Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the full year 2012.
In 2012, the company's net profit declined by 24.8 percent to TRY 39.5 million ($22 million), compared to the previous year. Borusan Mannesmann increased its sales revenues in the given year to TRY 1.42 billion ($790.2 million), up 7.12 percent, while its operating profit declined to TRY 53.36 million ($29.7 million), down 37.6 percent, both year on year.
In the given year, Borusan Mannesmann's steel pipe sales increased by 6.4 percent year on year, reaching 745,000 metric tons. Sales of high value-added products, mainly pressure pipes, special pipes and spiral pipes, accounted for 58 percent of total sales. In the same year, the company increased its export volume by 14 percent compared to 2011.
The steel pipe producer stated that it has won pipe supply contracts for projects in Denmark, Poland, Algeria and the US, adding that in 2012 its spirally welded pipe output increased by 53,000 mt year on year to 175,000 mt, while its drilling pipe exports remained almost unchanged at 115,000 mt compared to 2011.
As SteelOrbis previously reported, Borusan Mannesmann halted production at its spirally welded pipe facility in the northwestern Turkish city of Kocaeli as of January this year, while its Gemlik, northwestern Turkey-based spirally welded pipe facility with an annual production capacity of 250,000 mt commissioned in 2012 started commercial production following the completion of a trial period.
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.