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of 38 Orta Anadolu Sustainable Cotton is Our Future October 20-21, Liverpool

Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Page 1: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Orta Anadolu Sustainable Cotton is Our Future

October 20-21, Liverpool

Page 2: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 1 Orta Anadolu Presentation for ICA Trade Event 2011

• Orta Anadolu is a

Karamancı Holding

affiliate , established in

1953 as a spinning &

weaving factory.

• It was restructured to

manufacture denim in

1985, and since has been

operating and marketing

globally.

About Orta Anadolu

Orta Anadolu Presentation for ICA Trade Event 2011

Page 3: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 2 Orta Anadolu Presentation for ICA Trade Event 2011

• Today, we produce

50.000.000 meters of

denim, over 156.000 m²

operation area, with 1170

employees.

• The addition of the Orta

Bahrain plant in Manama

expands Orta's production

capacity by 10million

meters.

About Orta Anadolu

Orta Anadolu Presentation for ICA Trade Event 2011

Page 4: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 3 Orta Anadolu Presentation for ICA Trade Event 2011

Orta Anadolu commits to :

-More sustainable industrial practices,

-More sustaible cotton incentives and

-Related social missions.

3 Orta Anadolu Presentation for ICA Trade Event 2011

Our Commitment

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of 29 4 Orta Anadolu Presentation for ICA Trade Event 2011

• Sustainable practices in our industrial

operations/production lines:

– Best Practices in water,

energy and waste

managements

– Recycling/Upcycling

– AlchemyOne

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of 29 5 Orta Anadolu Presentation for ICA Trade Event 2011

Best Practices

Orta already pursues

many “Best Practices” in

energy and water

conservation.

The aggressive pursuit of

Best Practices has

resulted in significant

reductions in energy use,

environmental impact, and

operating cost.

Reduced Energy Consumption

• Estimated savings of 8.1 million

m3 of Natural Gas per year.

• Estimated savings of 1.66

million kWh per year

Reduced Environmental Impacts

• Reduction of more than 17

million Kg of CO2 per year

• Reduction of more than 1.2

million m3 per year of ground

water usage and sewerage

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Page 7: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 6 Orta Anadolu Presentation for ICA Trade Event 2011

Recycled Denim

• Orta produces Recycled Denim from Post-consumer product.

• Almost 3 tons of waste is recycled in order to get recycled yarn to be used in Orta Blu products.

• Orta collaborates with its suppliers to create opportunies for better recycling and provides job for women who are in need.

• Orta Recycled denim is certified by Control Union.

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Page 8: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 7 Orta Anadolu Presentation for ICA Trade Event 2011

AlchemyOne is an

advanced denim finish

process that delivers

better physical and

visual performance, in

a more sustainable

fashion compared to

traditional approaches.

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Clean Tech

•Sealed Chemical Process

•No health risks

•Minimal Water Consumption

•90% Chemical recovery

Easy to Wash Fabrics

•No need for extra softener

•No need for anti-pilling

enzymes

•No need for resin

Page 9: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 8 Orta Anadolu Presentation for ICA Trade Event 2011

Upcycling

Every season, we create

jeans collections to present

our fabrics.

When these jeans are out of

date, we upcycle them to

create promotional denim

items we give away at

exhibitions and events.

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Page 10: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 9 Orta Anadolu Presentation for ICA Trade Event 2011

Social Missions / School Uniform Project

Orta has provided denim

fabric to a socially

conscious, value-added

resource that has enabled

the Women’s Association

in Lebanon to build a

sustainable

manufacturing for

providing uniforms for

children in need around

the world.

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of 29 10 Orta Anadolu Presentation for ICA Trade Event 2011

Social Missions / Orta Blu Gene

Orta organized “Jeans &

Pizza” event to the

homeless youth of New

York where they were

able to select and try on

their new pair of jeans, as

well as exchange an older

pair of jeans if they would

like, so they can be

recycled and used for

future programs.

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Page 12: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 11 Orta Anadolu Presentation for ICA Trade Event 2011

Books / Eco-Fun with Mr.Blu

In November, Orta will be

publishing the childrens’

book “Eco-fun with

Mr.Blu”, containing tips,

games and information on

eco-friendly and

sustainable living.

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Page 13: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 12 Orta Anadolu Presentation for ICA Trade Event 2011

Orta Blu Online

• Ortablu.org website is our

gateway where we share

our social missions,

projects with NGOs, news

and activities that promote

sustainability.

• With the section “Denim

Stories” users are

encouraged to share their

tips for a long lasting

denim experience.

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Page 14: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Why sustainable cotton?

• Cotton is one of the most widely grown

crops in the world.

• Cotton is competing with other crops in

terms of “Food Safety”.

• There is not enough additional arable land

to overcome the needs of growing

population in terms of “Food Safety”.

Page 15: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 14 Orta Anadolu Presentation for ICA Trade Event 2011

Year 2032 – (Only 20 years later)

• Estimated world

population will be

8,3 billion instead of

7 billion in 2011.

• Total global arable

land will stay at the

same level, if not

lesser.

Page 16: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

of 29 15 Orta Anadolu Presentation for ICA Trade Event 2011

UN Projections of World Population

Year UN Estimates (millions)

2000 6.123

2010 6.896

2020 7.657

2030 8.321

2040 8.874

2050 9.306

Page 17: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Facts about global agriculture

• Agriculture consumes 30 percent of our oil

use. Petroleum based agriculture will end

sometime later this century if we will not

improve existing practices.

• Growing population and average income

increases will create more demand for

“Food Crops”.

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Limits of Global Agriculture

• Arable lands are

under constraints due

to;

– Urbanization

– Erosion and soil

degradation

• Crop yields in general, appear to have reached a

technological plateau.

Page 19: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Existing Cotton Initiatives

• A number of initiatives are in place to

achieve sustainability in cotton production.

– Organic Cotton (Ecology – Health - Social)

– Fair Trade Cotton (Social - Economic)

– Made in Africa Cotton (Social - Economic)

– Better Cotton Initiative (All + Mainstream)

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of 29 19 Orta Anadolu Presentation for ICA Trade Event 2011

What makes BCI very important

•BCI’s objectives are not only enviromental. It contains economic and social aspects as well.

•It is inclusive and aiming to improve the mainstream cotton sector (including small size and large size farmers).

•It is technology-neutral, addressing enviromental issues but not in denial of existing agricultural practices/technologies.

•BCI is not against chemical pesticides.

•BCI is not against GMO seeds.

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What makes BCI very important

•It has many similarities with the already well recognized “Good Agricultural Practices” which is already supported/subsidized by many goverments.

•BCI aims to set up tracebility beginning from farm level up to the gin level. No certification required.

•BCI does not support/suggest price premium for BCI approved cotton.

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BCI; one step further than Organic Cotton.

Enviromental issues

•Taking care of soil conservation and biodiversity

•Taking care of water conservation

•Taking care of active pesticide management.

Economic issues •Enhancing the productivity and profitability of the farming community by measuring and communicating the effects of growing BCI in better agricultural practices.

Social and labor issues •Promoting Decent Work for farming communities.

•Preventing child and forced labour.

•Implementing use of health and safety precautions

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What we do in order to support a more

sustainable cotton?

• We support sustainable cotton

initiatives globally.

• We support Organic Cotton

production.

• We support BCI as an inclusive

mainstream global initiative.

• We support the implementation of

BCI System in Turkey.

Page 24: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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A short history of Orta Anadolu in Organic Cotton

2003

2005-2007

2008

2010

First Organic Cotton purchase.

Contract farming in Aegean Region of

Turkey . Commitment to use 3%

organic cotton within all Orta’s

production without reflecting price

difference to our customers until 2007.

Organic line

Orta Blu line

Page 25: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Our Journey with BCI

Orta Anadolu made it’s first BCI purchase from Mali

Orta Anadolu became member of BCI

Orta Anadolu decided to be an implementing partner for BCI Turkey

Orta Anadolu has commissioned a “Scoping

Report for Potential BCI Implemen1tation in

Turkey”, highlighting the existing current situation

of Turkish cotton production and proposing a

roadmap for BCI implementation in Turkey.

Orta Anadolu has been appointed as a member of Global BCI Council

BCI has held it’s initial multi stakeholder meeting for BCI Implementation in Turkey (October 2011).

April 2011

May 2011

May 2011

June 2011

August 2011

October 2011

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Conclusions

• The current structure of cotton

industry is not sustainable.

• We all have to contribute for a

more sustainable cotton value chain.

• BCI is the most prominent and promising

incentive in place.

• We need more support and participation to BCI

from the cotton trading community.

Page 27: Orta Anadolu - ICAOrta Anadolu Presentation for ICA Trade Event 2011 2 of 29 • Today, we produce 50.000.000 meters of denim, over 156.000 m² operation area, with 1170

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Thank you!

For more about Orta, and Orta Blu please visit:

www.ortablu.org

www.ortaanadolu.com

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