Termo Teknik Aims for Increased Panel Radiator Production and Sales by 2025
Foreks - M. Emin Kasan, the General Manager of Termo Teknik Turkey, stated that despite the stagnation in the heating systems industry in 2024, Termo Teknik was able to increase its production and exports, and aims to boost panel radiator production and sales in 2025.
Termo Teknik, one of Turkey's and Europe's leading heating systems suppliers, continues its operations in the world's largest panel radiator factory, located in Çorlu, with an annual production capacity of 5.5 million units. Kasan evaluated 2024 and shared his forecasts for 2025.
STAGNATION CONTINUES Kasan pointed out that the heating sector experienced a stagnant year due to a three-year contraction trend in the new housing sector in Turkey and Europe. Despite this stagnation, Termo Teknik managed to increase its production and exports in 2024. He noted that during the Covid-19 pandemic, there was a global monetary expansion, and the initial phase post-pandemic involved a shift to high interest and economic stability policies to absorb rising emissions, resulting in a general market stagnation.
“After the pandemic, the initially raised interest rates in Europe and worldwide began to be gradually reduced. However, no movement was observed in the European heating systems sector in 2024. In Turkey, high-interest rates and economic stability policies started to be implemented, albeit with a delay. Due to rising deposit and loan interest rates and increased housing costs, the contraction continues in the new housing market in Turkey aside from the intense construction activities in the earthquake zone.
Termo Teknik succeeded in increasing its production and exports despite the downturn in heating sector markets in Europe and Turkey in 2024.
CONTINUED INVESTMENTS Despite the economic challenges, Kasan remarked that the continuous investment and renewal approach led to ongoing investments in 2024 at their factory, which has an annual production capacity of 5.5 million panel radiators. They made investments in production infrastructure, energy efficiency, and sustainability, while also enhancing communication with their dealers.
They prioritize sustainability investments. With the “Reverse Osmosis System” introduced in August 2024 at their factory in Çorlu, the water discharged from the wastewater treatment plant is filtered for use in dyehouses. Thus, they expect to recover 1,200 tons of water monthly and increase annual water savings from 36,000 tons to 50,000 tons. Their Çorlu facility saves 1.5 million kWh of energy annually and prevents the formation of 25,394 KG of greenhouse gases each month through advanced waste management.
IRIS BOILER In line with developments in the heating sector worldwide and in Turkey, they introduced the Steel Heat Exchanger Wall-Mounted Premix Condensing Boiler IRIS to the market. The IRIS boilers, with capacity values of 50, 65, 90, 100, 125, and 150 kW, offer a wide range of system options for central heating, catering to various heating system demands.
As housing square meters continue to shrink, and minimal design preferences gain popularity, they accelerated the production and sales of their vertical panel radiators in 2024, which are increasingly in demand. Thanks to Termo Teknik's high engineering quality and production management expertise, it is now possible to produce vertical panel radiators in various colors and quantities based on the specific requests of each corporate customer. This contributes more to the architectural features and decoration of the constructed spaces.
EXPECTATIONS FOR 2025 M. Emin Kasan outlined his expectations and forecasts for 2025 as follows:
“In 2025, we anticipate movement in the new construction and urban transformation market in Europe, driven by accumulated housing needs, and we foresee growth in our panel radiator exports. In the Turkish market, we expect growth particularly in the second half of 2025.
Our Çorlu facilities possess the most technologically advanced operational capabilities in the sector. Our strong financial power, along with our extensive connections and experience in European, global, and Turkish markets, aims to increase our panel radiator production and sales in 2025.
We predict that the expanded use of heat pumps will necessitate comprehensive transformations, which will be one of the factors increasing panel radiator demand.
In 2025, we primarily aim to invest in our digital infrastructure and introduce a new model of radiators and boilers to the market. We plan to revise some of our production lines for the new radiator model. Additionally, our sustainability and renewal investments will also continue.
The current year has entered a phase of slowing inflation. We expect inflation to be around 25% in 2025, and interest rates will align with this level. Our currency expectations foresee a similar increase of 25% in parallel with our inflation forecasts.
The spot market was very active in 2024. We anticipate a decline in spot sales until the second quarter of 2025. In this regard, I believe that it would be beneficial for producers and wholesalers to keep their stocks as low as possible. I think that contributing to the formation of a more stable market by reducing stock costs, rather than profiting from inflation and currency movements, will produce more favorable long-term results.
Next year, we also hope for an end to the ongoing wars and conflicts in our region, which have led to the deaths and injuries of thousands and displaced millions.
I predict that Donald Trump winning the US Presidential elections in the last quarter of 2024 will have positive effects on our region and Turkey, but these effects will not be seen until 2026.
We fully support our products. In Turkey, we reach consumers through a network of 180 authorized services, over 200 dealers, and more than 500 sales points. Together with our dealers, we are a large family. We are determined to maintain and improve a communication and business relationship based on trust with our partners, rooted in a long-term collaboration approach.
We have invested over 120 million dollars in our factory in Çorlu. We have always believed in and will continue to believe in the Turkish economy and the future of our country. As a result of this trust, we will continue to invest, produce, and offer high-quality products to both domestic and international markets and our customers.”
Detailed information about Termo Teknik and its products can be found at “www.termoteknik.com”.