Turkish manufacturers expand investment in the steel industry
Turkish company Yıldız plans to increase investment in the steel industry, thereby supporting local manufacturers. It is the country’s leading manufacturer of welding equipment.
Yıldız plans to invest USD 152 million in the construction of a new metallurgical plant where it will produce and roll steel. The plant will be fully operational in 3 years. It will be located in the Kocaeli region. The government authorities have already approved the construction of the production facilities. Environmental approval has also been obtained.
The plant is expected to have an annual capacity of 4 million tonnes of steel and 3.5 million tonnes of rolled products. In this case, the plant will operate for 30 years. In addition, the plant will provide stable employment for around 500 people directly at the production site. It will also employ about 2,500 people in support roles.
It should be noted that Yıldız is not the first company in Turkey to invest in the industry. Local company Kardemir, which produces long products, also plans to invest around USD 1 billion in the industry by 2028. Last year, the company produced just over 2 million tonnes of steel and 2 million tonnes of rolled products.
Turkish steel industry
In March, the Turkish steel industry cut steel shipments to other countries. Exports fell by almost 53% compared to the previous period. Their volume amounted to 810.6 thousand tonnes. In the first quarter of this year, shipments to the world market fell by more than 48% and amounted to about 2 million tonnes.
The massive earthquake that struck Turkey in February 2023 severely affected the steel industry. As a result of the disaster, many plants in the south of the country suspended production. Work was halted at ten plants, accounting for more than 30% of Turkey’s total steel production. The plants themselves were not seriously affected. However, like the rest of the country’s population, factory workers faced the loss of family members, the destruction of their homes and other problems.
Turkey is one of the world’s top ten producers of steel. In the aftermath of the earthquake, factory operations were disrupted. In addition, many factories sent their equipment to respond to the disaster. After such use, the machines must be calibrated, which takes time. As a result, the metallurgical industry is now actively recovering to return to previous levels of smelting.
Overall, experts have estimated that Turkey will need to spend an amount equivalent to 5.5% of its GDP to recover from the earthquake.
