Dear Aksa family,
There were positive developments despite the elections and problematic challenges in the global economy, which heralded 2017 with political and geopolitical uncertainties. Despite protective foreign trade policies, the growth in world trade volume continued. The annual growth rate of developing economies rose to 5.4%, the highest figure in the last four years.
In the Eurozone, 2017 was a year with balloting and separatist discourse in the political arena. In spite of cautious monetary policies, economic recovery and expectations were positive. While the inflation data was moderate both in the developed and developing economies, in our country in 2017 the main items on the agenda were rapidly rising inflation and foreign exchange rate volatility. The Turkish economy completed the year with strong growth, but the Consumer Price Index revealed an inflation rate of 11.92%, and created a negative atmosphere in all sectors.
We continued creating added value with the positive effects of the Credit Guarantee Fund loans to our customers, and with our exports and rich product portfolio in 2017, we completed a successful and profitable year. Our consolidated turnover was TRY 2.8 billion, TRY 515 million EBITDA, and TRY 295 million net profit. At the end of 2017, our company had assets equal to TRY 3.4 billion and equity of TRY 1.4 billion.
The International rating agency JCR Eurasia Rating, determined Aksa’s Long-Term International Monetary Rating as BBB- (Investible) and Long-Term National Rating as AA (Highly Investible). With such data, we demonstrated the efficiency of our risk elimination strategies and the strength of our financial structure.
What lies behind these financial successes is obviously the value we place on our expert human resources, creative information, and our investments towards sustainable change. In addition, we once again received the highest award at the eighth Corporate Governance Awards from the Corporate Governance Association of Turkey, yet another achievement in 2017. This award highlighted Aksa Acrylic’s fair, transparent, accountable and responsible practices.
Aksa Acrylic, which obtained R&D Center Certification from the Ministry of Science, Industry and Technology, strives towards developing new usage areas and new products for acrylic fibers. There are currently eleven innovative and qualified R&D Projects at the Center, administered with operational perfection and in line with our vision of sustainability. At the same time, our efforts in obtaining patents for newly developed products and technologies continue.
Another area that generated excitement in 2017 was the investment incentives received.
General investment incentive certification was obtained for locally supporting the development of our new product investment, continuous filament, and for modernization in our product lines.
We introduced Filament yarn to the market under the Acrylusion brand and attracted great interest, especially in the woven carpet sector, due to its silky softness and handling. The requisite investments were made towards enhancing capacity based on high demand from the carpet sector.
In line with Turkey’s targets of manufacturing value added products and improving exports, Modacrylic Fiber Polymer was included in strategic product financing, and with the approval of investment incentive certification, we took the first step towards realizing a crucial dream. Our new product and technology investments will continue to be one of the most fruitful ways of improving our success rate.
As we welcome in a new year, I would like to thank all our employees, one of the reasons why the Aksa Acrylic brand is always mentioned together with strength and reliability, our loyal customers and our business stakeholders, in whose trust we strive to be worthy.
Board Member and General Manager