İspak GM Hakan Koçoğlu: We plan to increase exports by 70% in 5 years.

İspak Ambalaj’s Target Growth Statement

The General Manager of İspak Ambalaj, Hakan Koçoğlu, made important statements on Bloomberg HT's Upper Level program. Koçoğlu stated that they have achieved a 20% growth over the last four years with the investments they have made, and that they expect single-digit growth this year.

Challenging Economic Conditions and Growth Expectations

Stating that 2025 will be challenging for all industries, Koçoğlu said, "The continuation of high global inflation and the decrease in consumer demand are among the main difficulties. However, as İspak, we have managed to achieve a 20% growth in the last four years by focusing on investments, R&D, and factories. This year we are showing single-digit growth, but I expect a more positive outlook for next year," he said.

Increases in Raw Material Costs

Koçoğlu drew attention to cost increases, stating, "Exchange rate differences significantly affect our costs. To be competitive, we are developing new products and focusing on efficiency. Unfortunately, we are experiencing a decline in our profitability," he said.

New Investments and Production Capacity

Koçoğlu emphasized that they are conducting significant R&D projects along with machine investments in the flexible packaging field. He mentioned that they have made a $30 million investment in technical film, saying, "With these investments, we have become one of the two largest manufacturers in Europe and we aim to get a return on these investments by 2026. There is also a strong demand for recyclable products, and we are collaborating with universities on this topic," he said.

Export Goals

Noting that exports make up 40% of their business, Koçoğlu stated, "With new investments, we aim to increase this to over 50%. We are making significant strides, especially in Europe, North Africa, and the new market we have entered, the United States. We plan to increase our exports to 70% within the next 5 years. Competing with the Far East is tough, but we will overcome these challenges by focusing on specific areas," he said.

R&D Investments and Strategies

Koçoğlu also added that they are one of the top three companies investing the most in R&D in the packaging sector in Turkey. He stated that they allocate 2.5% of their revenues to R&D, saying, "We are developing new products by working with universities. The return on our investments will turn into a large market in the long term," he said.