Cengiz Holding takes the lead

Cengiz Holding takes the lead

Overview

  • Release Date: November 24, 2016

Cengiz Holding A.S., has been engaged since 1980 (Cengiz Construction) in major construction projects ( including highways, bridges, viaducts, tunnels, subways, railways, dams and hydroelectric power plants, airports, ports, energy plants and energy projects, irrigation and water supply projects).

Cengiz Holding is a group of 35 companies and subsidiaries. The annual turnover of the Group reached approximately US $ 4 billion. It belongs to Mehmet Cengiz, 54 richest man in Turkey, with a personal wealth estimated between 1 to 1,5 Billion USD.

 

The company also operates hydroelectric, coal-fired, and gas-fired power plants:

Cengiz Enerji, along with the other companies in the group, has installed power of over 1600 MW, which is 40% hydraulic and 60% natural gas-fired.

At the same time, Cengiz continues to invest 3400 MW power plants, 2080 MW hydraulic and 1320 MW imported coal.

The Group is involved in electricity distribution, trading, sales, and marketing, as well as natural gas distribution with 5 different electricity distribution companies. It covers 30% of Turkey’s total electricity consumption.

Cengiz undertook the natural gas distribution activities of Samsun province and a part of Konya province. It has completed all necessary infrastructure investments to date and serves approximately 150,000 customers with 750 million m3 / year natural gas distribution capacity.

In addition, its mining business produces and supplies copper ores, copper concentrates, pyrite concentrates, copper cathodes, antimony concentrates, and rock phosphate.

Cengiz bought Eti Bakır in 2004 and Eti Aluminum in 2005 as part of the privatization project. The holding also possesses Samsun Copper Explosion Facility, the only facility that produces cathode copper from ore in Turkey.

The Eti Aluminum Plant is the only aluminum producer in Turkey ;It produces aluminum ingots, T-bars, billets, slabs, alloyed ingots, hot rolled products, aluminum hydroxide, and aluminum oxide.

Cengiz Holding has also assets in cobalt, including Bursa Wolfram Mines, İzmir Antimony Mines and Mazıdağı Phosphate Mines.

The company activities do not cover only Turkey; It is also operation in Azerbaijan, Bosnia Herzegovina, Northern Iraq, and Kazakhstan.

 

Cengiz Holding is involved in the Akkuyu power plant project. It recently submitted the winning bid for construction of the Akkuyu power plant water intake for the cooling system.

 

Rosatom was not only looking to optimize Cengiz Holding’s experience in constructing power plants but mostly to use its cash to get into Akkuyu.

 

When Turkish air defenses shot down a Russia fighter on the border with Syria in November of 2015, there was a serious chill in Russian-Turkish relations. Russia retaliated on Turkey, including a suspension of work on the Akkuyu power plant. But Cengiz offices in Russia continued to operate and assumed a discreet lobbying to restore normal relation with Rosatom and the Russian government. Cengiz proposed to get involved in the financing of Akkuyu and take part in the management of the project.

A recent partnership talks in April 2016 between Rosatom and Cengiz-Kolin-Kalyon Group (CKK) on the Akkuyu Nuclear Power Plant concluded on the agreement stage by the end of the year, resulting in a 49 percent stake of the project being transferred to CKK.

 

On 11 November 2016, CKK executives met in Istanbul Mr. Kirill Komarov, First Deputy CEO for Corporate Development and International Business at Rosatom and CEO of Atomenergoprom to describe the principles to form the possible partnership and the agreement of financial investment by the end of this year.

This agreement must be signed before the end of 2016, since Akkuyu Nuclear Inc. is preparing to apply for construction license in early 2017. The Turkish Atomic Energy Authority (TAEK) is expected to deliver the construction licence during the first quarter of 2017.

About Author

Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.

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