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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.

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Kordsa Acquires AXIOM Materials with an Investment of USD 181 Million

Kordsa, a subsidiary of Sabancı Holding and a global player in the reinforcement technologies market, acquired US-based Axiom Materials.

This acquisition of USD 181 million paved the way for Kordsa to be the only worldwide qualified manufacturer of Oxide-Oxide ceramic matrix composites.

Kordsa has stepped into the advanced composite materials industry with Composite Technologies Center of Excellence, conjointly established with Sabancı University. Kordsa has expanded its area of operations and competencies with its 2018’s acquisitions of Fabric Development, Textile Products and Advanced Honeycomb Technologies providing advanced composite materials to the aerospace industry. With the acquisition of Axiom Materials, Kordsa has completed the first phase of its goal to build a second Kordsa in composite technologies. Widely used in aircraft engines, the value-added materials produced by Axiom Materials have different applications in various industries and are considered as the material of the future. This acquisition, which is critical to develop Kordsa’s competencies in strategic and high growth areas, strengthens Kordsa’s potential to develop new products.

Pointing out the position of Kordsa in the Holding’s vision,  as Sabancı of  New Generation, Mehmet Göçmen, Sabancı Holding CEO, said: “Dynamic portfolio management and high technology-oriented investments are critical areas of focus in the transformation process of Sabancı Group. Kordsa, the flagship of our vision to grow in high value added industries, transforms into a company capable of producing advanced material technologies with its investment of approximately USD 300 million in composite technologies in the last two years. Following the acquisition of four US-based major companies, Kordsa built a business line with annual gross revenue of over USD 150 million. With this new investments, Kordsa as the supplier of leading global companies, now becomes the only worldwide qualified manufacturer of Oxide-Oxide ceramic matrix composites. This key acquisition, which is a clear sign of our mindset to manage our business based on universal standards, will also support the development of our country in international markets.”

Cenk Alper, Sabancı Holding Industrials Group President and Chairman of Kordsa, regarding the acquisition of Axiom Materials stated: “We continue to support our organic growth in the composite technologies market with inorganic growth investments. We took the first step of our growth strategy with the Composite Technologies Center of Excellence, one of the few integrated production centers in the world. Our journey went ahead in aerospace industry with Fabric Development and Textile Products, which produce highly-engineered structural materials; our competency has expanded with the acquisition of Advanced Honeycomb Technologies, which produces advanced materials for cabin interior parts. With this investment, we will create a growth platform in North America, the aerospace hub.”

Ali Çalışkan, Kordsa CEO, regarding the purchase of Axiom Materials, which leads the composite market through its R&D studies, stated: “We took a very important step that reinforces our vision ‘Inspired from life, we reinforce life’. With the acquisition of Axiom Materials providing advanced technology composite materials to the next generation transportation vehicles as well as the aerospace industries and leading the composite market through its R&D studies, we have expanded our expertise in the field of composites and finalized the portfolio of advanced composite intermediates. With the acquisition of Axiom, we  completed the first phase of our goal to build a second Kordsa in composite technologies. Today, we are the only worldwide qualified manufacturer of Oxide-Oxide ceramic matrix composites. I am both proud and excited for the days ahead. After the tires, wings, hulls and the interior of the aircrafts, Kordsa will also reinforce aircraft engines. “

Alternative Adhesive for Textile Industry from Kordsa

Kordsa, which operates in the field of composite technologies with tire and construction reinforcing, has produce a new adhesive collaborating with Continental. This new technology can be the new standard adhesive of the textile reinforcing materials industry.

Kordsa introduced its new invention which it developed with Continental at the beginning of 2018 at Tire Technology in Hannover. Kordsa Technology Director Devrim Özaydın said that, “Since 2008 we have been working on an environmentally friendly adhesive formula with a non-resorcinol and formaldehyde free in the field of tire technologies. While we are developing the chemical structure, Continental has also developed application-related technologies.”

Devrim Özaydın said that they think this new technology could be the new standard adhesive of textile reinforcing materials sector. Özaydın added, ”We will present all information to the world with the right of  free  use in order to be the new standard of the industry.” Devrim Özaydın stated that they achieved to change the formula used in the tire cord fabric bath within the framework of this cooperation and stated that the formula they have reached is more ecofriendly formula that can be an alternative to the resorcinol formaldehyde formula which has been used for 80 years. In addition, Kordsa carry out studies on new technologies to increase energy efficiency and reduce its carbon dioxide emissions by taking the environmental effects into consideration in the İzmit R & D center. For example, it developed a new concept in the finishing process with the Minidip project , while the ABC project achieved an average energy saving of 10 to 15 percent on twisting machines.

Kordsa has 218 approved patents

In the first half of 2018, Kordsa is among the global leaders with the number of patents published in the patent research database. Özaydın said, “We increased our total patent portfolio by approximately 60 percent in 2017. As of July 2018, we have 174 inventions worldwide, 717 patent applications and 218 approved patents.”

Awarded R & D Centers

Kordsa’s first R & D center in Izmit was established in 2008. In 2016, with the investment of 30 million dollars, they established the second R & D centers in the Composite Technologies Center of Excellence, which they implemented together with Sabancı University. This center is the first carbon cloth and prepreg manufacturers who support the basic research to the production of prototype parts in Turkey.

Kordsa to expand its global footprint in aerospace industry with a new US investment Kordsa has signed a definitive agreement to acquire approximately 96% share of Axiom Materials Acquisition LLC, total enterprise value of USD 181 million, which provides advanced composite for aerospace and industrial applications. composite technologies that we entered with our first investment in 2013. We realized Composite Technologies Center of Excellence investment in 2016. As part of our inorganic growth targets, following the acquisition of three composite firms in 2018, we have taken the necessary steps to acquire yet another composite company based in the US. In order to leave behind long approval processes in aircraft parts and space vehicles, we set out to acquire Axiom Materials, an approved supplier for aerospace industry. With this acquisition, we will lead the advanced composite technologies for the next generation industrial and transportation applications, as well as the aerospace industry.