PART 1 / 2BUSINESS PLAN SUMMARY
– The Cement Factory Facility Investment with a daily production capacity of 2 x 6700 tons of clinker to be carried out by ‘’Hatay Cement Industry and Trade Inc.’’ is aimed to be made in the Mediterranean region of Hatay province Altınözü and Yayla mountainregions.
– The investmentis planned to be completedin 30months.
– The İnvestment is planned to have a cement production capacity of 2 x 2.500.000 tons per year and a total of 5.000.000 tons of cement. The cement types will be produced are:
-Ordinary Portland CementOPC
-Portland Pozzolana CementPPC
-The required raw material supply is guaranteed. Raw material will be supplied from 5 different raw material mines; 3 of these raw material mines which has the size of 100 hectars, is located adjent to the factory land, the other 2 of these has the size of 50 hectars and close to the factory land. The marl and limestone reserves of these mines are suffient enough for this factory to work at full capacity for more than 100 years. The licences for the quarries are at the final stage of the process.
Application files were prepared for the basalt and clay fields determined in the region for altenative economixmixtures.
-The contracthas been prepared to purchase the 454.863 m2 sized land for thefactory.
-The required EIA license of the (2 x 2.500.000 tpy cement production capacitied) factory is obtained.
PART 2 / 2BUSINESS PLAN SUMMARY
-Approximately 50% of the production to be made is planned to be exported. The facility has an advantageous location in terms of export to the Middle East and North Africa.
– The location of the project facility, 70 km far from the port of Iskenderun. The facility is 3 km far from Antakya highway and 10 km away from Antakya.
– The location of the facility is promising for the future. The Eastern Mediterranean Region has a high consumption potential due to its population, urban transformation and infrastrutture development.
– The capital income for the people in the region is expected to increase by the developments that are going to be happen in the future.
– The development for the manufacturing industry in the region will bring additional sales opportunities with along.
– Having a close distance to the Middle East Countries will provide additional opportunities for the factory by the normalization process of Syria. The large amount of cement will be needed for the rebuilding process. This expected event will cause a good opportunity for cement factories close to the Syria.
Part 1 / 2
Because of the production facility will be located in the 4th region of Hatay province, it will be able to benefit from the verdict numbered 2009/15199 and 2008/1.
According to this law, it can benefit from the government incentives for investment and it can also benefit from the customs duty exemption. o According to Article 9 of the Mining Law No. 3213 and Articles 86 and 87 of the Regulation on Implementationof Mining Activities,the extraction tax of %50 of it’s value is not going to be taken from the investor.
Laws and Government Decisions also provide for a partial exemption from free land allocationand socialsecurity premiums payable by the employer.
The total investment is approximately 300.000.000 USD and the project is planned to be completed in 30months.
The 454.863 m2 Factory Land was purchased by the Company with a promise to sell contract. In order to ensure that the raw material needs of the production facility are met, operating licenses have been obtained for 5 raw material quarries(3 stone limestone fields of 100 hectares are adjacent to the production facility area, and 2 marl fields of 50 hectares are close to the production facility area). The estimatedlimestone and marl reserves of these raw material quarries are at a level to meet the needs of the Cement Factory Facility for more than 100years.
Studies for obtaining EIA reportsfor the project and quarries have been completed
Part 2 / 2
With first production section, the turnover in production is expected to 165.000.000 USD, and EBITA to be around 66.500.000 USD (this values for 2.500.000 tpy). On the condition of building the other second section this income will rise up.
On full capacity of production:
Active days per year: 300 days
Active hours per day: 8 hours 3 shifts
Total cement production per year: 2 × 2.500.000 tpy
Active hours per year: 7200 hours