Turkey's Borusan and Mannesmann to merge

Turkey’s Borusan and Mannesmann to merge

Turkish pipemaking companies Borusan Boru and Mannesmann Boru have received stock exchange approval from the Capital Markets Board of Turkey to merge into a new company known as Borusan Mannesmann Boru. As SteelOrbis previously reported back in March, Borusan Boru and Mannesmann Boru announced their plans to merge, thereby becoming one of the top five largest steel pipe producers in Europe. The approval by the Capital Markets Board of Turkey now makes this merger official. As a result of the merger, Borusan Boru's production capacity of 450'000 tons of longitudinally welded pipes per year will be added to Mannesmann Boru's production capacity of 300'000 tons per year of longitudinally and spirally welded pipes for a total annual production capacity of 750'000 tons. A spokeswoman from Borusan Mannesmann Boru group stated that the newly-merged company expects to earn consolidated annual sales of over $350 million for 2004.