“We Learned To Enter The Right Sector By Taking A Hit”

Everybody got to know Kibar Holding through Hyundai. Its less popular iron and steel and aluminum businesses have always remained in the background. But Kibar Holding Vice Chairman Ali Kibar is determined when it comes to growth in steel, which has been his father’s profession for 35 years. Kibar is on the verge of agreements with foreign investors in iron and steel and finance and is building a new factory in Sakarya Karasu. But it is not hesitating to enter different areas, ranging from information technology to real estate, security and logistics.

Kibar Holding is one of the fastest growing groups in Turkey. Over the last five years it has increased its turnover from US$1 billion in 2003 to US$3 billion. Its income aluminum alone stands at US$1.2 billion. It has more than 20 companies and is active in over 10 sectors from iron and steel to automotives, foodstuffs, real estate and technology.

Kibar Holding Vice Chairman and Hyundai Assan Board Chairman Ali Kibar says that they are looking favorably at new sectors. Kibar believes that 2008 will be a year of restructuring and investment. First it will create synergy by merging its two companies in the aluminum sector. It will also start port management and logistics operations. Ali Kibar, who is preparing new investments and acquisitions, answered Capital’s questions.

* You are active in very different sectors. Which are the businesses which give you pleasure?
The type of business does not matter for us. Providing one does not become spread too thin, concentrating first on one sector and then on another, and focusing one’s intellect on different areas gives a person a special kind of excitement. As the result of our new agreement with Hyundai, we have reduced our share in automotives to 30 percent. But we also have a foodstuffs business. We may acquire a foodstuffs company in the future. In addition, we are also considering logistics. We have a leasing company. We are planning to make activities which run parallel to our own areas more profitable.

* Which projects are included in Kiba Holding’s new investment plans?
We have a port project through the US$80 million investment we have made in İskenderun. We shall open it in October. In addition, we shall form a partnership with a foreign firm in our finance company. We have reached a 50-50 partnership agreement. We may withdraw from any sector or make an investment in it at any time. If there is an opportunity in a new sector then we shall enter it immediately.

* How do you understand that you must get out of one sector and into another?
You learn which sector to enter and which to leave by taking a hit. We may leave any of them or enter any of them. What is needed is flexibility. Increasing globalization brings opportunities in some fields. But one has to evaluate those opportunities more quickly. You can say “I shall definitely do this” but you may not be able to.

* Generally speaking, in which areas are you planning mergers?
For example, we have two aluminum companies. We want to merge these two aluminum companies this year. We have transformed the aluminum company we took over from the Savings Deposit Insurance Fund, equipping it with the latest technology and becoming involved in its activities. The company used to have a turnover of US$120 million but, when the new investments are complete, the total will reach US$450 million. We currently also have another aluminum plant. It has an output of 130,000 tons per year. The new investments we are making in these two companies focus on foil production.

* On which areas will you concentrate in the future?
The sector on which we shall concentrate will be aluminum. The total turnover of our two aluminum companies is approximately US$1.2 billion. Our two companies are called Assan Demir and Assan Alüminyum. We shall merge them as Assan Alüminyum.

Six News Items From Kibar Holding
1. We have learned how to do business in foodstuffs and achieved a volume of US$60 million. Now are looking to acquire a company.
2. In October, we shall open the port project in İskenderun in which we have invested US$80 million.
3. We have a consumer finance company. We are moving towards a 50-50 foreign partnership there.
4. We have begun a residential construction project in Tuzla. We shall continue to be active in the residential construction business.
5. We have two aluminum companies. We shall merge these two companies this year.
6. We shall be active in both iron and steel and aluminum in Sakarya Karasu.

 “No Preferential Treatment Even For Family Members”
“The Family Makes The Final Decision”
We generally share our decisions with our managerial colleagues, But we take the decisions as a family, my father, me and my brother. With us, it is always the family which makes the final decision. Even those who are not directly involved express an opinion without hesitation. But it stands behind its decisions. We usually make our decisions as a family on Saturdays. My father regards his professional colleagues as his children. The workforce are also part of the family.

“No Free Rides”
 I have a daughter and a son, Neither of them work at Kibar Holding. I support my children doing whatever they want to do. My son wanted to have some experience abroad. He needs first to be able to stand on his own feet. Later they will come to the holding. Once they have got to know the companies then they will begin to express an opinion. Even if it is someone from the family, they must start with a job they can do. There is no preferential treatment, even for a family member.

Ayse Tarcan Aksakal
aaksakal@capital.com.tr