Turkey-based steel pipe producer Borusan Mannesmann Boru has announced that it plans to increase the production capacities of its Halkalı (Istanbul) and Gemlik (Bursa) facilities with new investments to meet the anticipated market growth and market share targets. The investment plan of the company will primarily focus on the automotive industry, which is one of the strategic growth areas within the company’s core business lines, and will also focus on high value-added standard pipe products.
As part of the mentioned investment plan, Borusan Mannesmann will invest in new equipment for welding and drawing processes, which will be commissioned step by step as of 2019, will increase the production capacity of its Gemlik plant to meet the demand of its customers in the automotive industry and will establish a modern and efficient stock yard in Gemlik to meet the growing business volume of the plant and also to improve working conditions.
The company stated that with this new plan with a total investment value of $75 million, it aims to create 250 new jobs, to reinforce its leading position in Turkey as regards its sales for the automotive sector and also plans to be among the top three companies in the European market.
Zafer Atabey, general manager of Borusan Mannesmann, stated that in the last five years the company has showed around 4-5 percent per year growth in the automotive pipes segment and with the new investments these growth rates are expected to increase to 8-9 percent per year.
In addition, Agah Uğur, CEO of Borusan Mannesmann, said that the company’s investments in 2017 amounted to more than $300 million and the new plan will provide great benefits in terms of high technology and value-added products, especially for the automotive sector.