Löher & Avelice Finishes 2024 Strong, Sets Growth Strategies for 2025
2024 was a year in which high inflation and interest rates increased the pressure on producers and investors. Löher and Avelice continued their operations with a strong capital structure and two factories, reaching their turnover targets. However, they fell short of their targets in terms of profitability, and emphasized that financial stability was maintained with the support of Meteor Holding.
While the exchange rates lagging behind inflation created difficulties in exports, Löher and Avelice successfully managed this process by turning to different markets and developing value-added products. The company entered the European market in escalator production, which is dominated by China, and stood out from the competition with its quality advantage. With its investment in Georgia, Avelice won major tenders in Tbilisi and Batumi and exported to markets such as Ukraine and Syria, sending products to more than 20 countries.
In the area of sustainability, the installation of a solar power plant (SPP) at the factory in Igdir has started and is expected to be completed in 2025, enabling the company to generate its own energy. It is also planned to convert the vehicle fleet to electric and hybrid models as part of efforts to reduce its carbon footprint.
In 2025, Löher aims to grow by focusing on international contracting projects. Participating in major tenders for city hospitals, bus stations and airport projects, the company foresees 100% growth in exports and 50% growth for Avelice in Georgia and Kazakhstan markets.
Within the scope of technology investments, changes were made in escalators to meet the demands of the UK and Germany, and new models will be introduced at fairs in 2025. While new markets are targeted to increase exports, preparations are underway for the reconstruction of Syria.
New dealership and distributorship agreements are planned to gain a stronger position in the international market. While negotiations with reliable business partners in Europe continue, competition with multinational companies will continue.
Referring to the position of the Turkish elevator sector in the global market, the authorities state that Turkey is second only to China in component production. However, it is emphasized that the competition is largely price-oriented due to the large number of assembly companies. It is aimed to achieve a stronger position in the sector by encouraging domestic production in public projects.
For 2025, high inflation and a strong TL are expected to pose challenges for exporters, but the sector is expected to continue to grow. While the need for elevators is expected to increase with urban transformation and earthquake-resistant building projects, Löher & Avelice aims to gain a stronger position in the global market by using the advantages of the free zone.
