At the opening ceremony of a factory in Romania that will produce Arcelik branded goods, Koc Mustafa Koc answered reporters' questions regarding improvements in the economy and the Holding Company's commercial activities.
In terms of the economy, Koc first highlighted the fact that Turkey needs foreign capital and the best way to get this capital according to Koc is to renovate the investment atmosphere and eliminate any bureaucratic obstacles. Koc also emphasized that the tax base needs to be broadened. "Nobody, except the fixed income people and honest workers like us, pay any taxes." When asked whether he had any worries about the government implementing populist policies before the local elections, Koc replied: "The government does not need such a practice now. It has reached a point where this kind of a practice is not essential."
Next he was asked questions regarding the recession in the foreign exchange rate, to which Koc replied that he backed the floating exchange rate policy.
'We barely meet demands'
Koc then talked about how the Koc Group, and Arcelik in particular, shifted their focus to exports in the wake of the 2001 crisis. "If we had not given importance to exporting, we would be in a very bad situation right now. Presently, exports account for 30 percent of our sales. However, our aim is to raise it to 40-50 percent. Our primary target markets will be the Western markets that are stable and exhibit a positive growth trend."
Koc also disclosed that the Holding Group's companies can barely keep pace with the demand for durable goods. He said that the factory in Romania and the new manufacturing lines were of great importance for them. "This investment is very crucial for us. This will continue. We will continue to sell goods to the Romania market and Europe. Romania will be a European Union (EU) member in 2007 and it will be a very important center for us. It is a crucial platform on our leap towards Europe," remarked Koc.
