SteelOrbis talked to Nuri ÖZDEMİREL, general manager, ÇEMTAŞ Steel Machinery Industry and Trade Inc., regarding the latest developments in specialty steel market.
Could you summarize ÇEMTAŞ’s areas of operation and product range within a technical framework?
As ÇEMTAŞ Steel Machinery Industry and Trade Inc., we focus on the production of specialty steels within the long products group at our production facilities in Bursa. Our scope of operations includes specialty steels with high mechanical properties, tight tolerances and process-controlled production, used in the automotive, heavy commercial vehicle, machinery manufacturing, defense and energy sectors. Our production approach is not volume-driven; it is based on products with high technical barriers, engineering-intensive processes and sustainable value creation. This enables us to establish a structure that ensures both consistent quality and long-term operational stability.
Our product range consists of carbon steels, low- and medium-alloy steels, heat-treated steels, case-hardened steels and special grades developed according to customers’ technical specifications. Chemical analysis, microstructure control, mechanical testing and full traceability processes are conducted under quality and energy management systems.
ÇEMTAŞ ensures long-term quality continuity and supply reliability - particularly for automotive and defense industry customers - through its IATF 16949, ISO 9001, ISO 14001, ISO 45001 and ISO 50001 certifications, as well as its accredited laboratories.
How do you assess demand dynamics and pricing behavior in the specialty steel sector?
The specialty steel market, unlike the general steel market, is characterized by lower volumes but significantly higher technical expectations. Although seasonal fluctuations are observed in the automotive and machinery sectors, demand for applications requiring high strength, fatigue resistance and functional performance maintains its structural nature in the medium and long term.
On the pricing side, energy costs, scrap and ferroalloy prices, as well as exchange rate levels and volatility, are the key determinants. Additionally, the quotas and trade measures implemented by the European Union are creating pressure on exporting companies. In this environment, ÇEMTAŞ’s priority is to ensure margin sustainability by focusing on product differentiation, process efficiency, and cost discipline rather than price competition.
How do you view the areas where Turkey is dependent on imports for specialty steel?
While Turkey possesses a strong production infrastructure for specialty steel, it remains dependent on imports for certain product groups that require high-alloy content, advanced metallurgical knowledge and highly precise process control. This situation is particularly evident in the defense industry, energy sector and specialized engineering applications.
Reducing this dependency is possible through a robust R&D infrastructure, next-generation heat treatment technologies, process simulation and digital manufacturing capabilities. At ÇEMTAŞ, we approach investments in these areas not merely as short-term capacity increases, but from the perspective of long-term technical depth and strategic positioning.
We are in an era where global industry is being redefined, and competition is measured not only by capacity but also by engineering expertise, carbon footprint and supply chain security. At ÇEMTAŞ, we view high-quality steel not merely as a product, but as a strategic industrial input that requires advanced technical expertise. Across a broad range of applications - from the automotive and defense industries to heavy commercial vehicles and the energy sector - we focus on production centered on quality consistency, process discipline and a low carbon footprint.
While European Union regulations, the “Made in Europe” approach and structural transformations in the automotive sector are disrupting industry norms, we view this process not as a risk but as a differentiation opportunity for manufacturers with high technical competence. With our renewable energy investments, robust R&D infrastructure and strategic product focus, ÇEMTAŞ is building a production model prepared not only for today but also for the industry of tomorrow.
How is the transition to electric vehicles affecting ÇEMTAŞ’s business model? Where does stabilizer bar production fit into this picture?
The shift to electric vehicles represents a structural transformation process for manufacturers of specialty steel long products, particularly due to new vehicle architectures that do not include a transmission. This transformation may lead to volume-reducing effects in certain automotive applications. To manage this risk, we have shaped our strategy around three main pillars. First, we are developing higher-strength, longer-lasting and more technically advanced steels for remaining applications in internal combustion engine and hybrid vehicles. Second, we are strengthening our presence in sectors minimally affected by the electric transition, such as the defense industry and energy. The third and strategically most important area is our production of stabilizer bars for the heavy commercial vehicle and bus segment.
In the heavy commercial vehicle and bus segment, the transition to electric vehicles is a process that unfolds over a longer timeframe and involves different technical requirements compared to passenger cars. This situation supports the continuity of demand for products requiring high fatigue strength, such as stabilizer bars. Today, ÇEMTAŞ is an approved supplier to leading truck and bus manufacturers in Turkey and Europe in this field. We view stabilizer bar production as a strategic area of expertise due to its technical depth and consistent quality.
How are you positioning your carbon footprint and energy investments in light of European Union regulations?
The European Union’s Carbon Border Adjustment Mechanism (CBAM), which began with a transition period in 2023, brought financial obligations as of January 1, 2026. Additionally, the Fit for 55 package, the expansion of the Emissions Trading System (ETS) and the increasingly prominent “Made in Europe” approach are placing not only carbon footprint but also supply chain security and localization criteria at the center of competition.
ÇEMTAŞ has prepared for this transformation with a proactive rather than reactive strategy. The Kars solar power plant has been commissioned, while the Mardin solar power plant is currently under construction. Thanks to these investments, a significant portion of our electricity consumption is met from renewable sources and our company’s carbon footprint is being reduced in a measurable and sustainable manner. This approach goes beyond regulatory compliance; it is an element that strengthens the cost structure in the long term and supports competitiveness.
How did 2025 unfold for the sector and how do you view the coming period?
2025 was a year marked by low growth and high uncertainty for the specialty steel sector. However, this period also presented an opportunity for companies to focus, streamline operations and direct efforts toward the right areas.
In the coming period, ÇEMTAŞ will continue on its path with the goal of controlled growth, strong cash generation and sustainable value creation, leveraging its ongoing and future solar power plant investments, robust R&D infrastructure, qualified workforce and proven technical expertise.