Board of DirectorsChairman's Message

We are a leading engineering firm on a path to become a global player that currently provides our services to eight countries across three continents. Since the day we have established, including in our own country, we work to add value to the economies of the areas we carry out our activities and we have introduced the terminology of “technical contracting” to Turkey.


2017 has been relatively a positive year in all aspects when compared with 2016; however, there were still some concerns and risks due to global political and economic developments. Global policies of the US, terrorist actions experienced at several locations of the world and political tension in the Middle East prompted us to welcome 2018 cautiously. On the other hand, recovery in the global economy and international trade and economic growth of developing countries created a positive atmosphere in terms of future projection.


2017 has been a year that was under the reduced but continuing effects of the deceitful coup attempt we experienced in 2016. Positive reflections of adopting the new constitution and government system on political stability; our decisiveness supported with ground operations and air strikes carried out against terrorism in Syria and Iraq; steps taken towards normalization in affairs with Russia; the growth rate exceeding the economic expectations as high as 11.1% in Q3; recovery in exports and tourism; Credit Guarantee Fund that reduced the pressure on the companies ; incentive aimed for economic growth; new regulations in the insurance sector; steps taken towards manufacturing operations in the defence industry; and completed and on-going large investment projects have been the positive economic developments in our country in 2017. On the other hand, double-digit figures in inflation and unemployment, depreciation in the value of TL, increase in current deficit, dependency in energy, slow-down in the real estate sector and excessive increase in interest rates appeared as the risks that are carried over to 2018.


Considering the expectation of 5.5% growth in accordance with the Medium-Term Program’s targets, we believe that economic developments in 2018 will follow a trend in parallel with those achieved in 2017 unless a decision is not made for early election in the internal political sphere, or any extraordinary political development such as a new war in the Middle East in the external political sphere. We think increased export volume and growth, new public offerings in the stock markets, diminished political tensions will increase the interests of the foreign investors and will have positive economic contributions.


AE Arma- Elektropanc carried out its operations successfully without suffering from the negative atmosphere of 2017 thanks to both its business strategy in different geographical regions with reduced influence on each other and protection achieved against the economic fluctuations of the national market due to the fact that 85% of its projects are in foreign countries. Nurol Life, Garanti Bank Pendik Technology Base and Data Center and Manzara Adalar projects undertaken in Turkey have been brought to completion phase successfully, and the necessary preparations have been made to undertake major projects in 2018 as it has been shortlisted for large-scale and prestigious projects. In addition, it showed presence as a strong bidder in the new tenders in Russia thanks to the normalization experienced with this region. We added two new and prestigious projects of USD 210 million– WOW Hotel and Residence with 88 floors and Dubai Hills Mall that will be one of the biggest shopping malls in Dubai and a unique shopping mall in the World- in our portfolio in UAE that is a locomotive country for AE Arma-Elektropanç. Maintaining its strong financial position, our company fulfilled the redemption process of previously issued bonds and successfully issued new bonds of TRY 80 million for which EBRD is the principal investor.


In 2017, a new period started for the governance structure of our company. Burak Ç. Kızılhan, one of the most influential businessmen of the construction sector in the Middle East who is recognized as one of the top “40 Under 40” executives in Turkey, took over the flag in June 2017 and he has been appointed as the new CEO of our company.


In 2018, our company is planning to continue undertaking MEP contracts with high-quality investments particularly including data centres, airports, powerplant projects, industrial projects and prestigious hotel projects. In addition to our plans to grow in the regions we already show presence, Sub-Sahara African regions are also included in our targets. Our goal for the new year is to increase our annual turnover and profitability and achieve higher ranks in “ENR Top 250” list where we ranked 190th in 2017.


Our company continues serving to our nation, adding value, increasing employment rates and undersigning global-scale projects and takes price in getting closer to its target of becoming a global trademark with around 8 thousand experienced and dynamic employees of 46 different ethnic-origins, in 8 countries and 3 continents; more than 500 engineers; management strategy integrated with ERP system and ever-improved global business focus.

Kemal KızılhanChairman