TURKISH IRON AND STEEL INDUSTRY

Wide spectrum of product line, cutting edge technologies, state of the art infrastructure and innovation capability with sturdy engineering skills pave the way for Turkey to offer first-rate products with cost effective prices. Turkey is ranked as third largest iron and steel producer in Europe and eleventh in the world. More than 80 years of modern manufacturing experience in the industry and the possession of rich proven iron ore reserves enabled Turkey to play a pivotal role in global iron and steel marketplace. Accordingly, the Turkish Iron and Steel Industry is considered to have the second largest growth potential in the world. A glance to the recent figures of the steel and iron industry in Turkey verifies that 2.9% of the world’s raw steel is produced in Turkey.

The Iron and Steel industry has become one of the most technologically advanced sectors in Turkey and today counts as the third largest contributor to the Turkish economy. There has been a total of 72% growth in the crude steel production from 19.8 to 34.1 million tons since 2001. The industry has upgraded its infrastructure to devise innovative solution over the past two decades, reflecting a commitment to respond to exponentially surging demand in world markets for quality products. The industry reinvigorated itself through implementing research and development projects and bolstering cost-effective production facilities aligned with environmental credentials. Through its long Mediterranean coastline proximity to major markets, Turkey is uniquely positioned to service the world’s largest steel markets quickly and efficiently with a very short span of lead time.

Turkey is the world’s leading exporter of Rebar (reinforced bars), and international demand for Turkish steel products is soaring. In 2008, the country exported $19.3 billion worth of steel products, such as semi products (billet), long flat, pipe, construction products and appliances, an increase of 70% from 2007. As these figures testify, the growth in the value of steel exports has been considerably in excess of the growth in volume of steel products, demonstrating the increasing importance of Turkey’s high value-added steel products in international markets. In the first five months of 2009, the demand for Turkish steel exports remained high bringing $4.6 billion in revenues, reflecting the continued trend in exporting higher-value steel products.

Turkey’s growing eminence in the steel world is not just thanks to the considerable expansion of production, but also to the significant investments made in innovative and state-of-the-art production methods and technologies. For example, Çolakoglu Metalurji, one of the leading industry tycoons, invested in the world’s largest and most productive electric arc furnace producing steel from scrap metal. This allows the company to implement an economical mini-mill concept for the production of flat steel products. Similarly, Borcelik Celik Sanayii is increasing the rolling and processing capacity of its cold-rolling mill complex in Gemlik, which includes the supply of a new reversing mill and galvanizing line as well as upgrading of the existing pickle line.

The casting and forging industry also allowed Turkey to emerge as a central actor in today’s global market. The industry is entirely operated by private sector and the foundries have the ability to produce niche alloyed or unalloyed ferrous casting products. The value proposition of the industry is to produce high quality customized products at a short delivery time with competitive prices. Meeting the requirements of the international standards, the industry has been exporting to 180 countries.

Why Turkey is uniquely positioned to be the steel supplier of choice?

Proven production capacity to meet growth in future levels of demand – Turkey is the 3rd largest producer in Europe and 11th in the World by volume

Modern infrastructure – consolidated investments have provided Turkey with a world-class infrastructure meaning that it can get its steel products faster to the market

Quality products – all members of the Turkish Iron and Steel Producers Association enjoy International Standards Organization certification ISO9001 and all Turkish steel products have certifications from individual EU states such as DIN (Germany), BS (UK), AFNOR (France) meeting the standards laid down by other EU countries

Competitive pricing – Investments in technology provide state-of-the-art production facilities and new production technologies mean that Turkey can offer quality products at consistently competitive prices

Experienced & skilled workforce – excellent standards of training and education ensure an expert workforce for highest production standards

Latest technologies – Production techniques integrate world-standard technological practices, such as the world’s most productive electric arc furnace for scrap

Continued Investments – Turkey continues to invest in upgrading, enhancing and improving production methods and in innovative products

Greener steel – Turkey produces 71% of its steel products from recycled materials. The industry has committed to meeting all EU environmental standards and without recourse to state subsidies. All integrated plants like Erdemir, Kardemir and Isdemir enjoy ISO 14001 environmental standards certification. Turkey’s proximity to key European markets helps reduce the carbon footprint of EU countries’ steel imports.