Ak-Kim, Celebrating Its 40th Anniversary, to Reach USD 750 Million in Revenue in 2023

Founded in 1977 with just 4 employees and an annual production capacity of 1,000 tonnes, Ak-Kim has grown into one of the chemical sector's major players, now employing 850 people. On the company's founding anniversary, General Manager Onur Kipri announced a USD 300 million investment target. Kipri, explaining that Ak-Kim produces over 1,500 products including those from acquired companies, stated: "Over 40 years, we have increased production capacity from 1,000 tonnes to 800,000 tonnes. As we approach 2023, we are working toward positioning Ak-Kim as a company with annual turnover of USD 750 million. We are also evaluating inorganic growth opportunities." Ak-Kim, part of Akkök Holding and one of Turkey's largest players in the chemical sector—which has a USD 4 trillion global market—announced a USD 300 million investment plan by 2023 on its 40th anniversary. At a press meeting organized by Ak-Kim General Manager Onur Kipri to mark the 40-year milestone, Akkök Holding Board Chair Ahmet Dördüncü and Akkök Holding Board Vice-Chair Raif Ali Dinçkök were also present.

'We Want to Close 2 Percent of the Current Account Deficit'

Akkök Holding Board Chair Ahmet Dördüncü, stating that 2017 is a very important year for both Ak-Kim and the Akkök Group, said that by 2023 they aim to close 2 percent of Turkey's current account deficit as Akkök Holding. Noting that the chemical sector is gaining increasing importance both nationally and internationally, Dördüncü said: "As Akkök Holding, the chemical sector is one of the main sectors we focus on. The level of development in the chemical sector is directly proportional to the level of development of countries. Looking at Turkey, we see that the chemical sector is the third-largest exporting sector after automotive and ready-made clothing. However, the chemical sector accounts for USD 25 billion of Turkey's foreign trade deficit. For this reason, our priority in chemicals is to develop value-added, innovative products."

Dinçkök: We are Building Turnkey Factories Abroad

Akkök Holding Board Vice-Chair Raif Ali Dinçkök said that Ak-Kim exports not only products but also know-how to the world. Dinçkök stated: "As Akkök Holding, our priority is to create sustainable growth and profitability while adding value to our country and stakeholders. Ak-Kim, as in the past, continues to add value to Turkey's economy today. Our greatest goal is to increase this pride day by day." Explaining that Ak-Kim today builds turnkey chemical companies abroad, transferring the knowledge and experience accumulated over 40 years to foreign companies, Raif Ali Dinçkök noted: "For 15 years we have been building turnkey factories abroad. Ak-Kim established and successfully commissioned Chlor-Alkali Plants in Jordan in 2002 and 2004. It also built two separate Chlor-Alkali Plants in Saudi Arabia in 2008, a Hydrogen Peroxide Plant in Pakistan in 2007, a Hydrochloric Acid Plant in Greece in 2011, a Chlor-Alkali Plant in Algeria in 2012, and a Ferric Chloride Plant in Algeria in 2014. We want to undertake turnkey facility projects not only abroad but also domestically, and we welcome future projects in this regard."

"We are Evaluating Opportunities"

Ak-Kim General Manager Onur Kipri stated in his remarks that by 2023, the centenary of the Republic, they want Ak-Kim to become the number-one player in the specialty chemicals sector: "By 2023, we want to position Ak-Kim as a company with annual turnover of USD 750 million. Over 40 years, Ak-Kim has maintained healthy organic and inorganic growth and will continue to evaluate new company acquisition opportunities. Following Gizem Frit, we acquired German Dinox this year. We aim to strengthen our position in the markets we operate in."

Boron-Based Steel Vests for the Military

Kipri, explaining that over the 40-year period the company has done more than increase production from 1,000 tonnes to 800,000 tonnes, continued: "Chemistry is a sector that is constantly evolving and needs to be developed. We have continuously developed our R&D team. Today, approximately 60 Turkish engineers at Ak-Kim's R&D center work continuously on new products. Only Ak-Kim produces many industrially important inputs for Turkey. Our newly established research center with Koç University works on boron-based products. These products will be used in armor and steel vests. We hope they will save the lives of our soldiers and reduce casualties. With the asphalt additive we have developed for highways, we aim to extend the lifespan of asphalt and contribute to not having to replace bridge and highway asphalt every year in the near future. We produce raw materials that allow clothes to come out of the washing machine spotlessly clean even when washed in low temperatures. Wrinkle-free shirts and water-soluble toilet paper are produced thanks to our products. With building chemicals, we contribute to the construction of stronger buildings." Kipri also emphasized that the chemical sector is of direct concern to billions of people and that developments in chemistry are directly linked to the development of countries, adding: "The annual turnover of the global chemical industry, which supplies raw materials and auxiliary materials to the service and manufacturing sectors, exceeds USD 4 trillion."

Sector Creates 300,000 Jobs

Ak-Kim General Manager Onur Kipri, underscoring that the chemical industry in Turkey employs 300,000 people, continued: "This figure represents 9 percent of total employment in the manufacturing sector. Including families, 1.2 million people directly earn their living from this sector. Together with indirect employment, the chemical industry is an important gateway for the country. However, the sector faces significant challenges. Dependence on foreign raw materials is the second-largest driver of the chemical sector's trade deficit. Turkey has USD 25-30 billion in chemical production. Against USD 14 billion in exports, the sector imports USD 40 billion, meaning the sector's current account deficit stands at around USD 25 billion. As consumption increases, chemical demand will also increase. For 2023 and beyond, if no measures are taken, the current account deficit is estimated to reach USD 50 billion. To close this current account deficit, our sector needs to focus on value-added performance chemicals, R&D and innovation, and petrochemical products."