Page 54 - B-SR-2016-EN
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[ECONOMIC PERFORMANCE]                                                                                                   COMPANY           INVESTMENT OBJECTIVE                                       BUDGET

                                                                                                                                     Borusan           Roll-Form         Ensuring customer loyalty by             $ ~3,500,000
                                                                                                                                     Mannesmann        Profiles          meeting customer demands as a

               INDUSTRIAL                                                                                                                              Production        local provider in a niche market
                                                                                                                                     Bursa Gemlik      Line              where the tubes are currently
               INVESTMENTS                                                                                                                             Investment        imported

                                                                                                                                     Targeted          Economic: With the investment to produce high value-added tubes,
              COMPANY            INVESTMENT              OBJECTIVE                              BUDGET                               Gains             our company will localize the imported tube supply and therefore will
                                                                                                                                                       contribute both to company profitability and country economy.
              Borusan Oto        İstanbul Samandıra      Presenting our clients with            -
                                                                                                                                                       Social: This investment with which we aim to serve the present
                                 Licenced Seller and  environmental friendly premises
                                                                                                                                                       and potential clients in automotive, agricultural machinery and
                                 Licenced Service        equipped with superior technology
                                                                                                                                                       construction industries, will impact our internal stakeholders and
                                 Investment              and up-to-date retail standards                                                               company positively.
                                                                                                                                                       Corporate: Although not operational yet, the undertaken investments
              Targeted           Economic: Reducing general costs and increasing sales
                                                                                                                                                       enhance our clients’ loyalty and trust in our company.
              Gains              Social: Enhancing employee and client satisfaction
                                 Environmental: Obtaining LEED Gold Certificate given to green
                                 buildings by utilizing eco-friendly equipment in mechanical                                         COMPANY           INVESTMENT                      OBJECTIVE                       BUDGET
                                 ventilation system, taking measures for saving water and
                                 managing waste.                                                                                     Supsan            Reducing Operational            Meeting OEM customer            TRY
                                 Corporate: Corroborating brand and company image                                                                      Supply Consumption and          demands and improving           39,600
                                                                                                                                                       Developing Consumable           cost to get more projects
                                                                                                                                                       Materials Usage System
              COMPANY            INVESTMENT             OBJECTIVE                        BUDGET
                                                                                                                                     Results           Economic: Costs have improved by 19%.
              Borusan            New Heat               Increasing capacity to meet      Heat Treatment
                                                                                                                                     and Gains         Social: Employee motivation increased due to grinding wheel and
              Mannesmann         Treatment Furnace      the demand as a result of        Furnace:                                                      collet replacement frequency. The project team was rewarded as a
                                 Investment for the     new                              $ 3,245,000                                                   result of successful completion of the project.
              İstanbul           Automotive             automotive projects and          Drawn Tube                                                    Environmental: Less energy, consumables, stones, clips, carton box
              Halkalı            Segment and            maintain the                     Production Line:                                              and cooling oil were used.
              Production         Drawn Tube             leading position in the          $ 4,295,000                                                   Corporate: Cost improvement was accomplished and targeted sales
              Plant              Production Line &      domestic market; maintain        Bursa Plant                                                   projects were obtained.
                                 Bursa Plant            a more active position in the    Investment: ~ $
                                 Investment             global markets                   750.000
                                                                                                                                     COMPANY           INVESTMENT              OBJECTIVE                           BUDGET
              Targeted          Economic: This project where high value-added tubes are used in the
              Gains             automotive segment will significantly                                                                Supsan            Improving efficiency  Reducing energy consumption  -
                                add to company profit.                                                                                                 of production lines     per unit valve by increasing
                                Social: We believe that approximately 55 domestic and 30 global                                                                                efficiency
                                important clients will be positively impacted by this investment in
                                                                                                                                     Results           Economic: Costs have improved by 27%.
                                addition to many small clients.
                                                                                                                                     and Gains         Social: Existing machinery have sped up and stoppage durations has
                                Corporate: These investments are crucial for us in maintaining our
                                                                                                                                                       reduced. Hence, employee satisfaction raised. The project team was
                                leading position and our market share in domestic market. The major
                                                                                                                                                       rewarded as a result of successful completion of the project.
                                reason for the Bursa Plant investment is to make space for Halkalı                                                     Environmental: Less energy, consumables and cooling oil were used.
                                Plant’s new investments. In addition, we will meet client demands with                                                 Electric consumption which was 1.14 kWh/unit in 2015 dropped to 1
                                more flexibility by being closer to clients with our new plant in Bursa                                                kWh/unit in 2016.
                                which is the heart of the automotive industry.                                                                         Corporate: Cost improvement was accomplished and targeted sales
                                                                                                                                                       projects were obtained.

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