Kimpur Expected to Go Public in April

Kimpur, which postponed its public offering due to currency fluctuations at year-end, submitted its prospectus including December 2021 data to the CMB. It expects to go public in April. Kimpur CEO Cavidan Karaca made the following statements regarding the matter: "The postponement will not be a disadvantage. We achieved 20% physical growth and 131% revenue growth. As of 31 December, we wanted to obtain data exceeding our targets and demonstrate our growth, and with this postponement we are getting the opportunity to show all of this. We have now submitted the revised prospectus content with consolidated 31 December data, and our expectation is for the public offering to take place in April. Noting that they closed 2021 exceeding their targets with 88,000 tonnes of capacity and thereby achieved 20% physical growth, Karaca said, "We achieved 131% revenue growth in total despite both currency increases and rising raw material prices alongside 20% physical growth. We reached sales revenue of TRY 2,170 million in 2021. This figure was TRY 940 million the previous year. We had 120,000 tonnes of capacity. Following our efficiency work, we see in the report we received that we reached 130,000 tonnes of capacity. Because we used high capacity, we made investment decisions."

"We Have a Commitment to Distribute 50% of Distributable Profit"

Karaca, on whether the postponement of the public offering would create a disadvantage for them, said: "It will not create a disadvantage. There is only a three-month revision. During this period we demonstrated that we achieved much better business results and presented a much better consolidated balance sheet. Moreover, we have serious profit growth such that while our profitability the previous year was TRY 80 million, according to the independent audit report we increased it to TRY 316 million. We achieved nearly 300% profit growth. We have a commitment to distribute 50% of distributable profit. In this respect, we think we will be among the largest public offerings of 2022. We guarantee this dividend every year. Because we had a very good 2021, we think it will be one of the important factors in our being preferred," Karaca said. Noting that there was no change in the public offering plans, Karaca continued: "We plan to use part of the total 30% stake in the public offering as share sales and the 25% portion as capital increase. We plan to use 50% of the resources coming from this for financing the Düzce investment, and in the remaining 50% portion for working capital and debt reduction as existing credit spending."

Production at Düzce Plant Planned to Start in 2023

Karaca also provided information about Kimpur's investments. Karaca stated: "We had purchased the land for the Düzce investment previously. We have not reached the final stage yet, but the project phases have been completed. While we were planning an average investment of 13-13.5 million dollars for Düzce, we raised the budget to 15 million dollars." Noting that their plan is to start production in 2023, Karaca said: "We plan to finalize the agreement with the firm that will carry out the design and construction within March. We selected our architect and want to start at the end of March. Our aim is to complete construction in September, complete all machinery for Phase 1 in December, and start production in 2023. The facility we will establish in Düzce OSB is in the 3rd Region with incentives. We can easily finance it with 50% of our public offering revenues. We foresee completing the Düzce investment in 3 phases over a period of approximately 2.5 years," Karaca said.

"We are planning an investment of 65,000 tonnes"

"We are building a 50,000 tonne additional polyurethane plant. Alongside that, we have an investment decision for a 5,000 tonne polyol plant for shoe-related products from recycled products and PET product synthesis. Including a 10,000 tonne EVA investment to expand EVA production, which is our newly entered business group, we are planning a total investment of 65,000 tonnes," Karaca said, adding: "Despite postponing the public offering, we continued the design work there but it will be finalized with the public offering."

Infrastructure Work Started for Installation of Solar Energy Panels at Gebze

Stating that Kimpur released its 2021 Sustainability Report last week, Cavidan Karaca said: "We became a member of the Business Plastic Initiative last year. We have commitments regarding this. With SA 8000, Environmental Management System ISO 14000, GRI standards aligned sustainability sensitivity and our intention to create a green product range, we think we are taking on a leading role in the sector. We are doing good work in parallel with our global competitors. We are installing a solar energy plant (GES) on the roof of our factory in Düzce. Thus, it is planned that approximately 55% of the energy needs of the facility we will establish in Düzce will be met for the first two years. At the same time, we also agreed with Schmid Pekintaş to install a solar energy panel in Gebze, designed it and made the investment, and currently infrastructure work has been started. There we will produce approximately 20% of our energy ourselves," Karaca said.

"We are on our way to becoming one of the most considerable largest capacities in the world"

Also providing information about the Latvia investment, Karaca noted that 75% of production in Latvia is owned by its subsidiaries and 25% by its partner. Karaca stated: "All agreements and advance payments have been made. The only thing we were waiting for was obtaining commercial registration. We had delays due to Latvia's bureaucracy, but we were informed that the process would be completed as soon as possible. We will work mainly on the South and East European markets. We have 25,000 tonnes of capacity in Latvia. That is, with these two investments in polyurethane, together with 200,000 tonnes of total capacity, we can compete with global players and are on our way to becoming one of the most considerable largest capacities in the world," Karaca stated.

"We Target Raising Exports Above 30% This Year"

Karaca also shared export figures in a statement to Dünya Newspaper. Noting that export rates were in the 28% range last year, Karaca said: "This year we roughly have a total sales target of 100,000 tonnes, domestic and foreign. Within these 100,000 tonnes, we expect 30-31 million euros to come from export and export-related sales. That is, we target raising our exports above 30% this year. This will also make us safer in terms of working capital, with shorter terms and easier in terms of foreign exchange balance," he said.

According to JCR's Report, Kimpur is Rated in the "Highly Investable" Category

Noting that like banks, companies are now required to have credit ratings, Cavidan Karaca said: "Credit rating agency JCR Eurasia Rating Co., announced its evaluation rating of our company. According to JCR's report, our company is placed in the "highly investable" category and the long-term national credit rating was stated as "AA-".