140 MILLION DOLLARS WILL BE INVESTED IN KAYSERİ FOR WAGON
Erciyas Holding’s Founder and Chairman of the Board of Directors, Ahmet Kamil Erciyas, along with the Holding’s Chief Executive Officer and his son, Kamil Emre Erciyas, came to Eskişehir while looking for a new factory location in the sector they added by purchasing TCDD’s wagon maintenance facilities in Sivas and Sakarya in 2016, in addition to their main business of steel pipe production.
Father and son Erciyas decided to purchase land next to the logistics center of Eskişehir Organized Industrial Zone (OSB):
– We can expand the wagon production in Sivas and Sakarya with the new facility we will establish in Eskişehir.
While making this decision with his son Emre Erciyas, Ahmet Kamil Erciyas did not consider the factor of being from Kayseri at the first stage. The people of Kayseri pressed:
– It would be appropriate for a businessman from Kayseri to establish his wagon factory in Kayseri.
Father and son Erciyas changed the address of their wagon factory investment upon the invitation messages sent from their hometown Kayseri:
– We will invest 140 million dollars in wagon factory in Kayseri Free Zone.
When we met with Emre Erciyas last Saturday, he focused on the wagon factory investment in Kayseri:
– The investment land we bought in Kayseri is 200 decares. We will do a job that falls within the scope of strategic investment. In that context, we applied for “Investment Committed Advance Loan” (YTAK).
YTAK reported that their applications were approved:
– YTAK is out, but we are waiting for now. We think that we will complete the first phase of the total investment of 140 million dollars for 45-55 million dollars.
He stated that they produce 400-450 wagons a year in Sivas and Sakarya:
– With the commissioning of Erciyas Rail’s factory in Kayseri, our annual wagon production will increase to 3 thousand units.
He noted that Erciyas Rail’s production in Sivas and Sakarya is 100 percent export-oriented:
– Our wagon exports were 38 million euros last year. This year it may reach 55-60 million euros. We sold more than 1000 wagons to Switzerland. We have been exporting to Germany since 2017. When our facilities in Kayseri come into operation, our exports may increase to 400 million euros.
He shared his approaches to railway investments:
– We aim to continue export-oriented growth in line with the vision of regional leadership in the railway sector.
He elaborated on this plan a little more:
– In addition to the production of tank and container transport wagons, we plan to increase our customer portfolio by adding different rail system products, especially bogies, to our range.
In this regard, he emphasized that they manufactured aluminum bodies for Türasaş with local and national resources in the “Aluminum Body Manufacturing Project” they received in the last quarter of 2022:
– We believe that we will make a big difference with the latest technology production lines in wagon production with the investment in Kayseri Free Zone. Additionally, we are taking steps to integrate artificial intelligence into our business processes in all our factories.
70 percent of Erciyas Holding’s turnover of 390 million dollars in 2023 is provided by steel pipes, 10 percent from bicycle production, and 20 percent from wagon production.
It is understood that with the investment in Kayseri Free Zone, the weight of the wagon in Erciyas Holding’s turnover will increase…
Freight wagon is 120 thousand euros, passenger wagon is 4 million euros.
Erciyas Holding Chief Executive Officer Emre Erciyas stated that their exports are around 290 million euros and made the following list regarding the added value created:
A ton of steel is exported for 600 dollars.
When it turns into a pipe, it goes up to 1000 dollars.
Export per ton in our pipes reaches 2 thousand dollars.
The freight wagon is exported for 120 thousand euros each.
The export price for passenger wagons reaches 4 million euros.
We are in the main supply of Hyperloop projects
Erciyas Holding Chief Executive Officer Emre Erciyas pointed out the point they have reached thanks to their large-scale mass production capability and capacity in the pipe industry:
– We are among the main suppliers in “Hyperloop” projects, the new generation transportation mode.
He drew attention to the company they established at the beginning of 2024:
– We established “Erciyas Hyperloop Technology Industry Inc.” to operate in “Hyperloop” projects, which are among the innovative solutions to achieve the 2050 “zero carbon” targets.
He emphasized that they cooperated with TÜBİTAK on this issue:
– We aim to create new collaborations in Europe and North America regarding the “Hyperloop” concept and technology, expand export-oriented qualifications and enter new markets.
He also gave the following information about the steel planned to be used in “Hyperloop” projects:
– In addition to standard steel, we are negotiating with manufacturers who develop special “Hyperloop Steel” regarding trial and follow-on production.
Targeted pipelines carrying hydrogen
Erciyas Holding Chief Executive Officer Emre Erciyas stated that they took part in the world’s most challenging and largest projects with the steel pipes they produced and exemplified them as follows:
The largest LNG Terminal Project in the USA
Intercontinental natural gas pipelines carrying gas to Europe
Projects for access to drinking and agricultural water in residential areas of Sub-Saharan African countries
Then he added:
– We produce pipes that can withstand the harshest conditions in the world, from (-50) to (+60) degrees, and the harsh waves of the Atlantic Ocean.
He emphasized that they follow hydrogen projects closely:
– We carry out joint R&D projects with both energy companies and steel manufacturers on the development of hydrogen pipes. We aim to produce pipelines that can carry high amounts of hydrogen within two years.
Produced a ‘tank wagon’ from spiral welded pipe
Erciyas Holding Chief Executive Officer Emre Erciyas stated that the group’s R&D studies are carried out at the “Erciyas Steel Pipe Design Center”, which became operational in 2019:
– Our Design Center carries out projects targeting the use of new technology in pipe production, increasing product quality and diversity, energy recovery, process efficiency studies that provide competitive advantage, as well as increasing turnover and sustainability.
He touched upon the projects carried out jointly by Erciyas Steel Pipe Design Center with the Wagon Group R&D Center in 2023:
“Spiral Welded Tank Design and Prototype Production” project for “Cistern Wagons Used in Railways”, which is the first tank wagon manufactured from spiral welded pipe in the world,
The projects “Investigating the coating ability of the outer surface of spiral welded steel pipes with a two-layer powder epoxy coating system”, which aims to increase product diversity in coating types, have been completed.
In addition, the knowledge gained through feasibility studies on spiral tower manufacturing is also increased.
He founded Pimre in Barcelona in 2016 and turned it into a REIT.
Erciyas Holding Chief Executive Officer Emre Erciyas visited Barcelona, Spain:
– In 2016, we established the real estate company called “Pimre” with 3 partners in Barcelona. We sold 15 flats in the days when we founded the company.
He stated that they turned the company into a REIT (real estate investment trust) 3 years later:
– We started to do a project in Ibiza. We bought a small village in Costa Brava. We will transform a 13-digit village into a 20-digit village.
Then he added:
– The REIT we established in Barcelona has 6 investors.
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