EXIM to decide on financing Erdemir's pickling project
Erdemir's is planning to install a new pickling line. The project includes removal and replacement of line no.1 and modernization of line no.2. The aim is to improve the quality of material and the range of HR pickled.
Erdemir needs a loan of $19million for the realization of this project and is currently waiting for the Export Import Bank's (EXIM) approval, decision of whom is expected soon. On the other hand EXIM is under the pressure of American Iron and Steel Institute (AISI) claiming that it is not justifiable to assist a company subject to S201 remedies and preliminary affirmative anti-duping findings under the US safeguard measures. AISI is strongly against such financial assistance of EXIM for the foreign steel mills as they believe this would injure the
US steel inudstry. Weirton Steel, a member of AISI is questioning EXIM's reasons to consider providing such loan to
Erdemir, asking for a full economic impact analysis. The CEO of Weirton Steel believes that
Turkey, having made significant amounts of steel imports into the US is found to have violated the trade laws on CR steel. AISI wants the details of
Erdemir's proposal to EXIM to be revealed to which EXIM is not contributing.
On the other hand, the developing country status of
Turkey allows exports to an extent not exceeding the 3% of the total imports into the country and the fact that most of the pickled output is sold into Turkish market being further processed must also be considered. Furthermore it is understood that this renovation project will rather improve the quality of products than increasing the capacity of
production.
The pickling equipment will be purchased from a U.S company and EXIM is reported to be checking whether the impacts of a refusal would cause an "irreperable harm" to this company.
It is reported that
Erdemir is determine to actualize the pickling project, by supplying financial support from other sources, even if the request is refused by EXIM.