KASTAMONU Reported On Exchange Risks of Investment Activities at SPIEF 2018
Minimization of investment risks associated with the localization of production in Russia was the basic theme of the business lunch of the Alabuga SEZ, held within the framework of the XXII St. Petersburg International Economic Forum. The discussion was attended by the President of the Republic of Tatarstan Rustam Minnikhanov, management of the Alabuga SEZ, as well as top managers of the largest companies. Ali Kılıç, General Director of KASTAMONU in Russia, described investment exchange risks, which the company faced during the construction of the plant in Russia, as well as ways to create efficient production oriented both to domestic and foreign markets.
Over 50 years of operation, Kastamonu has accumulated considerable experience in implementing investment projects in different countries. One of the reasons for choosing a site for investments in the Alabuga SEZ was the fact that created conditions minimized investment risks.
"Today, the risk of loss of business reputation is minimal for KASTAMONU, as we have many years of successful experience of operation at the level of world standards, which allowed us becoming a leader in the wood processing industry," said Ali Kılıç. "The volatility of exchange rates, of course, has some influence, as a part of raw materials and equipment is purchased abroad. But the wide geography of export sales allows us correctly balancing depending on the situation in the markets. In addition, the special economic zone provides good starting opportunities for the development. Based on our own example, we can state that the availability of ready-made infrastructure, as well as tax and customs preferences were significant factors in choosing the optimal site for investment."
The total investment of the company in the construction of two stages of the plant is € 400 million. KASTAMONU is the second largest resident of the Alabuga SEZ and largest Turkish investor in Tatarstan by this indicator. More than 800 new workplaces were created directly in the production, and more than 2,500 in related and service industries.
KASTAMONU was established in 1969 as a part of the holding HAYAT, which has been working since 1937. The annual production of wood boards at the KASTAMONU plants amounts to 5 million m3, including 2.45 million m3 of MDF and 2.55 million m3 of particleboards. KASTAMONU enters the top five largest companies in the wood processing industry in Europe. The company specializes in the manufacturing of MDF wood boards, particleboards, laminate flooring, door skin panels, glossy panels and table tops. Its annual turnover in 2015 amounted to €1 billion.