Kastamonu Entegre is a Turkish wood panel manufacturer that has become a global player in the industry. It has 29 factories, over 14,000 employees, and $2.8 billion in annual turnover. In 2000, Kastamonu acquired a particleboard factory in Bulgaria and has since invested $100 million to expand production there. The Bulgarian factory now employs over 400 people and exports 50% of its production to over 40 countries. Kastamonu's investment in Bulgaria has grown from a small woodworking business into one of the largest Turkish investments in the country.

2. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
Kastamonu Bulgaria Success Story
Presented by : Mr. Naci GUNGOR
Brand & Corporate Communications Manager of Kastamonu Entegre – Turkey
ncgungor@keas.com.tr
www.keas.com.tr

4. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
2.8 billion USD turnover
14.000 employees
29 factories

5. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
HAYAT KİMYA
FABRIC&HOME CARE TISSUE&TOWELHYGIENE CARE
WASHING CLEANER
DISHWASHING DETERGENT
SURFACE CLEANER
BABY DIAPER
WET TOWEL
HYGIENIC PED
ADULT DIAPER
PATIENT PROTECTIVE COVER
TOILET TISSUE
KITCHEN TOWEL
NAPKIN
HANDKERCHIEF
FACIAL TISSUE
WET TOWEL

6. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU

7. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
Laminate Flooring
WE PRODUCE EVERY DAY
Interior Door PanelsPanels for Furniture
FOR 3.000HOUSES

8. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
KASTAMONU ENTEGRE IN FIGURES
1st
The consolidated
sales revenue
(Billion USD)
1.2
Turnover
realised abroad
(Million USD)
512
2016 figures
1st
in the Wood
Based Panel
Sector in Turkey
4th
in the Wood
Based Panel
Sector in
Europe
7th
in the Wood
Based Panel
Sector in the
World
Export
Countries
100

10. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU

11. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
Investing Abroad
 When the company has reached a certain market share in
Turkish market as of year 1998, in order to maintain
sustainable growth, the first investment abroad was
decided to be made with the target of becoming a
regional leader.
 Our vision is to become one of the top five manufacturers
in the wood-based panel sector globally.
 Our long term goals include continue investing in new
locations close to the market and wood raw material
resources in order to realise the globalisation of
Kastamonu.

12. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
Investing Abroad
 We have the principle of “contributing and
consolidating the local employment” in all the
countries where we have investments.
 40 % of our turnover is made in foreign markets
whereas 60 % in Turkey and our aim is to increase the
percentage of foreign markets by investing more
abroad.
 In Romania, we are in the 2nd place with a 31%
domestic market share, the leader in Bulgaria with a
36% domestic market share and also in Russia with a
25 % market share in the domestic MDF market.

13. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
KASTAMONU BULGARIA A.D. – PARTICLE BOARD PLANT
230.000 m² total area, 41.000 m² indoor area

14. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
Kastamonu Bulgaria

15. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
The success story of growth from a small woodworking business to
the second biggest Turkish Investment in Bulgaria…
• We invested in Bulgaria due to its advantages in wood raw material supply and proximity to Turkey.
• In year 2000 we acquired the Gabrovnitsa factory in the Kazanlik region of Bulgaria and installed a particleboard facility
with an investment of 30 million Euros. We are now building a second particle board line in this location which will
increase our total investment in Bulgaria to 100 million Euro. When the second production line will start in 2020, our
total production capacity will increase to 700.000 cubic meters/year
• Particleboard production in Bulgaria is 50% for export and are shipped to more than 40 countries including Balkans
and Europe.

16. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
KASTAMONU BULGARIA
In 1948, near the village Gorno
Sahrane, Gabrovnitsa AD started
production as a small
woodworking business. In year
2000 we acquired this company
and changed the name to
Kastamonu Bulgaria in 2012.
BRIEF HISTORY OF INVESTMENT IN
BULGARIA
 Raw and Melamine Faced
Particleboard needed for furniture
production
 Pellet
 Urea Formaldehyde glue for
particleboard production
PRODUCT RANGE

17. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
KASTAMONU BULGARIA
 Difficulty in finding qualified employees in smaller cities of Bulgaria. Also young people prefer
to work abroad or in big cities.
 Wood raw material is exported to neighboring countries. If it was processed in factories like
ours, it would multiply its value by 3-4 times, and this added value would remain in Bulgaria
MAJOR PROBLEMS

18. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
KASTAMONU BULGARIA
Total Investment :
100 million Euro
Over 400 workers Turnover in 2017 :
53 million USD
Second
Production Line to
Start Up in 2020
From June 2013
"Kastamonu Bulgaria"
has the international
FSC-certification, which
guarantees the legal
origin of the wood raw
materials we use.

19. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
ACHIEVEMENTS
CORPORATE SOCIAL RESPONSIBILITY AWARDS
 Since 2000, we are one of the main sponsors of
the "Rose Festival" in Kazanlak and Pavel Banya.
Moreover, we are among of the biggest sponsors
for the construction of the "Museum of Rose" in
the city Kazanlak
 Sponsor of Kazanlık St.Kril Methodiy High School
Voleyball team which will represent Bulgaria in
World championship in 2018.
SPONSORSHIPS
 Award given by Deputy - Minister of Agriculture and
Forestry, Mr. Georgi Kostov "Corporate social
responsible enterprise" of the Republic of Bulgaria
 Award given by the mayor of Kazanlak Municipality -
Ms. Galina Stoyanova "Enterprise which develops the
largest charity in the region"(to support retirement
homes for disadvantaged children to sports clubs,
community centers, ensembles, etc.).

20. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
RAW AND MELAMINED FACED PARTICLE BOARD

21. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
ECO FRIENDLY PELLET

22. GLOBAL PLAYER
OF THE WOOD BASED
PANEL INDUSTRY
AĞAÇ BAZLI
PANEL SEKTÖRÜNÜN
GLOBAL OYUNCUSU
Bulgaria
Strong points Weak points
 Opportunities granted to the members of Customs Union
producing within the European Union.
 Stagnating effects of the ongoing economic crisis and high
competition from imported goods having adverse affect on sales
and profit margins.
 The obligation to export more than half of production since the
consumption is low in Bulgaria due to being a relatively small
market.
 Presence of large scale Furniture exporters in the country.
 Expectation of an increased purchase power in Bulgaria,
which is a member of European Union, for upcoming years.
 Discounted import tax or import tax exemption granted
especially by North African countries to the members of the
European Union.
 Capacity increase plans of the competitor by new investments in
Bulgaria.
 It is not possible to transfer the increase on the prices of raw
materials to the sales prices.
Opportunities Threats

23. THANK YOU