Borcelik to invest $180 million for 3rd galvanizing line

Turkey's second largest flat steel producer Borcelik announced plans to build a new galvanizing line at its Gemlik facilities, with its partner Arcelor. The new line, which will cost $180 million, will make Borcelik the largest and most modern producer of galvanized steel in Turkey. The investment decision was taken by Borcelik's Board of Directors comprising members from Borusan, Arcelor and Erdemir. With the new line, Borcelik's rolling capacity will increase by 60 percent to 1.6 million tons from the existing 1 million tons. Moreover, Borcelik's galvanizing capacity will increase to 900,000 tons. The new line is expected to commence operations in the second half of 2008. In line with the statement released by Borcelik, the company also will acquire Borusan subsidiary Kerim Celik, a steel service center serving various industries. 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.”