The Shishecam Group’s investment is the initial step towards pioneering the glass industry in the Balkan region

Mr. Ulukan Iyigun, Executive Director of Trakiya Glass Bulgaria EAD

Ulukan Iyigun was born in 1944. He graduated the Istanbul Technical University in Engineering Chemistry in 1965. He occupied managerial posts in the Ceramic Factory and other glassware companies in Chinakkale. In 2003 he was appointed Executive Director for production and development of Shishecam Holding.

Mr. Iyigun, in the recent years the Republic of Turkey has become one of the main investors in Bulgaria. Big investment projects for infrastructure construction are implemented through Turkish private companies. Trakiya Glass Bulgaria EAD entered Bulgaria in the field of such specific industry and on a large scale. Tell us more about how you started this project: what are the mutual benefits and, more importantly, what is the employment rate – how many jobs will you open in the preparation phase of the project and later when the plant starts working?
Today Shishecam Group, considering the float glass production capacities, has 9% share in Europe and is the 5th largest float glass manufacturer in Europe and the 8th in the world. Considering the glassware production capacities, the group has 16% share in Europe and is the 2nd largest manufacturer in Europe and the 3rd in the world.

Being the first glass manufacturer in Turkey, Shishecam has carried the Turkish glass industry to its advanced position as of today. Shishecam now aims to pioneer the evolution of the glass industry in the Balkan region, parallel to its strategy of growing with multi-focus production and being the leader in its “vital geography”. After evaluating the investment alternatives in the region, Shishecam is accomplishing its first important step with its float glass and glassware plants investment in Targovishte, Bulgaria.

Shishecam Group will realize its investment in two steps; the glassware investment will be completed in July 2005 and the float glass investment will be completed in the beginning of 2006. This investment in total will generate a 100 million $ revenue.

Float glass and glassware plants investment is the biggest foreign, direct, greenfield investment in Bulgaria, as well as in the Balkan Basin. With this investment, Targovishte region will have the first float glass plant and the biggest glassware plant in the Balkan Basin and consequently will become a glass production base in the region.

Apart from the purely economic and social aspect, what other effect could be expected from such a partnership between two neighbouring countries: could we expect, for example, a broader development of tourism, strengthening of the cultural exchange?
Shishecam’s investment will have both direct and indirect contribution to the economy of Bulgaria and the region. Most importantly, it will further strengthen the socio-economical cooperation and cultural relations between Turkey and Bulgaria.

The investment will allow transfer of technological know-how and use of state-of-the art technologies and will create 700 new direct jobs. Besides, it will provide additional employment opportunities during the construction period, as well as numerous indirect jobs in relation to raw materials, transport, mining, packaging, social services, decoration and industrial and promotional sectors and will create opportunities for these sectors to grow. In addition to these contributions a considerable amount of foreign currency inflow will be generated each year as 85% of total float glass and glassware production will be exported to the Balkan Region, Europe and the USA, as well as to the Middle East. Moreover, float glass demand in Bulgaria, which is only supplied by import, will be substituted by the domestic production.

Along with this big manufacturing complex will the infrastructure of the whole region change: will new roads be constructed, etc.?
A rapid development in Targovishte region is foreseen with the realization of our float glass and glassware plants investment. We believe this investment will lead to a decrease in unemployment and increase in labour force, will stimulate significant improvement in transportation and other infrastructures and most of all will boost trade from and to the region. In addition to all these, we think our investment will attract also further investments in other sectors to the region.

What attracted you to the region of Targovishte and why did you choose it – were you attracted by the natural and economic resources or were you rather led by sentimental reasons since in this region have always lived many Bulgarian citizens of Turkish origin?
The reasoning behind choosing Targovishte as the investment location is the suitability of the land structure for establishing our float glass plant and glassware plant, indication of Targovishte region by the Bulgarian Government as having the highest unemployment rate among the regions with high unemployment rates, and also, proximity of the region to Varna Port and raw material resources.

Do you plan other projects on the territory of Bulgaria, and if you do, in which regions and in what fields?
The float glass and glassware investment is Süisüecam Group’s initial step towards pioneering the glass industry in the Balkan region. Therefore, Süisüecam aims to utilize further growth opportunities by investing in processed glass, such as insulating glass, tempered glass and mirror that have promising future in the region. Within this framework, special emphasis will be given to the increase in the utilization of glass and especially of insulating glass, which serves to significant decrease in energy consumption, and hence, to protection of environment. With the opinion of transforming Targovishte region into a glass production base, Süisüecam plans to realize these investments also in this region. However, for the long term, the other regions of Bulgaria will also be taken into consideration for different investments.

Ralitza Zgalevska