“We Are Committed to Advancing Our Export Activities Through Customer-Oriented Solutions”

How do you evaluate your export performance in 2024? Which products do you export?

As Frigoblock Cooling Systems Inc., we have achieved consistent growth in exports in recent years. However, 2024 was not a year in which we could maintain this success at the same level as previous years. Although demand from international markets increased, the conversion rate of these demands into actual sales fell below our expectations.

The main reasons for this include increasing price pressure in global markets, the tendency toward lower-cost products, and rising production costs due to global inflation. While it remains challenging to compete on price with Chinese manufacturers, we continue to be preferred in the market with our high-quality, custom-designed products.

Our export product portfolio mainly consists of industrial-type refrigeration units and heat exchangers. These products stand out with their energy efficiency, durability, and environmentally friendly features. Especially our systems that use R744 (CO2) refrigerant offer sustainable and cost-effective solutions, creating a significant advantage for our customers.

Additionally, through our Frigo-PAC product group, we have developed new solutions for the long-term and effective storage of specific agricultural products such as potatoes and onions. This new series increases customer satisfaction with its higher efficiency and cost-effectiveness.

What are the biggest challenges you face in export processes?

One of the biggest challenges is customs duties and foreign trade policies in our target markets. In countries where we do not have free trade agreements, we face significant price disadvantages. For example, while products imported from Turkey into Algeria are subject to 30% customs duties, the same products imported from France are subject to only 5%.

Additionally, the cost of international certifications or country-specific certification processes required by some countries is quite high. Increasing government support in these processes would provide significant advantages for Turkish exporters.

Another major issue is the visa restrictions applied by European countries. These restrictions hinder our business development and client visit operations.

To resolve these problems, we believe the following actions are essential:

• Negotiating bilateral trade agreements to reduce customs duties,
• Providing financial support for international certification processes,
• Expanding incentive mechanisms to reduce logistics-related costs.

What are your export goals for 2025? What innovative solutions are on your agenda?

For 2025, we are pursuing a growth-focused export strategy. Our priorities include entering new markets and increasing our share in existing ones.

In this context, we are working closely with the Turkish HVAC-R Exporters Association (ISIB). Thanks to ISIB’s B2B trade delegation programs and international exhibition participation, we are building more effective connections in target markets.

On the technology side:

• We are developing IoT-based smart refrigeration systems. These systems will enhance customer experience by offering remote monitoring, automatic control, and energy-saving features.
• We plan to expand our product range with heat pumps as part of our commitment to sustainable energy solutions.

With these developments, we aim to both diversify our environmentally friendly product portfolio and increase our export volume.

What is your outlook on the future of exports in the industrial refrigeration sector?

The future of exports in our sector will be shaped by sustainability and digitalization. International regulations introduced as part of the fight against climate change are driving demand for eco-friendly refrigeration systems. In this regard, systems that offer high energy efficiency and reduce the carbon footprint will become increasingly important.

Moreover, digitalization and IoT technologies are accelerating the transition to smart systems in our industry. These developments improve not only product performance but also the quality of service provided to customers.

At Frigoblock, we aim to lead this transformation. By increasing our R&D investments, we will continue to strengthen both our exports and our leadership in the sector.

Interviewee:
Cemal Yılmaz
General Manager – Frigoblock Cooling Systems Inc.

Source: DTK Magazine, December 2024