Company News

4/19/2016

Borusan Holding Disclosed Its Investment Strategies for the Upcoming Period

Borusan Holding CEO Agah Uğur: “We have realized an investment of $ 362 million within a year primarily in the energy field. We will make an investment of $ 200 million until 2020 in innovation, R&D and digital transformation”…

The 10^th public disclosure meeting has been held where the financial and operational performance of Borusan Group has been evaluated for the year 2015. It has been disclosed that the consolidated turnover of Borusan in 2015 has been recorded as $ 4.4 billion with an operational profit of $ 329 million, also having realized an investment of $ 362 million within a year primarily in the energy field. The challenging plan of Borusan targeting an investment of $ 200 million until 2020 in innovation, R&D and digital transformation has also been disclosed during the meeting.

Borusan Holding CEO Agah Uğur: “We will make an investment of $ 200 million until 2020 in innovation, R&D and digital transformation”

Borusan Holding CEO Agah Uğur delivering a speech at the meeting and underlining that Borusan will realize its most extensive investments in the fields of innovation, R&D and digital transformation while continuing to grow in the coming years by means of acquisitions and direct investments, made the following statement:

“Companies in Turkey including ourselves used to brag with physical investments made until date in factories, plants and machinery. We will undoubtedly carry on with these but we cannot settle with that in a stage when the whole world is talking on Industry 4.0. From now on, we have to be proud of investments made in R&D, innovative goods and services development and digital transformation as the business world.”

Uğur defining innovation, R&D and digital transformation as three main pillars on which Borusan will rise in the coming years, said “technological developments and trends in the world in the recent period have not only altered the ways to perform jobs on hand, but have also made it possible to implement several working models which were out of question until date. For this reason, failing to follow developing technologies has become obsolete in terms of competition. Needs arose to question conventional activities to be able to compete with low-cost destructive work models in a period when competition is at the rise. We are accordingly building the new face of Borusan by means of our innovation, R&D and digital transformation projects to be able to cope with the new world order. We will make an investment of $ 200 million until 2020 in the three fields in question. We presently have over 250 co-workers in the innovation field including our employees in incubation companies and R&D, and we will avail a lot more employment opportunities to our young fellows and qualified engineers while we grow in this field.”

Borusan Holding Strategy, Business Development and Innovation President Lale Ergin reminding that Borusan took off for innovation with the initiatives of Agah Uğur around three years ago and that they have already begun to harvest the results, said that 31 out of 100 ideas that arose during the process are presently at the project development stage.

Ergin made the following statement: “We have already commercialized 11 new products and works models out of 31 and we continue to work on another 20 ideas. We have aggressive growth targets in all our incubation companies (business incubators), and we expect a double digit growth each and every year. Our expectation of total income exceeds $ 2 billion when all these projects which we are working on will ripen.”

Dr. Murat Yıldırım, General Manager of the R&D Company of Borusan on the other hand made the following statement:

“The mission of our Technology Development and R&D Company is the development of technologies to create high added value based on innovation with a pre-competitive cooperation culture. We have realized a number of firsts last year within this perspective, and have completed the Technological Ability and Competence Analyses as an initial step. We have initiated the establishment of 3 new R&D centers in the Group: The first of these is the Logistics R&D Center; the second is the Advanced Material Development R&D Center; and the third is the New Products Design and Layout Center. Our main objective as Borusan R&D is the forming of a structure which is more flexible and open to cooperation rather than accustomed R&D structures.”