We want to become the Apple of glass

While he was outlining the future of the company, Ahmet Kirman, Sisecam Deputy Chair of the Board and General Manager, shared some incredible statistics. He says that the company will be “one of the three biggest producers in the world”. He underlines that this means that they will “triple in size in the next seven years”. Their targets include achieving a turnover of $10 billion. Kirman says: “Being global is not a financial issue. It is important to be a company which sets, rather than follows, trends in the sector. Like Apple... We also want to become the Apple of glass.” We spoke with Prof. Dr. Ahmet Kirman about managing a global giant and Sisecam’s targets.

Capital: You are a powerful global player with a turnover of $3 billion. Where do you rank in the global league?
- We are in the top ten in glass. We are number one in the world in chrome and second in Europe and third in the world in household glassware, in straight glass we are fourth in Europe and eighth in the world, and we are in the top ten worldwide in soda. We are in the global premier league in every field in which we active.

Capital: From your perspective, what does it mean to be a global player?
- Contrary to what is believed, being a global player is not an issue of money. It means thinking on a global scale. It means being a multilingual, multicultural organization. All of these are proof that companies cannot become globalized without undergoing a major transformation. In fact, a global company is a company which is constantly changing.

Capital: So what are the advantages and disadvantages of being global?
- The most important advantage accruing from the transition from being a local to a global player is growth and possessing the strength that comes with growth. What we understand by this growth is being a company which sets, rather than follows trends, in its sector. It is not the only example but, because it is very well-known, I would like to cite Apple in this regard. We want to become the Apple of the glass sector. As a result, instead of responding to customers’ current demands, we shall offer products which will make it possible for them to live a more comfortable life in the future. Global companies are saved from the danger of being dependent on a single geographical region and can spread risks. Coming to the disadvantages... it is much more difficult to manage an organization like this. As a result of the company’s size, one has to be nimble and flexible. Even if this appears to be a contradiction.~

Capital: How will you achieve your target of being in the top three in the world?
- In a word, by changing. In fact, Şişecam has for some time being doing what is necessary for such a change. The main principle that we follow is to do business everywhere in the world provided that it create an economic value. The “Top Three” target is a long-term target. From our perspective, it is not something which can be realized immediately.

Capital: How long-term a plan is it? For example, 2023 or later?
- Before 2023, We hope to achieve it in the period 2018-2020. These are expectations, of course, These expectations are very closely related to the economy and demand. In order to achieve this target we need to grow steadily by an average of around 10 percent every year, We want to have a turnover of $10 billion by 2020.

Capital: How much progress have you currently made towards achieving this target?
Şişecam has a turnover of $3 billion, This figure puts us in the top 10, In order to achieve our goal we need to at least triple this figure within a suitable time, This looks very ambitious, But in this way we think that crises are the most suitable periods for major challenges.

Capital: Which is more suitable for your growth strategy, organic or inorganic?
- We are growing both organically and inorganically, Our first priority is to take a local partner on board, buy existing plants using our resources and then develop them qualitatively and in terms of technical equipment and capacity, If this does not happen, then we are planning to make the most of the market potential and invest in a completely new plant.

Capital: Has consolidation on the global market accelerated a lot? What is Şişecam’s strategy?
- When we look at the premier league, then our rivals are the same as ten years ago. In the lower divisions there are rapid changes and acquisitions amongst the small and medium-sized enterprises. Because the global crisis came as a shock to glassmakers. This situation presented us with significant acquisition opportunities, The most recent example is the car glass plant we have bought in Romania. But I can say that much larger acquisitions are awaiting us in the future. We have developed enough in our neighborhood, such as Russia and Bulgaria, Now we are looking farther afield. Now we are moving ahead with a global rather than a regional vision, We are evaluating all countries and regions with an eye to an opportunity, particularly Asia, Latin America and Eastern Europe, §i§ecam has significant cash assets, If we take these as a subvalue and add 20 percent leverage. I think that we can very easily finance acquisitions of $4 billion.~

Capital: What are your expectations for 2012?
- From the perspective of the global economy, we can talk about a relative recovery. But we think that this recovery and economic upturn will not be very satisfying. At Şişecam our ordinary potential is to grow by 10  percent in US dollar terms. Our target is to improve on the figures for 2011 but we have to look at things realistically. Sometimes, in economic environments like this, it is very important to maintain your existing figures. The main character of investments won’t change in 2013. From the point of view of timing, we shall not be very active in terms of unsuitable investments in increasing capacity.

Capital: All companies have targets for 2023, What kind of §i§ecam will we see in 2023?
- We set figures for closer dates. At Şişecam our vision is to be among the top three in our field. This means a turnover of at least $10 billion. But this is a target which requires us to triple in size without any weakening in the quality of our profits, It is a target which requires producing more innovative products, Şişecam’s flag, which today flies over Europe, will fly on all continents during the 100th anniversary of the Republic.