Kordsa Focuses on Core Business Lines to Adapt to Global Market Dynamics

Kordsa aims to strengthen its competitive position by focusing on tire reinforcement and composite technologies in its new phase.

Kordsa, a Sabancı Holding affiliate and one of the world's leading companies in advanced materials technologies, is reshaping its strategic structure in line with changing global market conditions. In its new phase, the company aims to increase both operational efficiency and global competitiveness by focusing on its core business areas of tire reinforcement and composite technologies.

Kordsa CEO Ergun Hepvar commented on the new strategic direction, saying, "We have built our strategy on 'becoming a differentiated partner that creates value for the customer' and 'being the driver of market change.' Our aim is to create a Kordsa that maintains competitiveness on a global scale, stands out through its technology, strengthens its balance sheet with a focus on financial sustainability, and reinforces its leadership vision."

"Change in the global market requires more focused structures"
Noting that increasing capacity investments by Asian players and price competition have significantly altered the balance in the sector in recent years, Hepvar stated, "Today, a significant portion of tire reinforcement production has shifted to Asia, particularly to China. In this competitive environment, it has become inevitable for companies to transition to more efficient, flexible, and focused structures. We are increasing our focus accordingly and repositioning our business areas."

As part of this strategy, Kordsa transferred its construction reinforcement business unit and Kratos brand to Afyon Çimento, a subsidiary of Çimsa, a company within the Sabancı Group. Hepvar emphasized that this move was "a natural result of our focused growth strategy."

"Operational efficiency and financial sustainability are our priorities"
Drawing attention to Kordsa's strong 52-year track record, Hepvar stated, "Kordsa has always been a brand that grew alongside its customers. Customer focus, quality commitment, and agile structure have positioned our company as a global leader in tire reinforcement. Today, at a time when our global customers are reshaping their supply chains, we too need to reconfigure our operational processes in line with market realities."

Hepvar noted that Kordsa's fundamental strategies during its transformation are built on excellence in value-added products and continuity in customer satisfaction, saying, "Creating sustainable added value for all our stakeholders is the formula for our future."

"Sabancı's vision and trust are very important in the Kordsa story"
Expressing that Sabancı Holding's vision and confidence in the company play a major role behind Kordsa's global transformation process, Hepvar stated, "Sabancı Holding's decision to participate in the capital increase decision made last month as the main shareholder is the most recent sign of this confidence."

Noting that funds obtained from the capital increase will be used to reduce Kordsa's financial debt, Hepvar said, "This financial restructuring will be one of the strongest driving forces of the transformation process our company is undergoing."