ISTANBUL — Prolonged conflict in the Middle East could begin to disrupt industrial production if it continues for another month, according to a senior executive in Türkiye’s construction materials sector.
Murat Savcı, CEO of Saint-Gobain Türkiye, said that while the company has so far avoided major disruptions thanks to stockpiling, a prolonged conflict would have unavoidable consequences for the broader industry.
Supply Chains and Costs Under Pressure
Savcı highlighted that the sector relies on a wide range of raw materials, many of which are derived from oil. Rising geopolitical tensions—particularly disruptions affecting the Strait of Hormuz—are increasing risks in supply chains.
He warned that difficulties in sourcing materials processed in Asia could intensify if the situation continues, adding pressure on production timelines and availability.
Stockpiles Offer Temporary Relief
The company currently holds enough inventory to sustain operations for the next few months. However, Savcı cautioned that this buffer is only temporary.
If the conflict persists, “not only us but the entire sector will inevitably be affected,” he said.
He added that in a worst-case scenario, certain product groups might become impossible to manufacture due to supply shortages.
Rising Energy Costs and Inflation Risks
Higher oil prices are expected to drive up production costs, while logistics challenges could further increase expenses. These developments may translate into broader inflationary pressures in the coming period.
Strong Performance Despite Risks
Despite the geopolitical uncertainty, the company reported a solid performance in 2025, with revenue growth of 2.5% and improved profitability. Türkiye remains a key strategic hub for the company, with 21 factories, ongoing investments, and strong export performance—particularly in insulation materials.
Savcı also noted that the reopening of nearby markets, such as Syria, could present new opportunities for expansion.
Source: Bloomberght/ Prepared by: İlayda Gök