Dear BEYSAD readers,

We continue to introduce our members to you more closely. In this issue we have interviewed with Mr. Numan Balçık, General Manager of Balçık Isı Elemanları A.Ş. An old member of BEYSAD, Mr. Numan Balçık showed great hospitality to the visiting BEYSAD team and shared with us years of industry experience. We would like to thank them for their hospitality and preparation for the interview. 

Can you please tell us about yourself briefly?

I was born in Ankara in 1961. I completed my whole education in Ankara. I have been working for Balçık since 1978. As a family tradition trade and production have always been at the center of our life. We have grown to this size by creating projects at different levels of our company. Being a manufacturer is a mission that we inherit from our family. We are aware of challenges that manufacturers face in Turkey and do our best to expand our business in this environment. As a family business we have been dealing with trade in Ankara for three generations. I got married 25 years ago. I have two sons: Buğra and Utku.

Can you please tell us about the organizational structure of Balçık?

Balçık Isı A.Ş. manufactures heating elements for electrical devices. The company was founded by Süleyman Balçık, Chairman of the Board of Directors, in 1959. I have been working as the general manager since 2003. Since 2003 I have accelerated our efforts to obtain a corporate structure and encouraged our employees to focus more on overseas sales. We work harder to become an international company and strengthen our Foreign Trade Unit. We have been restructuring our production activities in line with "lean production principles". We continue to expand the total quality management understanding to the entire company. We rely on a competitive structure tailored to the needs of both world markets and the Turkish market.

To which industries do you supply products?

These can be grouped in three categories:  Oven manufacturers, small household appliances and thermosiphon manufacturers. Our production activities are organized in line with the needs of these groups. We operate our production lines depending on production speed and seasonal fluctuations of industries. During the period 2011-2012 our investments for the oven industry and storage water heaters category are heavier. By manufacturing thermostats we give support to companies manufacturing thermosiphons.

To which countries do you make most of your export?

Our export rates vary every year depending on global fluctuations. Therefore, the distribution of our export activities by country still does not have a fixed nature. However, in the new period we will make special efforts to grow our exports to Russia and Iran.

What are the main activities of Balçık?

The most important aim of Balçık A.Ş. employees is to carry out production activities integrated with the surrounding regions and operate as an effective industry player primarily in our own region by increasing our capacity. In 2006 we acquired a company in Italy. We expanded our activities to offer products with added value and create and efficient market for our products. Acquiring this plant in Italy, we have begun to manufacture stem thermostats in Turkey, which was not manufactured in Turkey before. We export 90% of our production of stem thermostats. 

With our vision based on further growth, we established a new company led my brother in 2006 in order to penetrate a new market segment. We established an automated plant for production of heat tracing heating elements for washing machines. Thus, our product range has become even larger. We are eager to manufacture new products required by main industry firms and stand as an effective player in the international arena thanks to our activities based on research.

Our company now has a closed space of 4,200 m2, but with the completion of our new plants the area will increase to 8,000 m2 in early 2013. We plan to employ 250 people then.

We have focused more on lean production practices in 2010 and we have implemented a system for traceability, which will help us improve our efficiency.  At year-end 2011 this system will be completely in use. 

We carry out these activities to become competitive and contribute to the competitive strength of the main industry. Besides, we grow in parallel with the main industry. We take into account existing needs and developments in world markets. In parallel with the growth of the main industry, our ultimate objective is an integrated production based on automation. In this respect, the first group of our new machines is being used in our plant. We aim to realize the expansion that will serve the oven production industry during the period 2011-2012.

Efficiency and customer orientation are of vital importance for us.

What are the main targets of your company?

The reason why our company's growth speed is so high is that main industry firms also grow and our export activities increase. Building on trust on our company our main objective is to make investments for production. We also aim to create projects together with investors and main industry firms and stand as a production center in the region. 

Heating element production capacity in Turkey is sufficient for main industry firms in Turkey and business partnership between main industry and supply industry is based on strategy and efficiency. In order to become a real business partner, supply industry firms should create projects tailored to the needs of OEMs. I believe this will prevent them from importing products. Balçık always attaches much importance to innovation and right projects. We strongly desire to reach an export level of 40%. 

I think Turkey will be a production base for household appliances. I expect companies operating in this industry in Europe will anticipate the developments in the Turkish market and act accordingly. Once they invest in Turkey, I am sure they will receive the necessary support.   

Can you please make a comparison with your competitors or emerging markets? What makes you different from your competitors in the overseas and domestic market?

Our competitors in Turkey face same problems as we do. The Turkish market has been continuously growing in recent years. Both the domestic market and overseas market are offering significant opportunities for manufacturers in Turkey.

We are aware our competitors in the Turkish market improve themselves, too. Their main objective is to become a regular supplier of main industry firms like us. Projects are carried out in this respect and I believe each OEM offers potential for such manufacturers.

• The main difference between heating element manufacturers in Turkey and those in foreign countries is that as major developments have been taking place in the Turkish market in the last eight years, our self-confidence has increased significantly in overseas sales. Export level has also been increasing considerably.
• Due to high level of costs foreign competitors move their operations to China. Due to Turkey's logistics advantages and position as a production center, we have remarkable advantages as industrialists.
• Manufacturers in Turkey are preferred because of fast production, fast delivery and high quality.

What are your expectations from BEYSAD?

We are willing to cooperate with our competitors on a fair platform. In line with the legislation BEYSAD might position itself as an advisory council and take the leadership in this respect.

I also expect BEYSAD to involve us in the activities carried out in the scope of the Strategy Paper for White Goods Supply Industry and share comprehensive information with us. If possible, we would like to assign a manager from Balçık to assist activities in this scope.

It is of utmost importance that BEYSAD strengthens its relationships in the international arena and promote Turkish supply industry firms in overseas markets in all aspects.