Fields of Activity

Architectural Glass

Architectural Glass

10 production facilities in six countries

Şişecam holds a pioneering position in Türkiye and globally with its advanced technology and innovative approaches.

ACTIVITIES IN 2023

Despite signs of economic recovery around the world, ongoing inflationary pressures and responsive measures to mitigate inflation limited global growth this year. By closely monitoring global developments and effectively managing uncertainties, Şişecam successfully overcame difficulties and maintained its leading position in all markets.

In Türkiye, the earthquake disaster and the sharp rise in interest rates as part of the fight against inflation suppressed economic growth at the start of 2023. Imports from countries with lower labor and energy costs such as China, along with the effect of the stable course of exchange rates, made for an especially challenging competitive landscape in the first quarter of the year. In 2023, Şişecam’s business partners, especially those located in the earthquake zone and indirectly facing difficulties, were provided with support. Proactive and rapid actions were taken to respond to competition created by imported products and to support the distribution channel that provides sustainable high quality service to the industry.

TRY 33.4 Billion ARCHITECTURAL GLASS NET SALES REVENUE
Industrial Glass

Industrial Glass

Uncompromising approach to customer satisfaction

In the industrial glass sector, Şişecam fulfills all industry requirements and expectations with its safe, high-quality products, supported by an open and innovative R&D ecosystem.

AUTOMOTIVE

ACTIVITIES IN 2023

In line with the vision of becoming a global leader, Şişecam Automotive meets all the requirements and expectations of the industry with safe and high-quality products thanks to its open and innovative R&D ecosystem.

GLASS FIBER

ACTIVITIES IN 2023

The Şişecam Glass Fiber production facility, commissioned in 2019 and equipped with the latest technologies, maintained its growth target in parallel with the developing composite industry.

TRY 15.8 Billion INDUSTRIAL GLASS NET SALES REVENUE
Glassware

Glassware

Market-driven product portfolio management

As a result of new product studies carried out by its glassware design team jointly with stakeholders, Şişecam received four awards in 2023.

ACTIVITIES IN 2023

Şişecam boasts long-term collaborations with its distributors and customers in the glassware segment coupled with an ability to develop innovative products by capitalizing on its advanced technical and design competencies. These competitive advantages play a key role in increasing Şişecam’s brand power and brand awareness in the global market.

Supported by its global production power, Şişecam reinforced its leading position in the glassware industry with more than 100 new products developed in 2023. Evolving market demands were closely analyzed to develop innovative products that stand out from the competition. Şişecam recorded a significant improvement in the service level offered to customers via effective management of its production capacity.

TRY 17.6 Billion GLASSWARE NET SALES REVENUE
Glass Packaging

Glass Packaging

Leading position in its markets of operation

Şişecam ranks among the top five producers in Europe and globally.

ACTIVITIES IN 2023

Şişecam is the leader in the glass packaging industry in Türkiye and Russia and ranks among the top five manufacturers in Europe and worldwide. This reporting year, Şişecam moved forward with its glass packaging activities despite various macroeconomic and geopolitical challenges. In 2023, Şişecam recorded net sales revenue in its glass packaging segment of TRY 28.4 million.

Acting with the responsibility of being the industry’s main glass packaging supplier in Türkiye, Şişecam remained the driving force in Turkish glass packaging exports in 2023. Meeting local demand with its high-quality, wide product range and customeroriented management, Şişecam plans to boost exports from Türkiye and expand in the global market, especially in Europe.

TRY 28.4 Billion GLASS PACKAGING NET SALES REVENUE
Chemicals

Chemicals

One of the world’s two largest soda producers

Şişecam is one of the world’s two largest soda producers, with an annual soda production capacity of 5 million tons.

SODA

ACTIVITIES IN 2023

As one of the world’s largest soda producers, boasting a 5 million ton production capacity, Şişecam is recognized around the world as a reliable supplier with its high production capacity, high product quality, and extensive marketing network.

CHROMIUM

ACTIVITIES IN 2023

With the advantage of being the world’s leading chromium chemicals producer, Şişecam Chromium Chemicals generated 85% of its sales revenues from international markets and delivered its products to 57 countries worldwide in 2023. Further bolstering its existing relationships with companies in the sectors it serves, Şişecam maintained its strong position in the market.

TRY 43 Billion CHEMICALS NET SALES REVENUE
Energy

Energy

Electricity generation from renewable sources

Şişecam supplied a large proportion of its electrical energy needs in Türkiye by its own production.

ACTIVITIES IN 2023

Şişecam’s Mersin Cogeneration Power Plant, Thrace Power Plant, and Mersin Solar Power Plants produced a total of 920 GWh of electricity in 2023. In the same period, electricity consumption at Şişecam facilities in Türkiye amounted to 1,277 GWh. Şişecam supplied a large proportion of its electrical energy needs in Türkiye by its own production.

In 2023, Şişecam’s energy trading company Şişecam Enerji A.Ş. traded 8,772 GWh of electricity and 1,359,000 m3 of natural gas. Some 95% of the turnover of this energy trade was realized with external customers other than Şişecam facilities.

TRY 21.6 Billion ENERGY NET SALES REVENUE
Other

Other

Seamless quality supply chain management

Şişecam concluded fiscal year 2023 with a total production of 3.7 million tons of glass sand, limestone, dolomite, feldspar, micronized products and kaolin.

MINING

Şişecam managed without interruption its raw material quality and supply processes required for glass production with its mineral resources and raw material enrichment facilities. In 2023, Şişecam maintained its strong market position despite foreign exchange rate fluctuations and global risks.

CAMİŞ AMBALAJ

In 2023, Camiş Ambalaj maintained its leading position in the industry thanks to its exceptional services, quality, and reliability. In line with the economic and industrial developments throughout the year, sales remained at the same levels as in the previous year. The sales volume made outside Şişecam grew 3% compared to the prior year. In 2023, Camiş Ambalaj expanded its capacity by 14% with renewal and modernization investments.

OXYVIT

Following intense price competition in the feed industry throughout the year, prices fell and demand was postponed in all products that constitute an input to the industry. A contraction was experienced in the global market, especially Europe, but the South American and Asian markets were relatively less affected. While the industry experienced its lowest levels, signs of recovery emerged in the last months of 2023.

TRY 6.3 Billion NET SALES REVENUE (OTHER)
Architectural Glass

10 production facilities
in six countries

Şişecam holds a pioneering position in Türkiye and globally with its advanced technology and innovative approaches.

AN OVERVIEW OF 2023

Şişecam operates in the flat glass industry with 10 production facilities in six countries, offering a wide range of products to the construction, furniture, automotive, solar energy, and white goods industries.

In 2023, the construction industry, one of the main industries to which flat glass is provided as input, demonstrated slow year-on-year growth. Total construction value in Türkiye increased by 4.5% in the first quarter of 2023, 6.6% in the second quarter, and 8.1% in the third quarter compared to the previous year. Building construction activities in Russia were at a similar level to the prior year. The construction growth rate in India in 2023 increased by 6.2% compared to a year earlier.

Türkiye ranks second after China in the white goods industry globally and is the largest production base in Europe. Türkiye’s white goods exports rose by 14% in the first nine months of the year compared to the same period of 2022.

The solar photovoltaic (PV) glass market grew by 10% in Europe and 8% in Türkiye this year. The global solar photovoltaic (PV) glass market is expected to expand at a very high average annual rate of 18% until 2031. Drivers of this rapid growth include government incentives, greater environmental awareness, and higher demand for sustainable energy.

ACTIVITIES IN 2023

Despite signs of economic recovery around the world, ongoing inflationary pressures and responsive measures to mitigate inflation limited global growth this year. By closely monitoring global developments and effectively managing uncertainties, Şişecam successfully overcame difficulties and maintained its leading position in all markets.

In Türkiye, the earthquake disaster and the sharp rise in interest rates as part of the fight against inflation suppressed economic growth at the start of 2023. Imports from countries with lower labor and energy costs such as China, along with the effect of the stable course of exchange rates, made for an especially challenging competitive landscape in the first quarter of the year. In 2023, Şişecam’s business partners, especially those located in the earthquake zone and indirectly facing difficulties, were provided with support. Proactive and rapid actions were taken to respond to competition created by imported products and to support the distribution channel that provides sustainable high quality service to the industry.

Demand was suppressed in Europe due to the inflationary environment, the Russia-Ukraine war, and rising construction costs. Meanwhile, the rapid decline in energy costs and the acceleration of cheap imports from China after the pandemic restricted prices in the market. In the face of challenging market conditions, Şişecam took the necessary actions. By focusing on sales of valueadded products and adding new customers to its distribution network, Şişecam maintained its market share in its primary markets. As a result of the rebound in demand, after remaining stagnant for a long period, the sales volume of Şişecam’s Russian operations increased on an annualized basis in 2023.

Completion of the cold repair in India modernized the flat glass furnace there, boosted efficiency, introduced new capabilities to manufacture different types of products. However, sales remained limited due to the cold repair process. The needs of the distribution channel were met by supporting demand in the market with products supplied from other Şişecam facilities.

To increase competitiveness in world markets, Şişecam engaged in ongoing efforts to offer an innovative product range in 2023. Şişecam strengthened its position in the global market during the year by expanding its value-added, innovative product range to fully meet the needs of the world market and all customers in its value chain. In line with the goal of combating climate change under its sustainability strategy, Şişecam conducted product development studies on energy-saving coated glass. Responding to the growing use of larger window glass in architecture, Şişecam started producing 12-meterlong flat glass for the first time in Türkiye this year.

In 2023, Şişecam recorded net sales revenue of TRY 33,409 million for its architectural glass segment.

EXPECTATIONS AND OBJECTIVES FOR 2024

Thanks to the actions taken in Türkiye, flat glass imports are expected to continue falling in the country in 2024. Residential housing construction in the earthquake zone is anticipated to be completed in 2024, making a positive contribution to flat glass consumption. In addition, Şişecam, through its wide range of products and customer-oriented service approach, supports the valueadded glass exports of processed glass producers in Türkiye. The company strengthens its position as Türkiye’s glass processing base and boosts processed glass exports.

Normalization in energy costs is projected to continue in Europe. Despite the decline in consumption in Europe, demand for value-added products remains steady. However, glass consumption is expected to rebound in 2024 due to downtrend in inflation and falling interest rates.

Although an increase in glass consumption is witnessed in the Middle East and North Africa region, the risks posed by regional wars are ongoing. Despite the negative effects of the Suez Canal crisis on sea freight, China’s influence in Türkiye, Europe, and the Middle East and North Africa regions is decreasing. This situation is expected to provide an advantage in terms of potential market share gains.

Due to the ongoing war in the region, sales in Russia are expected to come in at a comparable level to 2023. Şişecam’s operating results are expected to increase compared to 2023 following the re-commissioning of the line renewed with a cold repair in India.

New Investments

Şişecam, one of the global flat glass brands, is a leader both in Türkiye and around the world thanks to its advanced technology and innovative approaches.

Operating eight flat glass lines in four different locations in Türkiye, Şişecam is investing at full speed despite cyclical uncertainties and global economic challenges.

The flat glass line project, implemented in Lüleburgaz in 2023 for the production of automotive raw glass, represents a first in Türkiye with its sole focus on the automotive industry. The TR9 float line with a gross capacity of 1,200 tons/day, which started up in Mersin in December 2021, will also expand Şişecam’s flat glass production capacity in Türkiye. After this investment is complete, Şişecam will operate 10 flat glass lines in Türkiye.

Şişecam aims to expand its frosted glass and solar energy glass processing capacities with new Industry 4.0 compliant production lines to be implemented in Mersin. Thanks to this investment, Şişecam will increase its frosted glass capacity from 300 tons/day to 1,100 tons/ day and expand its annual energy glass processing capacity from 4 million square meters to 26.6 million square meters. The aim is to close the supply gap in the industry and take advantage of export opportunities while contributing to the Turkish economy. Şişecam is planning new investments that will diversify its product portfolio in order to meet customer expectations and respond quickly to evolving global demands.

Industrial Glass

Uncompromising approach to
customer satisfaction

In the industrial glass sector, Şişecam fulfills all industry requirements and expectations with its safe, high-quality products, supported by an open and innovative R&D ecosystem.

AUTOMOTIVE

AN OVERVIEW OF 2023

As in many business lines, contractionary monetary policies implemented to combat inflation lowered demand in the automotive industry. In the last quarter of the year, rising costs due to the effects of the Israeli-Palestinian conflict and the Suez Canal crisis had a negative impact on the industry.

ACTIVITIES IN 2023

In line with the vision of becoming a global leader, Şişecam Automotive meets all the requirements and expectations of the industry with safe and high-quality products thanks to its open and innovative R&D ecosystem.

Şişecam develops its product portfolio with a customer-centered approach. This year, Şişecam maintained its sales volume thanks to its robust sales performance in the USA, Europe, and Türkiye in automotive replacement glass (ARG), despite major global difficulties. Şişecam has risen to an enviable position in the automotive replacement glass industry with its ever-expanding customer base in the USA, working in strategic cooperation with the world’s leading automotive replacement glass distributors and assemblers. In addition to its countries of operation, Şişecam is attracting players from the Canadian, Mexican, and Brazilian markets who want to enter into a cooperation with the company.

In 2023, Şişecam focused on accurately assessing capacity increase demands from its customers, establishing a sustainable portfolio, and planning for future periods accordingly. Thanks to rapid and accurate evaluation of demand forecasts, production fluctuations were managed efficiently. Şişecam places an emphasis on new product development with a quality approach that does not compromise on customer satisfaction.

EXPECTATIONS AND OBJECTIVES FOR 2024

Global light vehicle sales are expected to demonstrate relatively limited growth of 2.6% in 2024 after increasing by 7.7% a year earlier. We anticipate that demand will be suppressed by the increase in new vehicle prices, driven by elevated inflation, difficulties in accessing loans, and consumer wariness regarding electric vehicles.

On the production side, worldwide production volume is expected to be comparable to 2023 levels. The chip crisis of 2022 is now resolved and no such issue is foreseen in 2024. As a result, electric vehicle production is projected to increase, with a positive impact on automotive glass sales expected in 2024.

GLASS FIBER

AN OVERVIEW OF 2023

Contraction of the global glass fiber market, the emergence of excess supply due to decreased consumption in China, and the decline in freight prices of imported products to pre-pandemic levels, which create unfair competitive conditions, have resulted in plummeting prices in the industry. Imposing anti-dumping policies on Chinese origin products was a key step towards protecting domestic producers and the glass fiber industry in Türkiye. However, a cost advantage in Egypt and other Middle Eastern countries resulted in intensified competition for both Türkiye and Europe.

ACTIVITIES IN 2023

The Şişecam Glass Fiber production facility, commissioned in 2019 and equipped with the latest technologies, maintained its growth target in parallel with the developing composite industry.

Despite the challenges in the industry, Şişecam Glass Fiber maintained its market competitiveness by focusing on alternative markets and valueadded product development in addition to its current marketing activities. In line with efforts to use more domestic resources, long-fiber thermoplastics, detergent-resistant chopped strands, and lightweight liquid felt products were included in the product portfolio this year.

EXPECTATIONS AND OBJECTIVES FOR 2024

Şişecam Glass Fiber aims to improve its existing processes, boost efficiency, and develop highperformance products through its R&D activities. Glass composition, process conditions, and final product performances are reviewed and efforts are carried out to enrich the product portfolio with new offerings. Further expansion of the product portfolio is planned in parallel with the dynamic structure of the composite industry and ever-changing expectations for new products.

Since vehicle weight is a major consideration, especially for e-car (electric vehicle) models in the automotive industry, the use of glass fiber and other composite materials in the industry is on the rise. In the coming years, this issue is poised to become a critical factor driving competition, especially with the increase in carbon footprint incentives in the European thermoplastic market.

Glassware

Market-driven
product portfolio management

As a result of new product studies carried out by its glassware design team jointly with stakeholders, Şişecam received four awards in 2023.

AN OVERVIEW OF 2023

Despite all the market difficulties in in 2023, Şişecam successfully closed the year with net turnover of TRY 17.6 billion thanks to effective management of its product portfolio in the glassware segment and development of diversified operational models suitable for individual markets.

During the year, Şişecam realized environmentally friendly initiatives aimed at reducing its carbon footprint. In addition, Şişecam further expanded its glassware portfolio with innovative and upper-segment products, taking into account consumer needs and expectations in the global market. Şişecam’s wide product range provides solutions to all requirements of both the catering and retail sectors in the tabletop and kitchen categories.

Şişecam is committed to providing uninterrupted service to its global business partners with a focus on digital transformation initiatives, operational excellence, and customer satisfaction. This year, Şişecam maintained its position as a sustainable and highly reliable supplier in the glassware segment.

Paşabahçe Mağazaları A.Ş., Şişecam’s retail business line, conducted its operations at 49 sales points – 46 domestic stores, two international stores, and one e-commerce site – as of year-end 2023. The e-commerce store serves customers in 43 countries.

ACTIVITIES IN 2023

Şişecam boasts long-term collaborations with its distributors and customers in the glassware segment coupled with an ability to develop innovative products by capitalizing on its advanced technical and design competencies. These competitive advantages play a key role in increasing Şişecam’s brand power and brand awareness in the global market.

Supported by its global production power, Şişecam reinforced its leading position in the glassware industry with more than 100 new products developed in 2023. Evolving market demands were closely analyzed to develop innovative products that stand out from the competition. Şişecam recorded a significant improvement in the service level offered to customers via effective management of its production capacity.

In line with globally changing living conditions and daily needs, the glassware product portfolio was supported by adding new designs to the home product group. In the catering industry, Şişecam has continued to develop product innovations that meet the requirements of professionals.

Paşabahçe Crystalin, developed for the upper-segment demand in the global market, was launched at the end of 2023. The Aware Collection, composed of 100% recycled products, contributed to sustainability and raising awareness on environmental issues.

The continuity of the Nude brand’s collection, focus on the catering industry, Şişecam’s global design brand, effective communication activities, sponsorship initiatives, and collaborations with professionals helped drive this strong performance. Meanwhile, the focus on iconic products strengthened the brand’s global competitive advantage.

As a result of new product developments of the Şişecam glassware design team together with all its stakeholders, Şişecam won a total of four major glassware awards in 2023: one iF Design award, two Red Dot Design awards, and one Tableware International awards.

In 2023, Şişecam reported net sales revenue in the glassware segment of TRY 17.6 billion.

Paşabahçe Stores

Paşabahçe Stores successfully closed 2023 with a year-on-year turnover increase of 16%. This strong performance is due to the new store opened in Ankara, the “Gururla” (Proudly) Collection created to commemorate the 100th anniversary of the Republic of Türkiye, and a revamped channel structuring strategy.

The “Gururla” (Proudly) Collection, consisting of 26 unique objects, each referencing an important event in the history of the Republic of Türkiye, launched on August 30, 2023.

The Instagram channel reached 1.2 million followers at the end of the year with posts showcasing Şişecam’s various collaboration projects and extensive product range.

EXPECTATIONS AND OBJECTIVES FOR 2024

Although falling inflation and markets with rebounding economies are expected to provide a positive growth environment for the overall industry, risks persist, particularly in markets where regional conflicts are taking place.

Şişecam offers solutions in both the home group and catering channel for all beverage, tabletop, and kitchen categories with the advantage of its wide product range. In 2024, Şişecam aims to boost its market share in the glassware segment and bolster its competitive advantage.

Sustainability stands out as a core component of Şişecam’s business strategy. Continuous improvement efforts are carried out in the glassware segment to reduce the environmental impact of the products and enhance energy efficiency. In addition, investments in digitalization are aimed at optimizing operational processes and improving customer experience.

Ranking 2nd in Europe and worldwide as a glassware manufacturer, Şişecam plans to extend its growth trend in the retail and catering sectors by launching new product series and expanding existing series in 2024. Şişecam differentiates from the competition with its product diversity and sustainable service level, driven by its automatic soda, automatic crystalline, borosilicate, and hand-made production power. Şişecam aims to further strengthen its presence in its operating markets in the glassware segment.

Paşabahçe Stores’ e-commerce platform renewal, which started in 2023, is scheduled for completion in 2024. Paşabahçe Stores plans to expand further with new store openings, collaborations, and e-commerce investments in the coming period.

Glass Packaging

Leading position in its
markets of operation

Şişecam ranks among the top five producers in Europe and globally.

AN OVERVIEW OF 2023

This year, the glass packaging industry’s greatest challenge to growth was once again the high inflationary environment. However, healthy food and beverage consumption, growing awareness of environmental and sustainability issues, and the fact that glass is a healthy and hygienic option had a positive impact on the preferences of global consumers.

Worldwide, the beverage sector continued to drive the glass packaging market the most. The tight monetary policy implemented in Europe to combat the elevated inflationary environment had a negative effect on end-user consumption. As a result, the increase in glass packaging consumption has not yet reached pre-pandemic levels.

In Türkiye, despite earthquake disasters, high inflation, rising energy and input costs, positive developments in tourism, and robust demand from the beverage sector provided a boost to the glass packaging market. However, due to the decreasing purchasing power of consumers in the alcoholic and nonalcoholic beverage, mineral water, and food segments served by the glass packaging industry, the overall glass packaging market stagnated for the year.

ACTIVITIES IN 2023

Şişecam is the leader in the glass packaging industry in Türkiye and Russia and ranks among the top five manufacturers in Europe and worldwide. This reporting year, Şişecam moved forward with its glass packaging activities despite various macroeconomic and geopolitical challenges. In 2023, Şişecam recorded net sales revenue in its glass packaging segment of TRY 28.4 million.

Acting with the responsibility of being the industry’s main glass packaging supplier in Türkiye, Şişecam remained the driving force in Turkish glass packaging exports in 2023. Meeting local demand with its high-quality, wide product range and customeroriented management, Şişecam plans to boost exports from Türkiye and expand in the global market, especially in Europe.

Şişecam conducts glass packaging production and sales activities at five manufacturing facilities in Russia. Despite the adversities in the country, Şişecam continued its operations without interruption thanks to its strategy of expanding in the local market, routing exports to the Commonwealth of Independent States (CIS) countries, and meeting market demand for substitute products.

Şişecam recognizes the importance of developing designs tailored to customers as a key aspect of its customer-oriented approach. With this perspective, Şişecam embraced advanced technology in 2023 to further leverage its knowledge and capabilities in glass packaging design.

New Investments

Şişecam, reinforcing its leadership position in the industry with major investments in 2023, operates production facilities in four countries: Türkiye, Georgia, Russia, and Ukraine.

Şişecam completed the cold repair of the furnace at its plant in Georgia and put it into operation in June 2023, expanding the facility’s production capacity by 25%. Georgia’s only glass manufacturer, Şişecam is now able to respond more quickly and effectively to glass packaging demands both locally and in neighboring countries with a 90,000 ton annual gross production capacity.

In 2022, Şişecam started investing in a new facility in Hungary, pursuant to its strategy of positioning itself as a local manufacturer in Europe. The Hungarian facility is equipped with the latest technologies in line with Şişecam’s smart plant vision. The plant is planned to become operational in 2025 and have an annual gross production capacity of 396,000 tons. Şişecam designed the new facility in accordance with its effective supply chain management, automation, and operation optimization plans. The Hungary facility also supports Şişecam’s sustainability strategy with its advanced technical features and environmentally friendly infrastructure. The new manufacturing site will meet the glass packaging demands of both Hungarian and foreign markets more quickly and effectively. This investment also aims to manage possible risks caused by global setbacks more effectively and further strengthen Şişecam’s position in the European market.

Currently operating four furnaces, the Şişecam Glass Packaging Eskişehir Plant will commence operations of a fifth furnace in 2024. This new furnace will have an annual gross capacity of 198,000 tons. The Eskişehir Plant will operate five furnaces and 24 lines in a single facility. Thanks to the new investment, the Şişecam’s Eskişehir site will rank among the world’s highest-capacity facilities in the glass packaging segment. This strategic investment aims to strengthen Şişecam’s market leadership by expanding the company’s installed gross production capacity in Türkiye to 1.9 million tons per year.

EXPECTATIONS AND OBJECTIVES FOR 2024

Shaped by wars that broke out in territories near Şişecam’s operating areas over the last two years, the economic, political, and social landscape is expected to further impact consumer behavior in 2024.

Şişecam’s primary goal for 2024 in the glass packaging segment is to maintain its leadership in the Turkish, Russian, and Georgian markets. Other key objectives include continuing sales and marketing activities by completing the product range preparations before the new investment in Hungary and developing collaborations in Europe.

Şişecam aims to bolster its sales activities with regions and customers to be added to its portfolio, especially in the USA, Middle East, and Africa. The company also plans to develop additional environmentally friendly products while using its existing capacity in the most efficient way in 2024.

Chemicals

One of the world’s two
largest soda producers

Şişecam is one of the world’s two largest soda producers, with an annual soda production capacity of 5 million tons.

SODA

AN OVERVIEW OF 2023

Soda ash consumption declined in 2023 due to the contraction in demand in the glass industry, for which soda ash is a major input. Falling natural gas prices also caused a decrease in soda prices during the year. Although natural gas prices started to rise again due to the IsraeliPalestinian conflict that started in the last quarter of the year, shrinking demand and excess supply of soda curtailed price increases.

Competitive pressures continued throughout the year due to expanding soda production capacities in China, the Middle East, Türkiye, and the USA. Şişecam maintained its sales stability in the industry by adapting to changing market conditions through effective strategies for the soda segment, a strong financial structure, savvy market positioning, and advantageous distribution channels.

ACTIVITIES IN 2023

As one of the world’s largest soda producers, boasting a 5 million ton production capacity, Şişecam is recognized around the world as a reliable supplier with its high production capacity, high product quality, and extensive marketing network.

Record price levels were seen in the soda industry in the USA in the first half of the year. Actions were taken in response to price declines as the market slowed in the second half of the year. Many macroeconomic and geopolitical challenges were faced during the year. However, Şişecam successfully executed its strategies, managing its worldwide sales and logistics operations with a market leader approach.

In 2023, Şişecam attended various industry events to meet with key stakeholders in the sodium bicarbonate product sector in line with its goal of maintaining its leadership position in the global market. As one of the world’s top two soda ash producers, Şişecam shared its growth journey with major players of the industry at the World Soda Ash Conference. Şişecam was one of the main sponsors of this event.

EXPECTATIONS AND OBJECTIVES FOR 2024

In 2024, global economic tightening is expected to persist until midyear. Şişecam plans to closely monitor strategic opportunities in international markets in the first half-year and capitalize on expansion opportunities in the second half of the year. Şişecam aims to further expand its international footprint, capture more market share, and develop its strong position in the soda industry via customer acquisitions in strategic regions, global strategic partnerships, and dynamic portfolio management.

CHROMIUM

AN OVERVIEW OF 2023

The chromium chemicals segment, which provides input to the leather and metal plating industries, was buffeted by global economic uncertainties, recession tendencies, elevated inflation, and higher production costs in 2023. This extremely challenging environment created significant pressure on chromium chemicals prices during the year. The chromium chemicals market shrank compared to the prior year. The highly competitive environment had an intense impact on the market, especially in the first nine months of the year.

Weak demand in countries such as China, Brazil, and South Korea, the driving markets of the leather industry where basic chromium sulphate product is used as input, started to rebound in the fourth quarter. The global leather industry started the year with a contraction in demand of up to 20%. Actions taken in the last quarter boosted competitiveness and resulted in positive momentum as industrial demand bounced back. The Turkish market completed the year with a strong performance, positively differentiating from the global market.

ACTIVITIES IN 2023

With the advantage of being the world’s leading chromium chemicals producer, Şişecam Chromium Chemicals generated 85% of its sales revenues from international markets and delivered its products to 57 countries worldwide in 2023. Further bolstering its existing relationships with companies in the sectors it serves, Şişecam maintained its strong position in the market.

EXPECTATIONS AND OBJECTIVES FOR 2024

In 2024, the chromium chemicals market is expected to demonstrate a performance comparable to the previous year. Şişecam, the global market leader, aims to further boost its market share and sales revenues in chromium chemicals. Thanks to its flexible approach to challenges and rapid adaptation to changes in the market, Şişecam competes effectively on a global scale. In 2024, Şişecam plans to move forward with its strategies focused on sustainable growth and customer satisfaction.

INVESTMENTS

Şişecam operates soda ash facilities in four countries – Türkiye, USA, Bulgaria, Bosnia & Herzegovina – while producing chromium chemicals in Türkiye and Italy. Currently, Şişecam is the world’s second largest producer of soda ash and the fourth largest producer of chromic acid. Şişecam is also the world leader in basic chromium sulphate production.

In 2021, Şişecam acquired a majority stake in the Wyoming facility, managed by Ciner Group, in the USA, thereby boosting its ownership interest to 60%. After this acquisition, Şişecam reached an annual production capacity of 5 million tons in the soda segment, becoming one of the most important global players. Having decided to make a second investment jointly with Ciner Group in the USA, Şişecam aims to become the world’s largest soda producer with a capacity exceeding 10 million tons under its control following the gradual commissioning of this facility in 2028.

Şişecam supports its global growth investments with infrastructure investments. In 2023, Şişecam decided to become a 50% partner in the California-Stockton Port Management Project of Stockton Soda Ash Port LLC as part of its multiport strategy. Stockton Port Management Project is planned to be commissioned in 2028 with an annual capacity of 5 million tons.

Energy

Electricity generation
from renewable sources

Şişecam supplied a large proportion of its electrical energy needs in Türkiye by its own production.

AN OVERVIEW OF 2023

The supply shortage in global energy markets in 2022 caused natural gas and coal prices to soar to historic highs. The sharp increase in the prices of natural gas and coal, which are responsible for a significant share of electricity generation, was also reflected in electricity prices. This rapid uptrend in global energy prices in 2022 began to gradually stabilize in 2023, supported by climate conditions and political measures around the world, especially in European countries.

The decline in natural gas and coal prices led to a decrease in wholesale electricity prices, especially in Asia and Europe. The year-on-year contraction in demand in Europe in 2023 increased the downward pressure on prices. The decline in global energy prices caused global electricity demand to jump by 2.2% year-on-year. (The reference index for natural gas price in Europe is the TTF stock market, and the API-2 market price is taken as a reference for coal.)

Despite the expansion of renewable energy sources in all major economies, more than 60% of global electricity in 2023 was generated from fossil fuels, primarily coal and natural gas. Globally, electricity generation from renewable sources has increased at nearly three times the rate of fossil fuels since 2019. However, electricity generated from renewable sources as a proportion of total electricity generation has not yet exceeded the 40% threshold.

Falling global energy prices also had a positive impact in Türkiye, causing electricity and natural gas prices to decline in 2023. In 2023, electricity prices decreased by 12.8% while natural gas spot market prices fell by 32%. Türkiye’s electricity consumption remained largely unchanged during the year.

The majority of newly commissioned investments in Türkiye’s electricity generation installed capacity consist of renewable energy sources such as solar, biomass, and wind power plants. With the rapid increase in investments in unlicensed power plants in recent years, WEPs (wind energy plants) and SEPs (solar energy plants) account for a growing share of the installed capacity of renewable energy sources. At year-end 2023, renewable energy accounted for 56.6 GW of the total installed power of 106.3 GW. In 2023, the total increase of installed power amounted to 2.5 GW; of this total, wind and solar energy accounted for 2.2 GW. (Electricity market reference prices of relevant countries in Europe were taken into account. The reference electricity market for Türkiye is EPİAŞ.)

ACTIVITIES IN 2023

Şişecam’s Mersin Cogeneration Power Plant, Thrace Power Plant, and Mersin Solar Power Plants produced a total of 920 GWh of electricity in 2023. In the same period, electricity consumption at Şişecam facilities in Türkiye amounted to 1,277 GWh. Şişecam supplied a large proportion of its electrical energy needs in Türkiye by its own production.

In 2023, Şişecam’s energy trading company Şişecam Enerji A.Ş. traded 8,772 GWh of electricity and 1,359,000 m3 of natural gas. Some 95% of the turnover of this energy trade was realized with external customers other than Şişecam facilities.

Şişecam Enerji imported a total of 11.2 GWh of electricity from Georgia in June and July 2023 and carried out the trading activities of this electrical energy in Türkiye.

In 2023, Şişecam Enerji increased the volume of its external customer portfolio in the electricity market by 85% compared to the previous year. Due to the major decline in energy prices compared to 2022, turnover and profitability did not keep pace with the growth in the customer portfolio. However, rapidly rising interest rates in 2023 caused a significant jump in financing costs in energy trading.

EXPECTATIONS AND OBJECTIVES FOR 2024

Regulations put into effect in Türkiye in recent years related to unlicensed electricity generation and electricity storage legislation, and especially the carbon regulations under the EU Green Deal, increased interest in renewable electricity generation in 2023. As a result, investments were triggered in these resources.

Similarly, Şişecam demonstrated growing interest in the generation of electrical energy from wind and sun. WEP (wind energy plant) and SEP (solar energy plant) projects and feasibility studies were initiated on Şişecam plant roofs and site grounds. Some applications were executed.

In addition, as per Article 5.1.h of the Unlicensed Electricity Generation Regulation, studies were carried out for land solar power plants in various areas.

In energy trade activities, Şişecam Enerji plans to further strengthen its trading operations by boosting trade volume in the electricity market and expanding its consumer portfolio, particularly targeting industrial enterprises. Şişecam Enerji also aims to enhance energy trading with neighboring countries directly integrated with Türkiye.

Other

Seamless quality
supply chain management

Şişecam concluded fiscal year 2023 with a total production of 3.7 million tons of glass sand, limestone, dolomite, feldspar, micronized products and kaolin.

MINING

Şişecam managed without interruption its raw material quality and supply processes required for glass production with its mineral resources and raw material enrichment facilities. In 2023, Şişecam maintained its strong market position despite foreign exchange rate fluctuations and global risks.

Camiş Madencilik A.Ş. in Türkiye and Rudnik Krecnjaka Vijenac d.o.o. in Bosnia & Herzegovina completed 2023 with a total production of 3.7 million tons of glass sand, limestone, dolomite, feldspar, micronized products, and kaolin.

Despite the impact of high inflation in Türkiye, unit production cost increases for glass raw materials remained limited as a result of costsaving measures and optimization efforts.

Projects focused on operational efficiency, resource management, and R&D at Şişecam mining companies resulted in annual cost savings of TRY 11 million this year. In addition, savings were achieved from state rights and other permit fees, which were increased by the Mining Law and other relevant legislative amendments.

Studies were conducted to develop product quality and customer portfolio and improve the lifespan of mineral resources. To boost operational excellence, product drying systems were configured to operate with alternative fuel when necessary, thereby bolstering production sustainability. Quality management systems were digitalized and business processes were optimized during the year.

To strengthen raw material quality and resource alternatives for Şişecam’s Russia, Georgia, Hungary, and Italy plants, technical review and R&D studies were carried out on samples from both existing suppliers and new mine sites.

In addition to a mining license obtained through a tender in 2022, the license rights for a mining field were obtained through a tender held by the General Directorate of Mining and Petroleum Affairs (MAPEG) in 2023. During the year, reserve development and drilling exploration activities were performed on Şişecam’s mining fields. Geological prospection, mapping, drilling, enrichment, and feasibility studies were carried out on other fields put out to tender by MAPEG.

In 2024, competition between major world economies and political risks are both expected to increase. Despite this challenging environment, Şişecam plans to maintain its competitiveness in times of uncertainty with its strong supply chain and raw material resources.

Şişecam benefits from its extensive and diverse domestic mineral resources, ensuring the company’s raw material sufficiency. In 2024, Şişecam plans to act in line with its sustainability and low carbon emission targets. In addition, Şişecam aims to focus on diversifying its raw materials, acquiring new suppliers and reserves in alternative territories, conducting advanced enrichment of its resources, and boosting operational excellence across its facilities.

CAMİŞ AMBALAJ

In 2023, Camiş Ambalaj maintained its leading position in the industry thanks to its exceptional services, quality, and reliability. In line with the economic and industrial developments throughout the year, sales remained at the same levels as in the previous year. The sales volume made outside Şişecam grew 3% compared to the prior year. In 2023, Camiş Ambalaj expanded its capacity by 14% with renewal and modernization investments.

Camiş Ambalaj aims to produce different packaging engineering solutions that provide cost advantages to customers in 2024. The company also plans to proceed with its renewal and modernization investments.

OXYVIT

Following intense price competition in the feed industry throughout the year, prices fell and demand was postponed in all products that constitute an input to the industry. A contraction was experienced in the global market, especially Europe, but the South American and Asian markets were relatively less affected. While the industry experienced its lowest levels, signs of recovery emerged in the last months of 2023.

Şişecam’s Oxyvit brand, which provides input to the feed, mining, and chemicals sectors, maintained its strong market position despite the challenging environment in 2023.

Developments in the industry in 2023 had a positive impact on Oxyvit’s Vitamin K3 sales. Şişecam sustained its competitive advantage by expanding its cooperation with global customers.

Intense competition continued in the sodium metabisulfite segment. In response, Oxyvit proactively and closely monitored developments in the market. Supportive relationships with existing business partners were maintained during the year. Oxyvit also developed new market-based strategies and entered new markets in 2023.

The revival that began in the market during the last quarter of 2023 is expected to persist into the first half of 2024. As of the second half of the year, Oxyvit plans to closely monitor the projected improvement in global markets and take further steps to boost its market share.

Efforts are underway to further develop the customer portfolio in the African and European markets, where Şişecam enjoys a strong position, as well as in the target markets of North and South America. Generating about 74% of its revenues from export markets, Oxyvit is committed to upholding its reputation as a reliable and high-quality supplier, solidifying its position as Europe’s only Vitamin K3 producer.

ŞİŞECAM SİGORTA

As an authorized agency of Anadolu Sigorta, Şişecam Sigorta (Şişecam Insurance) provides services to Şişecam related to the issuance, renewal and damage follow-up of transportation, commodity, compulsory traffic, automobile comprehensive, glass breakage, travel, employers liability, third party liability and workplace insurance policies. In addition to the services provided to Şişecam, Şişecam Sigorta manages a portfolio of nearly 5,000 policyholders, including flat glass dealers, Şişecam employees and retirees, as well as non-affiliated individuals and organizations.

Security issues in the nearby geography, a high inflation environment and economic uncertainty in 2023 led to a trend where insurance needs were often overlooked and insurance providers displayed a reduced risk appetite. Despite these headwinds, Şişecam Sigorta continued to provide quality service, primarily in the management of insurable risks of Şişecam and its policyholders.

Given the volatility in foreign exchange rates, transportation policies for Şişecam started to be issued in EUR and USD. The issuance of policies in EUR and USD greatly reduced the risk of exchange raterelated losses in claim settlement.

In 2024, Şişecam Sigorta plans to continue providing optimal coverage with attractive premiums to minimize risks, with the exceptional quality and commitment befitting Şişecam’s corporate identity and reputation. Şişecam Sigorta aims to further boost its net profit in the coming year.

ŞİŞECAM ÇEVRE SİSTEMLERİ

Şişecam Çevre Sistemleri (Şişecam Environmental Systems), established in line with Şişecam’s sustainability principles, recycles collected waste glass to improve the quality of glass cullet.

Şişecam Çevre Sistemleri has two recycling facilities, one in Eskişehir and one in Bursa Yenişehir. These two facilities commenced operations in 2019 after obtaining the relevant license certificate issued by the Ministry of Environment, Urbanization and Climate Change. The second facility in Yenişehir operates in a wellequipped, modern structure and also includes sorting machines.

In addition to supplying glass cullet to Şişecam’s glass packaging production facilities in Türkiye, these facilities also supply glass cullet for Şişecam Glassware Group’s Aware Collection series produced from 100% recycled glass.

Şişecam Çevre Sistemleri recycled and resupplied a total of 198,000 tons of glass in 2023.

Following the earthquake disaster that occurred in southeastern Türkiye on February 6, 2023, waste glass was purchased to support dealers and suppliers in the impact zone and to help workplaces rebound as soon as possible. Glass waste, usable as raw material in the production of evil eye beads, was donated to Nazarköy in Izmir, an area well-known for its handmade production of these items, to preserve this cultural heritage.

The Ministry of Environment, Urbanization and Climate Change is expected to launch the Deposit Management System in 2024. The amount of collected waste glass packaging is expected to increase with the commissioning of this system. The Deposit Management System is based on the postconsumption return of products on the market in return for a certain deposit fee and reimbursement of the deposit fee.

Following the launch of the Deposit Management System, existing recycling facilities of Şişecam Çevre Sistemleri will also be able to operate at full capacity. The network of glass recycling facilities with sorting machines is planned to expand as the amount of collected waste glass increases.

REFEL

In 2023, the refractory industry demonstrated a positive trend despite various economic, political and logistics crises across the world.

Refractory material manufacturer REFEL S.p.A. was acquired by Şişecam in 2022. During the reporting year, REFEL focused on adapting to all corporate practices, including procurement and human resources, and compliance with applicable laws, rules and regulations.

Adhering to the principles of safe working conditions and respect for the environment, REFEL also strived to boost production via technological innovation in 2023. A major technological renewal investment was successfully completed during the year to bring REFEL’s network infrastructure in compliance with Şişecam standards.

In 2024, economic activity in the US is expected to weaken. Meanwhile, growth in China’s economy, which remains below pre-pandemic levels, is expected to slow even further. Although lower demand is expected in 2025 due to political uncertainty, REFEL S.p.A. has concluded a productive period in terms of operating at full capacity. REFEL is committed to maintaining its growth trajectory of recent years in the coming period.