İbrahim Erdemoğlu, Erdemoğlu Holding Chairman of the Board of Directors, remembered the 2014-2015 period while showing us around the Sasa facilities in Adana, with a group of my colleagues last week:
- Turkey's polyester imports in 2013-2014 were 1,5 billion dollars. It was also among our raw materials at  Merinos Carpet. I started to think about the pros and cons of getting into this business.
He expressed that he went to China and India with machinery manufacturers and visited the polyester facilities:
- On the way back, I thought, "We can do this job." I started looking for land for an investment. I met with the then Governor Ali Yerlikaya (now the Minister of Internal Affairs) for the organized industrial zone, whose preparations are ongoing in Tekirdağ. I asked for 2 million square meters of space.
He stated that Yerlikaya said that they could provide 600 thousand square meters of space in the first stage:
- “Start your investment with 600 thousand square meters. Over time, you will increase it to 2 million square meters," Mr. Yerlikaya said. So we accepted. However, there was a lawsuit filed regarding Tekirdağ OIZ. A stay of execution decision was issued.
He expressed that he continued to search for land from Erdek to Karabiga, but could not find a place of the required size:
- In those days, I met with a friend who knew the sector. He asked when he saw that I was in a bad mood, and I explained my problem regarding the investment land. My friend advised, “Sabancı Holding is selling Sasa. Go buy Sasa."
He underlined that he objected to his friend first:
- “Sasa's technology is old,” I said. My friend said, “Aren't you already looking for big land? Sasa has land. Instead of investing from scratch, you can renew Sasa's technology. Then you can make it bigger."
He emphasized that in that way, they acquired 51 percent of Sasa out of a total value of 200 million dollars:
- We made a call using the letter of guarantee we received from Akbank in exchange for shares. Sasa's market value in Borsa Istanbul was 130 million dollars. Small shareholders responded to the call. Our share exceeded 84 percent. When we acquired Sasa, there was a "technical bankruptcy" situation.
He underlined that their investment plans were ready when they acquired Sasa:
- On the one hand, we continued production in Sasa, and on the other hand, we continued our investments step by step. Our investment we made until 2021 has reached 1,5 billion dollars. Along with the investments, we have also renewed technology at every stage in Sasa.
Erdemoğlu pointed out that they have built additional facilities on Sasa's land in the last three years, during the tour and conversation accompanied by Mehmet Şeker, Member of the Board of Directors of the Holding; Güven Kaya, Member of the Board of Directors and Deputy General Manager of Sasa; Ersoy Nisanoğlu, Deputy General Manager Responsible for Operations of Sasa; and Şakir Yener, CFO of Sasa:
- We established a PTA facility for 1,7 billion dollars and a POY facility for 800 million dollars. POY facility started operation. The investment in the PTA facility was completed and production will start once the technical deficiencies are resolved.
He underlined that the investment they have made in Sasa's land in Adana since 2015 has reached 4 billion dollars:
- If we had tried to continue production with old machines in Sasa, we would have gone bankrupt 10 times by now. We then stopped production on the last remaining old machines. Therefore, despite the new investment, we will produce at 85 percent capacity.
He emphasized that with the latest investment, another Sasa, which is 75 percent of it, will be added to Sasa:
- Our total production, which is currently 1,1 million tons, will increase to 1,9 million tons as of the 6th month of 2025. If we exclude India and China, we will be the largest polyester producer in the world.
Sasa Board Member Güven Kaya intervened:
- The cost per ton in PTA was 110 dollars. The cost per ton will decrease to 30 dollars upon new investments.
Erdemoğlu continued:
- We will be able to reuse 95 percent of wastewater in new facilities. We will also generate electricity with the heat coming out during production at the facility.
Following this information, he asserted the following claim:
- We will have the opportunity to produce at the lowest cost in the world in Sasa's new facilities.
Erdemoğlu Holding has carried Sasa, the majority shares of which it acquired 9 years ago for a total value of 200 million dollars, to an assertive position in the world with an investment of 4 billion dollars...
While Sasa will open the door to reducing Turkey's current account deficit by 1,5 billion dollars with its production, it will also include exports in its agenda.

Awaits the ‘Industrial Zone' decision for 25 billion dollar investment

During my conversation with İbrahim Erdemoğlu, Erdemoğlu Holding Chairman of the Board of Directors, and his team, I remembered June 2017. President Recep Tayyip Erdoğan talked about the problem of an investor while speaking at the iftar dinner he gave to the owners, managers, writers, and program producers of media groups:
- A businessman came to me. He said that he would make an investment of 3,5 billion dollars and have me inaugurate it.
After checking a few messages after iftar, I learned that the businessman in question was İbrahim Erdemoğlu:
- We had announced to KAP that we planned to invest 3,6 billion dollars to produce the main raw material of Sasa. Our negotiations with the Ministry of Economy and the Ministry of Energy for the purchase, lease, or allocation of 2.9 million square meters of land belonging to TPAO in Hatay Dörtyol continue.
Erdemoğlu summarized the developments regarding land in our conversation at Sasa facilities in Adana as follows:

• While we were continuing negotiations for the land in Dörtyol, the area allocated to Çalık Holding for the pipeline in Yumurtalık expired. Upon it, we applied for that land.

• At some point after we applied, the Wealth Fund intended to make a similar investment in the land in question.

• Subsequently, 3,5 years ago, the President gave instructions to start the process of allocating the land in Yumurtalık to us.

• We met with the then Minister of Industry and Technology Mustafa Varank, Minister of Commerce Mehmet Muş, and Minister of Treasury and Finance Lütfi Elvan.

• Over time, we have also expanded our investment plans. That's why we made a request for an area of ​​11 million square meters.

• We bought the 4,5 million square meter section of it from the Treasury in the tender. We collected 2,5 million square meters from citizens, and the land size increased to 6,5 million square meters. We spent around 4 billion TL on the land.

• When our land reached 6,5 million square meters, we made our preliminary applications for investment. We received the permits. Finally, an approval was issued by the Ministry of Agriculture.

• Now we are waiting for the land in question to be declared an "Industrial Zone." Even if the "Industrial Zone" announcement comes out these days, we will take a break from investment in 2025 and lay the foundation in 2026. In the first phase, we will start with an investment of 5,5 billion dollars.

• These investments, which will be 100 percent owned by Sasa, will continue step by step with paraxylene, propane, ethylene production, refinery, and port.

• After completing the 5,5 billion dollar investment and seeing the results, we will start the 10 billion dollar investment. Our investments in Yumurtalık will continue at intervals of 3 years. It will amount to 25 billion dollars in total.

• When our investments in Yumurtalık are put into practice, we will be able to extend the range from raw materials and intermediate products obtained from crude oil to the final product of yarn.

• When our Yumurtalık production investments are made, we will have the chance to stop our country's 22 billion dollar import in this field.

Four foreigners are testing the waters for partnership, Saudi Arabia calls for investment

İbrahim Erdemoğlu, Erdemoğlu Holding Chairman of the Board of Directors, stated that they will establish 5 companies, 100 percent owned by Sasa, for the investment in Yumurtalık:
- We are open to offers to give 49 percent of shares to foreigners in the companies to be established but not in Sasa.
He specified that four different foreign firms have already tested the waters for the companies in question:
Our friends are holding preliminary meetings with four foreign companies. I will not step in until the Industrial Zone announcement is made clear. There is an offer from Singapore for the port.
He shared the invitation they received from Saudi Arabia:
- Saudi Arabia made an offer to attract the investment we are planning to make in Yumurtalık to itself. They have some very attractive proposals. It is because, once we complete the investment in Yumurtalık, they will lose the Turkish market.

Then he added:
- However, we are a family that says 'First our state, our nation."

750 thousand people have Sasa shares. I would tell it if the value were high

İbrahim Erdemoğlu, Erdemoğlu Holding Chairman of the Board of Directors, stated that the number of small investors holding Sasa shares is 750 thousand:
- Our responsibility is huge. People trust us.
He gave the following answer to the question of whether they, as Erdemoğlu Holding, are considering selling Sasa shares:
- We do not plan to increase Sasa's free float rate.
Erdemoğlu was reminded of the statement he made in the second half of November 2022:
- In those days, you said, "The value of Sasa shares is very high." Is the same situation in question now?
He answered the question as follows:
- I would tell it if it were high...

Erdemoğlu's turnover may reach 25 billion dollars in 2031

İbrahim Erdemoğlu, Erdemoğlu Holding Chairman of the Board of Directors, stated that their annual turnover was at the level of 250 thousand dollars in 1983 and presented the following chronology:

• In 1991, our annual turnover was 2,5 million dollars.

• In 2001, our annual turnover increased to 25 million dollars.

• In 2011, our annual turnover increased to 250 million dollars.

• In 2021, our annual turnover reached 2,5 billion dollars.

• Our target is to reach 25 billion dollars in annual group turnover in 2031.

We asked about the current turnover, and he shared:
- Our entire group turnover is at the level of 4,5 billion dollars.

News Source: Nasıl Bir Ekonomi Newspaper