SteelOrbis talked to Adnan Naci Faydasıçok, chairman of Hasçelik, regarding the current conditions in the specialty steel sector and their latest invesment.
Could you provide some information about your operations and product range?
Hasçelik’s corporate journey began in 1968, in parallel with Turkey’s industrialization efforts, with the goal of becoming a reliable partner in the steel sector. From our inception, we have moved forward with a vision centered on the principles of quality, trust and sustainability. In line with this vision, we have aimed both to contribute to our country’s development and to be a pioneer in our sector. Over the years, through significant investments and a forward-looking vision, we have continuously improved the quality of our products and services. Today, we are not only one of Turkey’s leading producers of specialty steel but also a brand, shaping the transformation of the steel sector through our extensive product range, integrated value chain comprising modern production facilities, R&D investments and customer-centric approach.
As one of Turkey’s leading producers of specialty steel, Hasçelik possesses an extensive production capacity and a broad scope of operations. We manufacture various product groups, including hot rolled specialty steels, cold-finished bright steels, chrome-plated shafts, and grinding balls. We have a total of six production facilities in Bilecik, Kocaeli Çayırova and Konya. As Hasçelik, with a team of approximately 1,000 employees, we serve sectors such as automotive, machinery manufacturing, home appliances, energy, hydraulics & pneumatics, and aerospace.
How do you assess the current conditions regarding demand and price trends in the specialty steel sector?
While the supply-demand balance remains relatively stable in the domestic market, the global economic slowdown and countries’ protectionist policies have suppressed steel demand, leading to stagnation in exports. Looking at price trends, we can say that China’s state-supported policies targeting export markets and aggressive export strategies have created significant downward pressure on global prices. China’s low-cost products have intensified price competition in international markets, creating challenges for the Turkish steel sector. As Hasçelik, we are developing various strategies to mitigate the impact of price fluctuations and maintain our competitive advantage.
We believe that 2026 will also be a year marked by continued uncertainty in the global steel market. Iron ore and scrap prices are expected to fluctuate depending on the supply-demand balance and geopolitical developments. China’s export policies, Europe’s environmental regulations, and potential changes in energy prices will continue to be among the key factors determining price trends.
In which grades of steel are we still dependent on imports, and what investments are critical to reducing this dependency?
In Turkey, dependence on imports for specialty steel is primarily observed in product groups that require high added value, advanced metallurgical expertise and tight-tolerance production. In particular, special-grade steels with high purity levels and products intended for certain critical defense industry applications fall into this category. To reduce this dependency, it is crucial to focus not only on investments that enhance melting and secondary metallurgy capabilities but also on infrastructure for heat treatment, quality control and digital traceability. Additionally, technological transformations supporting low-carbon production are among the factors that will determine long-term competitiveness.
How do you assess competition in export markets?
In recent years, China’s subsidization of exports to support domestic demand has caused significant imbalances in global steel markets. The diversion of Chinese-origin products to third-country markets at prices that could be considered below cost due to state support is creating serious competitive pressure on the rest of the world’s steel producers. While the import tariffs, quotas and trade defense measures implemented by the US and the EU protect their own producers, they also make it difficult for the Turkish steel sector to access these markets. This situation narrows the competitive environment and limits export growth.
As Hasçelik, although we feel this pressure to a lesser extent because a significant portion of our product range consists of specialty and high-quality steels, the disruption in global price formation and the market contraction affect us just as they do the entire sector. For this reason, we believe it is of great importance for Turkey to implement more effective trade defense tools and strengthen policies to prevent unfair competition. At Hasçelik, we aim to differentiate ourselves from price pressures by offering value-added and high-quality products. Increasing digitalization in our production processes to boost efficiency and maintaining our competitive edge in international markets through sustainable and innovative solutions are among our core strategies.
How are global geopolitical developments causing changes in trade?
Increasing geopolitical tensions in recent years are fundamentally altering the balance of global trade. The Russia-Ukraine war, instability in the Middle East and trade tensions between the US and China are leading to the restructuring of supply chains, the lengthening of trade routes and a shift toward more protectionist policies among nations.
While these developments are making quotas, antidumping measures and trade defense mechanisms more common in strategic sectors like steel, they are also strengthening the trend toward regionalization in production and supply. From the perspective of the Turkish steel sector, this landscape presents both risks and opportunities that can be evaluated through the right policies. We believe that balanced public policies aimed at protecting local production and industry will play a critical role in maintaining our competitive strength within this new geopolitical order
How are current economic conditions affecting your operations?
The current economic policies implemented in Turkey are making cost management more critical than ever, particularly in export-oriented and capital-intensive sectors. The real depreciation of the exchange rate limits export revenues, while the high-interest-rate environment complicates both investment decisions and working capital management. These effects are felt more acutely in the steel sector, where energy, raw material and financing costs are high. Additionally, due to the policy of a strong Turkish lira, labor costs have risen to levels comparable to those in Europe.
This situation creates an environment that challenges the competitiveness of manufacturers. Therefore, we believe in the importance of a balanced economic framework that prioritizes production while simultaneously supporting industry and exports. Strengthening financing opportunities for exporters and implementing long-term, sustainable support mechanisms are of great importance for the sector’s healthy growth.
How will the Carbon Border Adjustment Mechanism affect specialty steel exports?
The Carbon Border Adjustment Mechanism establishes the carbon footprint as a new competitive criterion, particularly for specialty steel exports to the European Union. While this regulation entails additional costs for companies engaged in carbon-intensive production, it creates a significant advantage for producers with low-carbon production processes. In the coming period, environmental performance will be as decisive a factor in exports as price competitiveness.
As Hasçelik, we are ready for this transformation today. Our ISO 50001 Energy Management System certification, our energy efficiency initiatives and our investments in renewable energy are concrete steps toward this approach. Our new-generation steel plant, which we have commissioned in Bilecik Osmaneli, significantly reduces energy consumption and carbon emissions through scrap preheating technology, an electric arc furnace with a magnetic stirrer, water recovery, and waste management practices. Additionally, with the 35-megawatt solar power plant investment we plan to commission this year, we will make our production even more sustainable. Through this, we aim to maintain our position in the European market and transform our low-carbon production capabilities into a long-term competitive advantage in the export of specialty steel.
On the other hand, the fact that the details and methodologies of the implementation have not yet been fully clarified is creating significant uncertainty across the sector. These uncertainties complicate companies’ investment and planning processes while also limiting predictability on the export side. For this reason, we consider it extremely important for the applications under CBAM to be clarified more quickly, transparently and consistently, as this is essential for the sector to manage its adaptation process effectively.
What does your decarbonization roadmap include?
The European Green Deal, border carbon adjustments and sustainability criteria are steering our sector toward a significant transformation process. While this transformation may entail high costs in the initial phase, it is an inevitable and strategic step in the long term, both for environmental and commercial sustainability. At Hasçelik, we view this process not merely as compliance but also as an opportunity for a competitive advantage. Increasing energy efficiency, transitioning to renewable sources and prioritizing the production of recyclable steel are among our top priorities on this path. The ISO 50001 Energy Management System Certification we recently obtained is a concrete demonstration of our commitment in this direction. We believe that, in the coming period, the transformation must be accelerated through both technological investments and sectoral collaborations. Strong partnerships established between the public sector, the private sector and universities will make this journey more accessible and sustainable.
How has the transition to electric vehicles changed the types of specialty steel used in the automotive industry?
With the transition to electric vehicles, the nature of specialty steels used in the automotive industry has changed significantly. As battery systems increase vehicle weight, manufacturers have turned to steels that are lighter yet offer higher strength. Consequently, demand for advanced and ultra-high-strength steels has risen significantly. At the same time, steel solutions with more complex and technically advanced properties are emerging in areas such as crash safety, battery protection and structural strength. This transformation is not merely a change in materials for specialty steel producers, it also requires a higher level of expertise in R&D, process capabilities and quality standards. We are focusing on value-added products that can address the automotive industry’s new needs in this regard.
How did the specialty steel sector fare in 2025, and what are your expectations for 2026?
2025 was marked by a slowdown in demand and, consequently, limited growth for the global steel sector. In particular, the slowdown in the construction and automotive sectors in the European market created pressure on the demand side. However, ongoing infrastructure investments in Asian and Middle Eastern markets created a balancing factor, while China’s policies to support domestic demand and price competition in terms of its exports led to continued price pressure in global markets. For Hasçelik, 2025 was a year in which transformation and growth were reinforced by tangible results. In line with our strategic goals, we expanded our product portfolio and resolutely implemented our sustainability-focused investments.
One of our most significant milestones during this period was the commencement of operations at our next-generation steel mill in Bilecik-Osmaneli. This marked a new chapter in Hasçelik’s future and reflected our eco-friendly production approach in practice.
We also made progress in line with the roadmap we established for our goals, such as ensuring sustainable customer satisfaction, expanding digitalization projects and improving the employee experience. Thus, we can say that we concluded 2025 having achieved the majority of our corporate goals.
In 2026, we will continue to focus on value-added production, energy efficiency and digitalization. With our new steel mill investment, we aim to secure a stronger position in international competition and achieve growth in the domestic market through high-quality production. This year will be one in which we strengthen our investments around the pillars of operational excellence and sustainability. With the Bilecik steel mill investment reaching full capacity, we anticipate increasing employment in the engineering, production, quality and technical fields. Additionally, our R&D, digitalization, process improvement and energy efficiency projects will continue. We are closely monitoring the use of artificial intelligence. We are aware of the new opportunities AI will create in production and management, and we are ready to capitalize on these opportunities.
Beyond all this, we believe that sustainability is not limited to decarbonization and environmental investments alone. We approach sustainability as a holistic framework that centers on people, creates long-term value and encompasses social impact. In line with this philosophy, we prioritize making lasting contributions to society through our education-focused initiatives carried out via the Faydasıçok Foundation.
Our foundation serves as a cornerstone that supports young people in realizing their potential and contributes to the development of a qualified workforce.
At Hasçelik, we also adopt this perspective in our management approach. We implement a Role-Performance-Experience (RPE)-based approach in our organizational decisions, which evaluates the strategic impact of a role alongside the demonstrated performance and experience level. Through this approach, we aim to ensure that competencies are utilized in the right positions while also securing sustainable leadership and organizational development. We believe that a strong industrial structure can only become sustainable when combined with a strong human resource base and a sense of social responsibility.