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the Koza-Ipek Group.
9.2.7 Other sector corporate news
US aerospace manufacturer Pratt & Whitney has pulled the plug on its Turkey operations, pointing to problems in production quality, aviation news site Airport Haber reported on June 22. There have reportedly been increasing tensions at the Turkish Engine Center (TEC). TEC, a joint venture between Pratt & Whitney and Turkish Technic, the maintenance, repair and overhaul center of Turkish Airlines, was formed in 2009. It employs around 250 staff at its site by Istanbul’s Sabiha Gokcen second airport. According to reports, the US company had expressed displeasure with TEC’s quality assurance for some time. TEC’s repair capabilities include an information technology system enhanced with methodology for engine overhaul practices. It provides services to airline operators in Turkey, Europe, and the Middle East, among other regions.
The M&A wave in economically battered Turkey continues. Turkey Private Equity Fund (TPEF) II owned by Turkish private equity company Turkven said on June 26 in a written statement that the fund was considering options, including the sale of an up to 29.9% stake in DP Eurasia, operator of the Domino's Pizza brand in Turkey and Russia, Reuters reported. Fides Food Systems controlled by TPEF II has a 32.8% stake in DP Eurasia, according to the statement. TPEF II also noted that the evaluations were at an early stage and there was no guarantee that the deal would be concluded. The International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the Entrepreneurial Development Bank are the shareholders of Turkven, according to Turkven’s website.
Turkey’s Soda Sanayi and Ciner unit form soda ash JV in Wyoming. Turkey’s Soda Sanayii and Imperial Natural Resouces Trona Mining Inc, a Ciner Group company, have signed an agreement to establish a 50:50 production joint venture to undertake an investment in the Green River region of Wyoming, in the US, to produce 2.5mn tonnes/yr of natural soda ash. The joint venture will also produce 200,000 tonnes/yr of sodium bicarbonate, meaning the enterprise will manufacture a total of 2.7mn tonnes/yr of product using a solution-based mining process, Soda Sanayii said in a filing with the Istanbul stock exchange, without providing other details. Soda Sanayi, which exports products to more than 70 countries, is the sole glass fibre producer in Turkey. Its glass fibre production plant was started up this year. The company’s revenues increased to TRY948mn in the first quarter of this year from TRY701mn in Q1 of 2018, while its net income rose to TRY285mn from TRY239mn. Local conglomerate Ciner is active in the energy, mining, glass and chemical industries. It is also the owner of popular TV channels Show TV and news broadcaster Haberturk.
Shares in Turkish white goods producers Vestel Beyaz Esya and Vestel Elektronik increased more than 5% and 0.4%, respectively, on June 13 after banking sector watchdog BDDK eased credit card payment rules. However, shares in another white goods manufacturer, Arcelik, fell, 3.6%. White goods sales have been on decline since last June amid Turkey’s economic contraction. Sales plunged 13%, 14.4%, 5.9% and 6.5% on an annual basis across the first four months of the year, respectively. The BBDK’s move was clearly designed to boost flagging domestic demand. In the first quarter of 2019, final demand from households plunged 4.7% on an annual basis. That followed a steeper 8.9% drop in demand in the previous quarter. The BDDK said late on June 12 that it cut the maximum instalment period to 18 months from 12 months for some purchases on credit, including for white goods and furniture. The regulator also cut the minimum of an oustanding card balance payable each month to avoid late payments fees to 30% on all cards, from up to 40%. This move will leave consumers with some extra cash. There were more than 66 million credit cards in use in Turkey as of end April,
87 TURKEY Country Report July 2019 www.intellinews.com