Turkey is a critical part of our future, says GE CEO

Dünya Executive - - BUSINESS BY LAW - OZLEM ERMIS BEYHAN

General Electric (GE) has designated Turkey among the countries it will focus on as a growth priority. The global giant, which broke new ground with the first smart factory transforma­tion in Gebze, is positionin­g itself as a key player in the digitaliza­tion journeys of Turkish companies. Alex Dimitrief, President and CEO of Global Growth Organizati­on, GE’s internatio­nal growth division, spoke to daily DUNYA while he was in Istanbul with a group of top managers. “I frankly do not know what Moody’s has done for Turkey’s rating but Turkey is one of the countries with an investment priority for GE,” Dimitrief said, referring to Moody’s downgradin­g of Turkey’s credit rating last week. He added that GE made its first exports from Bergama to Australia and that the smart production plants in Gebze would set a good example for the world.

Where do you put Turkey in your global growth strategy?

We have been in Turkey for more than 70 years in sectors like energy, healthcare, aviation, renewable energy and digital. We have demonstrat­ed a strong presence in each of our industries and consider Turkey one of our homes in the world. As the developing middle class fuels the economy, promising great potential with its young population, and as the public strives to create a quality environmen­t in areas such as health, transporta­tion and energy, this market is very important to us. You are a critical part of our future.

Moody’s downgraded Turkey’s rating a few days ago. You are here. Do you have new investment plans?

Frankly I am not aware of what Moody’s has done. We are here, yes, and will continue to invest in Turkey. In many of our meetings, we put this forward. Turkey is part of our long-term strategy. Currently we are very interested in investment­s in healthcare. Public-private partnershi­ps are very impressive in this area. Turkey has not only begun to improve accesibili­ty but also quality in the healthcare system. In this respect, GE has important opportunit­ies.

Has the wind turbine blade factory been completed?

Yes, and our production of wind turbine blades in Izmir is not only for Turkey; we aim to export to many countries from there. This is a model we can apply in different areas. This plant, which we built with an investment of $50 million in Bergama, has just made its first exports to Australia. We can see that the power transforme­r factory in Gebze will be the export champion in its field.

Industry 4.0 is a hot topic in Turkey. Where do you stand on digitaliza­tion?

We attach great importance to digitaliza­tion. The models that will improve the efficiency of Turkish companies are iOT systems and artificial intelligen­ce. Turkey is a key focus of our efforts. GE is going through a digital transforma­tion, as is the world, but we want to set ourselves up as an example. We are transformi­ng our production center in Gebze into a smart factory. We are working on achieving a production system which is more efficient, has less human error and is less costly with the use of artifical intelligen­ce. Our aim is to implement ‘intelligen­t’ production, using and analyzing data to improve our efficiency. Gebze is a very important test center on this road. If we are successful, GE will spread this model all over the world. Airlines, energy companies and hospitals want to enter the digitaliza­tion process to see how they can use what we sell them in such an efficient system. It is estimated that digitaliza­tion will add $10 trillion dollars to the world economy in the next 10 years. And we aim to be an important part of it.

When it comes to intelligen­t factories, employee reduct on also comes up. In this sense, GE suffered a serious contract on last year. How did the workforce fare in Gebze?

Lay offs are to be expected in this process, as was the case in Gebze. But global downsizing is also not neccessari­ly an inevitable outcome of digital conversion. History proves that technology always raises the quality of business life and creates new jobs. The new generation in Turkey is very solution-oriented. Of course, there may be people who cannot keep pace with this transforma­tion. At this point, schools, in collaborat­ion companies, need to identify the new skills for the future and shift their curricula in that direction. Training in data analysis will be very important in the future.

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