Capital Compass – Turkey’s 2024 Production and Trade Performance | Derviş Ali Çokyaşar
In this episode of the “Sermaye Pusulası” program, which airs every Wednesday at 1:00 p.m. on Bloomberg HT, the guest was Derviş Ali Çokyaşar, Vice Chairman of the Board of Directors at Özyaşar Tel ve Galvanizm Sanayi AŞ. The program discussed Turkey’s production and trade performance in 2024. Host Reyhan Baysan had an engaging conversation with Derviş Ali Çokyaşar about the company’s growth strategies, production processes, and global market goals.
Özyaşar Wire and Galvanizing: Half a Century of Experience
Founded in 1973, Özyaşar Tel is Turkey’s largest producer of strip wire. Beginning with production for the agricultural sector, the company has since expanded into many other sectors, including automotive, energy, furniture, environmental security systems, packaging, and construction. Exporting to 80 countries and employing nearly 1,000 people, Özyaşar Tel continues to serve the wire industry in Turkey and around the world.
Production Processes and Technological Transformation
The company has three factories in Turkey and one abroad. Özyaşar Tel, which operates production facilities in Adana, Istanbul, Düzce, and Albania, has specialized these factories to increase efficiency. The raw material used in the production processes is wire rod, which is zinc-coated after drawing and annealing to make it resistant to corrosion and wear. The products manufactured serve many sectors as semi-finished goods.
Growth Strategies and Investment Planning
When defining its growth strategies, Özyaşar Tel places great importance on value-added production and digital transformation. By using an ERP system in its business processes, the company aims to achieve more efficient and high-quality production. Derviş Ali Çokyaşar emphasized the importance of this approach, stating, “If you don’t move in the same direction as the rest of the world, you’ll fall behind.”
Competition and Goals in the Global Market
One of the company’s growth strategies on the international stage is to increase market diversification. Özyaşar Tel, which has turned its attention to the U.S. market due to trade wars, tariffs, and quotas in Europe, aims to meet demand in that market. Derviş Ali Çokyaşar noted that the United States is the world’s largest importer and that, for this reason, it is the company’s primary target market.
Domestic Market Dynamics and Financing Solutions
High interest rates and a shrinking domestic market in the Turkish economy are putting manufacturers in a difficult position. Derviş Ali Çokyaşar stated that they need long-term, low-cost sources of financing and are therefore also evaluating foreign financing alternatives. Additionally, noting that they are considering an initial public offering (IPO) as a financing solution, Çokyaşar emphasized that an IPO represents a significant step toward growth by providing companies with interest-free capital.
Plans and Vision for the Future
Özyaşar Tel aims to focus on the U.S. market in the coming period and increase its production capacity worldwide. Derviş Ali Çokyaşar has set the company’s goal as becoming one of the world’s three largest wire factories. He also stated that, anticipating an increase in trade wars and quotas, the company plans to expand its production to different countries to serve local markets.
Green Energy and Sustainability
In line with its goal of reducing its carbon footprint, the company is transitioning to the use of green energy at its factories. By installing solar panels on the roofs of its factories, Özyaşar Tel is taking significant steps toward sustainability through its investment in renewable energy. This transformation is also shaping the company’s long-term financing strategies.
