Tezcanlar will start producing bio ethyl acetate.

Tezcanlar Investment - Growth Strategy

Introduction

Tezcanlar Investment, a company that houses over 10 companies in the fields of food, agriculture, chemistry, and health, is continuing its growth strategy with new investments. The company focuses on areas where Turkey is dependent on imports and aims to reduce import reliance by producing high-purity ethanol and bio ethyl acetate.

Sitrik Asit Production

Tezcanlar Investment's Chairman, Ahmet Tezcan, highlights the strategic importance of sitric acid, a key raw material used in various industries including food. Tezcan states that their Tezkim Citric Acid plant, which started production last year, is the first and only producer of this essential input in Turkey. They have already started exporting 40% of their production to meet both domestic and international demands.

Bio Etil Asetat Production

Tezcanlar Investment's new venture is the production of bio ethyl acetate, a critical input used in the food and cosmetics sectors. Ahmet Tezcan explains that Turkey's annual demand for this product is around 50,000 tons. With a €40 million investment, they aim to start production by the end of 2022, eliminating dependence on imports in another sector. Tezcan emphasizes that they will be the world's first producer of bio ethyl acetate derived from plant sources.

High-Purity Ethanol Production

Tezcanlar Investment is also investing in the production of high-purity ethanol. Ahmet Tezcan mentions that they redirected the products from their Tezkim Bioethanol facilities towards the production of disinfectants during the COVID-19 pandemic. Their investment in high-purity ethanol production will be completed by the end of August. This investment is a response to identifying different needs beyond fuel and disinfection ethanol, which emerged during the pandemic.

Investments in Tat Nişasta

Ahmet Tezcan also discusses the investments made in Tat Nişasta, one of the leading companies within the group. He mentions that the decision to invest in natural and modified starch capacities was triggered by the reduction of starch-based sugar quotas to 2%. They have increased these capacities by 100% and aim to differentiate themselves in the market by producing special types of starch, such as pre-gelatinized starch, for high-value and specialized applications.

Growth and Employment Figures during the Pandemic

Ahmet Tezcan highlights that despite the challenges posed by the pandemic in 2020, Tezcanlar Investment achieved significant growth through strategic investments and prudent decision-making. The group achieved a 74% growth in gross sales and exceeded this rate in operating profit by emphasizing more profitable products. Despite the negative impact of the crisis on employment, the company created an additional 231 jobs, representing a 21% increase in employment.

Future Goals

Ahmet Tezcan considers 2021 as a milestone for the company. Their goals include creating sustainable long-term value and focusing on financial discipline through lean and profitable operational models. They aim to continue their growth strategy by generating sustainable long-term value.