HES Cable’s Deputy General Manager Şükrü Kakillioğlu:
“It is not the competition itself but the unfair competition that disturbs us;
we generally see that irrelevant things are sold together in the market”


HES Cable’s Deputy General Manager, Şükrü Kakillioğlu expressed that; several companies were competing to influence the customer preferences and to increase their share in the market, and he emphasized that, competition was normal, yet, unfair competition was distressing. Kakillioğlu replied our questions on their company and the wire market.

Can you inform us about your product range?
As HES Cable, we shape our organizational structure within the framework of Boydak Holding’s management values and principles, to which we are affiliated to. Our brand was founded in 1974 to produce power cables. With an experience of over 40 years, we produce fibre optic cables, copper communication cables, power cables, high voltage energy cables, aluminium conductive, and enamel round winding wire for the cable and wire market. Our products can be divided into two groups, as the cables utilized in buildings and as power and data cables. While the energy cables are produced in the HES Cable facilities, the data cables are produced by our HCS Wiring affiliate company. Our cable products in both groups are preferred particularly in selective building projects for the product quality and for conformance to the fire safety rules.

The features of HES Halogen Free Flame Retardant (HFFR) safety cables;
•They don’t contain halogen elements such as fluorine, chlorine, bromine or iodine.
• When HFFR substances burn, poisonous gases do not come out, but only water and carbon dioxide.
• They are not flame conductive. Polyethylene (PE) and Polypropylene (PP) are halogen free substances that can easily burn.
• They can burn out themselves. This feature comes from special compounds that contain aluminium or magnesium hydroxide.
• Density of smoke during fire is quite low. Thus; they are particularly utilized in areas where the human life can be at risk.
•. They sustain electricity transmission for a significant time period (for 180 minutes at 800 ± 50 °C). HES HFFR cables keep functioning up to 180 minutes in fire, they prevent the flame from extending along the cable, they do not emit poisonous gas, or dense smoke that would block sight. They are halogen free cables that do not create a corrosive environment (LSOH). Thanks to all these features, HES HFFR cables ensure high operational safety.
• Glass fibre, mica or suchlike bands or other substances can additionally be used to raise the function of the cable up to level FE 180/E90.
• HES HFFR Cables possess TSEK and VDE quality certificates.
• Despite the fact that PVC materials ensure higher resistance against the flames thanks to the additional substances, these cables emit poisonous gases when exposed to flames.
• Previously used Antimony Oxide based materials have now been replaced by Aluminium Hydroxide (AI(OH)3) and Magnesium Hydroxide (Mg(OH)2) based materials due to their carcinogenic effect.
• These cables are produced as installation cables or 0.6/1kV energy cables (guarded or unguarded). These materials are utilized as the exterior case of XLPE isolated cables.
• Superior HFFR cables, which are designed to reduce the risks during fire, also possess all the electrical and mechanical features of PVC cables.
• The insulation, filling and casing materials utilized in our cables are also produced by HES Cable.

Below are some types of HFFR cables produced by HES Cable;
• Installation Cables (300/500V, 450/750V)
H05Z1-U, HO7Z1-U, H07Z1-R, H05Z1-K, H07Z1-K
H03Z1Z1-F, HO5Z1Z1-F
H03Z1Z1H2-F, HO5Z1Z1H2-F
• Low Tension Cables (0.6/1kV)

Halogens are elements such as fluorine, chlorine, bromine or iodine. Cables made of polymer substances such as PVC, NR, SBR, PVDF, PTFE or FEP, are cables that contain HALOGEN elements. Cables made of substances such as PE, PP, EPR, EVA or SR (Silicone), are HALOGEN-FREE cables. On the other hand; substances such as PE, PP or EPR are highly inflammable. Flame retardant substances can be added to such substances to create HFFR (Halogen Free Flame Retardant) cables.
At the end of last year, we have added solar cables to our product range. PV1-F solar (photovoltaic) cables are produced according to TS EN 60228 standard and are designed to be utilized in the fittings of various photovoltaic system elements such as Class5 (Flexible) electrolytic, tin coated copper wire and solar panels. Our PV1-F solar (photovoltaic) cables are highly resistant against the UV, Ozone and External weather conditions; they are cross connected, halogen free (LSFOH) and TUV certified. PV1-F cables are designed to meet high mechanical requirements and to resist against extremely hot and extremely cold weather conditions. They are resistant against the ozone and ultraviolet radiation, as well.  This kind of cables can be utilized for 25 years. They are specifically designed for the fittings of the systems such as solar panel rows and inverters in photovoltaic applications. They are used without any protection inside pipes or other similar closed systems, in internal or external fixed installations.
Technical Specifications:
Nominal Operation: 0,6/1 kV A.C. (Umax.: 1,8 kV D.C.)
Test Voltage: 6 kV (5 minutes)
Operational Temperature: from -40°C to +120°C
Short circuit temperature: 250° C (5 sc.)
Tensile Strength: 15 N/mm² in operation; 50 N/mm² at installation

All electrical and mechanical features conform to “TUV 2 Pfg 1169/08.2007” specifications.
Recently, we have conducted significant feasibility studies on low tension cables and signal cables.
Besides these, we have added solar cables to our product range at the end of last year. PV1-F solar (photovoltaic) cables are produced according to TS EN 60228 standard and are designed to be utilized in the fittings of various photovoltaic system elements such as Class5 (Flexible) electrolytic, tin coated copper wire and solar panels. Our PV1-F solar (photovoltaic) cables are highly resistant against the UV, Ozone and External weather conditions; they are cross connected, halogen free (LSFOH) and TUV certified.

What is the significance of the corporate identity and brand value in sales and preferability?
How do you invest in your brand and corporate identity?
Several companies in the wire market are in serious competition to influence the customer preferences and to increase their market share. On the contrary to many other products in other markets, the producers in the wire industry do not have the chance to design products according to their own standards or models. All wire producers shall produce standard products that conform to national and international specifications…Consequently; it doesn’t seem possible for the companies to differ their products from the others and to deliver this difference to the consumers through advertisements and promotions and to grow their sales volume and market share. So, the corporate identity and the brand value of the products come to the front. Though wire may seem as a simple and standard product, it has a life of around 30-40 years in normal conditions and it is the key element of infrastructures. It is very difficult and expensive to replace the wires utilized in buildings and most commonly, the same wires will be in use as long as the building survives. Considering the performance or losses the infrastructural wires would create in time, we can see that even small differences in quality will become significant in time and not the initial investment cost but the quality is the issue that must be observed. HES Cable has been active in the market for over 40 years. Gaining and sustaining the trust of our customers make up the core of our customer relations. Our slogan, “Reliable Technology”, which we registered together with our brand name and logo, is an indicator of this mission and principle. As the most popular and preferred brand of the market, we are striving to keep our product and service quality at top level in order to sustain this trust. We consider our agencies and customers as our business partners beyond the commercial relations and we try to meet their demands and expectations as much as we can. We handle any customer complaint regarding our products, precisely and we give best efforts to resolve any problem as soon as possible in order to prevent any suffering. In the meantime, we attend fairs, advertising and promotional activities within the framework of our long-term objectives in order to empower our corporate identity and brand.

Surplus supply, fierce competition, low profitability… How will these negative conditions affect the cable market? Can we talk about company wind-up or mergers?
This is the main problem of the industry… Actually, we wouldn’t expect to see a fierce competition in a market where minimum standards are fulfilled, and only quality products are in competition. It is not the competition itself but unfair competition which disturbs us. We generally see that irrelevant things are sold together in the market. Consumers that do not have sufficient technical knowledge and experience unfortunately make choices on price basis. This price issue is challenging for corporate companies like us, which invest in quality, and it forces us to work at unreasonable margins. On the other hand; we hope that small scaled companies performing non-standard production will become eliminated in time and the market will start performing in more reasonable conditions, once the customers gain consciousness, efficiency of the industrial audits increases and fulfilment of certain technical specifications is made obligatory.

‘Types of cables utilized in the European market require more advanced technologies. On the other hand; the Middle Eastern countries utilize cables that are produced using out-dated technology. Thus; the Middle Eastern markets are less challenging and more attractive for us. Our technology is suitable for the cables to be sold there.’ Do you agree?
It is possible to see many companies that would suit this evaluation… But this is not the reality for the market leaders and for big-scaled companies like us. Our technology and materials are sufficient to be able to produce cables that meet the most updated standards. We closely follow the technological innovations through technical publications and industrial fairs and immediately integrate those to our own plants. The Middle East has become our core export market as the local producers are weak and those countries need investments more. Apart from these, our common cultural values and historical values also connect us to the Middle Eastern countries and our geographical position brings us a logistic advantage over our competitors.

If you compare the first quarter data of the year with the same period of the previous year, do you see a positive or a negative image? What are your expectations from the year 2016?
We are hopeful and optimistic about the year 2016. We have achieved a higher amount of orders and sales compared to January-February period of the previous year. On the other hand; the political and economic developments will be decisive for the rest of the year. We aim and hope that; a peaceful and stable context will be ensured, economic activities will come to the front, projects that will improve the welfare of our country and region will be designed, and we will take part in such projects.