Erdemir signed a letter of intent with Arcelor

Erdemir signed a letter of intent with Arcelor

Turkish integrated flat steel producer Eregli Demir Celik Fabrikalari TAS (Erdemir) has recently signed a letter of intent with world's biggest steel producer Arcelor in order to determine the terms of collaboration. According to notice presented by Erdemir to ISE (Istanbul Stock Exchange), it is stated that with the letter of intent, interested parties have decided to develop the collaboration related with sales and marketing of tinplate. Under the scope of this letter, Erdemir's current 25% share in Sollac Packaging, which is a joint company between Erdemir and Arcelor's subsidiary Arcelor Packaging International (API) will be increased and Erdemir will possess 50% share. Furthermore establishing a Turkey-based company, negotiations held to build tinplate service centers at nearby countries will continue. According to information in the notice, Luxemburg-centered Arcelor is the world's biggest steel producer with 44 million tons of production and €26.5 billion turnover recorded in 2002. Sollac Packaging is operating with the capacity of 150'000 tons per year in cut-to-length and slitting tinplate service center located in Gemlik. According to notice released by Erdemir in August, it is stated that tinplate production which was 146'000 tons in 2002, is aimed to be increased to 180'000 tons in 2003 and for 2004, it estimates tinplate production to reach up to 250'000 tons.