2003-2004 Yıllarını Kapsayan SERKAP Derneğimizin Faaliyet Raporu, Ayrıntıları Ve Ekleri

SERSA

CERAMIC SANITARY WARE MANUFACTURERS ASSOCIATION

ORDINARY GENERAL MEETING

MARCH 23, 2007

SERSA

2005-2007 ACTIVITY REPORT

Dear Delegates,

Welcome to our General Meeting covering the 2005-2007 activity period.

This activity report of our Association SERSA covering 2005-2007 is submitted to you with details below.

1. For monitoring the developments in our industry currently, determining and generating proposals for solutions for problems, period details on volumes of production, exports and domestic sales for six-month periods from member and non-member firms have been gathered and consolidated in line with the rules stipulated by Competition Law, brought into a report and submitted to our members.

2. Foreign Trade Statistics were monitored in the most current basis from OAIB and UFT sources and export data were sent to our members in monthly and yearly periods.

3. Accurate information on the industry were announced to investment research departments of finance organizations, various press and media outlets, NGOs, Public Agencies, International Organizations and Association Members in line with requests coming from them.

4. That energy costs are a major portion of our production costs as our industry makes it necessary that we monitor this matter very closely. Especially, our competitive power in exports is greatly dependent on the price of the energy input. To that end, various efforts have been undertaken as regards energy in our association. Our report, which compares the main costs lead by energy and labor, to the countries we compete globally, containing our proposals for enhancing the competitive power of the industry of our country, was also submitted to the Ministry of Industry and Trade.

5. Since our products are heavy to carry and our freight costs are high, meetings were held with TCDDY General Directorate so that we could make use of railway transportation as much as possible. The matters of procurement of uninterrupted rail transportation between our plants and ports have been discussed.

6. Our Association has met the information request on the industry by newspapers and magazines published in Turkey and hence maintained relations with such organizations for publishing of news on the industry and our firms in these media outlets.

7. The international UNICERA Ceramics and Bathroom Trade Fair, one of the most important events of our industry, was organized regularly in Istanbul each year and attendance of our members at the trade fair has been ensured.

8. Ceramics Federation Board of Directors has resolved that starting from 2003; people, who have made important contributions to the development of the ceramics industry, are handed out Ceramics Honor Awards by every association which is a member of the Federation. Ceramics Honor Award has gone to Mr. Yüksel Güner in 2006. It was decided that this award would be given to Mr. Yalçın Çötelioğlu in 2007.

9. We have attended the meetings organized by various organizations like Ministry of Energy and Electrical Affairs Survey Authority, Ministry of Public Works and Habitation, Undersecretariat of Foreign Trade, TOBB, SECTORAL Associations Platform, Ceramics Research Center, TSE and IMSAD.

10. We attended the research conference held in Abant June 18-20, 2005 and undertaken the activities resolved at the conference.

11. Organizations were made for collective participation by our members and visits to such trade fairs to the most important shows in the world, Cersaie Trade Fair, Cevisama Trade Fair and Coverings Trade Fair.

12. By resolutions of our Association and Board of Directors of our Federation, the “Ceramics Industry Ball” was held in December 2005 and 2006 and leading individuals and companies of the industry have attended the function.

13. “Seramik Türkiye” magazine has become the most widely read and appreciated magazine of the ceramics sector within a short time. Our magazine has been able to cover the entirety of all associations and association member firms with its contents on science, art, history, trade and technology. It was resolved by our Federation that Seramik Türkiye Magazine Board of Editors be restructured and this Board comprise individuals representing the Associations which are members of the Federation and SERSA be represented by two people at this Board and necessary assignments were made.

14. The firms where the four Ph.D. students to whom scholarships will be awarded by Ceramics Federation on the occasion of Ceramics Research Center Industrial Doctorate Program were set as Ege Seramik, Toprak Seramik, Çenesizler Seramik and Eczacıbaşı Karo Seramik as a result of a draw held at Federation Headquarters.

15. Toprak Seramik ve Gıda Sanayi ve Ticaret AŞ.’s rejoining our Association on December 29, 2005 and December 11, 2006 after leaving us on December 29, 2005; hence, strengthened our Association.

16. Joining as members to our Association on February 3, 2006, of ESVİT Eskişehir Seramik İmalat İnşaat Taah. İnş. Mlz. Madencilik İth. İhr. San.ve Tic.Ltd.Şti., has strengthened our Association.

17. Year 2006 and 2007 Installation Materials Public Works Unit Prices and Rates were prepared by SERSA Standards Committee. The prepared work was submitted to Ministry of Public Work and Habitation Higher Board of Science by our Association. Year 2006 work was not published by Higher Board of Science as they were deemed incomplete and inadequate. As our deficiencies were determined and efforts were speeded up, our work prepared for 2007 has been approved. Thanks to this book which will be published soon, we will have the chance to sell many current ceramic sanitary ware products which were not included in public works unit rates so far to government constructions, mass housing and cooperatives.

18. Ceramics Sanitary Ware Industry Ninth Development Plan was prepared as submitted to the State Planning Organization Undersecretariat as a result of the teamwork carried out.

19. For representing our Association at the Joint Promotion Committee, the management of which was renewed, 2 members were elected. These members are Mr. Erol Arat from Çanakçılar Seramik and Ms. Nesrin Elmas Yurtesen from Serel Seramik. Hence, we will maintain our effectiveness in use of the moneys accumulated at the Fund as our members undertake exports for international promotion of Turkish ceramics.

20. A meeting was held on July 03, 2006 in connection with approved firms at Ministry of Public Works and Habitation General Directorate of Construction Affairs. The Ministry has proposed that the Ceramics Federation become the approved organization on ceramics in such a way to include our Association. The matter was discussed at Boards of Directors and had a positive reception but then the proposal was abandoned as SAM applied for the task which is a competent organization from amongst us.

21. Due to the discomfort felt in the industry because of the increases in the imports of ceramics sanitary ware with customs sub-heading 6910 as a result of the application filed by our Association with Undersecretariat of Foreign Trade, Directive on Surveillance Practice on imports no. 2004/1 was published and USD 1,500 minimum price implementation per ton was imposed on exports of products with 6910 Sub-Heading, from all countries.

22. As the received surveillance directive was not sufficient, an application was filed with the Undersecretariat of Foreign Trade Import Safeguard Measures Department for adoption of safeguard measures in imports by the joint application form prepared by our Association for protection of our industry in imports of ceramic sanitary ware of People’s Republic of China origin under customs sub-heading 6910. To support our application, the loss declaration forms requested by UFT were completed by Kalevit-Roca, Eczacıbaşı Vitra, Serel, Ege Vitrifiye, Toprak Vitrifiye, Çanakçılar Seramik and Ece Banyo and sent to the applicable departments in Undersecretariat of Foreign Trade.

Upon our application, Undersecretariat of Foreign Trade Import Safeguard Evaluation Board convened and decided to enter into an agreement with People’s Republic of China on imports to Turkey, of ceramic tile under sub-heading 6907 and 6908 and ceramic sanitary ware sub-heading 6910, of People’s Republic of China origin. According to the main details of the Agreement, the amount for ceramic tile is 2.2 million square meters a year, unit price is 500 Dollars/ton and term is 5 years. Safeguard Measures Department has signed this agreement involving placement of ceramic sanitary ware under surveillance and imports of products of Chinese origin are tied to licences and monitored with the Chinese side. Following signing of this agreement, the special supervision directive on goods of People’s Republic of China origin no. 2007/15 was published and effectuated on March 1, 2007. Since there is no already started transaction exemption in our imports regulations, goods which are still at customs and not cleared will also count towards the annual quota.

23. It was decided that a proposal should be made to applicable associations, that SERSA Project discussed at Ceramics Federation Board of Directors Meeting should not be limited to only ceramic sanitary ware, should it include also ceramic tile and also ceramic dealers should be included in this project. Since the responses to this announcement was found lacking, it was decided that this project be conducted only by SERSA, that a survey is held on the matter and according to the results of the survey, if our members are desirous in this regard, then this project should be effectuated in the upcoming period.

24. On February 21, 2007, a seven-person team from our Association visited Mr. Mustafa Aktaş, the officer relating to Ceramic Sanitary Ware at Ministry of Industry and Trade General Directorate of Protection of the Consumer and Competition for overcoming the problems on issuance of product warranty certificates and user guides. Act on Protection of the Consumer, applicable regulations and implementation procedures have been amended in time. The warranty certificates were previously obtained from Ministry of Industry and Trade in Ankara for ceramic sanitary ware; after a time period, warranty certificates issued for products not requiring post sale service adequacy certificate started to be obtained from applicable provincial directorates of the Ministry and an amendment was made on Act on Protection of the Consumer and Regulation on Implementation Procedures and the committee declared that we were aggrieved due to these items which are different from the warranty certificates issued based on the 2005-2006 approval of the Ministry, that in the inspections carried out, our products were processed as if there is no warranty certificate. Staff participating in the Ankara visit has met at the Association on March 2, 2007 undertaking a study. The prepared study was sent to Ministry of Industry and Trade General Directorate of Protection of the Consumer and Competition. The Ministry will review and approve such text and send such approval for implementation to Ministry of Industry and Trade Provincial Directorates.

25. The plant visit program for SSW Importers abroad by the Joint Promotion Committee will be started by inviting significant distributors from countries like Belarus, Russia, Lithuania, Ukraine, Latvia and Estonia. Members of the Board of Directors will send the necessary details to the Association for determining the significant addresses to be invited from such countries. The project will be submitted to the Joint Promotion Committee once address determination is completed.

26. SERKAP and SERSA which bring almost entirety of the manufacturers in the ceramic tile and ceramic sanitary ware industries has carried out various activities on international publicity for increasing exports and making the Turkish made image widespread. Among these were activities like participations in international trade fairs, establishment and maintenance of relations with foreign media and especially trade magazines, placement of adverts on magazines in target markets, invitations to foreign trade missions and magazine editors and preparation of catalogues.

Dear Delegates,

I submit our activities outlined above by our Association for year 2005-2006 to your knowledge and approval.

My best regards,

Hasan Sazcı

Chairman of Board of Directors

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