Dear Aksa Family,
The main economic issues on the agenda of the world in 2019 were listed as the interest rate cut decisions, the slow recovery of the US economy and a notable slowdown in economic growth in China. Geopolitical risks and tensions between the US and Iran also raised economic hardships.
From an economic standpoint, 2019 was a stagnant year for almost every sector. To make a comparison with 2018, it is possible to say that it was a year with more positive developments but was also full of difficulties. Despite this, our Company has achieved many successes without compromising on its management approach and strong stance in the past years.
Production and consumption problems in the acrylic fiber sector in 2018 caused a contraction in demand and raw material prices, especially in China. We entered 2019 with uncertainties due to similar problems. However, following a strong first quarter, the producers of acrylonitrile (ACN), the main raw material, suspended production by declaring a force majeure and one of our biggest suppliers ceased production. This caused a major setback in terms of supply. On the other hand, uncertainties regarding the future continued with the announcement by the US of the embargoes to be applied to the third largest acrylic fiber market, Iran.
Despite these conditions, it should be noted that we completed 2019 with a strong performance. We achieved efficient results throughout the year thanks to our active marketing operations and competitive pricing strategies. By continuing to export to more than 300 customers in more than 50 countries on 5 continents, we managed to maintain our market share with the capacity utilization rate akin to market averages. By realizing 57% of our sales in the domestic market and 43% in the foreign market, we achieved a market share of 18% in the global market and 70% in the domestic market in 2019.
Our Company’s share value rose from TL 1.2 billion to TL 2.5 billion with our corporate management approach, our transparent, sustainable and efficiency-oriented production model. Thus, our market value expanded by 100%. Our net profit grew by 24% on turnover of TL 3.6 billion. With the dividend distribution we completed in 2019, our dividend payment per share made us one of the companies with the highest dividend payout rates, as in previous years.
This year again we secured top places in the “ISO 500 List”, where Turkey’s Top 500 Industrial organizations are listed, “Fortune 500” and “Turkey’s Top 500 Companies” as recognized by the Capital magazine. These are measured by taking into account our turnover and asset size and we had the honor of adding value to Turkey’s economy.
Our Company, which operates with the aim of creating new uses for acrylic fiber, participated in many international fairs in 2019 to introduce our new products. With these fairs in which we participate in the international arena, we will continue to compete with determination, in an environment where global competition is more intense than ever.
In addition, Aksa Acrylic, supporting young people and new projects, took its place in the start-up ecosystem for the first time this year with the “Value for Entrepreneurship” project launched in 2019. Within the scope of the project, cooperation with ITU Çekirdek, an early stage enterprise that brings together science, technology and design, started to provide entrepreneurs with both financial and mentoring support to carry out their current business.
In 2019, we continued to carry out corporate social responsibility activities. The belief that sustainability will be ensured through education and cultural development and raising environmentally conscious generations was our starting point in these activities. In this regard, we have carried out corporate social responsibility activities especially in fields such as education, culture, arts and sports. With the “Open Door Visits”, where we have informed hundreds of students about our production processes, we have also hosted many visitors locally and from abroad such as non-governmental organizations, local people, customers and benchmarking teams.
On the other hand, with its responsibility towards society and the environment, uninterrupted energy supply and management for operational sustainability has had a special importance for our company. Aksa Acrylic sells the excess energy it produces from its electrical energy and process steam production to the free market and has achieved European norms with its improvement works in 2019.
For us, human health, the environment, leaving a livable world for future generations have always been substantial issues requiring further action. Therefore, we aimed to minimize the effects of climate change and water resources on our production. In this context, we conducted the “Life Cycle Analysis” for all product groups in order to identify and reduce our negative effects on the environment and human health. From this perspective, we once again experienced in 2019, the importance and value of our environmental policy and our understanding of sustainability in raising productivity and maintaining an economic balance, not only in theory but also in practice.
We would like to thank our employees, customers, business partners and shareholders who have contributed to our Company, whose foundations were laid in Yalova 50 years ago, to undertake many successful works in line with its vision to direct the sector it leads and create sustainable value for its stakeholders, despite difficult conditions.