Mahmut Arıkan, Chairman of the Board of Arıkan Mensucat Sanayi ve Ticaret Anonim Şirketi, emphasized the vital role of Anatolia in Turkey's economic and social transformation. In an exclusive interview with EKOFULL Magazine, Arıkan shared his deep knowledge of Kahramanmaraş's industrial history and stated that the industrialization of Anatolia is a critical factor for Turkey's development. He also addressed the topics of green and digital transformation, explaining his company's preparations in these areas and highlighting the importance of investments in green energy.

We are both self-taught and educated

Born on October 29, 1964, in Kahramanmaraş, I attended İstiklal Primary School, followed by Kahramanmaraş Imam Hatip High School for my secondary education. I completed my university education at Istanbul University, Faculty of Business, in 1987. My late father was one of the first industrialists in Kahramanmaraş, born in 1910. He witnessed the War of Independence and World War II and was an influential figure in all economic, political, and social activities in Kahramanmaraş during the 20th century. In the early years of the Republic of Turkey and after World War II, he played a significant role in the economic, social, and cultural development of Kahramanmaraş. After finishing university, I entered the workforce very early. While studying at university, I always worked alongside my late father. We grew up in the industry from a young age; in other words, we are both self-taught and educated.

In 1984, the government provided incentives. He envisioned Turkey's development and future in Anatolia and desired the spread of industry in Anatolia. At that time, Istanbul capital dominated production, exports, and employment in Turkey. As you may know, before 1980, TÜSİAD was known for toppling and re-establishing governments. The late Turgut Özal provided incentives to Anatolia because he recognized that spreading industry to Anatolia and uplifting its people would lead to Turkey's future.

Anatolia played a leading role in both winning the War of Independence and establishing the Republic. We applied for these incentives, which became our destiny. We started with two Open-End machines back then and employed 20 workers; today, we are grateful to employ 1,500 people. We are a fully integrated operation, covering everything from yarn production to weaving and dyeing, and we are now among the top 500 companies in Turkey. The entrepreneurs from Kahramanmaraş effectively utilized those incentives. During those years, we faced various crises, including the 1994 crisis, the 1997-98 Asian crisis, the 2001 crisis, the 2008 global economic crisis, and the 2018 Andrew Brunson crisis. However, the entrepreneurs from Kahramanmaraş always turned these crises into opportunities. These crises were always a means of change and transformation in Kahramanmaraş. Being an industrialist is not just about making money; it's also a cultural endeavor. The culture of industrialization in Turkey began in the 1950s during the late Adnan Menderes's period. Just as Turgut Özal changed Turkey's fate, both industrialists and the people of Anatolia have always invested in Anatolia. Today, if you look at the manufacturing sector in Anatolia, there are numerous large industrialists. The capital from Anatolia has shaped Turkey's economy today.

Strategies for Green and Digital Transformation

We refer to these as twin transformations: one green transformation and one digital transformation. Companies that fail to achieve these two transformations will no longer be able to sell goods to Europe and the world. These changes will be implemented rapidly by 2025. We manufacture for brands, and those brands place great importance on this green transformation and clean energy. As Arıkan, we have already prepared the infrastructure for this. Our investment in solar energy production will hopefully be operational by 2025. We will transition all our vehicles to electric vehicles starting in 2026. We are fully prepared for this transition as a company.

In terms of digital transformation, we are making investments in technology. Our company has made significant progress in this digital transformation. From now on, we will utilize artificial intelligence in our production. Currently, we have pilot projects for some of these technologies. We aim to achieve this digital transformation by 2025. Kahramanmaraş was among the most affected areas. There are industrial facilities with minimal, moderate, and severe damage. Those with minimal damage have resumed production, and those with moderate damage are also quickly coming back online. The industrial capacity utilization rate in Kahramanmaraş has reached about 50-60%. The biggest issue here is that industrialists are currently struggling to find employees. This has become a nationwide problem in Turkey. While there are civil engineers, there are no workers available for construction. On the other hand, newly established industrial facilities remain closed due to a lack of personnel. Additionally, we are hosting 8.5 million refugees, which adds to the workforce issue. We need to sit down and find solutions to these problems.

Otherwise, Turkey will face existential challenges. We must change our education system and place great importance on vocational training. Currently, we have 6.7 million people who are neither in education nor employment, spending their free time in cafes or at home. Why? Because these young people lack vocational skills. If we had provided vocational training to these youths, they would be working in industrial facilities and contributing to Turkey's production and employment. Our government needs to change the education system.

Kahramanmaraş Rising in Defense Industry

In the textile sector, we must now take Italy's place and emphasize fashion and design. Turkey needs to move away from just producing yarn, raw woven fabric, and raw knitted products and transition towards fashion and design.

One of the areas where Turkey has recently succeeded is the defense industry. Turkey has made significant strides here. Until now, we were heavily reliant on imports, but now we have a Turkey that produces fifth-generation weapons. Many defense companies, such as TUSAŞ and ASELSAN, are achieving success after success. The opportunity for such investments to come to Kahramanmaraş is tremendous. Just as the late Özal said that Turkey's future lies with the people of Anatolia, defense companies are investing in Anatolia, from Ankara to Kahramanmaraş, Hatay, Malatya, and Adıyaman. TUSAŞ has made a small investment in the Türkoğlu Organized Industrial Zone in Kahramanmaraş. However, the industrialists of Kahramanmaraş will undertake this with a larger capital. An initiative has been launched to develop the defense industry in Kahramanmaraş with an investment of 200 million dollars. Kahramanmaraş has always invested in the textile sector, steel kitchenware, and gold operations. The defense industry investment is a significant opportunity for Kahramanmaraş. There is also a 4,000-acre area designated as an industrial zone near the airport. Hopefully, with the defense industry, high-tech investments will also commence in Kahramanmaraş.

Economic Challenges and Inflation Combat Strategies in Turkey

Turkey is facing high inflation for the first time since the 2001 economic crisis. Turkey has grown very rapidly and has become the second-fastest growing country after China. However, inflation began to rise in Turkey starting in 2018. Following that, the pandemic hit, causing significant harm to the treasury. After the pandemic, there was a recovery and movement in the markets, but an energy crisis occurred both in Turkey and globally. Europe was greatly affected by this. We are a developing country, and we lack savings. How do we make investments? We rely on loans from abroad. As borrowing costs rose and living expenses increased, inflation surged in Turkey. Currently, our Minister of Treasury and Finance, Mr. Mehmet Şimşek, has implemented a series of measures to ensure price stability and reduce inflation. These measures are understandably causing discomfort. Manufacturers are struggling to set prices, and exchange rates are currently under pressure. In addition to these issues, we need to save. If we produce and sell our goods abroad, that is the only way we can continue our lives and grow. The only solution for Turkey is to produce, work, and sell what we produce. Both the government and we as citizens need to prioritize savings. I believe that if everyone fulfills their responsibilities, this program will be successful. There is no other formula. Turkey is facing both inflation and high living costs.

Together We Will Succeed

The state is currently under a heavy burden, being in debt, and the treasury is also indebted. Hopefully, we can overcome these challenges together. We will do our utmost to ensure that our country is among the ten most developed countries in the world.