General Manager of BMS Group Wire and Wire Products, Inanc Hurturk: “We have included the products
requiring high technology and technical specifications in our product portfolio and expanded our market and customer portfolio with our new Investment”
BMS Group continues its Investments. The company which has increased its production capacity approximately 130% as a result of the commissioning of the new hot-dip galvanized wire production line following the completion of the first part of the extension investment started within the month of October 2016, at the end of June, also included new products in its range of products. BMS Wire which has included products requiring high technology and technical specifications in its range of products with its new Investments will continue expanding its product line. We had a talk with general manager of BMS Group Wire and Wire Products about their companies and goals:
How was the year 2016 from the point of view of your company?
It is certain that the we will remember the year 2016 as a quite challenging year both for Turkey and for our company... Not only the economy reasons but also the political storms and terrorist actions that we had undergone have played an important role in keeping the year 2016 as one of the difficult years in our memory. Despite these factors, as BMS Wire we made our best to continue moving forward in our path without any disruption in line with our goals for the period of the upcoming 10 years. We have expanded our market within the limits of our production capacity and completed the year 2016 by ranking the fifth among the companies which have realized the highest amount of exports in our sector. The negative dimension of the Year 2016 for us was the postponement and delay for a period of approximately 6 months that we had incurred in the extension investment that we had started in the middle of the year and planned to commission within the year 2017. Not only the developments in Turkey but also the economic slowdown in cured in the international markets in which we are active played an important role as causes of that delay. Despite this we have signed our contracts with the producer companies towards the end of the month of October and started our investment program.
How is the outlook of the Year 2017 from the beginning up to today? Could you make an assessment from the point of view of your company and sector?
2017 did not begin with very promising signals in terms of both the national and international markets and this negative outlook persisted throughout the first half of this year. In addition to the shrinking of demand in the markets as a result of the slowdowns in the infrastructural Investments, decline of oil prices as well as due to the uncertainties in the economic policies of thenew governments that took power following the elections in some of the developed economies, the increase in the price of wire rod which is our raw material at the rate of approximately 35% since the new year day up to today as well as the price increases in London Metal Exchange also forced the companies to behave more timid.
Despite all these negative conditions BMS has managed to pass through this compelling period with a full load of orders directed at the future thanks to its scrupulousness regarding the protection of the prestige that it has obtained e in the eyes of its customers thanks to its open and sincere approaches towards its customers under all conditions, provision of correct and sincere information to the customers about the markets and its concern for quality and good service, as well as thanks to its active sales and marketing policies.
Is product and service diversity available in your company? If not do you plan to have it?
Our production capacity has increased approximately 130% with the commissioning of the new hot-dip galvanized wire rod production line upon the completion of the first part of our extension Investments that we had started after signing the contracts within the month of October 2016. New products were also included in our product portfolio thanks to this new Investments.We have also begun to experience diversity in our market and customer position along with this new Investments. Products requiring high technology and technical specifications that we could previously not provide are also included in our product line and we will continue to expand our product line with new additional products as the investments that we have planned under the framework of our extension project are completed until the end of the year.
We insured remarkable savings in the material used for our production through the Investments planned and completed in addition to and as support for the main production lines. This made it possible to prevent the wastageof sources (especially regarding the material supplied from abroad against payment in foreign currency) and also to ensure serious reductions of our production costs. Furthermore thanks to the strengthening of the facilities of our quality laboratories it has been possible to provide service especially to our customers in the sectors, to which we will newly begin to provide service, at a higher level of quality and reliability, conduct the tests and issue the reports demanded by them and manage our expanding range of products better.
Why are you successful? What are the factors that led your company to success?
As of the beginning of the year 2017 the monthly capacity of wire sector for the production of hot-dip galvanized wire was approximately 51.000 thousand tones. If a company which only had a share of approximately 2.5% of that capacity had managed to rank fifth in the sectoral export ranking by outdoing many other companies it must be accepted as a successful company.
I sincerely believe that our company and the members of our BMS team have been really successful and I explain this success by being a very professional team working with an amateur spirit. This statement may sound very romantic and stereotypical at first reading but just consider that a group of people coming from various regions of our country and brought up under the influt of various local cultures, traditions and customs and could have an education only within the limits of the means available to them come together and then these people with very different characters dedicate a significant part of their daily lives to a common struggle aiming at achieving a definite goal. This struggle may result in failure if the motivation directed at the final goal is not correct or sufficient. But success comes spontaneously if you direct motivation correctly and set up a team. One can promptly argue that the main motivation here is material gain but as a person who has a professional life of approximately 45 years I can easily say that the sense of spiritual and social satisfaction also plays as important a role as material gain in the path leading to this joint success and that it sometimes play an even more important role.
As a result success comes automatically when factors come together such as state-of-the-art production equipment, motivated manpower working in a team spirit, sufficient capital, sensitivity for quality, meticulous service and setting the goal of high level of customer satisfaction.
Could you make an evaluation of the performance of the cable sector for which you are a supplier in that part of the Year 2017 up to now?
I would prefer to answer this question taking into consideration the products that we supply. For that reason my views stated below are assessments about a definite segment of the sectors rather than reflecting the general situation of the cable sector. The fact that in the recent years developed and developing countries have slowed down and postponed their infrastructural and especially energy investments as a result of the negative developments in their budget revenue and expense balances and slow-down in their development programs have also led to a very big decrease in the demand for the types of cables in which our products are used. Furthermore production capacity in these cables which has increased rapidly as a result of unplanned investments in the recent years and exceeded the demand to a very great extent also increased the pressure on this type of cables under the conditions of unfair competition that have emerged along with this pressures. producers like us have been negatively affected as a result of the Restriction of the production of this type of cables by Turkey and some European countries which are in the position of main producers or shift of the production to other types of cables which they deem to be more efficient from the point of view of their enterprises.
We addressed the problems that you experienced with your Turkish colleagues or competitors. Well what kind of problems do you experience with your competitors from different countries both in the Turkish and international markets?
There is essentially no big difference between the problems that we experience with our Turkish colleagues or competitors and with our competitors from different countries in the international markets. We additionally have to face the problem of transportation and what is more important the special incentive and protection policies implemented by the states. When will enter the international markets freight faces us as a quite significant cost factor and ranks the third among the cost factors with a share of 9 - 17% depending on the nature of the market. following wire rod which is our raw material and the main auxiliary materials zInc (and it even ranks the second by outdoing zinc in some markets). Land transportation is not a profitable alternative in terms of costs except for some very special cases. Air transportation is also not an alternative that could be taken into consideration for our sector. Railroad maybe an alternative in some destinations but this is unfortunately not possible in our country. In that case sea transportation (container transportation taking into consideration the specifications of our products) becomes the only alternative and reduces the chance of bargaining to zero. There is a special freight support program put in place by our government as of the beginning of the year 2017 but it is also not sufficient and proceeds very slowly. Meanwhile some countries pave the way for their producers to enter into unfair competition with us by providing various direct and indirect incentives, means and financial sources while some other countries make life very difficult for us by taking very tight protection measures (by imposing additional customs duties and similar regulations).
Topics especially like vocational education, climate change and environmental consciousness are the areas for which sensitivity has increased in the recent years... Could you please share with us your social responsibility projects and your approach to the subject as a company?
The manifesto of BMS Tel is as follows:
• WORK SECURITY of our employees
• QUALITY of our services
• OUR SERVICE for society and our customers
• PROTECTION of our sources
BMS Tel fulfills its liability to provide quality and service to its customers in accordance with ISOO 9001:2015, TSE and ISEK certificates based on the above mentioned manifesto takes all measures required to ensure the work security of its employees without compromise and organizes permanent training programs and seminaries under the leadership of the instructors licensed by Ministry of National Education for the purpose of raising their awareness about the issues like work security and environmental responsibility and a certificate is issued for those employees who have been successful in these training programs. Our company which is aware of its responsibility for leaving a legacy of a livable world for our children takes very tight measures in the workplace environment for the protection of environment and also carries out various activities for the purpose of raising the awareness of its employees in this regard. Among the social responsibility projects that have been put in place by our company, providing support for the education of the children of our employees at every level occupies an important place. The first of the series of activities that we have organized under the title of “Meeting of Wire with Art” with an inspiration from the aphorisms of MUSTAFA KEMAL ATATURK like “ıF A Nation Lives Without Art, This Means That It Has Lost One of Its Vital Veins” and “Art Is The Path Leading to a High Level of Civilization” has taken place in the month of April of this year with the support of the Fine Arts faculty of Yediitepe University and participation of the students.
Do you want to add anything to your explanations?
As BMS Wire my friends and I believe that we, as BMS Wire are at the outset of our path in terms of what we can realize and what we want to realize in our sector. Despite the fact that we are only five years old as competent, we make our best to hold our goals high with the consciousness of being an accepted brand in our country, ourregion and Europe based on our product and service quality and the ability to create solutions. We are also aware of the undeniable contributions of all customers of whom we are solution partners in every and each positive and successful development that we have achieved.