NİHAT ÖZDEMİR
EXECUTIVE DIRECTOR OF LİMAK HOLDİNG
Limak Holding is currently engaged in the construction of the Third Airport in Istanbul – the largest project ever in Turkish construction history, adding to the company’s long list of extraordinary projects not only in Turkey, but all around the world. In a further breakthrough, the company recently won the tender for the Kuwait Airport Project, valued at US$ 4.5 billion, which is the largest project overtaken by Turkish contractors abroad. Nihat Özdemir, the executive director of the Limak holding with interests that include projects stretching from the Balkans to Africa, and from Europe to Russia, claims that the tempo of his business and his extremely active working life is based on a careful planning of the time. Özdemir believes profit and loss are brothers in business, and stresses that investments should be made to create value-added for the country, which demands priority investment in education. Özdemir kindly answered our questions about his business endeavors and how he spends his spare time.
By M. Ferhat YÜKSEL
Limak Holding has taken huge strides in the last 15 years. What are your short- and longterm visions and targets for Limak Holding?
This year is the 41st anniversary of Limak, but as you have stated, our growth has been enormous over the last 15 years. A single-party government, plus a stable economic and political environment, have had a positive effect on our growth, although our company also made the right moves at the right time, bringing together good teams and striving to complete our projects ahead of schedule, without loss of quality. I believe our success is based on this. As Limak, we are active in the construction, cement, energy, infrastructure, tourism and food sectors, and it is our goal to take a leading role in all of the sectors in which we work in the country. In the long term, our objective is to represent Turkey abroad on a first-class basis, and with this in mind, we are today responsible for extremely large undertakings in various countries around the world. Our objective is to be a leading Turkish trademark and a pioneer in the international arena in our chosen sectors.
How do you gauge success in the Limak Group? Do you have numerical objectives?
We attach priority to completing our works ahead of schedule and at a higher quality than defined. Human resources and teamwork are of utmost importance to us, and I believe our success is a testament to this. For me, the timely completion of an airport, a bridge or a highway is the greatest achievement. When you are in business, you may operate at a loss or profit, but I believe these are inevitable brothers. Numerical objectives are a must, but we are a very dynamic company. In other words, if a significant opportunity is at stake, we can easily organize make rapid investment decisions, which means updating our objectives immediately.
BALKANS IS A SECOND HOME
Can you tell us something about Limak’s more recent ventures into new foreign markets?
We have recently been very active especially in the Balkans, Africa, the Middle East and the Russian Federation. The Balkans, in particular, is of utmost importance to us, because we feel at home there. We completed the construction of an airport in Kosovo, and we are now operating it as Limak, and we are also cooperating in the distribution of electricity with the Çalık Group in Kosovo. We are also constructing two large dams in Armenia, and we have recently launched a significant housing project in Skopje, Macedonia, as well as numerous electricity investments in the region. In Africa, we recently invested in two new cement factories, one in Mozambique and one in the Ivory Coast, while in Senegal we are constructing an airport with a Turkish partner, and will be responsible for its operation upon completion. As a further venture in Africa, we are providing an advisory service on electricity distribution in Nigeria.
Coming to the Middle-East, we have just undertaken the Kuwait International Airport Construction, valued at US$4.5 billion, which is the largest foreign project undertaken by a Turkish contractor to date. Also in Kuwait, we have undertaken hospital and infrastructure works, while in Iraq we have just completed a vast tunnel construction, close to the Turkish border, and in Saudi Arabia we recently constructed a drinking water system. In the Russian Federation, we shall very soon complete construction of Rostov Airport, and we recently won the contract for the construction of the Volgograd Airport Terminal. A metro system construction is in progress in Ukraine. With an eye on the future, we are following closely several potential projects in these regions.
How would you evaluate the coup-d’état of July 15th, and where do we stand now? How was Limak Group affected, both in Turkey and abroad?
This was a treacherous move against our country, unity and brotherhood. I believe that we have overcome an extremely dangerous period thanks to our President, government and the Turkish people. As Limak, we oppose any act that goes against democracy and fully support our people and our state. The attempted coup d’état had some effects on the economy, but they were very short-lived. The Turkish economy passed this test with flying colors, proving again how powerful it is.
Do you believe Turkey can realize the “Strategic Vision of Turkey for 2023” launched by President Recep Tayyip Erdoğan?
I believe it is achievable, but I think establishing a goal is more important than the achievement. It is certainly appropriate to streamline goals, because Turkey has great potential. The world is talking about “industry 4.0”, but we have entered the space age. One can access information anywhere, and Turkey should definitely carry out initiatives in different fields to create value-added. I sincerely believe such endeavors can be achieved with ease in Turkey.
TURKEY NEEDS TO ACCELERATE GROWTH
Which sectors do you think offer opportunities for Turkey in the near future?
Primarily, Turkey has to realize faster growth, and it is investments into infrastructure and energy that can bring such growth. We should focus on the technology-intensive sectors, and should certainly increase value-added, no matter what we are producing or investing in. For this purpose, education should be our priority investment area.
Could you tell us about the latest developments in the Third Airport Project? What benefits do you think it will bring to the country?
The Third Airport Project continues at full speed, with more than 3,000 trucks and construction vehicles working on site at all times, as well as 27,000 workers, increasing to 30,000 in the summer months. We can say the first phase is almost 55 percent complete, and this section of the works is due to come to an end in 2018. The project is very important for the Turkish economy due to its expected contribution to the overall growth in the country, and there is potential employment to over 100,000 people, either directly or indirectly. Upon completion, the airport will provide our airline companies with opportunities for rapid development.
OUR SIGNATURE PROJECT
Can you tell us about the new Kuwait Airport Terminal that the foundation stone laying ceremony was recently done by President Erdoğan in May?
The new Kuwait Airport Terminal will have a maximum capacity of 25 million passengers. Valued at US$4.5 billion, this is the largest project ever undertaken by a Turkish contractor on foreign soil. The design is a masterpiece of the famous Foster and Partners architectural firm, which has created an iconic building with a unique and revolutionary roof structure that incorporates 16 MW of solar system panels for the generation of electricity. We regard this project as highly prestigious, in that it will serve as the main entrance to Kuwait. President Erdoğan and Kuwait’s Emir participated jointly in the foundation-laying ceremony, and we were deeply honored by this. Although project completion is expected in six years, we aim to finish it in four.
The Tourism sector faced a serious crisis in 2016. As a respectable actor in this sector, how would you evaluate the future of tourism in Turkey? Do you envisage any new investments in this sector?
Tourism contributes to our capital growth, and so we continue our investments in this sector. The income we derive from tourism is then utilized as fuel for other investments. Presently, we own seven hotels with a total of 5000 beds, and our new hotel in Cyprus shall be completed by the end of the year, adding a further 1000 beds to this figure.
2016 saw great losses for the tourism sector. For Limak, we were not severely affected in terms of occupancy rates, since we are not confined to a single market. There was a 30 percent decrease in our earnings before interest, tax, depreciation and amortization (EBITDA), and we believe our turnover rate will be similar in 2017. Yes, the occupancy rate is favorable, but the prices are rather low.
You have a good reputation in the Energy sector. Could you talk about your endeavors in this field, and especially your renewable energy investments?
Energy is one of our main lines of activity. Around 50 percent of our overall turnover is derived from energy, and our operating power in electricity production exceeds 3000 MW. In addition to electricity production, we are also active in the trade and distribution of electricity, and this means that our involvement in the energy sector is vertically integrated. Recently, we have taken over the Çetin Dam in Siirt, which will produce around 500 MW power, and the HES project, both of which were loose ends, and we have launched construction on the Gürsöğüt Dam and HES project. With the completion of these projects, Limak will possess a total of 10 hydroelectric power plants. On top of these, we have acquired licenses for the construction of geothermal and solar energy plants for which we already started the investments, and we maintain a keen interest in wind power plant projects.
In a recent talk show, you stated: “the future of the world is in innovation”. Where do you consider Turkey is placed in this field?
This subject is of vital importance, and so we have to create the correct ecosystem and direct young people into this area. Our companies need to have a wider horizon, and while I believe, Turkey is on the right track, we still have a long way to go.
WE MUST FOLLOW GLOBAL INNOVATIONS
Can you offer any advice to young people and entrepreneurs?
Firstly, you need to follow closely the innovations being made around the world. Working hard and following global innovations are a must. Furthermore, you need to be highly involved at a social level, and once you are working in a branch, you should work hand-in-hand with non-governmental organizations operating in the same area. It is necessary to allocate time accordingly – good planning and management of time is a must.
GOLF IS SHAPING UP
Could you tell us about your interest in golf?
I started playing golf last year. It began with me purchasing a full set of golf clubs, after which I met with golf coaches at the Kemer Golf Club who have since been showing me the ropes. I became a member of the Bodrum Golf Club, and I follow tournaments with great interest. I value golf very highly, and I intend to develop my interest. I am a man of principle; I walk for an hour-and-a-half every morning, no matter where I am, and will never give this up, but for me, golf and walking are very similar. I consider golf to be a social sport that can be played at any age and anywhere in the world, and for this reason, golf occupies an important place in my life. Such is my love of the sport that my future travel choices may well be based on access to golf courses. As Limak, our tourism investments in Antalya include four large hotels located in the center of golf courses.
In a recent interview, you said “we work 7 in 7”, implying that your top management works every day of the week. How do you find any free time in the light of such a full schedule?
We have a very good team at Limak, and we have been working together for years. For us, business is a high priority. However, as I mentioned earlier, with effective time management, you can find time to take a break. Briefly, I should emphasize this: “We don’t specify time for work. We allocate our time according to the needs of our business”.
