Dear Aksa Family,
We have finally emerged from 2016, a year of many difficulties in Turkey and worldwide. Uncertainties in the world’s economic policies marked the year 2016. In particular, the fact that developed countries abstained from making investment decisions so as to reduce possible risk, withdrawing their finances from developing countries, constituted one of the main reasons for the stagnation. Global trade was heavily impeded by the decline in commodity prices. In spite of all the negative conditions in the world and Turkey, the Aksa Akrilik Family provided added value to our exports with our rich product portfolio, and managed to achieve a successful and profitable year.
One of the fundamental developments observed in 2016 was the branding activities undertaken by our product groups. We introduced 4 new brands to the sector that touch every aspect of life. We chose the name Acryluna for our textile fiber products, which offer the softness, warmth and joyful and colorful world of acrylic fiber; Acrysole for our technical fibers that provide the best solution for outdoor applications; and Acryterna for our acrylic fiber products used in industrial areas. Acrylusion was decided as the brand displaying the innovative and superior side of our acrylic filament product.
Included in the pigment-dyed acrylic fiber product group, Acrysole expanded its sales volume and market share, which played a significant role in making
2016 profitable. Our energy efficiency created a cost advantage, boosting our profitability. Last year, we initiated our New Turbine project, which will provide the safest electricity supply, improved cycle cost, and enhanced capacity.
Moreover, we forged on with our investments at full steam. Our newly developed pigment-dyed acrylic filament yarn, Acrylusion, became a product in high demand, particularly in the hand-woven carpet sector, thanks to its silky softness, touch and superior color brightness. We initiated capacity-expanding investments for the hiked demand in the carpet sector, as it is anti-dust and bleach cleanable. We also completed R&D works for the flame-retardant, or nonflammable, modacrylic fiber. At the moment, further work is under way in order to make it more environment-friendly and eco-friendly. We intend to start industrial-scale supply of modacrylic fiber in 2017. Modacrylic, a high added value product, can only be produced by a limited number of producers around the world, and it is primarily used in protective work uniforms, the plastic sector, and artificial hair production.
Our company achieved several successes in 2016. We reached TL 161 million, the highest dividend payout to date. As for production, we set a new record of 315,000 tons. Our EBITDA level closed 2016 with growth of 11%. We reached the summit in corporate governance. We won the grand prize for the company with “the Highest Corporate Governance Rating” as part of the Corporate Governance Association of Turkey’s (TKYD) traditional Corporate Governance Awards.
Throughout the world, the atmosphere is dominated by cautious expectations for economic developments. No matter the conditions, our objectives for the company will stay as they are. In order to surpass the lofty levels we have reached in the world’s acrylic market, we will carry on working with our colleagues, committed to their jobs, with love and respect, without compromising on our principles. I extend my sincerest gratitude to our shareholders, financiers, and all stakeholders supporting us under all circumstances, and my wishes for a good year with further new successes.