Erdemir to form a joint venture with API

Erdemir to form a joint venture with API

Turkish integrated flat steel producer Eregli Demir Celik Fabrikalari TAS (Erdemir), which has revised its year-end net profit target from $67.4 million to $199.2 million, is planning to negotiate with Archelor's subsidiary API (Archelor Packaging International) to form a Turkey-based company of 50% share joint venture to build tinplate service centers at nearby countries. Furthermore, according to notice released from Erdemir to ISE (İstanbul Stock Exchange), negotiation will be held to increase company's current 25% of participation share in Sollac Packaging. In the notice relased from Erdemir, it is also stated that tinplate sale in 2002, which was 146'000 tons is planned to increase to 180'000 tons in 2003. This rate is expected to increase to 250'000 tons in year 2004. Erdemir purchased its share in Sollac in October, 2002 and the purpose of the collaboration is stated as to increase the use of packaging steel, that is lightly coated and used for the packaging of oil drum, industrial packaging, spray tubes and all metal packaging, in Turkey and Middle East and to develop the operation of production and distribution of packaging steel in Central Asia. The company with which Erdemir plans to form joint venture API, being subsidiary of world's biggest steel producer Archelor with 26.5 billion turnover, has total tinplate production capacity of 2'250'000 tons in France, Belgium and Spain. Meanwhile Sollac is operating with the capacity of 150'000 tons per year in cut-to-length and slitting tinplate service center located in Gemlik.