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- We want to take more risk
We want to take more risk
We spoke with Kocabıyık about the issues that people are curious about, from the transformation at Borusan to new projects.
Ahmet Kocabıyık, is board chair of Borusan, which has a turnover of $4.3 billion. He is the son of Asım Kocabıyık, one of the most important industrialists in Turkey. Kocabıyık, who lost his father last year, says:
“The holding will continue to follow his principles. But we are adding new values to those that are already in our DNA.” Kocabıyık says that their goal is to create a holding which is more dynamic, takes more risks and is more innovative. “My father was a very thrifty person. He did not like extravagance.
For this reason we grew slowly and steadily. We are also growing slowly now but we want to take a little more risk,” he says. We spoke with Kocabıyık about the issues that people are curious about, from the transformation at Borusan to new projects.
Have new values been added to Borusan’s DNA in recent years?
At the beginning of the 2000s, Borusan turned to the 6 Sigma model in order to increase productivity. Recently, novelty and innovation have been our most important priorities. The holding’s most important priority has been discovering new products and new markets.
We want everyone at Borusan to think about what customers will want from us in ten years’ time. We are looking to identify the answers to these questions in advance and establish an innovative system.
What kind of Borusan do you want to create?
My father was a very thrifty person. He did not like extravagance. For this reason we grew slowly and steadily. We are also growing slowly now but we are looking to
grow by trying to do more and being able to take a little more risk. ~
Our goal is to ensure that those who work under our executives are dynamic people who are a little more ambitious. In the future, we want to be a holding which is more dynamic, takes more risk and is more innovative. We want to create a Borusan workforce which does more than it is required and is more entrepreneurial.
What will be the new business areas where you will take more risks?
We are always ready to enter new business areas. We are evaluating opportunities. We are not so interested in energy tenders. We are more interested in wind energy. As there are no wind power plants to be privatized, we are building our own energy plants from scratch. As a result, we are not very interested in privatization.
But we have considerable potential to grow in our existing businesses. Of the fields that we have entered recently, there are great opportunities in energy in particular. For this reason, we are concentrated on energy. The shale gas sector is on the agenda in the USA. In the future, we may enter the shale gas business in Turkey.
We want to be one of the pioneers if research starts on shale gas in Turkey. We are continuing to hold talks with the Energy Ministry. We want to form a partnership with a company that knows this business. We need to acquire know-how. We want to be a pioneer in the extraction of shale gas in Turkey. We are looking at opportunities.
What are your targets in energy?
In energy, we have investments in wind and hydroelectrics. In energy we are mainly focused on wind. We have several licenses for hydroelectric power plants but, to be honest, we are a little cautious about entering this field. Because environmental issues are becoming very important in Turkey.~
We can build a plant that does not harm the environment but we shall still get a reaction. Because of this, it is very likely that we shall grow by focusing on wind energy. In the longer term, we are thinking about natural gas. We have 600 megawatts in energy licenses.
We have a total established capacity of 110 megawatts. We want to increase our established capacity to 2,000 megawatts by 2020. In energy, our priority will be to realize the licenses that we have already obtained.
We are aiming to invest between $200 million and $300 million in energy every year. Energy will account for half of our total investments. To date we have invested a total of $150 million for our established capacity of 110 megawatts. Our target is for our total investment in energy to be $2.5 billion when we increase our established capacity to 2,000 megawatts.
How much did you grow in 2013?
We still don’t have the figures for our return on investment. In 2012, we had turnover of $4 billion. Our investments reached a record $352 million. We made progress towards realizing our vision of being a regional player in the business areas where we are active. In 2013, the holding increased its turnover by 7 per cent to close the year at $4.3 billion. We did not grow so much in 2013. But our profits were much better when compared with previous years. We are expecting profits of around $160 million in 2013.
What is Borusan’s biggest business?
We provide services in four main areas: steel, distributors, energy and logistics. The steel group accounts for our largest volume of business. Pipes account for $700 million. Our annual turnover in flat steel stood at $1.1 billion at the end of 2013. Our turnover in logistics is $500 million. Energy and distributors account for $1.9 billion in turnover.~
What growth target have you set for your pipes business?
Our annual production of pipes in Turkey currently stands at over 600,000 tons. Last year we laid the foundations for a plant in Houston, USA. The investment is worth $150 million and will have an annual capacity of 300,000 tons. We expect it to begin production in 2015. In the future, we shall expand our investments in the USA. In the future, we may also think of an investment in Iran.
Do you have any new acquisitions on your agenda?
Instead of acquisitions, we are planning to grow by ourselves. We are now giving greater emphasis to areas such as energy, oil, gas and automotives rather than pipes.
What are your dreams for Borusan Holding?
My greatest dream for Borusan is for it to be a group that is continually growing, that does its job superbly, that creates a difference and adds value to society. I am targeting growth of 15-20 per cent every year.
"MY FATHER USED TO SEND ME LETTERS"
“HE WOULD SEND WRITTEN MESSAGES”
My father used to prefer to write down what he wanted to say rather than communicate it orally. He would continually write my letters. I used to receive a message from him at least twice a year. I would say whatever I wanted to say to him directly. But, in the future, I would like to make the letters that my father sent to me into a book.
THE LETTER HE WROTE DURING THE CRISIS
Eleven years ago there was a major crisis in Turkey. At that time, we also laid off 500 people. My father was very uneasy. He sent me a letter from our house in Bodrum explaining the importance of making savings. In the letter he wrote, he said: “You posted a loss because you are not thrifty.” He was right when it came to extravagance. After the letter, we reduced our general operating expenses. We felt the need to work more efficiently. After that time, we began our work on 6 Sigma.
“The holding will continue to follow his principles. But we are adding new values to those that are already in our DNA.” Kocabıyık says that their goal is to create a holding which is more dynamic, takes more risks and is more innovative. “My father was a very thrifty person. He did not like extravagance.
For this reason we grew slowly and steadily. We are also growing slowly now but we want to take a little more risk,” he says. We spoke with Kocabıyık about the issues that people are curious about, from the transformation at Borusan to new projects.
Have new values been added to Borusan’s DNA in recent years?
At the beginning of the 2000s, Borusan turned to the 6 Sigma model in order to increase productivity. Recently, novelty and innovation have been our most important priorities. The holding’s most important priority has been discovering new products and new markets.
We want everyone at Borusan to think about what customers will want from us in ten years’ time. We are looking to identify the answers to these questions in advance and establish an innovative system.
What kind of Borusan do you want to create?
My father was a very thrifty person. He did not like extravagance. For this reason we grew slowly and steadily. We are also growing slowly now but we are looking to
grow by trying to do more and being able to take a little more risk. ~
Our goal is to ensure that those who work under our executives are dynamic people who are a little more ambitious. In the future, we want to be a holding which is more dynamic, takes more risk and is more innovative. We want to create a Borusan workforce which does more than it is required and is more entrepreneurial.
What will be the new business areas where you will take more risks?
We are always ready to enter new business areas. We are evaluating opportunities. We are not so interested in energy tenders. We are more interested in wind energy. As there are no wind power plants to be privatized, we are building our own energy plants from scratch. As a result, we are not very interested in privatization.
But we have considerable potential to grow in our existing businesses. Of the fields that we have entered recently, there are great opportunities in energy in particular. For this reason, we are concentrated on energy. The shale gas sector is on the agenda in the USA. In the future, we may enter the shale gas business in Turkey.
We want to be one of the pioneers if research starts on shale gas in Turkey. We are continuing to hold talks with the Energy Ministry. We want to form a partnership with a company that knows this business. We need to acquire know-how. We want to be a pioneer in the extraction of shale gas in Turkey. We are looking at opportunities.
What are your targets in energy?
In energy, we have investments in wind and hydroelectrics. In energy we are mainly focused on wind. We have several licenses for hydroelectric power plants but, to be honest, we are a little cautious about entering this field. Because environmental issues are becoming very important in Turkey.~
We can build a plant that does not harm the environment but we shall still get a reaction. Because of this, it is very likely that we shall grow by focusing on wind energy. In the longer term, we are thinking about natural gas. We have 600 megawatts in energy licenses.
We have a total established capacity of 110 megawatts. We want to increase our established capacity to 2,000 megawatts by 2020. In energy, our priority will be to realize the licenses that we have already obtained.
We are aiming to invest between $200 million and $300 million in energy every year. Energy will account for half of our total investments. To date we have invested a total of $150 million for our established capacity of 110 megawatts. Our target is for our total investment in energy to be $2.5 billion when we increase our established capacity to 2,000 megawatts.
How much did you grow in 2013?
We still don’t have the figures for our return on investment. In 2012, we had turnover of $4 billion. Our investments reached a record $352 million. We made progress towards realizing our vision of being a regional player in the business areas where we are active. In 2013, the holding increased its turnover by 7 per cent to close the year at $4.3 billion. We did not grow so much in 2013. But our profits were much better when compared with previous years. We are expecting profits of around $160 million in 2013.
What is Borusan’s biggest business?
We provide services in four main areas: steel, distributors, energy and logistics. The steel group accounts for our largest volume of business. Pipes account for $700 million. Our annual turnover in flat steel stood at $1.1 billion at the end of 2013. Our turnover in logistics is $500 million. Energy and distributors account for $1.9 billion in turnover.~
What growth target have you set for your pipes business?
Our annual production of pipes in Turkey currently stands at over 600,000 tons. Last year we laid the foundations for a plant in Houston, USA. The investment is worth $150 million and will have an annual capacity of 300,000 tons. We expect it to begin production in 2015. In the future, we shall expand our investments in the USA. In the future, we may also think of an investment in Iran.
Do you have any new acquisitions on your agenda?
Instead of acquisitions, we are planning to grow by ourselves. We are now giving greater emphasis to areas such as energy, oil, gas and automotives rather than pipes.
What are your dreams for Borusan Holding?
My greatest dream for Borusan is for it to be a group that is continually growing, that does its job superbly, that creates a difference and adds value to society. I am targeting growth of 15-20 per cent every year.
"MY FATHER USED TO SEND ME LETTERS"
“HE WOULD SEND WRITTEN MESSAGES”
My father used to prefer to write down what he wanted to say rather than communicate it orally. He would continually write my letters. I used to receive a message from him at least twice a year. I would say whatever I wanted to say to him directly. But, in the future, I would like to make the letters that my father sent to me into a book.
THE LETTER HE WROTE DURING THE CRISIS
Eleven years ago there was a major crisis in Turkey. At that time, we also laid off 500 people. My father was very uneasy. He sent me a letter from our house in Bodrum explaining the importance of making savings. In the letter he wrote, he said: “You posted a loss because you are not thrifty.” He was right when it came to extravagance. After the letter, we reduced our general operating expenses. We felt the need to work more efficiently. After that time, we began our work on 6 Sigma.
