developing and technology-oriented companies.
The ISO Manufacturing PMI indicator showed expansion above 50 for the first time in a long time. This raises the question: Will this year really be a year in which industrialists' appetite for investment increases and growth is vibrant? What do your leading indicators show?
If we use last year's data; when we compare the three quarters of 2021 and 2022, considering the significant increase in turnover, exports, profits, and equity in our company, we can say that we had a very good year in 2022. Therefore, as long as this trend continues, we expect this increase to continue in 2023. We are making our predictions accordingly. Regarding the changes in the supply chain after the pandemic in industrial production; as someone who is involved in the management of OSTİM OSB, not just OSTİM Yatırım A.Ş., therefore, based on the electricity consumption in our region and the discussions we have had with our companies, we can say that this trend will continue to increase.
“Energy prices have been reflected in costs”
The expectation that electricity prices will fall is said to be supportive for industrialists, but is this sustainable for the rest of the year? How would you interpret this contribution?
The most common and justifiable complaint from our industrialists is, unfortunately, the high cost of electricity and energy. This applies not only to electricity but also to natural gas. Prices have increased significantly in a short period, and this has been reflected in costs. There's constant complaining and lamenting among our industrialists. These increases are somehow incorporated into costs and reflected in price hikes. However, for our exporting companies, it becomes somewhat manageable. Exporting companies, especially suppliers and those working in the subcontracting industry, are somehow subsidizing this; they've internalized it. Life goes on. Production continues despite the high electricity and natural gas prices.
“Turkey has a significant production capacity”
There were difficulties not only in energy supply but also in raw material procurement. Dependence on Asian markets, in particular, was perhaps the biggest side effect for countries. If there hadn't been such a strong reliance on China, Japan, and Vietnam, and if there had been more diversification in supply chains, the damage after the pandemic wouldn't have been felt so strongly. How do you see the future of that region? In other words, what is the importance of diversifying markets for intermediate goods imports and raw materials for Turkish industrialists?
From what I can see, Turkey seems to have gained an advantage after the pandemic. Production that previously went to Asia, or, if we consider the European side, production in Asia, has largely shifted to Turkey. Turkey also has a significant production capacity; a high-quality, competitive environment has been created, partly due to price competition. Currently, Turkey is using this opportunity. The crises in Europe, the price increases there, and the instability caused by this war are providing Turkey with certain advantages. Therefore, we, as companies and OSTİM Yatırım A.Ş., are looking for ways to benefit from this. We are trying to turn the crisis into an opportunity.
“We encourage the installation of solar power plants”
Returning to the energy sector; we see an increase in the share of investments in renewable energy. Industrialists are very motivated to produce the energy they consume. Naturally, costs are also high. What is the current situation here?
Exactly as you said. We, as a company, including OSTİM OSB (Organized Industrial Zone), encourage all our firms, especially those in the industrial zone, to build solar power plants, and we ourselves are making intense efforts in this regard.
As OSTİM Yatırım A.Ş., we have invested in meeting a significant portion of our energy consumption through solar energy, both to reduce our energy costs and to initiate clean production. We have made and continue to make investments in solar power plants. This has also been an important opportunity for us. Speaking on behalf of OSTİM OSB, we provide consultancy, assistance, and incentives to companies here regarding the installation of solar power plants on their roofs.
As OSTİM Yatırım A.Ş., we have also made investments in solar power plants in areas we have been able to develop ourselves. We are continuing with new investments and have created new areas. We are making intense efforts to establish solar power plants in these areas as well. Solar power plants are a significant opportunity. If you consider energy costs, they pay for themselves in about three years. After that, you can turn the energy money into profit.
OSTİM GSYF offers significant opportunities
Let's talk a little about interest rates and financing diversification. I say financing diversification because when companies, especially exporters, cannot obtain credit from banks or secure loans under favorable conditions, they may prefer to use Eximbank loans and rediscount loans. However, there have been some disruptions there recently. How is the industrialist's access to financing? I'll mention other channels for exporters, as well as access to credit from independent banks, regardless of whether they are exporters or not.
Our habits in previous years were: go to the bank, get a loan immediately. No matter what you did for a living, nobody asked any questions. Now, there are truly significant opportunities in terms of interest rates for those in the real economy who are engaged in production. At the same time, there are some complaints about the accessibility and bureaucracy; people are asked questions like, "What will you do with this? Where will you use it?" This is not pleasing to those requesting loans. Our past habits need to change somewhat, but there are serious opportunities for those who are engaged in production.
As OSTİM Yatırım A.Ş., we have also developed other solutions. Specifically, to collaborate with, develop, and improve the funding opportunities for our technology-oriented companies, OSTİM Yatırım A.Ş., together with Albaraka Türk, established the OSTİM Venture Capital Investment Fund (OSTİM GSYF) (www.ostimgsyf.com.tr). This is an excellent opportunity, especially for technological investments, in recent times. We believe this is crucial in this new era, in this new world. We quickly established a position here and initiated collaborations with many companies. We will further develop this.
Within our own network, we have our Technology Development Zone, our university, and our clusters. We believe that this ecosystem offers a significant opportunity, especially in terms of finance, for newly developing, technology-oriented companies. It's also a win-win situation; we see this as an opportunity for these companies to develop and grow, and for the resulting revenue to be transferred to OSTİM Yatırım A.Ş. We believe we are doing something with a high multiplier effect. In this sense, we are among the leading companies operating in this field in Ankara.
Photos
