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 Flat Glass Business
In 1999 the global economic crisis continued to influence conditions. The adverse effects of the earthquake on August 17th and intense competition encountered in the flat glass sector throughout the world have been the most evident developments affecting the activities of the Flat Glass Business. In spite of these developments, the strength of the Flat Glass Business continued to be based on the most advanced technology, dynamic customer relations and distribution systems, measures taken against adversity, ongoing projects and the intensive work carried out on projects. Giving top priority to the satisfaction of shareholders, customers and employees, the Flat Glass Business continued its activities and investments with greater intensity despite the adverse events in 1999. Activities are expected to continue unabated in the year 2000. In line with its vision of ‘being the dominant company in the domestic market and the leading company in the region`, the Flat Glass Business started the IV Float Line in Mersin on February 1, 2000. The IV. Float Line in Mersin is capable of producing 215,000 tons per year. The annual flat glass production capacity will increase to 810,000 tons upon completion of the facility, at a cost of US$ 90 million. Şişecam's share of European flat glass production volume is expected to increase from 6% to 7%. The IV. Float Line will produce, flat glass of various size and thickness (2-10 mm) colored as well as clear glass that will be supplied to both domestic and international markets. A new standard, TS 825, pertaining to heat insulation in buildings came into force on June 14, 1999 aiming at a more efficient use of national resources and energy savings. This standard, divides the country into four climatic regions but imposes a single insulation value for all. Whereas the standard does not require insulation, a new directive published, through the efforts of Şişecam, by the Ministry of Public Works, does require insulation, thus taking the standard further. This directive, stipulates that all public buildings as well as buildings under the jurisdiction of municipal housing departments, use insulation, setting four different heat insulation values for all four regions and raising the values in colder regions. These two regulations, TS 825 Standard and Ministry of Public Works Directive on Heat Insulation in Buildings, are expected to give a significant boost to the use of low-e and IMF-coated insulation units. Operations at the Atatürk Airport's new International Terminal in Istanbul, one of three largest buildings in Turkey, and the adjacent parking area were inaugurated on January 3, 2000. With regard to this project, the Flat Glass Business has co-operated with three aluminum frame manufacturing companies and utilized various compositions of two main product types within an area of 38,000 m2. Laminated glass with azure blue PVB, a safety glass that is used on the façade of buildings was combined with IMF-coated Isıcam Konfor and subjected to tempering to enhance the safety factor. The pyramid roof of the terminal building is composed of Isıcam Konfor and laminated glass that have been tempered and used in combination. In 1998, the Flat Glass Business introduced the ‘Hilal' design of İzzettin Baki, that won first prize in the Decorative Glass Design Competition held by Şişecam in cooperation with Mimar Sinan University. The Elit Glass Series, offering countless application opportunities both for interior and exterior areas, can be used in places where safety is the primary concern since they are treated with a special hardening process to make it both heat and shock resistant. At the 2nd Technology Congress sponsored by TÜBİTAK, TTGV and TÜSİAD, Şişecam won the Jury Special Prize for the technology for its Isıcam Konfor project. This competition supports efforts for the development of innovative products and encourages the strengthening of competitiveness for Turkish industrial goods in world markets. The Flat Glass Business was represented with a two-floor stand of 140 m2 at the Istanbul Construction Fair, held at the Construction Industry Center in April. Şişecam's stand where Isıcam Konfor, Lara Glass Brick, Elit Glass varieties, Coated Glass, Duracam and Lameks products were exhibited, was awarded with a prize for ‘Purpose-Built Stand Design and Designer.'Additionally, within activities of the fair, the Flat Glass Business also won an important award regarded as the ‘Oscar' of the construction industry for its Isıcam Konfor product. Within the framework of promotional activities, TV, newspaper and magazine commercials have been used during publicity campaigns for Lameks glass products. Regional promotional activities for Isıcam were carried out between March and June 1999 in Antalya; both campaigns originally started in 1998. Because of the unfavorable conditions prevailing in the country during 1999, the total sales volume of the Flat Glass Business decreased by 12% on a tonnage basis. Şişecam focused on the export market due to the drop in domestic sales caused by stagnation. However, the increase in demand from the domestic market and the decrease in inventories following the earthquake channeled the focus back on domestic markets. The export volume did not increase as had been predicted and exports of flat glass decreased by 12% as compared to the previous year. Exports of flat, figured, mirror, laminated and tempered glass reached a total of 183,000 tons. Domestic sales of automotive glass decreased parallel to the decrease in production in the Turkish automotive industry, resulting in an increase in exports. Because Turkey ranks rather low in terms of car ownership per thousand people when compared to world averages, it is an attractive market for major car manufacturers, which have a tendency to invest in potential markets. As a result, these companies have increased their investments in Turkey especially geared to export markets. In overseas markets where demand is saturated, automotive products are mainly sold for renewal purposes. When automotive glass sales are directed to the OEM market, exports take a greater share in total sales and provide opportunities for a greater expansion in production and investments. In view of these developments, automotive glass production has become an important center with increased market share and sales figures as well as exports. It is expected that the effects of 1999 will improve in 2000 and the economy will gradually begin to recover due to the improvements taking place in the construction and automotive industries. In addition to these positive developments, improvement in products with high value-added components will result in increases in both domestic and export sales. With new investments and products, the Flat Glass Business' capacity to compete is further enhanced by the contributions of the employees who strive for the reduction of costs. At the same time, customer satisfaction originating from the quality of goods and services will help the Flat Glass Business meet the challenges of the 2000s. |