New company set up to use defunct Ege Metal mill

New company set up to use defunct Ege Metal mill

EgeMetal was a Turkish mini-mill located in Izmir with a meltshop capacity of 840'000 mts and a rolling capacity of 650'000 mts. The company produced billets, plain and deformed bar, angles, square and flat bars. However, because the company failed to perform repayments to the creditor bank of its $70 million debt, the Turkish creditor bank put the company up for sale in order to retrieve its receivables. A tender was held for this purpose, to which no bid was submitted. According to law, in such situation, the creditor bank is allowed to buy the company itself in a second tender, by only paying the 40% of its value. Thereafter, the bank consigned the mill to a newly established company called Say Metal against $50 million, for a utilisation of the plant for 10 years. The payment will also be paid in that 10 years period. The new company Say Metal has started production and at the moment they are in the market to import 2-3'000 mts of scrap. However the company is going through financial difficulties, SteelOrbis is told.