Turkish rebar producer Izmir Demir Celik Sanayi A.Ş. (IDC) has announced that it has decided to increase its capital by 300 percent to TRY 1,500,000,000, while it will close its loans with the funds obtained from this capital increase.
According to the company, its annual billet need stands at 1.65 million mt. With an investment of TRY 175,000,000, the billet production capacity of its meltshop will be doubled from 1.40 million mt, meeting the billet needs of the company, with the remaining billet volume to be sold commercially. As a result of the investment, the company’s production costs will decrease, while its competitiveness and profitability will increase.
Turkey’s steel industry meets its raw material supply largely through imports. According to IDC’s statement, global financial fluctuations and the higher-than-expected increase in exchange rates in recent years have negatively affected the company’s cash flow. The safeguard measures, duties and quotas applied in export markets made it difficult for the company to increase its export share. The unexpected increase in the dollar exchange rate in the last three years negatively affected the balance sheet of the company, creating the need for additional business capital financing.
