On January 14, Turkey's leading steel pipe producer Borusan Mannesmann announced that it will build a line pipe plant in Gemlik, Bursa with 250,000 metric tons of annual output capacity. Borusan plans to invest $90 million in the new plant which will supply large diameter line pipes for the oil and gas industry. The plant is planned to be commissioned in 2011.
The new plant will be constructed within the existing site of Borusan in Gemlik, and will have the logistic advantage of access to Borusan Port.
According to the Borusan's statement, as oil and gas transportation projects in Turkey and in the region have increased, the line pipe market has gained importance. Thus, the move to build a new line pipe plant is intended to increase the company's competitiveness, since it follows a potential project volume that exceeds its existing capacity.
Commenting on the new investment, Borusan Mannessman chairman Bulent Demircioglu said, "One of the strategic targets of Borusan Mannessmann is to invest in high value-added product segments and thus increase the value it creates for its shareholders. We decided to invest in the promising line pipe market in order to take advantage of the existing and future opportunities. We have already strengthened our position by participating in projects including the Baku-Tblisi-Ceyhan pipeline project, Nabucco and Blue Stream, among other projects in the export markets. This project is designed to be one of the world's top plants, with its technology, production capacity, settlement pattern, flexibility and its location near the sea."