Industry Group companies have carried out successful applications that will lead our country in the sectors they do business in by the commercialization of innovation, lean applications, advanced data analytics and Industry 4.0 in 2019 as well.
GROWTH IN COMPOSITE TECHNOLOGIES MARKET
Industry Group company Kordsa has acquired Axiom Materials in the USA in 2019 and continued to grow in the composite technologies market.
ADVANCED DATA ANALYTICS FOCUS
Industry Group has achieved significant gains in 2019 with its focus on advanced data analytics.
IMPORTANT INCREASE IN HARD CURRENCY INCOME
Kordsa and Brisa continued to add value to the Turkish economy by increasing their hard currency income significantly in 2019.
Throughout 2019; Industry Group has focused on occupational safety, quality, efficiency, working capital and cash management in main areas of activity and achieved a healthy growth, development and consolidation of competencies, new technologies and new collaborations.
Kordsa reinforces one out of three automobile tires and two out of three aircraft tires in the world.
With the acquisition of Axiom Materials, the competencies in advanced technology composite intermediate portfolio and competencies in the field of composite products have been developed in the US.
Priorities in 2019
Throughout 2019; Industry Group has focused on occupational safety, quality, efficiency, working capital and cash management in main areas of activity and achieved a healthy growth, development and consolidation of competencies, new technologies and new collaborations. As decisions to cease activities in some lines of business within the direction of the dynamic portfolio management target in 2019 has been taken, growth has been achieved through investments in other areas.
Reinforcing one out of every three automobile tires and two out of every three aircraft tires worldwide, Kordsa’s leading position in the market, strong global footprint, technology leadership and experience in reinforcement technologies are consolidated to create a second Kordsa.
In 2019, with the acquisition of Axiom Materials by Kordsa in the US, organic growth continued to be supported with inorganic growth in the composite technologies market. In the aviation sector, the journey has been set off with acquisition of Fabric Development and Textile Products both of which produces structural materials that require a high level of engineering. The journey continued with Advanced Honeycomb Technologies, a producer of cabin interior parts which has been acquired to broaden our competencies. With the acquisition of Axiom Materials, Kordsa has created a growth platform in North America, which is the global center of the space and aviation industry.
Axiom Materials provides materials to the new generation vehicles as well as space and aviation industry and leads the composite market with its R&D efforts. With Axiom Materials, Kordsa has become the leader in the market of high temperature resistant oxide-oxide ceramic composite materials used in aircraft engines.
Producing one out of every three tires that reach the end consumer, the company steadily executed its capital investment plan thanks to its people, innovation capacity, advanced technology and balanced financial structure.
Aiming to create value in occupational safety, quality, efficiency and production processes by investing in digital technologies in both companies in 2019, Sabancı Industry Group has achieved critical gains through its advanced data analytics focus.
Enhancing its presence in international markets while focusing on domestic leadership in the contracting and fluctuating market conditions, the Group has increased its export revenue in TL by 38% compared to the previous year.
Performance in 2019
Kordsa bolstered its global market leadership in tire reinforcement, its core business while continuing to execute strategic and visionary investments in composite technologies.
Kordsa’s financial indicators have been realized following the expectations. While the company’s total turnover increased by 30% in 2019 compared to the previous year, reaching TL 5.1 billion; its operating profit has increased by 17% to TL 614.3 million. Exporting 38 countries in 2019, Kordsa increased its export revenue by 15%.
TECHNOLOGY AND INVESTMENTS
Providing high-tech composite materials to next-generation vehicles as well as space and aviation industries and leading the composite market with its R&D studies, Axiom Materials company has joined Kordsa in 2019. Thus, Kordsa gained competencies in the reinforcement of aircraft wings, bodies and internal parts, in addition to its competencies in the reinforcement of aircraft tires.
With the additional polyester yarn line that was commissioned in 2019, Kordsa has become able to produce new generation polyester yarns with very high strength and better dimensional stability, in addition to the production of standard HMLS polyester yarns.
Mission to develop eco-friendly and sustainable products
Kordsa has worked to develop a resorcinol- and formaldehyde-free, eco-friendly glue formula. This effort reflects the company’s mission to develop more sustainable products in tire reinforcement technologies.
As one of the biggest supporters of open innovation, Kordsa has combined its deep knowledge base and expertise in the field with Continental, one of the most important players in the tire sector with this mission. Creating an alternative to the formula used in the market for almost a century, with this very environmentally-friendly formula named Cokoon, Kordsa has attracted great interest and pioneered the sector by creating a free licensing pool with an open innovation approach.
Besides, Kordsa has developed a revolutionary e-glass prepreg for lightening works heavy commercial vehicles over 16 tons in cooperation with Ford Otosan. Within the scope of the Horizon 2020 program which aims to offer innovative technologies for plastic recycling, PolynSPIRE project partnership is continued. In 219, Kordsa Turkey plant has received the IATF 16949:2016 Automotive Management System certificate.
By carrying out advanced data analytics based optimization studies at Kordsa production sites, over 3% efficiency has been provided in the yarn facility and over 10% efficiency increase has been achieved in the twisting facility.
Construction reinforcement technologies which are among the new lines of business of Kordsa, are preferred in infrastructure and superstructure projects due to the synthetic fiber reinforcements that deliver energy efficiency, long-term durability and low carbon emission.
Kordsa demonstrated its world-class success by garnering numerous prestigious awards that recognized its innovative technologies, human resources practices and business ethics. In addition to the awards the company has received in Turkey, Kordsa has been designated as one of the best employers by the Great Place to Work Institute in Bahia, Brazil for four years in a row. Kordsa also won the Best Employee award in Indonesia for two consecutive years.
Kordsa aims to strengthen all the societies where it operates. To this end, the company continued its social responsibility activities across four continents in 2019.
2020 priorities and strategy
In the coming year, the Industry Group plans to boost its competitive edge in existing operations by using the next generation technologies, such as Industry 4.0 applications, digitalization, advanced data analytics and robotics based on artificial intelligence. Besides, the Group aims to realize its vision of shaping the future by entering high value-added businesses – such as energy storage, printable flexible electronics and thin-film technologies – and using its advanced competencies in electro-mobility and material science.
Kordsa aims to grow in all regions it conducts business with the strength of technology and product development competencies. Among the 2020 priorities of Kordsa; increasing the growth rate with the integration of US composite investments, growing in the composite value chain in Europe, leading the sectors in which it operates by developing new and innovative technologies with an R&D understanding that is an integral part of its corporate culture and including digitalization and robotic systems to its business processes.