Koç Holding Sustains Its Successful and Stable Performance in the First Quarter of 2023
7 min
USD 11.9 billion was posted in consolidated revenue in the first quarter.
Koç Holding’s combined investments in Q1 amounted to USD 691 million.
Total investments over the past 5 years reached USD 9.6 billion.
Koç Holding announced its financial results for the first quarter of 2023. Having posted USD USD 11.9 billion in consolidated revenue, Koç Holding’s combined investments in the same period amounted to USD 691 million, bringing the company’s total investments over the past 5 years to USD 9.6 billion.
Koç Holding CEO Levent Çakıroğlu said, “‘I live and prosper with my country’. These are the words of our late founder Vehbi Koç, that we continue to be guided by as we exert ourselves mightily amid this environment of uncertainty that started with the pandemic and carried on with natural disasters and economic hardships. At the Koç Group, we resolutely keep up with our investments in line with our target of creating long-term value and our global vision. Thanks to our solid balance sheet, robust liquidity, extensive supply chain, diversified portfolio structure, pioneering initiatives in environmental, social and governance areas, and the outstanding efforts of our colleagues, we achieved successful results in the first quarter of 2023.”
“We aim to complete the preparations for the living quarters that will shelter approximately 20 thousand people and consist of over 5 thousand containers in Adıyaman, Hatay, İskenderun, Kahramanmaraş and Malatya in the shortest time possible.”
Underlining that their support to earthquake-afflicted areas continues uninterruptedly, Çakıroğlu said, “Our relief efforts that we have initiated for the people in the region from the very first moment of the earthquake continue with more permanent solutions. We are executing a “Container City” project of settlement areas that will respond to social area requirements as well as sheltering needs. We started the installation of living quarters comprised of over 5 thousand shipping containers that will house approximately 20 thousand people in Adıyaman, Hatay, İskenderun, Kahramanmaraş and Malatya, and we aim to complete them in the shortest time possible.”
“Our agreement with Stellantis leverages Tofaş in the automotive industry in terms of production volume, exports and domestic market performance, and R&D competencies.”
Stating that “As the Koç Group, we have faith in the future of our country, and with this belief, we carry on with our successful and stable performance in all our sectors,” Levent Çakıroğlu continued: “With the framework agreement we signed in March, Tofaş took a strategic step towards buying the entire capital of Stellantis Otomotiv Pazarlama A.Ş., the Stellantis distribution company in Türkiye. Entailing the gathering of the commercial operations of all Stellantis brands in Türkiye under the roof of Tofaş and new commercial vehicle investment, the agreement is intended to generate great synergies and increased value creation. With this agreement, Tofaş will also be undertaking the distribution of Citroen, DS, Opel and Peugeot brands in Türkiye. Furthermore, Stellantis will allocate the manufacturing of the new ‘K0’ to Tofaş, in both mid-size light commercial vehicle and passenger car versions, planned for five brands, with target production launch from beginning of 2025. Our agreement with Stellantis leverages Tofaş in the automotive industry in terms of production volume, exports and domestic market performance, and R&D competencies.”
“We aim to start manufacturing of battery cells in partnership with Ford Motor Company and LG Energy Solution in 2026 if an agreement is reached between the parties.”
Commenting on the non-binding Memorandum of Understanding (MoU) signed for a battery cell production investment as a partnership of Koç Holding, Ford Motor Company and LG Energy Solution, Çakıroğlu said, “The facility planned to be established in Ankara is targeted to be one of Europe’s largest battery cell manufacturing bases. If an agreement is reached between the parties, we aim to start manufacturing in 2026 and to reach an initial annual capacity of 25 GW-hours. We agreed on increasing the capacity to 45 GW-hours in total by 2029 in the second phase of the project. We believe that this plant investment willbring our country a significant global competitive advantage in the automotive industry.”
“Together with the Group Companies, we continue to carry out significant investments that increases the added value we create for our country.”
Levent Çakıroğlu noted the significance of the agreement Arçelik signed with Whirlpool, one of the world’s leading manufacturers of household appliance, for the acquisition of the latter’s manufacturing, sales and marketing subsidiaries in Europe, which is yet another important step in the brand’s global growth journey, and said, “Arçelik’s position in the world white goods industry will be further cemented with the innovation- and sustainability-focused, pioneering company that will be born out of this new step. It will also significantly increase our Group’s global competitive strength.”
