Dear Stakeholders,
We were deeply saddened by the catastrophic earthquake disaster we recently experienced. The aftermath has affected our country and the entire world. Despite the challenges, the solidarity and determination displayed by our nation, along with the gracious support from many countries, have been a source of strength during these difficult days.
Of course, we were involved in this mobilization quickly and with determination. Akkök Holding, together with its group companies, swiftly mobilized all available resources to assist the disaster-stricken areas in collaboration with AFAD, local governments, and NGOs. As Akkim, we not only provided humanitarian aid but also sent our advanced technology water purification system to the earthquake-affected region, ensuring clean water for our citizens. Our efforts to heal the wounds caused by the earthquake continue tirelessly.
Although we had high expectations for 2022 after the pandemic, we faced yet another challenging year. The damage caused by the Russia-Ukraine war on the global economy was added to the disruptions in supply chains, and new negative developments such as economic sanctions and energy crisis emerged. Additionally, the leading stock markets experienced severe volatility, resulting in significant losses ranging from 9 percent to 15 percent. Central banks responded by implementing high-interest rates and tight monetary policies, which contributed to high levels of inflation in many countries.
Economists from organizations such as the IMF, OECD, and European Central Bank expect a potential global recession, with projected growth rates below the threshold of 2.5-3 percent for the world economy in 2023. It is predicted that these global economic challenges will also have negative effects on our country.
In contrast to many countries, Türkiye achieved a growth rate of 5.6 percent in 2022 due to expansionary monetary policies. However, the focal point for our economy this year has been inflation. Started the year at 48 percent, the annual inflation reached 84 percent in CPI and 140 percent in PPI. Despite the emerging economic landscape in our country and globally, we remain committed to our cautious economic strategies, maintaining an optimistic outlook for 2023.
From its humble beginnings 45 years ago in Yalova, with an annual production of one thousand tons of sulfur dioxide, Akkim Kimya has now become the largest chemical producer in our country. Our annual production capacity across five different locations, particularly in Yalova, reaches 800 thousand tons. We serve a wide range of sectors, including textiles, construction, plastics, food, energy, water treatment, hygiene, oil, and health. For many of our products, we rank among the leading companies in Europe.
Akkim Kimya’s contribution to the national economy has exceeded 200 million dollars, and our turnover stands at approximately 550 million dollars, with exports to more than 70 countries across six continents. With our strategic investments and plans for company acquisitions, we aim to achieve a turnover of 1 billion dollars by 2027. As a significant step toward this goal, we recently laid the foundation for our Epoxy Resin Production Facility in Yalova last December. This investment will be groundbreaking for Türkiye and neighboring countries, establishing us as the sole producer of this strategically valuable raw material for multiple sectors in our country. The facility will have an annual production capacity of 50 thousand tons of liquid and solid epoxy resin and formulated derivatives. By reducing imports by up to 50 thousand tons per year, we will contribute to lowering the current account deficit by approximately 200 million dollars annually. We anticipate that our facility will become operational in the first half of 2024. Furthermore, we have successfully commissioned our Akkim Silikon Kimya investment, which focuses on producing high-tech silicone polymers, during May of this year. This state-of-the-art facility will serve as a solution partner for the construction, textile, paper, agriculture, food, automotive, and pharmaceutical industries.
Another noteworthy achievement is the inauguration of our new R&D Center for Akcoat, one of Akkim’s subsidiaries specializing in various coating categories, including enamel, ceramic, glass, non-stick decorative coatings, and pigments. Covering an area of 6 thousand m² in Sakarya, this R&D Center aims to develop value-added products in the coating field.
I would like to extend my sincere gratitude to all our colleagues who work with unwavering energy and dedication. I also express my appreciation to our shareholders, customers, and all our stakeholders for their continued trust and support.
Most respectfully,
Raif Ali DİNÇKÖK
Board Chairman
