Lubricant World had an insightful conversation with Selim Sanver, the Managing Partner of Serem Petrol, one of the significant players in the lubricant industry, about the Turkish industry and the future of the lubricant sector on the 100th anniversary of Turkish Republic.
Emphasizing the significance of the Turkish Republic’s achievements, Selim Sanver evaluates the implications of global dynamics on our industry and offers advice to stakeholders on how to turn these challenges into opportunities.
Touched upon the topics on the agenda of Serem Petrol which has completed its 36th year in the sector, Selim Sanver shared with Lubricant World the details of the collaborations signed with Chinese Richful and Jilin companies. Believing that they are in the right place at the right time, Sanver is delighted to bring vitality to the lubricant market through new collaborations.
As we celebrate the 100th anniversary of Turkish Republic, how do you evaluate the development of Turkish industry from past to present?
First of all, it is not very possible to talk about Turkish industry before the Republic itself. There are two fundamental problems contributing to the decline of the Ottoman Empire. The first one is missing the Age of Enlightenment, and the other is failing to embrace the Industrial Revolution. With the proclamation of the Republic, important steps were taken to address these two shortcomings. Today, we are building our journey towards industrialization, development, and economic independence on the foundations laid in those years and the vision set by Atatürk. Of course, after the war, there was lack of capital in the country, and the infrastructure was extremely limited. If we can talk about entrepreneurs, investors, and businessmen today, all of them are the achievements of the Republic. At this point, Türkiye is in a significant industrial country position. Do we have shortcomings? Yes, we do. Is there still a long way to go? Yes, there is. But when we look back, the distance we covered is truly incredible.
Today, there are realities that we should not miss and that we need to integrate into our industry. The point reached by digital technologies, communication capabilities, and most importantly, artificial intelligence, is a common knowledge for all of us. We should get prepared for a future where certain job fields and sectors will naturally disappear, and new professions will emerge. For sure, this does not mean the diminishing importance of the industry. However, we must make the industry adaptable, flexible, and sustainable for this future. The spirit of the time wants an industrial sector that incorporates recycling, adheres to the requirements of a circular economy, and embraces digitalization. As the world moves in this direction, are we also on that path, learning from the mistakes of other countries? Everyone should ask themselves this question.
Where does the lubricant sector stand in this 100-year journey of industrialization?
The lubricant sector is among the industries closely following the global trends and understanding the change. One of the important reasons for this is the highly developed automotive sector in Türkiye. We have a dynamic domestic market, both in factory fillings and service maintenance. Furthermore, the correct practices in the industry have a positive impact on our sector. Türkiye is in a location where it can access a wide range of export markets. For example, we export to Africa, and the demands of this region become our demands as well. In addition, contract manufacturing increases market vitality and diversity. Our sector has made significant advancements in terms of the number of companies, corporate capacity, production quality, export experience, and competitiveness on a scale that cannot be compared to the past. Of course, we are proud of this.
Serem Petrol is among the important representatives of the lubricant sector. Could you provide us the general overview of your company?
As Serem Petrol, we are celebrating our 36th year in the industry. Since the day we were established, we have made it a fundamental principle to do our job in the best possible way. We have never worked with a product we didn’t believe in or stand behind. We have never caused any problems for our customers in terms of technical support, consultancy, or marketing. Not only that; we provided support to our customers that allowed them to plan their own strategy, enhance the vision and expand their businesses. This has been the most important factor that sets us apart from other companies.
These principles embraced by Serem Petrol are the legacy of our company’s founder, my father Haluk Sanver. Besides being father and son, we were also very close friends. I deeply feel his absence and miss him so much. For sure, Haluk Sanver was not only a person who left a mark on his family and Serem Petrol, but also on the industry. He was one of the those people who put a great deal of effort into helping the lubricant sector meet international standards and conduct business at certain standards. With his incredible memory, he was like a walking library. He made significant contributions to the increase the knowledge level within the industry. We also try to uphold his legacy and remain loyal to his principles.
How do these principles reflect on your selection of partner companies?
When selecting our business partners, we usually follow the zeitgeist, the spirit of the age. Because of digitalization and e-mobility on one hand and new regulations on the other, the world and Türkiye are facing a brand-new future. Our market is not only very dynamic within itself but also experiencing rapid growth trends due to export demands from different geographies. Therefore, we collaborate with companies that recognize the importance of Türkiye, take this region seriously, and align their investments and planning with the needs of this market. Thus, we have now reached the limits of political globalization. In this capacity, only companies that can become local in the markets they enter will succeed. We prioritized this sensitivity when collaborating with Richful and Jilin.
Your collaboration with Richful aroused quite an interest in the market. Could you tell us the details of this collaboration?
Richful had already engaged our attention as one of the companies that the global giants consider as a competitor and follow their strategy. We also observed, examined their references, and assessed their performance in markets with challenging climatic conditions. And, for sure, we looked at their strategies and plans related to Türkiye. They see Türkiye as a target market for a long term investment, a market they want to deepen their presence in, and a stepping stone to the West. Their product range is diverse enough to meet the needs of both Türkiye and the related markets that they are involved in. They have a capacity to supply customers of different sizes simultaneously. Furthermore, they are open to developing themselves in line with the needs of the Turkish market. Of course, we will be in constant contact with their R&D team, and in the upcoming period, we will provide solutions that directly meet our customers’ needs and improve their performance and efficiency.
In June, we held a training seminar like a launch, in collaboration with Richful aimed at enhancing technical knowledge in the industry. We plan to repeat it in the spring with a wider participation. Our agreement covers the supply of industrial, automotive and component additives. We believe that the sales volume will increase and we will achieve good results in these three categories. As brand value and recognition increase based on product quality and performance, the market share in Türkiye will reach even better positions. Who wins a soccer game? The one who wants it the most.
We have learned that you have also entered into an agreement with another Chinese company, Jilin Petrochemical. Could you tell us about this new agreement?
Yes, I was in China last week and I visited the facilities of Jilin. Their infrastructure is so strong that just the length of their production line is 35 kilometers. Jilin is a subsidiary of PetroChina, which is 100% owned by Chinese government. They have significant government support both financially and bureaucratically. Jilin is a producer of viscosity index improvers and polymers. PetroChina acquired the facility and equipment of Mitsui, which operates in this field, and subsequently established its own plant to operate on the same production line. In addition to that, they also established a monomer polymer plant and reached a tremendous capacity. Of course, within this capacity, lubricants hold a relatively small share. We have also made our agreement with Jilin to include products beyond lubricants. Our agreement with Jilin covers a wide area, including Balkan countries such as Greece, Bulgaria, Romania and Cyprus. As for Richful, we started specifically in Türkiye, but over time, we can expand the scope.
How would you evaluate from a strategic perspective your cooperation with two Chinese companies in succession?
China has a great technological infrastructure. This advantage will make it much easier for them to overcome any kind of crisis. Additionally, the government’s subsidies for industry are very robust. This gives confidence in the producers. So, where do they face challenges? Firstly, they are not integrated enough with the world. Secondly, their experience in free trade is limited compared to Europe. We saw that we could support them in terms of global integration and reaching different markets, and they have the capacity and product diversity to meet the increasing needs in the Turkish market. Moreover, they have the adaptability and flexibility to cope with the changes happening in the world. Therefore, strategically we believe that we are in the right place at the right time.
What advice would you like to give to your stakeholders regarding the areas of focus, opportunities and trends in the lubricant industry in the medium and long term?
Our industry is one of the fastest-changing sectors. Especially with the increasing interest in e-mobility, the sector will, in a sense, undergo a transformation and adopt a new format. Companies, that keep up with this innovation, make accurate investment plans and take strategic positions, will turn this change into opportunity and emerge as tomorrow’s winners. Therefore, time necessitates constantly renewing oneself and participating in international exhibitions and conferences to establish new connections. Under these economic conditions and busy workload, it is not quite easy to accomplish these.
Our industry strives to produce, create employment and engage in exports under numerous legal and financial obligations. Especially, export is the most crucial factor keeping our industry up. In the face of fluctuations and risk factors emerging in the domestic market, exports offer tremendous opportunities to our industry. All our companies should determine their target markets without leaving it to chance. This should be done in multiple geographies.
Of course, it is essential to accurately monitor the demands of different markets, as there are two distinct market structures in lubricants. One is specifically the countries in the West where the vehicle fleet will remain relatively young, while the other is the countries where the vehicle fleet will tend to age. Türkiye can be considered among the countries where the vehicle fleet will age. This difference will become increasingly evident, bringing demands on the lubricant side to differ as well. Companies that adapt quickly to these demands at the right time will be successful.
To sum the interview up, we would like to learn about your feelings regarding the 100th anniversary of Turkish Republic. In the light of Atatürk’s ideas, what kind of future do you envision for Türkiye?
As I mentioned earlier, the achievements we have attained today when compared to the past, are incredible. Especially, during the founding period of the Turkish Republic, there were significant efforts and sacrifices. I believe that we should cherish these efforts and protect our achievements without forgetting them. I hope that the Republic of Türkiye enters the new century in much better conditions, leaving behind the problems that currently trouble us, and with the peace and tranquility. A much stronger, more productive and happier Türkiye; a country where everyone is producing, working, and succeeding, is the dream of all of us. I want a future, with all my heart, in which we are worthy of Atatürk and the founders of the Turkish Republic. I extend my best wishes for the Republic Day of Türkiye to all members of our industry, including yourselves, and to every citizen of our country.
