Category: Business

  • Unilever Will Build Turkish Ice-Cream Plant for $100 Million

    Unilever Will Build Turkish Ice-Cream Plant for $100 Million

    Unilever Plc will build a new plant in central Turkey at an initial cost of about $100 million to make ice-cream and help boost its leading position in the market, the company said today.

    The plant, owned by Unilever’s Turkish unit, will produce Algida ice-creams, which has a 70 percent share in the Turkish market that grew 28 percent to 134 million liters, or 945 million liras ($565 million), in 2010, the company said in an e- mailed statement to Bloomberg. The plant will be built near the central Turkish city of Aksaray, it said.

    Unilever’s ice-cream plant in Corlu, near Istanbul, has an annual capacity of 200 million liters, the statement said.

    Unilever, which is also producing personal care products, expects 1.2 billion euros ($1.7 billion) of sales in Turkey this year, Izzet Karaca, Unilever’s head in charge of Turkey, said in an interview on July 5.

    To contact the reporter on this story: Ercan Ersoy in Istanbul eersoy@bloomberg.net.

    To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net.

    via Unilever Will Build Turkish Ice-Cream Plant for $100 Million – Bloomberg.

  • Ebru Çerezci – Entrepreneurs

    Ebru Çerezci – Entrepreneurs

    “I saw an opportunity to combine Turkey’s rich culture with luxury design while supporting local artisans.”

    Hiref

    Company Snapshot

    4c5c7c31d1af3Ebru CerezciTurkey has long been recognized for textiles and handcrafts, but lacks globally renowned brands. Ebru and her brother Güvenç have positioned Hiref to lead the way.

    Hiref sustains traditional Anatolian artists while simultaneously ushering their handicrafts into the realm of luxury. The company sells 18 home décor collections, and offers two additional services: an interior design team for luxury hotels and a custom-designed gifts unit for corporate clients. Hiref has two flagship retail locations, and it counts Istanbul’s leading luxury hotels among its clients.

    In March 2009, Garannti Bank, Ekonomist Magazine, and the Women Entrepreneurs Association of Turkey (KAGIDER) named Ebru “Woman Entrepreneur of the Year.”

    In June 2010, Hiref launched a dedicated e-commerce site.

    Endeavor and Hiref

    Endeavor mentors have guided Ebru and Güvenç as they developed an e-commerce strategy, expanded into the Gulf Region, and hired a CFO. Through Endeavor’s Global Connections program, Hiref connected with Amazon executive Diego Piacentini, who enabled Hiref’s handicrafts to become the first non-EU products to be available for purchase on Amazon.co.uk.

    The Entrepreneurs attended the 2009 Endeavor Gala in New York (where donated Hiref products were featured), and frequently speak at universities in Turkey.

    via Ebru Çerezci – Entrepreneurs | Endeavor Global.

  • Fatih Işbecer – Entrepreneurs

    Fatih Işbecer – Entrepreneurs

    “I saw an opportunity to expand the possibilities for mobile applications.”

    Pozitron

    4c5c7ec8b68aeFatih IsbecerCompetition is fierce in the mobile applications business, but through sheer tenacity Faith and his company Pozitron have been carving out a place for themselves in the market. Pozitron is a software developer focused on creating, integrating and securing business solutions through cutting-edge mobile technology. Since its inception, the company’s products have reached millions of customers and include mobile applications for Turkey’s largest banks, airlines, and media companies. Pozitron has also earned international recognition from institutions such as Harvard Business School and partners with industry leaders ranging from Apple, IBM and Microsoft to BlackBerry. Since selection by Endeavor, the number of jobs at Pozitron has grown by 250%.

    Endeavor and Pozitron

    With assistance from Endeavor, Fatih secured several contracts, and is currently being advised on sales strategies. He receives support from mentors and has benefited from the eMBA and G-Lab programs and an Immersion Tour.

    With Endeavor’s support, Fatih participated in the April 2010 Presidential Summit on Entrepreneurship in Washington, D.C.

    An excellent speaker, Fatih remains a strong ambassador for Endeavor, and has also been active in referring entrepreneur candidates to the pipeline.

    via Fatih Işbecer – Entrepreneurs | Endeavor Global.

  • Moody’s Downgrades Hsbc As Turkey’s Bfsr to D+

    Moody’s Downgrades Hsbc As Turkey’s Bfsr to D+

    (Source: Info-Prod Research (Middle East))trackingMoody’s Investors Service has today downgraded the standalone bank financial strength rating (BFSR) of HSBC Bank A.S. – Turkey from to D+ to C- (now mapping to Baa3 on the long-term scale from Baa2 previously). At the same time, Moody’s affirmed the bank’s A3 long-term global local-currency (GLC) deposit rating and downgraded the bank’s National Scale Rating (NSR) to Aa1.tr from Aaa.tr. The rating agency also affirmed the Ba3 long-term foreign-currency deposit rating, Prime-2 and TR-1 short-term GLC deposit ratings and NSR. The outlook for the foreign-currency deposit rating is positive, while the outlook on the remaining ratings is stable. This concludes Moody’s review on the bank’s ratings, implemented on 16 December 2010. Moody’s says that the downgrade of the standalone BFSR was triggered by a combination of (i) poor asset quality, whereby expansion strategies adopted before the 2008 global financial crisis resulted in the current weak asset-quality indicators; (ii) the continuing contraction of the bank’s market share in loans (since 2006) and in deposits and total assets (since 2007); and (iii) its moderate profitability and efficiency ratios. Moody’s believes that the D+ BFSR and its stable outlook is supported by the bank’s overall moderate consumer and commercial, and strong credit card and corporate franchise, sound capitalisation and liquidity; and an improving asset quality and deposit-funding base. Additionally, it reflects the long-term challenges that the evolution of HSBC — Turkey’s franchise faces in the form of the strong competition from other domestic banks. This includes banks with strong retail and commercial franchises that have also pursued network expansions. The share of revenues from retail operations has been declining as the recent poor performance of the bank’s retail portfolio constrained the bank’s ability to effectively commercially leverage its pre-2008 branch expansion. The assigned rating also reflects the bank’s moderate efficiency indicators, at a time of increased importance of efficiency and economies of scale due to the lower net interest margin environment the Turkish banking system is faced with. As the stable outlook assigned to the bank’s D+ BFSR reflects, there is currently no upward pressure on the rating. There could be downward rating pressure, that could prompt Moody’s to either consider the remapping of the D+ BFSR to Ba1 (from Baa3) on the long term scale; or a downgrade of the BFSR, if (a) the profitability and efficiency indicators weaken; (b) asset quality deteriorates; (c) the bank’s retail revenue generation declines or (d) the growth rate of the credits exceeds that of the high quality stable deposits increasing the bank’s reliance on wholesale funding – reversing the improving trend in the bank’s funding base. HSBC — Turkey’s long-term GLC deposit rating incorporates parental support from HSBC Holding Plc, (Aa2, with negative outlook, standalone credit strength of Aa3). This provides three notches of rating uplift to HSBC — Turkey’s GLC deposit rating. Despite the downgrade of HSBC — Turkey’s BFSR, the high parental support assumption and the high rating of the parent compared with that of HSBC — Turkey, results in the affirmation of the HSBC — Turkey’s A3 GLC deposit rating. Despite the negative outlook on the parent’s rating, the stable outlook on the GLC deposit rating is under pinned by a combination of (i) the stable outlook on the HSBC — Turkey’s BFSR; and (ii) the high rating of the parent’s rating compared with HSBC’s BFSR. Any pressure on the parent’s rating is unlikely to result in the reduction in the level of parental support incorporated in the HSBC — Turkey’s GLC deposit ratings. HSBC — Turkey’s NSR was downgraded to Aa1.tr from Aaa.tr, the lower of the two NSR mapping of the A3 GLC deposit rating, due to the downgrade of the bank’s BFSR leading to higher parental support rating uplift incorporated in the its GLC rating. The affirmation of the bank’s short-term GLC deposit rating resulted in the affirmation of the bank’s short-term NSR of TR-1.

    Originally published by Info-Prod Strategic Business Information.

    (c) 2011 Info-Prod Research (Middle East). Provided by ProQuest LLC. All rights Reserved.

    A service of YellowBrix, Inc.

     

  • Baklava Bailout: How Turkey Helped Greece’s Sweet Tooth

    Baklava Bailout: How Turkey Helped Greece’s Sweet Tooth

    By JOE PARKINSON And AYLA ALBAYRAK

    ISTANBUL—Europe’s multibillion-euro bailout of Greece has been making headlines on a daily basis. Less noticed was a Turkish bailout last week of an Athens institution: sweet seller Baklavas Epe.

    Joe Parkinson/The Wall Street Journal  Nadir Gullu, with baklava boxes decorated with Greek and Turkish flags.
    Joe Parkinson/The Wall Street Journal Nadir Gullu, with baklava boxes decorated with Greek and Turkish flags.

    Greeks and Turks have bickered for centuries over which nation makes the better baklava, a sticky-sweet dessert of layered pastry devoured in huge quantities across the eastern Mediterranean and the Middle East. But for the past 10 years, Turkey’s best-known producer, businessman Nadir Gullu, has been supplying Greece’s closely held Baklavas Epe, which operated five stores in Athens. He provided about two tons of baklava and other Turkish sweets per month.

    Old rivalries aside, Athenians lapped them up—until, that is, they ran out of cash.

    Baklavas Epe’s most profitable shop is on Athens’s landmark Syntagma Square. Before the crisis, tourists and locals queued up in droves to buy the pastries. But as the government embarked on a severe austerity program to reduce its debt burden and qualify for international support, demand sank.

    Baklavas Epe closed three of its five stores in Athens as sales dropped. Meanwhile, it ratcheted up close to €160,000 (about $226,000) in debt for deliveries of sweets from across the Aegean Sea, according to the company. Plunging revenue made it impossible for Baklavas Epe to finance baklava purchases from Istanbul.

    “Baklava has become a luxury. Think about it: Three kilos of minced beef costs the same as one kilo of baklava,” said a company spokesman. (A kilogram is about 2.2 pounds.)

    In Turkish newspapers, Mr. Gullu, the owner of Karakoy Gulluoglu, a well-known baklava shop near the shores of the Bosporus in Istanbul, said the Greeks should pay their debts within a year and the business relationship was in jeopardy.

    With elevated wage costs and sporadic vandalism amid protests over austerity measures adding to its woes, Baklavas Epe said it needed more time. Besides, it said, Mr. Gullu in public comments had exaggerated the amount of the debt. In short, it didn’t look good for business and friendship in the Greek-Turkish baklava trade.

    [BAKLAVA]

    But after the partners met last week to discuss a possible resolution, they reported a deal that would preserve and even expand their business ties. Under terms of the deal, Karakoy Gulluoglu will continue to supply Baklavas Epe and extend its loan financing for three more years. The firms will also embark on a new joint-venture coffee shop in Athens, which is scheduled to open in September.

    The thinking is that if Athenians can’t afford to buy a kilo of baklava to take home anymore, maybe they can afford a few pieces to have with a coffee, the Baklavas Epe spokesman said.

    Mr. Gullu says his own business, which has expanded dramatically in recent years to sell baklava and Turkish sweets in 85 countries, including the U.S., is in a position to extend the loans. “I told them, ‘it’s OK, keep paying slowly,’ ” Mr. Gullu said in an interview. “We are doing this for our friendship and for Turkish moral pride.”

    The Baklavas Epe spokesman said both companies remained positive about their relationship and about the potential for the Greek economy to bounce back. “I don’t believe that Greece will stay like this because Greeks love life,” he said.

    Mr. Gullu’s decision to extend his partner’s credit line is indicative of an improvement in relations between Greece and Turkey, particularly in the business community, since a pair of earthquakes drew them together in 1999. Turkish-Greek trade increased steadily until it reached around $3.6 billion in 2008, falling back to $3 billion last year amid the global economic slowdown, according to figures from the Turkish statistics agency Turkstat.

    Mr. Gullu says Turks are no strangers to the pains of austerity, having negotiated their most recent International Monetary Fund bailout package in 2002 after a banking crisis the year before roiled the economy. Turkish businesses could use cash flow from their country’s booming economy to invest in Greece if it makes business sense, he added.

    “We’ve suffered economic crises here in Turkey before so we understand the problems Greeks are going through….We will find a solution to this sticky situation,” he said.

    via Baklava Bailout: How Turkey Helped Greece’s Sweet Tooth – WSJ.com.

  • High-speed rail sets pace in Turkey

    High-speed rail sets pace in Turkey

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    A tunnel-boring machine is crucial in building a high-speed railroad in Turkey. The current phase covers 158 km, and just over one-third of the track must travel through tunnels. The longest is 6.1 km. Zhang Haizhou / China Daily

     

    Ge Meng, an engineer, is one of about 40 Chinese working on this project. Zhang Haizhou / China Daily

    Project serves as springboard to enter European market, reports Zhang Haizhou in Ankara.

    It was noontime and the temperature was more than 30 C on this typical summer day in Pamukova, in mountainous west Turkey.

    When everyone else was having a lunch break indoors, chief engineer Wu Jiuyi was standing in the sun, staring at steel tracks piled and glinting on the muddy land, 160 kilometers southeast of Istanbul.

    “We have everything ready,” he said as he scratched his forehead. “If the Turks can hand over the finished groundwork we can lay the tracks quickly and do the other work to wrap up this project.”

    The project is a 158-km high-speed railway (HSR) between Inonu and Kosekoy, Phase 2 of a prospective 533-km Ankara-Istanbul line.

    Expected running speed on the new line will be 250 km/h.

    As high-speed rail develops rapidly in China, the country is working hard to sell its technology and products to Europe.

    News reports have mentioned China’s ambitions to have its high-speed rail operating in European countries, including the United Kingdom, Bulgaria and Hungary.

    But the project Wu and his colleagues, from the China Civil Engineering Construction Corp, are building in Turkey remains the only Chinese HSR project in Europe.

    Turkey’s economy is counted as European, and ranked sixth, as the country seeks membership in the European Union. Geographically, about 97 percent of Turkey lies in Asia and the 3 percent in the extreme northwest in Europe.

    Construction began in October 2008, and plans call for the line to open by December 2013.

    “We now have 35,000 tons of steel track, bought from Italy, ready for the project. All other equipment is almost ready, too,” said Wu, who’s the chief engineer in charge of laying all the tracks.

    On Monday, the first batch of equipment from China was unloaded at Istanbul’s Haydarpasa port. It included two 117-ton freight locomotives and a special ballast-roller.

    Two Turkish companies, in partnership with China Civil Engineering, are doing the groundwork. In mountainous Turkey, Wu and his colleagues have frankly expressed their concern that the work may be delayed.

    The terrain poses the biggest difficulty, said Zheng Jianbing, senior engineer and assistant president of China Civil Engineering. “Phase 2 is the most difficult part of the Ankara-Istanbul HSR.”

    Although the project is just 158 km long, 55 km of it involves tunnels and 10 km is bridges. The longest tunnel is 6.1 km, the longest bridge 1.96 km. The highest part of the project is more than 800 meters above sea level, the lowest about 20 meters.

    “More surveys than expected need to be done during the course of the construction due to the difficult terrain. The influence on the progress is quite big,” Zheng said.

    Springboard to Europe

    Despite those challenges, Zheng said the 158-km project is very significant for the company and the development of Chinese high-speed rail overseas. “We consider it a springboard to enter the European market.”

    And it will produce “zero” financial profit for his company, he said.

    But Zheng, who has spent more than a decade building railways abroad, also said China should take a measured pace in trying to push its technology into the European market.

    Take Bulgaria, for example. Alexander Tsvetkov, then Bulgaria’s minister of transport, announced in early November that Sofia had been invited to join the project for high-speed rail from China through Turkey and Bulgaria to central and western Europe.

    Zheng admitted his company hopes to extend its business to Bulgaria, but he said it’s still too early for a concrete plan or project.

    “I think it’s better to be slow,” he said. “It’s a fresh market, and there are many rules in the European market. Like in Turkey, I still cannot say I understand everything, though we began here in 2004.”

    Some European high-speed rails have noticed China’s designs on the European market. “China is about to rise to a true global competitor,” said Alexander Machowetz, a spokesman for Siemens Industry Sector in Germany.

    Machowetz said Siemens “acknowledges the ambitious goals of the Chinese manufacturers in the international markets”, but he also said his company has been “very successful” as a supplier of high-speed rail technology in the Chinese market over the past few years.

    “International competition and cooperation in project-based partnerships” are common in railway projects, he said, but “Siemens has proven its ability to cope with competition of any kind”.

    Hiring locally

    Construction of Phase 2 began in 2008, but China Civil Engineering started its preparation as early as 2004 to win the bid for the project. Thirty companies, including some from Japan, South Korea and Europe, formed eight partnerships in the competition.

    China Civil Engineering’s partnership, with China National Machinery Import & Export Corp and two Turkish companies, Cengiz and IC Ictas, won the bid in December 2005. The contract was signed in July 2006.

    A total of $1.27 billion was raised from both countries. China contributed $720 million in loans.

    Now more than 1,000 laborers, technicians and support staff are working on the project. Just over 40 are from China, Zheng said. “We hope in the future to have only a few senior Chinese administrative staff here, leaving all other jobs to local people.”

    Talking about its future here, Zheng said the company is in discussion with Turkey about building a 2,000-km high-speed railway linking the border towns Edirne in the northwest, close to Bulgaria and Greece, and Kars in the northeast, near Georgia and Armenia.

    “We are discussing with them. We want to cut the project into different phases and construct them one by one,” he said.

    Turkish State Railways, which is in charge of the country’s HSR development, had not responded by deadline to a China Daily interview request on whether China would get more projects.

    But according to the agency, Turkey plans to construct some 6,000 km of high-speed railway by 2023, the country’s 100th anniversary.

    The Ankara-Istanbul line is the country’s first high-speed line. Phase 1, which runs more than 200 km from Ankara west to Eskisehir, was built by a Spanish company and opened in early 2009.

    When the entire line opens, travel time between Ankara and Istanbul, the country’s two largest cities, will shorten from seven hours to less than four.

    Sino-Turkish ties

    “HSR is just a beginning for further economic cooperation” between Turkey and China, said Selcuk Colakoglu, director of Asia-Pacific Studies at Ankara-based International Strategic Research Organization.

    “Turkey has transformed itself from a security state to a trading state during the past decade. If you want to be a trading state, you should have a very developed transportation link.” Colakoglu added that building HSR links throughout Turkey is “very important for a sustainable rapid development”.

    China’s support in Turkey’s high-speed rail would be “beneficial for both Beijing and Ankara”, he said. “China seems a best alternative to build HSR with high-tech and reasonable cost, including financial support. I believe that some other strategic cooperation would follow construction of HSR.”

    Xiao Junzheng, political counselor at the Chinese Embassy in Ankara, said the $1.27 billion Phase 2 of the Ankara-Istanbul high-speed line is the two countries’ biggest cooperative construction project.

    “The project has enhanced the confidence of the Turkish government and market in Chinese technology,” Xiao said.

    He said the project will not only deepen Sino-Turkish economic cooperation, but also will bring “significant” benefits to Turkey’s economic development. For example, Xiao said, the number of rail passengers between Ankara and Istanbul is expected to rise from 4,000 daily to 25,000 when the high-speed railway opens.

    When asked if China would aim at more HSR projects in Turkey, Xiao said, “The Turkish market is a very big one, so it is not possible for it to be dominated by any single country or company. Also, the investment would be really big.

    “China is just a latecomer in the construction market here,” he said. “South Korea, Japan and Russia are all more active. But I believe Chinese companies can stand firm in Turkey’s construction contract market with their technology strength and good credit.”

    Stefaan Van Kerchove contributed to this report from Brussels.

     

    (China Daily 07/16/2011 page12)