TRY 450 million worth new plant investment from Lila Group

TRY 450 million worth new plant investment from Lila Group
Alp Öğücü, Lila Group CEO.

Turkey’s leading hygienic tissue paper manufacturer Lila Group, announced its new plant investment which will enrich the country’s economy, increase the group’s paper production capacity by 50% and employment by 35%. When the new plant, whose total investment cost is TRY 450 million, is launched, Lila Group will have an integrated plant with the second largest capacity in Europe to be erected within the same campus.

Exporting to 78 different counties throughout the globe, Lila Group decided to increase its production capacity due to increasing trading volume and the Turkey’s potential to grow in this industry. The company is establishing a new production plant with a TRY 450 million investment on a fifty thousand square meter area which is on the same campus with the existing production plant in Çorlu.

Stating that they decided to increase their production capacity due to increasing trade volume, Turkey’s potential to develop in this industry and its ever-growing population Alp Öğücü, Lila Group CEO: “Our company, which carries on its activities under one roof the largest integrated production plant in the East Europe, Turkey, Caucasus, MENA region, will be second integrated plant with the largest capacity in Europe within the same campus once our new plant will be operational. Considering the value, we are going to add to our country and to our industry, we burst with pride excitedly.”

The new plant will be launched in 2020

Öğücü continued: “With the launching of our plant in the first quarter of 2020, we will reach our roll paper producing capacity to 220 thousand ton per year by increasing our existing production capacity 50% and our branded product capacity from 100 thousand ton to 120 thousand ton per year. Furthermore, we will increase the number of employees by 35%. We are aiming to increase our market share by increasing the number of countries we export to, which is now 78.”

Energy savings

Emphasizing on the technological improvements made in both existing and new investment plant will provide energy conservation, Öğücü: “Our new plant’s machines are equipped with the latest technology. According to our new production line, we are updating our existing machines in use technologically. With the help of these updates, we will gain a 15% saving in energy consumption, which means USD 1,500,000 worth energy saving. In other words, the energy consumed by 4000 households will be regained continuously and, it will be provided to system with the help of our power plant. Regarding that our foreign-source dependency in the field of energy, we consider this as a severe achievement for the sake of our country and the sustainability of our natural sources.”

New plant is pioneer in several ways

Designed in line with the group’s sensibility for the environment and sustainability, the new plant also bears lots first accomplishments. An equipment called ‘ReTurne’ will be used in paper production machine for the first time in Turkey and it will utilize the energy of water used in the production via the turbine placed in the machine, therefore result in saving electricity consumed per ton and ‘Visco Nip’ will provide the energy saving in the drying process of the product. On the other hand, process achieved through the consumption of live steam in conventional systems, will be carried out with exhaust air coming out of procedure thanks to ‘ReDry’ system and thus resulting in saving steam consumed per ton paper. Moreover, no heat is released to atmosphere as a waste by courtesy of this system and it is considered eco-friendly since this heat is reutilized in the procedure. There will be also systems for the regaining of the waste heat and rainwater in the new plant. Owing to all these nature-friendly systems, there will be 15% saving in source utilization.

Also sharing information about Lila Group’s financial statements and next term objectives Alp Öğücü: “As a group, we are at the top 3 in our industry. We finished the 2018 with TRY 900 million turnover and 30% growth. The first 9-month long period was quite productive for us and compared to same period last year we achieved approximately 30% growth. Providing employment for 900 people currently our group has a goal to achieve 30% growth in 2019. We strictly believe that we will accomplish our goal with the motivation of our new investment.”

Stating that the infrastructure works for the fourth plant are also ready, Öğücü also remarked that this plant will also be established as soon as possible in line with their targets. Öğücü stated among their medium-termed targets include ranking in Top 100 industrial enterprises of Turkey by 2023 and becoming one of the Top 5 Turkish companies operating in the FMCG industry (in non-food sector).

40 million consumers per month

Emphasizing that they are the leading company in roll selling in the nearby geography, Öğücü also relayed information about the group’s export volume. Öğücü: “By exporting to 78 countries throughout the globe, we achieved USD 100 million value of exports in 2018. Today we are exporting 65% of our productions and also offering 35% of it to our consumers in the domestic market. Our exportation level being higher than our importation level is our source of pride, regarding that our industry being completely foreign-dependent for raw material. We are on the same line for our goals in 2019. Yet, we are expecting our export numbers to reach up USD 180 million per year with the launch of our new investments. We, as Lila Group, are supplying 20% of the need for hygienic tissue paper in Greece, Bulgaria, Balkan states and Israel. Today, we can at least say that:  20 million consumers per month is using the products manufactured by Lila Group in Çorlu. We are really proud to export our products manufactured in Çorlu to 78 countries around the world, which is approximately the one-third of the world population. With our new investments, we are aiming to offer our products (semi manufactured/finished products) to 40 million consumers.”

About Lila Group

Lila Group, whose roots date back to 100 years ago, started to produce hygienic tissue papers with the vision of investing in 2006 with one hundred percent domestic capital and with the vision of producing world-class cleaning papers in Çorlu in 2007. In 2012 made to expand its operations through new investments Lila Group, currently 140 thousand square meters in area, 150 thousand tons of capacity, not only in Turkey, Eastern Europe, the Middle East, the Caucasus and continues to operate as the largest paper manufacturing facilities within one campus in Africa. Today about 2,5 billion worth Turkey tissue paper market, users in Turkey in Sofia, Maylo, clear and Nua Prefessional brands by reaching over the world Situated next to the 78 countries to semi-finished and making product exports offers added value for the country’s economy.

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