In the statement made by OYAK, it was reminded that the company took a historic step in the cement sector by bringing the largest foreign investment of 2018 to Turkey in line with its vision of sustainable growth and opening up to the world, and as a result, the company provided a significant global competitive advantage in the cement market with the partnership established with TCC, one of the largest cement producers in the Far East.
In the statement, it was announced that the two companies have now reached a preliminary agreement for the sale of 60 percent of OYAK's shares in Cimpor Portugal Holdings to TCC, with a 100 percent enterprise value of 800 million euros, and the transfer of 20 percent of OYAK's 60 percent shares in OYAK Denizli Cement to TCC, with a 100 percent enterprise value of 1 billion 300 million euros.
In the OYAK statement, it was reported that the parties are expected to sign the final agreements reflecting their preliminary agreements by December 8.
Strategic business plans between TCC and OYAK
According to the statement, TCC and OYAK started to implement their strategic business plans immediately after the partnership started in 2018 in the field of cement.
An investment decision was taken to establish a carbon black production facility in İskenderun in cooperation with Taiwan's International CSRC Investment Holdings Co. Ltd. (CSRC), the controlling company of Continental Carboun, a subsidiary of TCC and the sixth largest carbon black producer in the world.
Türkiye is the largest producer of carbon black, which is used in many areas in Türkiye, especially in vehicle tires, in the Middle East and Africa region with a market size of 300 million dollars, and the joint investment of OYAK and TCC in carbon black is aimed to get rid of foreign dependency.
This project, which has the capacity to eliminate imports, is expected to reduce the current account deficit, provide added value to the national economy and foreign trade with its export potential, and keep a significant amount of foreign currency in the country.
The facility, which is still under investment, will be equipped with the most advanced environmental protection systems in terms of both energy recovery and emissions by combining CSRC's know-how in the international carbon black business line with the power of OYAK, which leads various sectors.
On the other hand, TCC, which also owns Molicell, the world's leading electric battery manufacturer, took an important step to increase its battery competence in Molicell in the field of energy storage on an international scale by acquiring the shares of Engie EPS, a world brand in the energy storage business in 2021.
With the cooperation of the partnership, OYAK Cement pioneers the world cement industry with its calcined clay technology with a low carbon footprint. OYAK Cement, which established the world's first cement factories with calcined clay integration, is the first cement company in Türkiye to make a Net-Zero commitment with its production with the lowest carbon footprint in the world.
OYAK General Manager Süleyman Savaş Erdem stated that the agreement is an indication of the confidence in the Turkish economy and that they aim to become the leader in Türkiye's renewable energy sector with environmentally friendly and carbon reduction-oriented investments. He emphasized that as a result of the agreement, approximately 740 million dollars of cash resources will be provided to the country.
Mr. Nelson Chang, Chairman of the Board of Directors of TCC, stated that joining forces with OYAK in a strategic country like Türkiye has given them a significant momentum in the international arena. He stated that TCC will evaluate further investment opportunities with OYAK in Türkiye in the fields of carbon reduction technologies, electric batteries and energy storage.
This partnership forms part of a comprehensive strategy that aims to contribute to Türkiye's national and international goals, not only in the cement sector, but also in various sustainability areas. OYAK and TCC's shared vision reflects the goal of adding value to Türkiye's economic future through environmentally friendly and sustainable investments.
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