OYAK and Taiwan Cement Corporation (TCC) have entered into a preliminary agreement to advance their partnership, aligning with the vision of sustainable growth and carbon emissions reduction. Following the signing of the agreement, the necessary approval process for the sale has commenced, involving relevant legal authorities to facilitate its realization.
In line with its vision of sustainable growth and globalization, OYAK took a historic step in the cement industry by bringing the largest foreign investment of 2018 to Türkiye. Consequently, Taiwan Cement Corporation (TCC), one of the largest cement producers in the Far East, and OYAK joined forces through the partnership they established, providing a significant global competitive advantage in the cement market. TCC now aims to increase its share in OYAK Cement, reflecting international trust in Türkiye. In this context, the parties have reached a preliminary agreement on:
- The sale of OYAK's 60 percent share in Cimpor Portugal Holdings for EUR 800 million, representing 100 percent of the enterprise value of Cimpor Portugal Holdings,
- The sale of 100 percent of the enterprise value of OYAK Denizli Cement shares, which is the controlling shareholder of Oyak Cimento Fabrikaları A.Ş., for EUR 1 billion 300 million and 20 percent of OYAK's 60 percent shares in OYAK Denizli Cement. Once the parties signed the agreement, the approval process required by the relevant legal authorities for the sale to take place began.
Immediately after the partnership in cement began in 2018, TCC and OYAK initiated the implementation of their strategic business plans. In collaboration with Taiwan's International CSRC Investment Holdings Co. Ltd. (CSRC), the controlling company of Continental Carbon, a subsidiary of TCC and the sixth-largest carbon black producer globally, an investment decision was made to establish a carbon black production facility in Iskenderun. Türkiye is the largest producer of carbon black, which is extensively used in various sectors in Türkiye, especially in vehicle tires, in the Middle East and Africa region with a market size of USD 300 million. The joint investment of OYAK and TCC in carbon black aims to eliminate the country's dependence on foreign imports. This project, designed to eliminate imports, is expected to reduce the current account deficit, provide added value to the national economy and foreign trade through its export potential, and retain a significant amount of foreign currency in the country. The facility, still under investment, will be equipped with the most advanced environmental protection systems, incorporating CSRC's international carbon black business line know-how with the strength of OYAK, which leads various sectors in terms of both energy recovery and emissions.
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 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.
Related renewed cooperation, Süleyman Savaş Erdem, General Manager of OYAK, said: “We know that the cooperation between OYAK and TCC will contribute positively to the investments to be made in both cement and other business lines in accordance with our country's interests in the coming period, as an indicator of the confidence in our country's economy by foreign markets. As OYAK, which constantly reviews its investment portfolio within the framework of its 'right investment in the right area' strategy, we continue our investments for the future and economy of our country without slowing down. As a result of the agreement we have reached a preliminary agreement with TCC, our international partner in OYAK Cement, approximately USD 740 million in cash resources will be provided to our country. Climate change, green economy and renewable energy, which are important both globally and for our country integrated into the world economy, set the agenda of every sector in the world. With our responsibility for future generations, we plan to become Türkiye's largest renewable energy player with environmentally friendly investments with a low carbon footprint. Together with our strategic partner TCC, we are evaluating investment opportunities in Türkiye in the field of electric batteries and energy storage, which are on the global agenda. Our investment for the annual production of 220 thousand tons of carbon black in our carbon black production facility, which will be processed using the waste of İsdemir, one of the OYAK Group companies, continues at full speed. The profitable and decisive steps we take in line with our common goals will directly contribute to our environmental investment and financial sustainability strategies.”
Nelson Chang, Chairman of the Board of Directors of TCC, stated that their international investments gained momentum with their partnership with OYAK five years ago. Chang continued; “In a country of high strategic importance and potential like Türkiye, we continue to take innovative and solid steps together thanks to OYAK's strength and visionary approach. We decided to increase our share in this partnership due to our confidence in Türkiye. In addition, with our technology and sustainability investments in reducing carbon emissions, the partnership of TCC and OYAK is a pioneer in reducing carbon emissions in the world cement industry.”
Stating that TCC is one of the rare companies that has an integrated and international structure with its investments in various sectors in the field of renewable energy, Chang added that they are evaluating investment opportunities in carbon emission reduction technologies, electric batteries and energy storage in Türkiye together with OYAK.
