Founded in 1955, Alke established its reputation in construction by building irrigation systems, bridges and pipelines. Throughout the 1960’s and 70’s the scope of Alke’s projects increased in magnitude, but the company was not solely focused on construction. By the 1980’s it had also acquired a stainless steel factory involved in kitchen utensil manufacture. Quite a diversification from their core construction focus, what was the reason for branching out? Mr Kemaloglu explains: “The Construction sector is quite volatile and subject to economic fluctuations. So we wanted to diversify independent of construction. We didn’t have kitchen utensils in mind but the opportunity arose and the circumstances were so favourable we couldn’t resist!” This consolidation of company security paid off with the stainless steel branch of the company becoming highly profitable. In the past the company has also worked in cosmetics and owned water parks and a critically acclaimed hotel. Alke has since sold its shares in stainless steel, cosmetics and tourism but the spirit of augmenting the core construction business with innovative projects lives on.  

Alke’s reputation has been forged mainly in the construction industry with an array of high profile projects such as tunnel constructions, shipyards, factory buildings, steel pipelines, road constructions, concrete dams and off-shore structures. Having established itself domestically, Alke now looks further abroad for projects. “Since 2000 we have become increasingly international,” Mr Kemaloglu told us. They focus their operations on developing countries, in eastern Europe rather than the west, for example in construction projects enlarging the infrastructure in Romania. 

However the company has plans beyond expanding its European operations. “The Gulf and Middle East carry enormous potential. Turkish companies have the advantage of shared social and political backgrounds and historical links. So I think Turkish companies will do well in the region. The rich oil and gas reserves make it very attractive because they keep investing in the infra-structure, which is our specialisation”. The company also has goals in Kazakhstan and Turkmenistan. “Wherever there is a lack of infra-structure and money, we will focus there,” he adds.

The company has many current projects, for example the Galatasaray FC Seyrantepe Stadium in Istanbul, The Marmoul highway in Oman and the Astana EXPO Centre in Kazakhstan. Alke also has an extremely strong reputation in offshore construction, having built sea defences, quays and shipyards in the past, an area Mr Kemaloglu expects to grow. “There is enormous demand for shipping all over the world. The main demand is in the Far East right now, and we believe Turkey is going to be one of largest suppliers in this sector within the next few years. There is currently a huge amount of investment and business for shipyards and we believe Turkey can be come a dominant global force in this area.” These healthy, growing markets bode well for the future, but Alke is already extremely successful with an estimated turnover of e150 million in 2007.

Throughout their operations, Alke foster strong links with partner companies, particularly with European countries working in the Gulf region, who are keen to take advantage of Turkey’s strong position, not just geographically but also politically. “European countries are doing project management in the Gulf and using Turkish contractors for realisations of their projects. I believe such partnerships will grow even more and bring Europe and Turkey even closer,” Mr Kemaloglu explains.

Crossing continents

Previous projects have been ambitious in scale but pale in comparison when set against a new undertaking. “I’d like to share with you one of our signature projects. It’s going to be unique and the first tunnel to connect two continents; a water tunnel under the Bosphorus river in Istanbul,” Mr Kemaloglu was keen to tell us. “It will be a huge water supply system to take water from the Black Sea region of Turkey to Istanbul. The first phase brings water to the Anatolian [east] side of Istanbul and the next phase is getting the water to the European [west] side. The drinking water tunnel will be constructed 150 m under the Bosphorous. We have Russian partners and we began last year and aim to complete in 2010. We believe it’s going to be very interesting, as well as tough, drilling under the Bosphorous.” 

Obtaining insurance for drilling in a fault zone proved difficult but the company finally got the go ahead and the project began last year. Alke are producing the 6 m diameter piping and stainless steel supports as well as assisting in laying the 4.2 km pipeline. The drilling will be done by a tunnel boring machine under the river and with explosives under dry land, the company has brought in expert assistance from its Russian partners; Mosmegrostroy, a government owned construction company, and Norwegian consultants with experience of designing and drilling for under-sea pipes. 

Blowing in the wind

Alke is constantly looking for new areas to develop in and has identified the area of Green technology as a strategic, as well as socially responsible, area for the future. “Environmental technology is not so well developed, but will be booming in the near future,” Mr Kemaloglu predicts. “We use experts to come and assist us, and we’re negotiating with many European countries for various projects.”

One area the company has begun to operate in is solid waste disposal. The company recently won a bid for a new waste disposal plant in the south of the country, with American and Lebanese partners. “It’s a small project but we believe it will give us an insight into the sector’s technology and how profitable it can be. It’s a new one for us and we want to start small for our first project.” Increased awareness and legislation have reinvigorated the responsible waste disposal industry, and it is currently one of the fastest growing sectors in Turkey. Alke will help in the initial construction of the plant and then manage it with its foreign partners. Mr Kemaloglu explained why the American and Lebanese partners approached them in the first place: “They wanted strong, local Turkish partners and so they came to us. Doing business in a foreign country you need a strong partner.” 

The company maintains strong links with its native Turkey and participates in projects in the national interest. “We are, as a country, having problems with our neighbouring countries. Sometimes Russia cuts off our natural oil supply so we have electricity problems. Sometimes Iran does too. So Turkey is going to employ new technologies to produce its own resources. One way is going to be nuclear, handled by the government, the other will be solar and perhaps wind. Turkey has enormous wind potential, but the amount used is still close to zero. Wind hasn’t been employed yet but I think it may keep us busy for the next few years.”

Alke entered the wind energy sector in 2007, founding a company in co-operation with world leading installation firm SSC-Montage (Germany) and work has begun on a blade and steel tower manufacturing plant. Whilst no wind farms are yet operational, Mr Kemaloglu predicts revenue of around e80 million within three to four years. 

These new additions to Alke’s portfolio may not be the end of the expansion. “After we start operating in the wind industry we will still be looking for new areas. We’ll work with our European partners and this will open up new possibilities for us. This may be the next step.” 

Building Successful Relationships

Ambitious projects are made possible by utilising the latest technologies, process and methods, but how do you ensure you remain at the forefront of these in such a rapidly advancing and diverse range of disciplines? Alke stays on top of new technology by maintaining good communication links with suppliers and scrutiny of relevant periodicals. Also, they will collaborate with external partners and use the leading outside expertise, for example the Russian and Norwegian experts brought in to assist in the under-river drilling mentioned above.

Safety standards are also something constantly being monitored and updated. Proposed entry to the EU for Turkey has meant that new standards are being applied every year, however the company has long had an emphasis on safety. “We always keep safety at a top level, we never compromise,” Mr Kemaloglu asserts. “It would affect our credibility as a construction company and we believe credibility is one of our best assets.”

EU accession is clearly something that is prominent in the minds of anyone associated with business in Turkey at the present. Given Turkey’s currently buoyant market, what are Mr Kemaloglu’s views on the debate? “EU membership will help Turkey realise its best potential. I believe the future lies in alliances and groups, not individualism. Turkey has to be involved in certain groups; it has to move east, north or west to the EU. I believe the best opportunity for Turkey is the EU in terms of the economy, socially and culturally. Membership will benefit all parties.”

Working with partners and as part of a team is clearly a concept the company embraces and has used successfully throughout its history. The benefit of being able to call on a range of expertise has allowed the company to diversify into new and novel areas outside its traditional basis of construction. With such innovation it seems likely that they will continue to be a success in the future especially in the growing area of ‘Green Energy’. However, don't be surprised if you see Alke's name associated with a variety of other new and emerging technologies and industries in the future.