POSCO JV heightens competition among Turkish stainless service centers

The 13th International Stainless and Special Steels Summit, organized by MetalBulletin, was lately held in Istanbul. Commenting on Posco Assan's entry into the Turkish stainless steel market and on the impact on the domestic steel sector, Hüseyin Ataman, purchasing manager of CEMSUN Stainless Steel Service Center, said that, after Posco Assan commenced its commercial operations, Turkey's stainless steel imports decreased significantly, while delivery periods for stainless steel products shortened due to its close proximity. Mr. Ataman also said that Posco Assan's investment has reduced the number of alternative stainless steel suppliers and resulted in an escalation of competition between Turkish stainless steel service centers. He added that these negative impacts should be eliminated in order to create an efficient stainless steel market.
 
On the other hand, Jong Won Kwon, CEO of Posco Assan TST, commented on South Korea-based stainless steel producer POSCO's decision to invest in Turkey. "Turkey is a rapidly developing market and has a geographical advantage that enables our company to expand operations. In addition, Turkey's steady bureaucratic structure and ongoing commercial agreements with the European Union also affected our decision," said Mr. Won Kwon.