Turkish group closes down construction chemicals factory in Russia
DHA photoTurkey’s Kale Group has closed down its construction chemicals plant in Russia due to economic problems in the market, the group’s chair has told Turkish weekly Ekonomist.
“This decision was actually made after the Ukraine crisis [began], but was recently realized,” Kale Group Chair Zeynep Bodur Okyay was quoted as saying by the magazine on April 24.
The Kale Group’s construction chemicals unit, Kalekim, opened a factory in Russia in 2008.
Turkish home appliances maker Vestel also announced that it was shutting down its Russian factory a couple of weeks ago.
Kalekim has an annual production capacity of 800,000 tons of construction chemicals at a total of eight facilities, including the Russian plant.
The Kale Group, which closed 2015 with over $1.5 billion in revenue, sells products to 100 countries. The group, however, has recently experienced problems in exports, mainly in the neighboring region, said Bodur Okyay.
“We have faced serious problems in our exports to the neighboring region, mainly in 18 countries, such as Iraq and Algeria. Due to these problems, we have eyes on new markets, mainly the U.S. and European markets,” she said, adding that there were also problems in the domestic market.
The group has a total of 17 companies, from defense to energy and tourism. The Kale Group is the largest construction chemicals producer and seller in Turkey and fifth largest in Europe.