MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS OF RHI


Alptekin Tizer

President / Chairman of the Board

Dear Friends,

When we founded Renaissance Heavy Industries back in 2011, we were taking our first steps into the heavy industry sector.

Today, at the beginning of 2017, we can proudly state that RHI has become a prodigious company; certainly one of the crown jewels of Rönesans Holding.

The company has seen phenomenal growth, and outstanding performance in bringing about this growth.

What truly makes us proud is not the impressive annual turnover or backlog. The fact that we have managed to create a solid organization with dedicated professionals – that is what we consider our greatest achievement. We are in the people business, and so what we really have as our primary asset is our people, and the key to our success is the dedication of the workforce, right from the bottom up.

Renaissance group started as a small company with just four employees back in 1993. It has been the dedication of our employees and strict adherence to our principal corporate values that have paved the road to our success.

RHI is a value-driven organization. Our success can only be built upon the foundation of our core values: Challenge, Commitment, and Trust.

As the company continues to grow, so does our capability, enabling us to tackle projects that present even greater challenges. Recognizing that engineering is the critical element of success for any EPC company, RHI is constantly investing in engineering capability. Today we are traversing new frontiers, laying down the foundations of a true EPC Company with innovative engineering solutions, and professional teams utilizing the latest and the most sophisticated software solutions.

Our site-based training centers are one of the key initiatives of the company, and reflect our determination to challenge industry conventions and our commitment to support local communities. We tackle skill shortages in local construction industries by establishing skilled worker training centers for welders, pipe fitters and other trades.

Whilst employing and training local staff or hiring subcontractors, we continue to instill the values of the company at every opportunity, and employ effective techniques in training them and monitoring HSE performance.

It is with a sense of pride that we have successfully completed and commissioned a large-scale ammonia and urea fertilizer plant in Mary, Turkmenistan in 2014; achieved through employing and training the local workforce. In terms of the workforce, we reached over 80% localization; well above the regulatory requirements.

Having the knowledge and experience to conduct works through the most time efficient and cost effective approach, and with a maximum amount of local input, has been critical to our success. This has been proven at the Mary Fertilizer Plant, and has been instrumental in securing the award for an EPC Turnkey construction project for the state-of-the-art Gas-to-Gasoline Plant in Akhal Velayat, which we are building in consortium with Kawasaki Heavy Industries.

Similarly, our accomplishments at and successful completion of the TobolskNefteKhim Polypropylene plant, built in cooperation with Linde Engineering, as well as the Rusvinyl PVC plant built in cooperation with Technip, have allowed us to bid for and successfully secure the contract for the construction of an ethylene plant at ZapsibNefteKhim, with a capacity of 1.5 mtpa. As with TobolskNefteKhim and Rusvinyl, ZapsibNefteKhim is another subsidiary of the petrochemical giant Sibur.

Returning business and referrals by our clients are the cornerstones of our success. Our most important achievement is that we are building trust with our Clients and EPC Partners, which in turn is reflected in the form of new contract awards and a solid backlog.

We believe in the importance of cooperation and I would like to thank our Japanese partners, Mitsubishi Heavy Industries and Sojitz Corporation, as well as the Spanish firm Tecnicas Reunidas, for their trust.

Solid financial performance of the projects we tackle allows us to continuously reinvest assets that enhance our technical capability.

Today, against a background of low oil prices and looming economic crises, the sector is facing difficult times, with many clients freezing or cancelling potential investment projects. However, our achievements over the last few years, together with our proven and dedicated team still permits us to view the future with a sense of optimism.

As part of the Rönesans Group, we possess a boundless energy to keep our dreams aloft.