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Prysmian Group Insight
GLOBAL SCENARIO
2014 is also a very special year
for Prysmian Group in Turkey, as
it celebrates its first 50 years in
the country. Throughout this long
history and as it has established
an important industrial tradition,
the company has had many ‘firsts’
in the market, including the first
MV, HV, LSOH, Fibre production
in Turkey. 2014 is also a special
year for the Group, as it connects
Asia and Europe in the first ever
HV submarine connection in
Turkey. To celebrate this important
milestone, 2,400 employees and
family members came together on
7 September for the first-ever open
day in the Mudanya factory. Knowing
the energy, determination and
commitment of the Turkish team, we
are sure that there is much more to
come in the next 50 years.
Selling excellence
In this challenging market how did
Prysmian Group Turkey manage to
grow its market share in the T&I
market by 20% between 2012-2014
while also improving profitability?
“Our strategy has been to switch
from a pure materials supplier to
become a real solutions provider and
to sell the excellence of the Group,”
answers Hans. “With over 90 cable
manufacturers in Turkey the market
is highly competitive. We knew it
would be necessary but not enough
to be highly cost competitive. We
therefore went back to basics,
asking ourselves: “What does the
user really need and how can we
create a clear point-of-difference
and help them make their job faster,
easier and more affordable?” Our
R&D and marketing team started to
investigate in detail how the cable
was used and handled to find ways
network, where further cable
demand is expected to come from
the development and upgrading
process of the general transmission
network.
Another opportunity is the
expansion of a high-speed rail
network, with the plan to build
1,500 miles of high-speed train
lines to connect 14 cities in just
the next five years. There is also
a burgeoning nuclear industry and
renewable sector, especially from
solar and wind. Turkey does not
currently have nuclear plants but it
is planning to build three. Hoegstedt
also mentions infrastructure,
because after decades of investing
in roads, the government is
preparing to invest heavily in a third
Istanbul airport.
Celebrating 50 years
to improve the product, not only in
terms of performance but also in
ease-of-use and speed of installation
to reduce the installation cost.
“The result of this work was the
launch of the “Attention! Not all
cables are the same…” initiative
in Dec 2012, supported by
several improved products, lots
of training and education. The
results in the first three years have
been extraordinary, with greatly
improved volume and margin. Our
differentiated offer is today clearly
proven to be superior, allowing the
user to save up to 12% on the total
installation cost. The first results of
the initiative that were released in
2013 showed an incremental volume
of 4,5kt resulting in an increased
market share of 3% and an
incremental contribution margin of
€
800,000. Maybe it is also possible
to differentiate in T&I after all!”