Turkey's flat steel capacity growth outpaces demand

Wednesday, 20 June 2012 14:34:22 (GMT+3)   |  
       

Speaking at the Steel Success Strategies meeting in New York, Kemal Ozden, senior adviser at Turkish integrated steelmaker Erdemir, said that Turkish iron and steel consumption amounted to 29 million mt in 2012 and is expected to reach 50 million mt by 2020.
 
Mr. Ozden indicated that by the end of the current year Turkey's installed annual liquid steel capacity will reach 50 million mt, while actual annual output will increase to 35 million mt, adding that Erdemir Group's finished steel output has reached 7.5 million mt per year. He stated that Erdemir is increasing product shipments for the automotive, home appliance, manufacturing and packaging sectors, while also underlining that the company closed 2011 with an EBITDA of $1.2 billion and an EBITDA margin of 23 percent.
 
Mr. Ozden said that Erdemir plans to achieve a processing capacity of 4.3 million mt by increasing the number of its steel center services from three to six, adding that its cold rolling and galvanizing facilities are also planned to be expanded.
 
In response to a question, Mr. Ozden pointed out that unstable growth has been observed in Turkey's flat steel production capacity, saying that hot rolling capacity has increased far in excess of current needs and therefore hot rolled sheet capacities will not be fully used within three to five years. He emphasized that there is a certain necessity to export, while also expressing his belief that the new investments in the south of Turkey will have a greater advantage compared to those in other regions of the country in terms of export markets.
 

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