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Ciner’s peak strategy


Turgay Ciner is the biggest mine owner in Turkey. He is one of the two biggest player in media sector. He welcomes the year 2006 with new investments and new attempts. He will transform the coal from Cudi Mountain into petrol.  He has already sold the metal from Siirt to steel giant Arcelor. These metals will shape the future of Southern East. 2006 will be the shining year for Kanal 1 in media sector; The World Cup will be on Kanal 1.

Röportaj: ’dan Barış SOYDAN

A success story that suits the universal enterpreneur mithos of Turgay Ciner. He has been in trade life since he is seven. He gained millon dollars in the age of 24 and billion dollars in the age of 40. Of course it is important to have a shining star in the 20’s, but economy magazines’ pages are full of stories on wealths that are gained at the early age and lost in a short time. Real succes of Ciner does not lie in individual victories but in “maintaining” his rise. Therefore, buying Sabah Journal in 2005 or succeding the privatization of Havaş in 1995 are not the main points. It seems that his real success is that he survived the two economical crisis (in 1994 and in 2001) which shook the national economy and erase the countless “legends” and he stood still on the stormy waters in Turkey for about 30 years. He just knows to go on in every condition and environment. It refers to the shared characteristics and orientation skill for every successful enterpreneur. (He also highlights this characteristics in the interview with Turkishtime.)
 
It is possible to read the interview between Turkishtime and Ciner as a “classical” enterpreneur story. But without doubt, the following pages are full of advices for both mining companies and media workers...
 
Turkishtime: You organized a press meeting at the end of the last year and declared that Ciner Group had an $ 1,4 billion revenue at the end of year 2004. What will be the revenue amount of Ciner Group for this year?
 
Turgay Ciner: It will be $ 2 billion. But I made an extraordinary merge with Aytemiz. A growth of 35 % is not a usual rate. We will be pleased if exceed the national growth rate a little higher. If the national growth increases five times and if we grow ten times, we regard it as a success.
 
Therefore, since the economy gets slow in comparison with the recent years…
I do not agree. It didn’t. How come the economy gets slower in a country that has a $ 120 billion import and $ 70 billion export? The point I did not quite understand that the economists say different things?... But who are the people that do these businesses? Businessman that induce $ 120 billion import and $ 70 billion export means they do something.
 
It is easy to pontificate. There are people who increase these numbers. All of them are after a hope in business world. Our export volume was $ 2 billion dollars in 1981. Our import volume was $ 3 billion; and $2.5 billion of it was the petrol bill. It is indeed a success if you increase your import by 40 times and your export by 35 times in 24 years. It is easy to make economy comments by numbers. But the comment should be based on the ratios. This is the economy. It grows with ratios.
 
One of the reason that lies behind the fact that Turkey has such a dynamic economy is the vitality in the investment environment. And you envisage big investments in mining.
We do not envisage, we realize it.
 
Does the production begin in trona mine in Beypazarı?
Mining operation continues. Mining investments are long term investments. Since you struggle with the geography, it can take four years. It is not like a factory investment. “Assign it to an architecture and lay the foundation” does not work. It is hard to move underground. But we progress very successfully.
 
You made sample production last year.
We made a trial. Now we are increasing the scale. 300 Chinese are working there; engineers, workers, they are all professionals. They made this job. They know the details.
 
And when you mine, you begin export. Will you sell trona to European market? What is your target?
Trona is used in many different areas; it is a material that can be used in everywhere. If we focus on export, then we will make it. If domestic market is more profitable, we do not. We will determine it according to the demand. We will make it for profit not for a show off. Turkey has many improvements in mining this year, I think its growing ratio is 15-20 %. And there is an increase in the export.
 
The natural stone is the leading factor in mining export in recent years, isnt it? How do you evaluate the export?
Mining is not progressing well. Policies on mining is blocking the sector. In Turkey, mining is subjected to extra taxes. It means you pay more taxes than a shopping center or incorporations pay. Everyone claims a share. 95% of the mining areas belong to state and they do not allow anyone to enter. There is an irrational opinion that mining should be perfromed by state. Mining sector future in Turkey is blocked.
 
Is there any change?
No. In Özal period, in the year 1983 or 1984, there was a law legislation numbered 3883 and mining was liberated a little bit. Last year, mining law was changed. And they took back the liberations that Özal gave.
 
Are there any strategical remarks?
Is the strategical mining possible? What can it be that strategical? What is strategical is the deployment of soldiers and the guns they carry. Is the strategy of mine possible? Now look, the state drew back from cement sector. State is not in ceramic sector and in glass sector. State is not in marble sector. In this four soil-based sector, Turkey is among the 10 biggest producers. Cement, ceramic, glass and marble. They all had belonged to state. And when state withdrew, Turkey took place among the 10 biggest producers.
In other mines, Turkey is absent. Why? Because all the other metals are of state. State holds the 95% of these areas and do not give.
 
Now the license tenders are in question…
In mining countries, mining sector gets nearly 10-11% share from gross national product. That means, if we have $ 400 billion of gross national product, we are supposed to have a $40 billion mine revenue. Turkey is a country which has a variety of metals. There are coal, copper, zinc, iron, gold and silver. Since cadastre information is not available, the quality of them is unknown.
 
You are the biggest mine owner in Turkey. Are you planning to participate in an organization that is active to change mining policies in Turkey?
I have already been in such practices. For example, there is Eti Business founded by Atatürk. The state changed Eti mining enterprise from corporation to state organization again. I am not critizing the bureaucrats who work there. They are doing what is being ordered to them, anyway. They have had many services until now. But there is something that blocks the things. Today, 3% of Turkey is licensed to Eti. In terms of mining license, 3 square meters of every 100 meters are licensed to Eti Mining Enterprise. There are many firms such as coal firm and iron firm. One of them has the 3% of all. On a small piece of land, metal exists in nearly 3-5% of it. Eti has the mining license for 19 thousand square meters land. Turkey has nearly 700 thousand square meters surface. And this ratio is equivalent to 2,5-3%.
 
Mining license has a powerful enforcement force. On a site where has a mining license, you can destroy the upper structure and extract mine. This is a common world wide example. If you have the richest petrol beds in Kızılay, Ankara is moved to another place.
 
They do not give over but do not operate either…
It is also impossible to operate such a big area. It is not economical. Even Rockefeller could not enter this business. We are talking about a country which is 19 thousand square meters big.
Mining also gives an advantage. You have to establish a facility in the area that you are going to extract the mine. Therefore, that metal is beneficiary for regional people. It provides regional employment. Metal is the most important thing to provide regional employment. For example we are opening a copper mine in Siirt. We can not take the soil from Siirt to Diyarbakır. We establish the necessary facility near the mine. It is not in Siirt center, but in Siirt countryside We employ local workers. When we go there, we bring education, quality and a life standart.
 
Have you ever been in Beypazarı? When we went to Beypazarı, Çayırhan, Beypazarı became almost a city. We made various contributions to Beypazarı. In the past, 2500 – 3000 people visit Beypazarı but now the number is 30 thousand on weekends. Beypazarı sells goods to Ankara, Istanbul, Eskişehir and Zonguldak. Therefore Beypazarı multiplied its income by 4 or 5 times. When we go to a place, we also bring contribution and business  movement.
 
Everyone should live in where they born; because people want to live where they born.
 
Do you also have a mine on Cudi Mountain, near Siirt…
Yes, we process asphaltite coal.
 
Mining have started yet ?
Not yet. They are not such an easy things; therefore there is little investment in mining. Since the investment process is too long, powerful firms to bear that financing should enter.
 
Is that the real problem?
Not really. The problem is that the state is not willing to give license. And know how is also another necessity.
 
You like mining and most probably call yourself a miner…
Almost yes, that is right. Because I see it as a mannish business.
 
The state do not allow private sector in boron.
Worldwide market size is $ 1.5 billion in boron. In Turkey, even the women socks sector has $ 1.5 billion. The state produces boron and exports it because it is strategic. But if you allow private sector, give the boron in Balıkesir to Balıkesir people and like that…Some produce 3 kilos, some 5 and some 500 kilos. You can not put boron in a bag and take. As you pay VAT in a certain amount when goods arrive to port, you will also pay VAT when making boron export.
 
In addition, in the boron layers there is gold too. But since there is boron, the state do not allow private sector to process it. Boron is just there; there is gold near it and stands; and same is for silver too.
 
When mentioning about gold; you have said that since the gold mines are spreaded in a wide area, it is not rantable…
Yes, so are they, it is not profitable. Because you own 5 square meters mine, 10 square meters is owned by another, and another one has 7 square meters… And their cadastres are not performed. Mining statements in Turkey are fallacy. Like treasure hunting. On one region there is mine, on another there is not. In order to make mine cadastre, you will strand the country meter by meter, you will examine it… Eighty percent of it has not been performed. Therefore, whatever you say, it is just in vain.
 
Look, BP has discovered oil on 8 kilometer offshore in Hopa. Most probably in summer they are going to declare it. They established a platform by spending nearly $100 million dollar. Now, there is coal in the Zonguldak offshore. When there is coal, there is gas; gas will also be extracted. Coal produces gas. It produces methan gas. You will see it is going to produce gas. What we call natural gas is the metan gas.
 
Natural stone mining has become a rising trend in Turkey. Do you plan any investment in marble?
We are dealing with mining which requires an industrial process. We prefer taking the metal and process it. If we extract coal, we produce electricity from gas. We also produce petrol from coal. We are introducing a new method to Turkey.
 
In where do you produce it?
We are planning to make it in Silopi this year. Which means, next year we start petrol production. We are going to produce high quality petrol in Gaziantep. I am going to produce petrol and we are going to use the remaining coal in cement factories and thermical power plants; which means coal is not perish. What we are going to produce is the petrolium in high gravity.
 
Has this news been published in Sabah Journal?
I do not talk about anything about my job with anyone in the newspaper. Since the state is close on that point, I am also close about it.
 
What strategies should be followed for mining to be improved?
If the biggest problem in Turkey is the unemployment, extra taxes should be cancelled on the mining. I do not say that they should encourage the mining; I do not want to take the easy way out.When there is mine, you will give an extra tax to the relevant municipality. It is generally near 15%. Now, I do not know the exact amount with the new law but we pay 15% more than the usual companies.
 
Now look, in Siirt Madenköy, we are working in a hamlet called Şirvan; you are going to witness that in five years time Şirvan will be the most developed part in Siirt. Children will get more education because we immediately have started to build a school there. We built a health care center, we brought doctor and bought X-ray machine.
 
There is no other big group that makes investment there…
Because the big groups do not actually visit there. They just sit in Istanbul and talk. In Turkey, big groups make investment in Izmit, Adapazarı and Eskişehir. The big groups can not visit the places where we make investment.
 
Is there any safety problem?
Yes, of course. But we can not accept not making the ivestment in our country since there is safety problem. Social aspect has gained more importance. But big groups can not even visit Siirt.
 
There is a close relationship between mining and energy. Turkey is the energy importer at the same time. What policies should be followed about it?
We do not import energy materials. We import electricity under the name of energy material. Which means, today Turkey imports nearly 60-70% of the electricity production. It does not import it in the form of electricity. It is in the form of natural gas. Natural gas does not provide employment by turning into electricity. The contribution of electricity to Turkey that is produced by natural gas is minus.
 
But then why so much natural gas is used in Turkey’s energy production?
Natural gas providers are the biggest companies in the world. It is natural to manipulate the country. Because there is billion dollars of gas used . People say that we import $5 billion dollars of natural gas. No you don’t. You import $5 billion dollars multiplied by the years you use natural gas. You will import as long as a human lives. Which is equal to $100 billions. Turkish people will work, they gain money, this money will pass from Ahmet to Hasan and from Hasan to Mehmet but it will go to Russia. In Russian, Seven sisters petrolium companies are in this business. BP, Shell, Chevron, Exxon, Standart Oil are all included. Russians can not come up all alone.
 
Moreover, it is more expensive.
It is much more expensive.
 
There is a confusion in minds about energy. On one hand, there are some people who say “A middle sized energy crisis awaits us, we should pass to nuclear energy at once”
Now, Turkey meets the 42% of its electricity production from natural gas. The capacity of natural gas power plants is 98% and coal power plants is 85%. With the new technology, it increase to 95-97%. Electrcity production capacity from natural gas is 40% and we are the only country that produce electricity in 60-70%. They push Turkey in that way. I have been talking about the same point since 15 years. Turkey is a coal country; when you dig soil in Keşan, you find lignite. In Keşan, Saray, Niğde... You find lignite everywhere. You even find in Istanbul. You dig here, you find. All the cavities in the northern part in Istanbul are the lignite cavities. Bolu, Göynük, Beypazarı, Manisa Gediz, Konya, Maraş, Adana and Siirt Silopi are full of coal. What will be the advantage in coal investment? It will bring employment. Turkish people will gain some money. Which means it has zero cost for the state. When Turkey produce its electricity production from its sources it has a zero cost; because if it does not produce it it must make payment to the people. Like it does in The Northern East, you know they pay to foresters. However, if it provides employment, foresters will also work. And it gains tax.
 
In Polland, electricity is produced from coal by 98%. There is a claim that coal poisons the environment. Polland is a green country. Have you ever seen a yellowish soil in Germany. Germany produces 50% of its electricity from coal. Why these lands do not get polluted? 56% of the electricity in USA is from coal. Does America lack of technology?
 
I am going to say even a funnier thing, from where do we buy gas? From Russia. Russia produce 60% electricity from coal, nucleer and hydrolic. Natural gas is in the fourth rank.
 
Natural gas has 8 thousand 800 kilocalory. The cost of producing 8 housant 800 calories from natural gas is 330 dollars. And there is coal. In Turkey, coal calory is low. It is 2 thousand calory. Maximum value of 2 thousand calory coal in Turkey is 5 dollars. In order to reach 8 thousand calory, you must burn 4.5 tones. It is equivalent to 22.5 dollars. Moreover, $300 of energy is domestic; which means coal is $300 and natural gas is $200, I prefer coal. All in all that is the money paid to your people, not to the foreigner. But it is vice versa here!
 
In Ankara, they also know it… We are blocked by some kind of agreements, aren't we?
Our NGOs are walking on the streets by begging for natural gas. They claim that the coal pollutes the environment. This expression is one of the associates in shacks. But people who screams about environment are the reasons for the life in shacks, which means poverty, terror and undereducation. Because if you give 10-15 billion dollar annually to abroad, this shacks remain as shacks. If you keep this $10-15 billion dollar in your own country, this shacks can improve. It’s that simple.
 
The measurement of the energy is the calori. You get foreign calory for 300 lira and domestic calory for 20 lira. And you provide employment and you keep your money and get tax. For example, I operate 620 megawatt powerplant in Çayırhan. I employ 2400 people. And I give this energy to Ankara industrial area, various places in Istanbul, ironman, copper man, cable gay, pipeman, transporter, restaurant owner. In the same scale natural gas powerplant, 9 people work. As an institution we are the second private sector company in Ankara who pay tax. But in the same scale, the money produced in a natural gas power plant is collected from Turkish people but invested in a foreign bank. But I keep my money in Denizbank, Iş Bank and Yapı Kredi; It goes to Ostim, dockyard market and so on.
 
Against global warming, it is proposed that renewable energy sources like wind and sun should be used more.
Sun energy is OK but you can not provide energy from wind. Because energy is a thing that needs durability. Wind blows and stops. You need to produce energy in a continous way. Wind blows and jenerator steps in. And the wind stops. Then what are you going to do?
 
If the 30-40 thermic power plants and power plants that use coal and other fossil fuels will result in global warming, let it go. Our 70 million people will live in wealth at least.
 
Through the partnership with Aytemiz, you entered the petrol distribution in which the competition gets more serious. You have your opponent in media, Doğan Group with Opet and even Tüpraş, Koç and Petrol Office. You have said that you would reach 800 dealer in Aytemiz, have you reached that number?
Aytemiz family is a really decent company; with their demant and our will we are partners by 50-50%. But the management of the company and its policies are under Aytemiz responsibility. It is our policys in the recent 3-4 years. We are going to buy the conmpanies of people who have proved themselves ans specialized. When buying, we will be sometimes small, somatimes big and sometimes equal partner and we are going to execute a policy that the owner of the companies will stay in gthe management regeardless of partnership rates. I prefer that the founder of these buisness stay as both partner and the professional rather than growing with a highly professional staff.
 
What is your contribution?
We of course provide financing in various ways. We contribute our vision.
 
But in a general saying, there is “core business”; which means some business we pay more importance. You are not inclined to grow in every sector. For example you have said that you are withdrawing from tourism.
We withdrew from tourism and textile. We just have textile company in Adana namely Ceytaş and it is just for the social responsibility. If we close it, it will do the harm to that region. Social responsibility is among the investor's duties and people who work in that factory, members of that syndicate supported me in the past and now it is time to pay my debt.
 
Do you export there?
It changes according to the balances. Our job is the mining thas is based on energy. We going to grow as much as possible in mining and media.
 
Will you enter energy distribution?
We are going to try to take over a region in energy distribution. I do not know if we will succed it or not.
 
Which one is more difficult, Media or mining?
Since I am positive, there is nothing as difficult. In Middle Asia, meaning of difficulty is good. In Middle Asia, when you ask is media or mining more difficult, you actually mean that is media or mining is good.
 
I have a positive point of view against life. I am graceful to God since I am alive. Life is a gift from God. Good life and bad life is relative. My life, which is good for me can be boring for another. Money is not a must for happiness; I know many people who are just happy from their point of view. I look at the pozitive side of life and people. When bad things happen, I just go on.
 
But as it seems you make more investment to mining in the year 2004-2005.
We resurrect an institution that was about to abolish. We did not buy it, we buy a entity thay we grow. It was a double investment. We both made an investment and we bought it after we healed it. I say it in brackets but we were like foolish trader.
 
You have to endure $ 450 million of loss…
That is just like that but we made it for the public conscience. Because I did not have a legal obligatory. But I say public conscience, do not say public opinion. I made it because I had the conviciton that this job must be done. I did not make it for public opinion. I made it for public conscience.
 
Do you have a core staff? Because there is always a strong team behind astute people. You are away from press as an individual although you are in the press. And your team is also away.
From the beginning, I have friends who act always with me. And they are with me now. In fact I am a conservative man. Some of my values can be conservative. I have gone to the same barber for 25 years and I have the same driver for 30 year and I made shopping from the same store. I go to same restaurant. I have some kind of obsessions. 13 thousand people work with us. Our management model is the leader operation. That meas I do not believe in “institutionalization”. I do not have any logic, emotion or dreams as being institutionalized.
 
It is just for Turkey condition or general term?
What isimportant for me is the human. Of course there must be some procedures but “we are going to be institution , we are going to be organized” do not mean anything for me. I do not believe in institutionalization, I believe in leadership. I have leaders in my organizations and companies. And they are just five or ten people. It was same in the beginning and it is the same now. There are known names and managers, and they go on. It is not a crowd of people. Which means we are not a radical organization having consultants, presidents. We do not have procedures; my door is open. In media, everybody in the buildng can enter my room.
 
Do you like working in the media?
I like every business that I make money.
 
There is a question to be asked in the concept of monthly economy magazine in terms of institutions . Can we say that you do not work with management consultants?
Management consultants firms are silly things. What do they do? For example they take Rockefeller style, they edit it and sell it. Rockefeller likes wine but your company prefers whiskey. One likes fishing the other likes skiing. People who have different life style perceptions have different management styles. If it is otherwise, God creates people in the same way. People are different both in appearance and both in personality. They try to fit a 42 or 52 size suit but my size is 46.
 
Of course an arrangement is necessary for a company. All the organizations are derived from military organizations. It comes from defence. The reason for the organization is the defence. It is the management foundation of the companies. There is variety in it. People are not copy of each other. How can a management style resemble for people who are different in soul?
 
You say that what we should talk about not the similarities but the differences; nuances…
Does Sezen Aksu want to sing just like ajda Pekkan? Both are singer; but why they sing in a different way? You can not tell Ajda Pekkan to sing like Sezen Aksu. Then she cannot be Ajda Pekkan and then she is not successful.
 
You provide source $430 million for public by buying Sabah Journal.
$430 million is the last unit; I made public payment before.
 
There are big differences in the human source in media and the human source in mining. Mining is more concrete job. There is more planned human source. Media is more speculative, there is one thing that you can not hold and you can not see. How do you manage these two human source?
I am a happy man and I have a positive look on everything. I am graceful that I am alive. I can be a different person; I can born in a different country. Yes, one of them is a mathematical, results are evident from the beginning. The other includes some ambiguities. Which means its abstract, its values are subjective, dynamic, what you say in the morning changes in the noon and its groud is very dynamic and changeable. My system is that…: I respect every man that does something. I admire people who make their job well, whatever the job is. My friends in media are really working good. I see their efforts. There are many people who work until morning. I made things that increase employment rather than increase it. Now our salaries are above the average in media sector. I put emphasize in human. People must be happy in their jobs. Of course we have mistakes and overlook. But since I put emphasize in human, I think that I correct the mistakes I notice. And I hate lazy people. Laziness is a thing I can not accept.
 
Do you have national channel and new journal projects?
Kanal 1 starts broadcasting at the new year. And we are going to do every thing to establish a second national channel. And we are broadcast the World Cup in that channel. I want to show the value we give Kanal 1 via World Cup. In 2006, Kanal 1 will have a shining star in Turkey.
 
Will it be news based channel?
No, it will be a popular channel. I do not know if I am clear. I respect to working people. I admire who make its jobs well. Therefore, I respect every man in mine and media and who are seuccessful, I behave according to the conditions. It proves that Turgay Ciner has a high psychological orientation capacity.
 
Media job is difficult for the boss. It is a dirty sector. One calls, another puts pressure. But you resist all of them and adapted yourselves.
What I do in media is administration. Which means establishing a framework of a company and providing liquidity. It is impossible to interfere the news; even I do not enter news room. Of course there are some rules required by morality and our nation have and there are some rules that are accepted by all and stated in the Constitution…And people who work for me pay attention to these rules. If I accept to perform my military service and send my 20 year old son to serve the military as a Turkish Republic citizen, it means that I fulfill the requirements on living in this country.
 
Apart from these, even my friends do not know what I am doing. And I do not interfere their business. And they also know my attitude. The journal has a main style. And I am not the one who established it. The journal had established a style before me and they go on as usual. In other words, when you respect people’s business and when you witness that they do their jobs successfully, we do not have any problem. If they do the thing wrong, we can interfere. However, both in executive staff and the working personnel are all working successfully. We bring activity to media also. We increased the news magazines sales from 5 thousand to 150-200 thousand, people start to read more.
 
Do you think that the Turkish media has established its own dignity? Today’s Turkish media is a succeeded media? Or the criticisms towards it are true?
All the constructive criticism deserve respect. But in Turkey, criticism to media are mostly consist of just attack. They say that people enter media sector not for money but for power. There are two media group in Turkey; one of them Doğan Group, holding the 80% of the market and us. When you look at the Chamber of Industry’s data, you can examine the media companies both in terms of employment and and profitability. This is a profitable sector. People who are in the sector without profit are audacious. And they are not permanent people.
 
When it comes to the media contributions. Today, four-five million daily newspaper are sold. This is a very high number. In a country that has a national income of that amount, if nearly five million daily papers are sold, it is more than the expected. If you think that a newpaper is read by five people, it means that 25 million people read newspaper in Turkey. It is a sufficient number. And media contributions to this country are obvious. We are disclosing all the misconducts and defects as much as possible. I will say another thing. One of the most important factors that Turkish speaking people increase in Turkey is the televisions in Turkey.
 
Do you mean Southeast region?
Yes. 25 years before, people can not learn Turkish even they are forty. Today, children start learning Turkish when they are six or seven years. Now all children speak Turkish. However, in the past people of 40-50 years old can not speak Turkish because there is no occasion that they can speak. Media ensures that people use a shared language and in my opinion creates an evironment that contains less violence.
 
You say that media accelerates the nationalization in Turkey.
One of the main element of nation concept is the language. National language and national flag is one of the main concepts of the nation. Is French speaking Turkish nation possible?
 
Do you think the media is high quality?
Quality is a relative concept. Media is as qualified as the quality, there is a proportional relationship. Under development is an integrity. I think it is as qualified as the society itself.
 
Do you like Hurriyet?
Of course I like. Hurriyet is an important newspaper. People spend effort for it. If the reader can not take advantage of it, it is the reader’s fault.
 
In an interview in our magazine, Aydın Doğan stated that they will grow in foreign countries in media. Do you have investment plans in abroad?
I will answer this question in parallel what I have told. Media has the same capacity as Turkish companies that can grow in abroad. Media's being active in abroad is more difficult in comparison with other sectors. Because its source is the culture. You must know that culture. Or you can choose the right people from that culture. In other words, it is difficult to establish a refrigirator factory. But if Mr. Aydın feels that he has the power and the capacity, that's ok. If he succeeds, we will be proud of it.
 
Public opinion followed Star TV tender very closely. And your offer was higher than $300 million. As a result, Doğan Group won the tender but the price arose argments. Is $ 306 million not much?
It can change depending on the period. It is much for the year 2001. It is cheap for the year 2010. It is not a shoe that you wear on the day you bought. It is not a thing that you can dispose after 3 days. You must evaluate it based on these things. In other words, for the year 2001, $ 306 million 500 thousand is very much. But it is very cheap for the year 2017. You should keep these points in consideration. The person who made the investment is not after wealth. You must foresee an organic growth. And two groups deserve this position in Turkey. Doğan Group and us.
 
There were foreigners in the tender…
I am very open minded person. There should be a balance between Turkish and foreigners. But it is incorrect to distrub the balance and direct the competition on behalf of Turkish or the foreigners. And sometimes conditions are disturbed on behalf of foreigners; for example in electricity distributions they want to offer superiority to foreigners. I think equality is a must. But in my opinion, media is a sensitive point. We consider that foreigners’ activity is a little bit dangerous. It is not for a country that has an average education of three or four years. I think it is wrong. It is a bit beyond modernism.
 
Do you receive foreign partnership proposal?
Yes I do. There is not an objection for foreigners coming here. They already did it. When you make public offering, they buy your shares. We have also Forbes license. What I am saying is that being a dominant element; I mean decision mechanizm… They can be partners at least in equal shares. There are many foreign partners in Doğan group. And they can take place in adminsitrative board. All are natural things. What I am trying to tell is that a day may come in their individual decision process. On that day, it is beneficial that there must be human elements.
 
Media has a mediatic side in quotation marks. Fatih Altaylı transfer became very debatable. Are there any transfers in the agenda?
I did not make any transfer. I just invited one of my friend. Muharrem Sarıkaya. And I know it From Ankara; I made a personnal offering and he thanked and make me honoured. I have known Fatih Altaylı for 10 years. Fatih Altaylı is among the best journalists in Turkey. He has a journalist perception. And everyone knows it. Even he wrote something against me, he has a connection with me. Even when Fatih Altaylı wrote something against me, I answered him with respect. And he also emphasized it. I did not transfer Fatih Altaylı. He felt that he was not happy in the restructuralism of Doğan Group. I told him in the past that one day he would work with me. And he wondered if we worked or not. And I said welcome to him. Now I am hapy that he works with me. He is really a deserving friend. I became happy with Fatih Altaylı as with other friends. In s short time. He is one of the people who is successfull and I admire. But it is not a transfer. During our restructring process, Doğan Group transfered 10 people from us. And they made these transfer by offering money. I neither offered transferred nor made a payment. I exclude Muharrem Sarıkaya. I transferred Muharrem Sarıkaya. And its cost is the friendship cost.
 
Ex executive editor in Milliyet Newspaper Mehmet Y. Yılmaz came to Ciner Group but worked for a short time. This aroused curiosity. Let me explain it. Mehmet Yılmaz one of the best journalist in Turkey and he proved himself. You can not achieve anything by just words. He founded the best selling newspaper in Turkey. He is a good journalist. I am still in the same opinion. I did not transfer Mehmet Yılmaz. Mehmet Yılmaz also expressed its miscomforts during the restructuring process of Doğan Group and stated that he wanted to work with me. And since I want to work with godd journalists, I accepted. But at that time, he wanted to return Doğan Group because his miscomforts are corrected. And I did not refuse. And it proves that I do not work with people by giving money or doing anything. If Mehmet Yılmaz received payment from me, he could not just give my money back and go. He thought that he would work better in Doğan Group. And I still like Mehmet Yılmaz.
 
Have'nt you felt broken?
Why should I? He did not do anything. He just asked to work with me. And I accepted since I want to work with the good journalists. And then he said that he felt better its former position. And I said ok. That does not mean that he will not work for me in the future. All platforms provide space for people who are good in their jobs. This is a reality; and I think the remaining points are nothing. In other words, a person who is successful in the job can also work with us and our competitior group.
 
Are your sayings valid for Vatan too?
I do not want to make an comments for Vatan. I don’t see anything in making comments for them. Sabah group is an industrial group; there is distribution, magazines, printhosues, televisions and radios. And the competitior gruoup is Doğan. I can make comments on Doğan Group. I just make comments on equal things.
 
How do you evaluate Vatan in terms of journalism? It is completely an individual question.
As I said, I do not want to make any comment on Vatan.
 
Do you have any target on airport tenders?
No. I made this attempt between the years 1998-99. And let’s say these attempts were repelled. During that days, Turkey is not ready mentally. My vision was repelled since it was not approved by both bureaucrats and politicians.
 
You had an aim in leading domestic lines via Cross Air…
Yes. At the moment, it is the three wave system that establishes the Turkish Air Lines flight systematic. And we were the one to introduce and establish.
 
Do you feel sad? Because private aviation developed very much?
No. In addition, I am proud. I saw it 10 years ago. And I wanted to make it realize. I say, I could not because I was repelled. But actually I did. I won an airport tender but they did not approve. I won Petrol Ofisi tender they did not approve, I established domestic flights but they did not give license. They just did not want. I am happy to establish that vision. I have no regression. In addition, my supportive relationships with the airport operating firm during the last crisis is obvious. I do not say “I wish”. If I live today, I am grasceful to God for that.
 
Now I want to ask some indiviual questions in the last part of the interview. What kind of a person Turgay Ciner is? Can you evaluate busineeman Turgay Ciner?
I am proud of all the things I have done. I am a businessman who is successful in Turkey without involving any moral, legal or trade mistake. I do not rely upon politicians; I did not receive any support from a group. I do not owe anything to anybody. And there is no businessmen in Turkey that was investigated and audited as much as me.
 
Are you afraid of the opponent group when they criticize you?
No. I accept it as my own mistake. Becaue I have self confidence and sometimes it has some negative effect on me. I did not give importance to public opinion. Because I believe that what you achieved reflects your real personality. In other words, I just did my job and did not care about PR. I employ 13 thousand people. I am among the ten people who pay the most tax as an individual, sometimes I am the third and sometimes in ninth in the ranking. We are among the first ten as the institution. I have never been to the Chamber of Trade and Chamber of Industry. I have never been in to social organization like TÜSIAD. I have never been in social and popular life. Therefore I am a flu man. People are afraid of something they do not know and I could not notice it. I had to tell people what I was doing. But I did not care them. Since I did not make the advirtisement of my jobs and did not involve in the social life, people started to make gossip about me. But it was my mistake. So I am not afraid of the criticism on the newspaper because it was my mistake. But I do not regret. I may be not as successful as now if I acted otherwise. Maybe there was a problem. Maybe I could not handle as easily as now.
 
Now, am I successful? If you take the year between 1981-2005 There are not many businesmenn who still stands.
 
As it comes to personal life, what kind of a person are you as a friend and a father?
I am a closed man. There is nothing to say much. I have friends in the office. I do not have a wide social environment and I quit the office late at night. In the past, when I went to a restaurant, I thought it was a waste of time. I have never gone to a holiday. I do not say it in order to boost. And I also do not say I wish went. But I think I can have more balance. I devoted my personal life to business life. I have never had a personal life. All my life was focused on working.
 
Do you like success? Is it your perception?
I have been in the trade life since I was 7. At the age of 24, I had $ 1 million. At the age of 24, I had wealth. Sometimes people say "I had bankrupt but succeded again." But I overcame every crisis as more developed. I am not a man who blames the crisis for the mistakes. At the moment, my income on 22 July 2018 are consoliadted. It is certain that what my income will be on 18 July 2018, There will be no decrease but if it increases it will not a surprise. This is not a prediction but a hope.
 
I do not have a marketing manager. In other words it is a company that lacks marketing department. Because I do not make marketing. In the year 2007, I will present Trona and sell 30 years of it. When trona enters the market in 2007, it will be engaged until the year 2037. For example we have made an agreement with the marketing manager from well known Arcelor for the copper in Siirt. We have sold 15 years of copper.
 
Last year, you said thath it may be possible to leave Koç Group behind. Do the predictions for the year 2018 prove it, which means will you have develeoped by 4-5 times?
My company will be very powerful in the year 2018. When you put a claim, you have to motivate the others. You have to challenge the others. I do not accept being in the middle. I will claim the best and the others will follow me. Because If I stop working now, my money will be enough for 88 years. But it is now what I want. I do not dream to go home in the evening and drink Petrus wine. My job is to provide more employment. I put a life target in front of me. I will provide employment for 50 thousand people and I will build 50 schools. I was alone at the beginning. Now school number is 10. And it will be 50. Ordinary man does not seek to leave a trace behind. And I am not after a wealth.
 
One of the speculations about you is that your wealth source. There were claims that there are some sources that supports you.
I am saying for the first time that my supporting source is The Turkish Republic Iş Bank. They gave support to my projects and I feel my self as a part of Iş Bank personnel. If Iş Bank did not support my projects, everything would be different. There are many men on the street who are smarter than me. But I was the lucky one. I well presented my projects. I worked only with IŞ Bank until the year 2000. I did not have any account in a different bank. And it is the only example. When I presented a project to Iş Bank, they know that I would not take the money and pay the dept to another bank. Because I did not have any account in another bank and they knew it.
 
My luck was to find the opportunity to present these projects and find the source. That was the source, moneybox. Some people cheated the banks. I did not do this, I did not tell a lie and I was honest. My cheat was honesty. Everybody, every financer says “Turgay Ciner is honest”, they do not require a sign. The enitre business life also knows it and this is my biggest gain. My friends, my enemies, my opponent know very well that Turgay Ciner keeps his promise. This is the greatest gain.
 
And I am also graceful to Iş Bank for being supportive. Iş Bankası has made me what I am, but also they supported Koç and Sabancı. I am not the only one. Iş Bank is bank that is founded in order to contribute to the economical growth of Turkey and it is not after to cause damage to its customers in any term. The other example is the Vakıflar Bank. They do not have owners but its employers own them. It is good to work with both of them.
 
Do you plan to enter the financing sector?
No, all the banks are mine in a way. As I said above, when you look at the beloved Sakıp Sabancı’s memories, Adana Iş Bank branch manager is the most dignified man. And for me, it is the Taksim Iş Bank branch manager. I love him as if he was may father. They also gave support to other organizations and the ones who used it right remained and the others left. Leading companies in Turkey has a Iş Bank source. Now that I declare this secret source, I feel comfortable now.
 
What is your devotion to your country?
I fulfilled all my responsibilites to myself, my family, to where I live, to my birthplace. I am beneficial to my family, I provided employment for my country and I built a school in Maltepe, where I live. Education carries great importance for me. It is not widely known but 1% of Sabah Journal income goes to Tema and 1% of it goes to Darüşşafaka, to the education of orphaned succesful children.
 
CİNER’S FLAGSHIP
Ciner Group’s Park Thermic is the 98th biggest industry company with a sales amount of 292 trillion TL. Ciner Group’s Merkez Gazetecilik and Park Technic are the other companies that is in the list of the biggest 500 company of Istanbul Chamber of Industry. Park Technic, is the third biggest in mining and quarrying. Park Technic, is the biggest private company in this area. The company is in 212. rank in ISO 500. Another company, Merkez Gazetecilik found a place in ISO 500 from the 121.rank. Electricity sector is just another sector that Ciner Group leads. While Park Thermic is the 4th biggst company in the sector, it is in the 98th rank in ISO 500.

Rank   

Company

Sales Revenue (Net) [1.000.000 TL]

Number of Employee

98

Park Termik

312.666.489

1.172

121

Merkez Gazete Dergi Yayıncılık

251.203.086

1.152

212

Park Teknik Elektrik

160.242.665

753

WHY HAVAŞ HAS CREATED SO MUCH SPECULATION?
It is necessary to ask the Havaş point; last year you left Havaş but it is one of the most businesses of yours. Not really. Havaş has a small share in our general endorsement. It has $80-90 million in $1.5 billion of endorsement. It does not have such importance. But I will tell you why it is regarded as so important by many. Decision makers, governors and public opinion establishers of Turkey use air lines. In the air port, there are s many vehicles that have Havaş logo on it. These big vehicles make them surprise. Tractors, people in aviation costumes… When they work very hard, it appears as we gain more money. But Havaş is a good company. It is an example company in Turkish privatization history. Is it because it is a successful privatization? Yes it is. It is a successgul foreing capital investment operation. We just did not make public offering. And it s because of the economical crisis.
 
IS BEŞIKTAŞ SPORT CLUB PRESIDENCY IN YOUR AGENDA?
You were the member of Beşiktaş Club administrative board; do you think about presidency in the future?
No. My fan period is over. I am at the head of an institution which is semi-public. It is impossible to make a distinction between Beşiktaş, Galatasaray and Fenerbahçe. I am a good fan. And I love Beşiktaş. But my position prevents me from entering Beşiktaş community. I must stand at equal distances to every sports club. If I distrub it, people will be influenced. And when people are under influence, inconveniences occur in terms of finance and morality. Since I am aware of my own responsibility, I try to stand away from Beşiktaş as much as possible.
 
WHAT DOES HE THINK ABOUT KOZA GROUP?
There are some enterprises in mining. For example Koza group is in gold business. It is a wonderful thing; I met with the people from Koza. I give my support and encourage them. An ounce of gold is above $ 500 and they earn well. And local people find job, too. There is a fear that the cyanure will pollute the environment. Fish swim in that cyanide water. So where is the environmental pollution? Then nobody will do anything and they produce fire from rubbing the woods.
 
Koza Group is also in media and it is an interesting coincidence. An entreperenur group in mining grew with your suport and purchased Bugün Newspaper. I support every young entrepreneur with admiration. Because I had hard times in telling my dreams. When someone comes to me and tell his dreams, I can understand well. And I do whatever I can.
 
What did you get from Bugün’s sale?
It is not a remarkable amount.
 
INTERVIEW IMPRESSIONS
We had an interview with Ciner in Park Holding General Directorate building in Nemlizade Tobacco Warehouse, which is the historical building that has waterside residence charachteristic. This building, which is near Üsküdar-Beşiktaş dock, is in a close relationship with the daily life in Üsküdar, which is not a common thing for waterside residences. From Ciner’s room, it is possible to view the movement in Üsküdar square, people who rush to boats and people who gorge in the snack bars. It is the first year in this building. The building, made by Vedat Tek who was the legendary architect who marked the beginning period of Turkish Republic, stands on a land of 705 squaremeters. The building is purchased by Park Holding for 16 trillion Turkish Liras. During our interview, Ciner told us that another person would turn Tobacco Warehouse into a hotel but he preferred making it the holding center. He said it proved his difference in seeing the life.
 
We knew it that Ciner likes fishing; he frequently went fishing in Bosphorus in the past from a news we prepared. We asked him if he still goes to fishing and he said “ there is a little boat down there”, “yes, sometimes I go”. Is he joking? There is an effective sea picture on the wall made by Diyarbakırlı Tahsin, That picture on the picture of Turkishtime…

 

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