Latest situation of KMC investments

By the end of 2006 Turkish steel service center KMC completed 90 percent of the investment program it initiated in Gebze in 2005. Current production and mill information is as follows: - For hot rolled materials; • 2.00 – 4.00 mm cut-to-length line (in operation for 4 months) • 4,00 – 16.00 mm cut-to-length line (in operation for 2 months) • 12.5 mm slitting line (assembly to take 3-6 months) - For cold rolled materials; • 0.30 – 2.00 mm cut-to-length line (in operation for 4 months) • 0.25 – 2.00 mm slitting line (in operation for 4 months) • 0.30 – 2.00 mm cut-to-length line (currently being assembled) • 0.30 – 2.00 mm cut-to-length line (currently being assembled) In 2006, KMC's total sales tonnage was 285,000 tons. The target for 2007 is 300,000 tons. With the Gebze factory fully operational, KMC aims to supply 150,000 tons of production via the slitting and cut-to-length lines to customers in line with their requirements. KMC, which does not have any investment plans for 2007, intends to focus more on Chinese operations this year. KMC, which started Chinese operations last year, has expanded its product range in 2007 to include cold rolled, hot rolled and color-coated products, increasing its monthly production to 8,000-10,000 tons. KMC sells the products it purchases from China not only in Turkey but also to countries such as Germany, The Netherlands, the UK, and Ukraine. Up to 2007, a majority (90 percent) of KMC products was composed of hot rolled and cold rolled products, while galvanized and color-coated products accounted for the remaining 10 percent. With the new lines, KMC aims to increase the share of galvanized and color-coated products to around 20 percent.