Interview with Ercan Çelik of Spare Parts Magazine in June 2022.
global player in its industry with exports to leading motor vehicle manufacturers in the American and European markets, including OEM manufacturers like Ford Otosan, Oyak Renault and Türk Traktör in Türkiye. Emphasising that it is the largest manufacturer of engine valves in Türkiye and the surrounding region, Mr Atınç said: “In addition to valves, we trade in a variety of product lines on the spare parts market. With our turbo, cylinder head, camshaft, chain kit, cup, and gasket products in this product line, we hold a significant market share.”
We want to get to know you. Can you tell us a bit about yourself?
I was born in Istanbul in 1972. I completed my secondary school and high-school education at the Çavuşoğlu Private College. Later, I graduated from the Mechanical Engineering Department of Yıldız Technical University. I completed the Sabancı University EDU Executive Development Programme during my managerial career. I’m married and have an 11-year-old son.
How long have you been working in the automotive industry? What made you decide to work in the industry?
My fascination with engineering and the automotive industry started at a young age. So, I planned my education and career path in this vein right from the start. During my time at university, I did my factory work experience programmes at Supsan Automotive Parts, a subsidiary of Borusan, where I’m now the manager. After I finished school in 1995, the company’s general manager at the time made me an offer and I joined the Borusan Group and Supsan as part of Borusan’s “Executive Training Programme”. Since then, I have been working operationally and as an executive at all levels within the company for approximately 27 years. I have been Supsan’s general manager since the start of 2021.
Could you tell us a little about Supsan Automotive Parts?
Supsan Engine Valves was founded in 1970 and first started making engine valves for Tofaş in 1973 under licence from the Eaton company. Today, it is the largest manufacturer of engine valves in Türkiye and the surrounding region, with a production capacity of 10 million. The company is a global player in its industry with the goods it exports to leading motor vehicle manufacturers in the American and European markets, including OEM manufacturers like Ford Otosan, Oyak Renault and Türk Traktör in Türkiye. We recently gained a foothold in the Turkish spare parts market with the turbochargers we started making in addition to valves. Furthermore, the R&D project support we offer to OEMs when it comes to developing turbochargers as well as valves sets us apart from our competitors. We also trade various product lines under our own brand in the spare parts market This product range includes turbochargers, cylinder heads, camshafts, chain kits, cups and gaskets, giving us a significant share of the market.
Can you tell us about Supsan Automotive Parts’ share of the market and its position in the market?
Like I said, we at Supsan are the largest manufacturer of engine valves in Türkiye and our nearby region. In that respect, we are the field leader in the industry. In terms of engine valve production, we can give products to all the segments where internal combustion engines are needed. We can make engine valves for all industries from agriculture to transportation, from passenger vehicle groups to construction machinery, marine and aviation. Our most important goal is to quickly increase the market share of our newly developed product range.
What can you tell us about the characteristics that set the Supsan brand apart in the market’s competitive conditions such as the quality of the products, the warranty, the price policy and customer satisfaction?
The Supsan name is synonymous with quality and customer satisfaction. Our priority goal in all our processes is to strive to offer our customers error-free products with 100-percent control of both the process and the final product. We produce a lot of projects to be able to offer quality at the best price. With the robotic automation processes we are running under Industry 4.0, in particular, we are striving to minimise occupational safety risks and maximise the advantages of automation and digitalisation. In addition to all the quality certifications valid in the automotive industry right now, our Ford Q1 certificate and the golden Ecovadis certificate we received in 2020 constantly move us forward.
Can you tell us about shifting customer demands and give us some reference figures for the Supsan brand?
Our structure is designed to be adaptable and open to development to meet our customers' varying needs. Our primary objective is to manage our quality in accordance with the requirements of our availability and reference diversity, while consistently addressing quality. Currently, we have more than 50 product lines on the market, not including engine valves. We have invested in and started manufacturing hollow valves, the very latest in valve technology. Particularly in the case of internal combustion turbo-diesel engines, which require low volume and high performance, valves like this with high thermal resistance are needed when the high-alloy-content materials used are not up to the task. I would also like to touch on our turbochargers here. While consolidating our position in the spare parts market with turbochargers, we are pursuing a number of R&D projects so we can become OEM players and will continue to work in this vein.
Which countries does Supsan export to? What are your goals in the Turkish and international markets?
Supsan has always been the choice of OEM firms. When you look at it this way, Supsan is the go-to choice for OEMs in Türkiye such as Ford Otosan, Oyak Renault and Türk Traktör. In addition to this, we distinguish ourselves from our competitors by assisting OEMs with new engine projects through our in-house R&D efforts. As a Class A supplier, we are able to pass the audits of many of the world's largest original equipment manufacturers (OEMs) and provide our products to many territories, mainly Europe and the United States.
As far as you have observed, what do you think are the positive and negative developments lying in store for the automotive spare parts industry?
The decisions taken in the Paris Climate Agreement concerning zero emissions by 2050 came as a disruptive change for the automotive industry. The first atmospheric internal combustion engines developed in the mid-1800s have remained the same in terms of operating principle despite the advances made by technology over the years and their own evolution. But right now, internal combustion engines have begun to be replaced by electric and fuel-cell technologies in line with the zero emissions target. The European Council has banned the production of internal combustion engine vehicles in the passenger car and commercial vehicle groups after 2040.
According to projections, electric car market penetration is predicted to reach 50 percent by 2030, particularly in industrialized nations Of course, these projections are contingent upon not only on the production of electric vehicles but also on governments being able to commission the supporting infrastructure they require at the same rate. In order for these types of technologies to be commissioned quickly, the most important criteria for consumers will be an adequate recharge infrastructure, vehicle ranges that will need to be extended in tandem with technological advances, and putting more affordable vehicles on the market. When looking at the trends in this regard, we can see that electrification, autonomous driving, shared vehicles and connected vehicles are going to take the lead in the industry’s rapid transformation here. As such, while the spare parts industry steadily increases in importance, it will similarly undergo a change. As internal combustion engines are going to continue being made and used for a while longer and as the switch to total electrification is going to take some time, the parts needed by internal combustion vehicles will continue to be in supply but a new market will be created for the electric and fuel-cell vehicles that will steadily appear along with a need for spare parts. At this point, those manufacturers and suppliers that can keep up with this change and transformation will stay in the race while those who fail to adapt will steadily lose their mobility and their place in the market. Automotive industry players have to revise their business processes if they are to succeed in the future in this changing industry. To this end, companies must allocate larger budgets for R&D to develop new customer-oriented products and services, develop business models focused on mobility rather than products, and invest to make the switch from internal combustion engines to electric vehicles.
As you know, we have entered 2022 in the shadow of the coronavirus pandemic, so what are your predictions for the economy and the automotive industry in the world and Türkiye?
Combating COVID severely disrupted the industry’s supply chain management in particular. The problems experienced in the supply of semiconductors coupled with the effects of the Russo-Ukrainian war have seriously affected the capacity usage rates of manufacturers in the industry. The imbalance in supply and demand caused by production shortages as a result is a significant problem both in our country and worldwide. Predictions in the industry say that these problems could continue until the end of next year albeit on a smaller scale.
One of the biggest problems for manufacturers at this time is the very steep and rapid increase in production costs created by the high inflationary climate affecting the world and our country. The price of energy and raw materials in particular is increasing at an unpredictable rate. Therefore, what matters is being able to establish control over this situation which also affects the industry with its commercial dimension.
Can you talk about your R&D projects?
We are proud that our “R&D Centre”, the infrastructure for which we created with our skills and corporate experience spanning more than 50 years, was registered by the Turkish Ministry of Industry and Technology in 2017. We provide our customers with highly efficient high-quality, technically superior products at affordable prices while at the same time serving as a solution partner with the engineering testing, analysis and approval competencies we developed. Accordingly, our main R&D goal is to create solutions for our customers that include innovative approaches by following developing technologies. At Supsan R&D, we are aware how important it is to have sustainable technology and R&D capabilities to achieve this goal and to invest in this. We have completed 21 projects to date at our R&D Centre with our 23 researchers comprising 10 engineers and 13 technicians. We have 5 registered patents, 1 utility model and 8 patent applications currently in the research stage.
We conduct our projects in four main working areas, namely, product development, process development, material development, and digitalisation and information systems. Under product development, we make best use of our national and international knowledge to overcome the challenges faced by our customers when developing the sub-parts to be used in the next-gen engines they design. We continually work to raise the quality and performance of our products higher when placing new products on the OEM, OES and spare parts markets. We conduct studies using Finite Element Analyses (FEA), Calculated Fluid Dynamics (CFD) and many other advanced tools to achieve the best design. Using these competencies, our expert technical staff develop the parts they specialise in for our customers in internal combustion engines where efficiency and durability have been redefined and improve the performance of existing parts by meticulously running the testing and acceptance processes. As part of our product development work, we have completed and commissioned the design, prototype optimisation, testing and approval processes for the Next Generation Hollow Valve (OEM Partnered TEYDEB Project), turbocharger and hydraulic fluid pump parts for 134 OE firms with the projects we undertook in recent years.
With project development, we continue to work on creating new technology products or gaining production cost advantages in the existing products to improve the processes of the products we make or have newly commissioned and increase efficiency. With our machine design and production competency, we conduct R&D projects to rejuvenate the machine park on our production lines and continually improve their processes. By harnessing this competency, we have been able to rejuvenate around 50 percent of the machines we use to make valves, including critical processes, over the past 15 years and make them compatible with the latest technology.
Our goal material development is two-fold: to increase the performance of the materials we use in our projects and to improve costs. Another one of our priority goals is to be able to design materials according to needs through alloying and obtain the special material formulas patented by Supsan. As part of these efforts, we employ mechanical testing and measurement, material characterisation, prototype production and validation tests as well as surface coating and heat treatment technologies.
Steered by our working priorities and methods, we work with material, heat treatment and surface coating technologies to extend the life of tools and moulds. We carry out material validation work by creating a pool of materials that demonstrate the same or similar performance as existing materials to use them as alternatives. We also form partnerships with universities and research centres to use means we do not have on-site in our projects and bring projects to life.
Under digitalisation and information systems, we aim to digitalise the manual methods used in Supsan production areas and offices, to reduce labour waste to zero through digitalisation, to access need-oriented software development capabilities, to collect and analyse data from production and other processes, and use the analysed data to transform the process into a construct that warns employees and makes its own decisions. Accordingly, our fields of endeavour include revising the digital infrastructure in all our production and management processes, optimising and digitalising accounting processes, collecting and analysing data from all the critical production processes then using the analysed data to create early warning systems with predictive maintenance approaches and work to transform these systems into systems that make their own decisions. We have launched 7 projects in this area to date since 2017 and brought 4 of them to completion. We have also digitalised 12 management processes. Furthermore, when it comes to complex issues in the valve systems, Supsan R&D Centre will work on them with customers and has the knowledge, skills and tools to find solutions to the problems. Supsan’s Engineering Services offer comprehensive services for the materials and design of all system components including valves, valve seats (inserts), valve guides, lugs, push rods and overfill systems based on the customer’s unique requirements. We run simulations and make analyses taking into account such variables as the performance and life expectancy of the recommended product, design and materials.
We offer our customers advantages in many areas when it comes to engineering. This includes such services as evaluating Valve-Insert-Guide design, evaluating materials and designs, and calculating the static and dynamic loads on valves using the finite elements method, We can also use the finite elements method to work out the lifespan of the valve, and use the computational fluids method based on engine characteristics to determine the temperatures on the valve. We make thermometric components to determine the temperatures on the valve, we carry out thermometric engine tests in the engine test chamber after which we determine and report the temperatures on the parts. The other services we offer to our customers include carrying out endurance tests in the engine test chamber, carrying out post-test damage analyses and root cause analyses.
Where does Supsan stand on sustainability What are you doing for it?
Borusan Holding and Group companies consider sustainability to be the cornerstone of their business processes and treat it in an inclusive manner while working in the focus areas of climate, people and innovation. At Supsan, we care a great deal about sustainability, and we are working on these three focus areas. We have selected our goals from among the United National Sustainable Development Goals and incorporated them into our strategic plan, determining where we want to be at in 2030. We make business plans, projects and studies every year to achieve these goals.
Under the Climate heading, we aim to make energy saving of 225 kWh a year and reduce overall electricity consumption by 3 percent and improve indirect carbon emissions by 110 tonnes through the ARG-P009 Direct Hardening Process Design and Development project. With our ARG-P004 Heat Treatment Cost Reduction project, we have achieved electricity savings of 7500 kWh and improved our indirect carbon emissions by 6 tonnes. Under the project, we are going to implement induction to replace natural gas with electricity, which will reduce direct C emissions by 110 tonnes and indirect C emissions by 55 tonnes.
With our SUP-YK 498 project, we utilise the Supsan central emulsion and oil filtration sludge and turn our waste into a resource for someone else. Waste from the grinding processes contains metal and grinding dust. We utilise this waste and stop it from being disposed of. As of December 2021, we have been part of the TMM (Türkiye Materials Marketplace) platform, launched by BCSD Türkiye. We refurbish decommissioned machines at our technology centre and extend their useful life. This is how we contribute to the circular economy.
Under the Innovation heading, we have identified initiatives that will increase Supsan’s technology maturity level. They include using Robotic Process Automation to identify labour intensive repetitious tasks across Supsan, create a project for them, and hand them off to RPA software. Under Data Collection and Processing, we collect data on equipment and benches, then use the data in monitoring, optimisation, and predictive maintenance applications.
Under Innovation in 2022, we are going to implement business development, digitalisation and Industry 4.0 projects. As for the Climate heading, we are going to continue our work on the circular economy, decarbonisation and zero waste. Under Climate and Innovation together, we are going to improve our machinery refurbishment process and increase our speed from 1.5 machines a year to 3 machines a year. Furthermore, as a result of our vacuum evaporator investment, we are going to achieve significant water savings through the on-line use of water by reducing the amount of wastewater generated by our production processes and sent off for disposal. Under the People heading, we are trying to increase the percentage of women employed at the plant with our “This Job Needs a Woman’s Touch” project.
Do you have any final comments?
The automotive industry is undergoing a transformation on an unprecedented scale. Shifting consumer needs coupled with technological innovations are having a devastating effect on the industry while ushering in a brand-new world. We are in a period in which firms that can adapt to this change will live on, but which marks the end of the line for those that fail to adapt or make the transformation. At Supsan, we are implementing the right strategies to bring about this transformation and continuing to work at the highest level to carry Supsan into the future.