Kordsa Proceeds with Its Development Story

Kordsa, the reinforcement leader in Turkey, continues its investments in composite technologies and achieved to end another year with successful financial results. Kordsa increased its turnover by 30.2% in 2019 amounting to 5,137 million TL, compared to the previous year, and its net profit is increased by 11.8%, which amounts to 378 million TL.

The company accomplished a profit of 747 million TL before interest, depreciation, and taxes in the same period.

Kordsa, which is one of the affiliates of Sabancı Holding, continued its growth this year by incorporating 4 composite companies that are located in the USA in 2018 and 2019. The company desires to have a say with the technologies that it has developed in the composite industry and to rapidly observe the reflection of its investments on turnover. Therefore, Kordsa continued its development by investing in companies located in the USA, which is the center of the composite market and the aviation industry, and which have completed their approval processes. The contribution of these investments, which are located in the USA, to the turnover with an amount of 737 million TL, reflected positively on the financial indicators by the end of 2019. In 2019, the company’s total turnover reached 5.1 billion TL with an increase of 30.2% compared to the previous year, and the period profit increased by 11.8% to 378 million TL, and fundamental operating profit increased by 16.9% to 614 million TL. Kordsa increased its total export amount by 14.6% by realizing exports to 38 countries in 2019.

Ali Çalışkan, CEO of Kordsa, expressed his satisfaction with the growth they achieved and the sustainable technologies they developed in 2019, evaluated the year-end results as follows: ’‘As Kordsa, ‘‘Our Passion is Strengthening Life’’. As our growth continues, our efforts are in the direction of trying to develop sustainable technologies in order to add value to our country, partners, and investors and to guide the sectors we are in. As Kordsa Reinforcers, we have created the R&D platform named “Flexible Electronics” in partnership with Sabancı University in order to develop new generation flexible wearable sensors on account of using our knowledge and competencies in different fields. We carried our journey, which was initiated with tire reinforcement, into space with our investments in 2018 and 2019, and now we are ready to take our technological breadth further through with this new R&D platform and make an effort to produce the technology of the future. I would like to thank our employees and partners who contributed to all our successes.’’

At the beginning of the third quarter of 2019, the company took an important step in the journey of creating a second Kordsa by incorporating US Axiom Materials, which has an important place in advanced composite technologies and aviation industry, and has completed the original parts manufacturer approval processes. Hence, the company has become an important supplier of the Oxide ceramic composite market, which is durable against high temperatures and used in the engines of aircrafts. Kordsa, which reinforces one of every three automobile tires in the world and two of all three aircraft tires, has now started to strengthen the engines of the planes that it has strengthened its tires today after the wings, hulls and internal parts of them.

Kordsa, which sustains its leadership in the tire reinforcement industry as well as its development in the composite field, launched its new line in 2019, of which the investment decision was made in 2016 and will provide an additional 7 thousand tons of polyester yarn capacity at the Izmit facility in order to meet the increasing demand in this business sector. Through this new line, Kordsa gained the ability to produce new generation polyester yarn products with very high strength and better dimensional stability in addition to the standard HMLS polyester yarn.

Kordsa, which tries to manufacture “sustainable technologies” in every step and every investment it takes on its path with the goal of reinforcing life, has developed an innovation that will steer the tire industry in 2019 with an open innovation approach. Kordsa, which has developed a new and environmentally friendly adhesive standard called CoKoon for joining rubber-based compounds and textile reinforcement materials by combining the R&D forces with the tire manufacturer Continental, has created a free license pool for access to this new formula aiming to devise an alternative, which has been an industry standard for almost a century. Production of the first 250,000 tires with CoKoon bonding technology started within the last quarter of 2019.