Aug 11 2006
Turkish steelmaker Borçelik, jointly controlled by Arcelor and Borusan, announced that it will create a new galvanising line at its Gemlik facilities.
The 140 million euros investment will make Borçelik the largest and most modern producer of galvanised steel in Turkey. It will allow Arcelor to increase its exposure to the Turkish market for high added value steel products.
The investment decision was taken by Borçelik’s Board of Directors, which comprises members from Borusan, Arcelor and Erdemir. It will boost Borçelik’s rolling capacity by 60% to 1.6 million tons, and will increase its galvanising capacity to 900,000 tons. The new line is expected to open in the second half of 2008.
Borçelik also announced that it will acquire Borusan subsidiary Kerim Çelik, a steel service center serving various industries.
Commenting, Michel Wurth, Arcelor’s Vice-CEO and Arcelor Mittal’s Senior Executive Vice President in charge of Flat Products Europe, said: “This investment will contribute to foster Borçelik’s leadership in Turkey’s high growth market for galvanised steel. The country offers high growth prospects for the steel industry, with steel consumption expected to grow by 6 percent per year over the next decade. Several of Arcelor's existing automotive clients are key players in Turkey.”
Borusan Holding CEO Agah Ugur expressed his confidence in the future of the Borusan–Arcelor partnership, saying: “As a leading and experienced group in the Turkish steel industry, Borusan’s partnership with the global steel giant Arcelor has contributed greatly to our sector and economy. This investment is a manifestation of the determination of Borusan and Arcelor to grow together in Turkey in flat steel production and to expand service centers activity.”
Arcelor has had an industrial presence in Turkey for more than 15 years. In addition to Borçelik, Arcelor has, in the flat products segment, a 75% stake in the Sollac Ambalaj joint venture with Erdemir (packaging solutions) and a 40% stake in Bamesa Çelik, a service centre focusing on automotive applications.
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