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Business Other Group Companies |
 Chemicals Business
The operations of the Chemicals Business are concentrated in the production of the basic ingredient in glass manufacture, soda ash and other industrial minerals, as well as electrical power supply. The range of products covered by the Business includes chromium chemicals, glass fiber, unsaturated polyester, vitamin K-3 and glass reinforced plastics. In 1999, the production of soda ash increased by 9%, sodium bichromate by 44%, basic chromium sulphate by 4% and electricity by 33%. During the year, a steam generation plant to supply glass manufacturers went into operation at the Group's electricity generation plant in the Thrace region. Exports of the Chemicals Business increased by 30% during the year. The number of employees was 1,997 at the and of the year and US$ 50 million was invested to enhance the development of the Business. The Mersin soda ash plant of Soda Sanayii produces light soda, refined sodium bicarbonate and sodium silicate for the glass, chemical, detergent, textile, paper and chemical industries, both at home and abroad. With production levels at 97% of capacity, its total soda production increased by 9%. Soda Sanayii has maximized benefits from soda ash production in the Sodi plant, which was established as a joint venture with Solvay of Belgium in Bulgaria. The Sodi plant increased its exports and consolidated its pioneering position in its region. Şişecam Bulgaria Ltd. started operations in late 1997, and it won first prize in a competition among 56 companies in the country based on productivity and profitability criteria at the end of 1998. In 1999, sales of heavy and light soda ash increased by 6.1% and reached 802,000 tons, 32% of which was sold to Şişecam Group companies, 14% to other domestic customers and 54% was exported. Total exports increased by 24%, amounting to US$ 53 million. Taking the exports of the Business's plant in Bulgaria into account, total exports reached US$ 58 million. Growth in export markets was the result of the emphasis placed on the company's image as an export-oriented business. In 1999, two new countries were added to the market portfolio. The investment for the new power plant of Mersin operations was continued throughout the year. It will start operations in 2000, greatly enhancing the plant's competitiveness. The Chromium Chemicals Plant is supplying sodium bichromate, basic chromium sulphate, chromic acid, sodium sulphur and sodium sulphate to industries involved with leather, wood impregnation, surface treatment and metal coating, pigment, paper and chemical industries, both in Turkey and abroad. Important investments were made for this operation during the last two
years. In the second half of 1999, the latest technology complying with
environmental standards was used in the production of sodium bichromate.
Again in the same period, the plant producing chromic acid with higher
value-added ingredients became operational. In 1999, production and quality
consistency were achieved for both investments, consequently increasing
the production of sodium bichromate by 44%.
Total sales of the chromium chemicals increased by 105% over the preceding year, while exports increased by 68% to reach US$ 33 million. This operation is keeping an eye on regional developments in the leather industry, its primary customer base, to increase international sales in areas where leather processing is emphasized. Oxyvit Kimya, established as a joint venture between the Şişecam Group companies and Italian investors on a 50-50 basis, started Vitamin K-3 production in March 1999. The plant attained design parameters and the intended quality level at the end of the year. Having exported 80% of its production and generated a revenue of US$ 1.5 million, Oxyvit diversified its product range in accordance with the requirements of the marketplace, based on studies conducted by the Chemicals Business's development team. Oxyvit began obtaining legal permission for its trade activities in each target country. Measures were taken to increase the efficiency of its distribution channels that would enhance its competitive edge both in Turkey and abroad in the new millennium. Cam Elyaf produces glass fiber, reinforcement material for composite products and unsaturated polyester resin. Glass fiber products are used as raw materials for composite materials, steadily substituting conventional products in various sectors. About 70% of the output of Cam Elyaf is exported. The European composite sector makes up its primary market. Cam Elyaf has secured a solid position in the marketplace with its reputation as an independent and reliable company. Total sales of glass fiber increased by 11% and reached 26,000 tons in 1999, while polyester sales increased by 7%. The exports of Cam Elyaf reached 20,000 tons; an increase of 16%. In 1999, total sales were US$ 42 million, of which US$ 26 million was derived from exports. Modernization investments for polyester and rearrangement of the distribution
of fiber bushing were carried on. The development of new products, recycling
systems and modernization of production machinery also continued in 1999.
Camiş Madencilik produced 1.1 million tons of industrial raw materials and met the needs of glass companies for quality, cost-effective raw materials. Company production was responsible for covering 94% of sales, with the remaining 6% coming from resources both at home and abroad. Camiş Egypt completed its investment in Egypt. The production plant started operations in the second half of the year and began shipping sand to Turkey. Important savings were achieved in the cost of sand used for flat glass production because of this plant. Camiş Elektrik generated a total of 356,000,000 kWhours of electricity
and 38,000 tons of steam at Topkapı, Çayırova and Trakya electrical power
stations and supplied primarily Şişecam Group companies. Manufacturing
facilities of the Group companies were protected against 90% of the 622
fluctuations in power levels and interruptions, and thus any distruptions
in production have been prevented.
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