Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for 2013, posting a net profit of TRY 36.7 million ($16.6 million), down nine percent compared to the previous year. In 2013, Borusan Mannesmann's sales revenues amounted to TRY 1.2 billion ($544.3 million), down 16 percent, while its operating profit decreased by 41.6 percent to TRY 39.11 million ($17.7 million), both year on year.
In 2013, Borusan Mannesmann's steel pipe sales decreased by 21.7 percent year on year, falling to 583,000 metric tons. Sales of high value-added products, mainly pressure pipes, special pipes and spiral pipes, accounted for 47 percent of total sales. In the same period, the company's export volume declined by 34.5 percent compared to 2012, accounting for 53 percent of the total business volume.
According to Borusan Mannesmann, in addition to the contraction in demand caused by the global economic crisis, political unrest in certain target export markets and protectionist policies, Turkish steel pipe industry's exports were lower than in the previous year, despite the industry's production potential. In 2013, Turkish steel pipe exports to the US decreased by 14 percent due to the antidumping duty investigation against OCTG pipe imports from Turkey.
Considering the preliminary results of antidumping duty investigation were in favor of some Turkish pipe producers, the export losses in 2013 will be compensated in 2014. The Turkish steel pipe industry expects 4.5 million mt of steel pipe output and 2 million mt of exports in 2014.
Established in 1958, Borusan Mannesmann's annual steel pipe production capacity is 1,000,000 metric tons, including 800,000 metric tons of longitudinal welded pipes and 200,000 metric tons of spiral welded pipes, while its subsidiary in Vaborno, Italy can produce 28,000 metric tons per year of high value-added cold drawn pipes for the automotive industry.