Turkey-based Erdemir, a part of OYAK Mining Metallurgy Group, is targeting a total $825 million of investments in 2025, according to Turkey-based investment firm Ünlü & Co. The investment firm has stated that Erdemir will allocate a large part of this investment to green steel transition and modernization works, including a pelletization plant with an annual capacity of 3 million mt and an EAF with an annual capacity of 1.4 million mt.
The producer’s yearly investment amount has almost tripled compared to the period of 2011-2020, in which Erdemir’s yearly average investments totaled around $211 million. As previously reported by SteelOrbis, within the scope of its carbon zero road map, Erdemir commissioned its 800,000 mt capacity coke battery No. 4 in May this year, taking a big step in its plan to reach zero carbon emissions by 2050. The producer's other projects include a solar power plant expected to reach full capacity by the end of 2025, investments in direct reduced iron, and green hydrogen production facilities.
The investment firm stated that, although Erdemir felt the pressure of global excess capacity and cheap imports in 2024, it may reach its targeted EBITDA of $140/mt in the second half of 2027 as it will have completed the sustainability investments in steel production and increase its competitiveness. Erdemir recorded an EBITDA of $60/mt in the first quarter of 2025.