Akça Kimya to Go Public in 2022

Akça Kimya Going Public in 2022 **Akça Kimya, part of Zülfikarlar Holding which began its journey in 1942 with the trading of chemical substances and has grown through investments in various sectors over 80 years, aims to go public in the second quarter of 2022.** With over 100 product varieties including alkalines, phosphates, salts and acids, Akça Kimya supplies chemical products to many industrial sectors such as detergents, cosmetics, food and feed, agriculture, paper, textiles, construction and paints and coatings. Offering both standard and sector-specific strategic products to its customers in the sectors it serves, Akça Kimya differentiates itself from competitors through its own port and the logistical advantage it provides especially to liquid cargo vessels.

Gross Profit Increase of 173 Percent

Recording EBITDA of TRY 53.8 million in the first nine months of 2021 and TRY 91 million by year-end, Akça Kimya's 2022 targets include going public and growth. Operating in fuel distribution, energy, chemicals and finance sectors, Zülfikarlar Holding had consolidated revenues approaching USD 4 billion as of 2020. Akça Kimya, part of Zülfikarlar Holding, aims to increase its market share across Turkey in addition to its Yarımca facility. Despite pandemic impacts, Akça Kimya drew an upward profitability curve, with 2021 gross profit reaching TRY 38.6 million, up 173 percent.

High Profitability Targeted Through Logistics Advantages

Akça Kimya's ability to import and store high volumes of products (on a vessel basis) through its Yarımca facility functioning as a warehouse and national depot, high brand recognition in certain products such as soda and caustic, and well-established long-term supply relationships with global firms contribute to its profitability. Opening its Aliağa branch in July 2021, Akça Kimya also reached agreements on liquid and dry cargo storage and logistics solution centers in Hatay province to increase sales in Turkey's southern regions for imported chemical substances. Sarıcı stated that with anticipated commodity price increases in the global market and decreasing supply, they expect the chemical raw materials market to be highly profitable in nearly all products over the next two years. Sarıcı said: "As a firm providing large-scale raw material supply, with our purchasing power, long-established corporate history, high storage capacity, logistics advantages and broad product portfolio, we are targeting high profit margins."

Akça Kimya Grew Domestically in 2021

Noting that food, cleaning, hygiene and agriculture sectors—which gained importance during the pandemic—hold significant positions in their portfolio, allowing them to continue operations uninterrupted despite all restrictions, Akça Kimya General Manager Alp Sarıcı stated: "We turned 2021 into an opportunity year and took the first steps in our regional expansion. Through the sales organization and logistics centers we established in Turkey's southern and western regions, we expanded our customer portfolio. Thanks to the opportunities provided by our parent company Zülfikarlar Holding, the liquid and dry cargo handling capacity of our Yarımca facility and the logistics advantages of our port, we provided our customers with uninterrupted product supply even during a period when supply became so difficult." General Manager Sarıcı noted that with the Business Development Department they continue to structure, they will continue to serve segments not yet present in Turkey's chemical sector, saying: "We will continue to produce solutions in different sectors for industry with the products we supply."

Turkish Chemical Sector Increased 2021 Exports 38 Percent Compared to Previous Year

Noting that Turkey's share in world exports is rising rapidly, Sarıcı said: "In our country, approximately 2,600 chemical substances and preparations are produced in the chemical sector, and most of the technologies used in these productions are at a level capable of keeping pace with global competition. The Turkish chemical sector, the second sector with the most exports in 2021 with USD 25.3 billion in exports, increased its exports by 38 percent in December 2021 compared to the same period in 2020. I believe our sector will further increase its contribution to Turkey's total exports in 2022." Noting that the chemical industry, one of Turkey's locomotive sectors and a supplier of intermediate goods and raw materials to many sectors, experienced problems in production, logistics and supply globally in 2021, Akça Kimya General Manager Sarıcı evaluated developments in the chemical industry during 2021. Sarıcı stated that the chemical sector, whose strategic importance is increasingly recognized and which produces for approximately 30 different sectors, strengthened its position despite contractions in some sectors, logistical problems and raw material price increases. Sarıcı noted that due to the pandemic, supply chain managers and logistics companies witnessed developments they had not seen in years, saying: "High fluctuations in supply and demand caused disruptions in supply chains. As a result, air cargo demand saw an explosion, sea cancellations, equipment and port congestion occurred. On road transport, there were occasional bottlenecks at border gates. As a result of all this, freight rates reached the highest levels in recent years. Many companies, particularly those in the chemical sector to which we also belong, experienced difficulties in raw material supply as they prefer to operate without stock."

Turkey Could Become Europe's New Raw Materials Logistics Hub in Chemicals

Making statements about how freight rate increases in the Far East and longer delivery periods especially push European countries to seek new supply chains, Sarıcı expressed that Turkey would be a lifeline for Europe in this regard. Explaining that the chemical sector, which realizes 10 percent of total country exports and provides employment to approximately 300,000 people, is among the sectors that will contribute most to Turkey's achieving its targets, Sarıcı made some evaluations regarding the process. Demonstrating that export increases in the chemical field will occur in 2022 for reasons such as logistics costs not yet having risen, short transit times enabling fast delivery, labor quality and the existence of alternative transportation channels, Sarıcı emphasized that the chemical industry, which supplies inputs to many sectors, has high production and market diversity. It was also noted that they contribute to further strengthening in the supply point of high-quality products compliant with EU regulations, and that Turkey's proximity to developing markets and geographic location advantages further strengthen this situation.

"New Customer Entries Are Occurring"

Drawing attention to Turkey's strengths, Sarıcı also spoke of new customer potential, saying: "We need to evaluate our country not only as a market of 80 million people; but also in terms of its proximity to Turkic republics through ethnic ties, its recognition in the Middle East, the projects it has begun to undertake for Africa and the customs union regulations with Europe. In light of all these developments, we foresee an increase in demand coming to Turkish exporters and new customer entries occurring. With confidence in our country's and our company's strength, we will continue to grow with sure steps."