Turkey-based leading steel pipe manufacturer Borusan Birleşik Boru Fabrikaları Ticaret A.Ş. (Borusan Boru) approved a strategic investment project on June 19, 2025 aimed at relocating its production activities in Istanbul Halkalı and Bursa to the Bursa Gemlik Campus. As part of the project, the welded and cold-drawn pipe production lines at the Istanbul Halkalı facilities, along with the machinery and equipment from the advanced processing center in Bursa, will be relocated to the Gemlik Campus. This move will consolidate production activities for the automotive, construction, and industrial sectors under a single roof.
The project, which is expected to involve approximately $29 million in capital expenditure and a one-time cash outlay of $27 million is planned to be funded using the company's existing equity and/or market financing.
Upon completion of the investment, it is expected to contribute positively to the EBITDA margin by 50-100 base points and improve working capital by approximately $30 million. Additionally, the project aims to increase production efficiency, reduce fixed costs, and improve capacity utilization rates.
The project, which will be implemented in phases over 24 months, will be carried out without any disruption in production.