Daio Paper, a Japanese paper manufacturer, recently announced that it will sell 100% of the shares of its wholly-owned subsidiary Elleair International Turkey Kişisel Bakım Ürünleri Üretim (EITR) in Turkey to local daily chemical giant Evyap Holding, officially withdrawing from the market. The reason behind the transaction is that the rising operating costs and fierce market competition in recent years have restricted Daio's long-term investment possibilities in the local area.
Daio Paper entered the Turkish market by acquiring the life care products business of Turkish company Yildiz Holding for US$26.4 million in 2020. It also owns well-known local hygiene brands such as "Komili", and its products include baby diapers, sanitary napkins and wet wipes. This sale also means that its important foothold in the Middle East market will come to an end.
The buyer, Evyap, is one of the largest daily chemical groups in Turkey, with well-known brands such as Arko, Duru, and Evy Baby. The acquisition of the Komili brand will further expand its product line and market share in the local hygiene products field. According to the transaction arrangement, Evyap will integrate its business through its two subsidiaries, of which Evyap Hijyenik holds 70% of the shares and Evyap Sabun holds the remaining 30%.
This move not only strengthens Evyap's position in the personal care field, but also shows that local companies are optimistic about the hygiene products market in the long term. In contrast, overseas companies are more inclined to adjust their global layout and focus on core markets and profitable businesses in the current context of high inflation, currency depreciation and increased operating pressure.
The withdrawal of Daio Paper also reflects the realistic challenges faced by overseas brands in the process of expanding in emerging markets: rising local operating costs, fierce competition for market share, and intensified foreign exchange fluctuations are gradually becoming important factors affecting the investment willingness of foreign-funded enterprises.