Turkey’s Kardemir Çelik Sanayi announces $30 million investment to boost capacity and enter new markets

Tuesday, 12 August 2025 17:44:39 (GMT+3)   |   Istanbul

Izmir-based Turkish steelmaker Kardemir Çelik Sanayi A.Ş. has announced that it plans to build a new profile rolling mill in Bozköy, in the Aliağa district of Izmir. The $30 million investment is scheduled for commissioning in the second quarter of 2026. The expansion aims to boost production capacity, diversify the product range, and contribute to Turkey’s economy and employment by enabling entry into new markets.

Increasing demand for large profiles

Özlem Bakırel, a member of Kardemir Çelik Sanayi’s board of directors, noted that global demand for large profiles is growing due to the increasing use of steel structures. The new facility will produce 200 mm UPN, IPN, and IPE profiles initially, with production of larger-than-200 mm profiles expected by the end of 2025. Special profiles for solar power plants and the mining ship sector will also be manufactured.

Capacity expansion targets

In 2024, Kardemir Çelik produced 900,000 mt of billets, allocating 500,000 mt for profiles and the remainder for wire rod and rebar. By 2026, billet capacity is set to increase by 10 percent to 1.2 million mt. The company also aims for a total production capacity of 2.5 million mt at its other facilities, including 650,000 mt of profiles and 550,000 mt of wire rod and construction steel. The investment is projected to boost overall turnover by 10 percent, with a 25 percent growth expected once new products contribute to profitability.

Focus on energy efficiency and sustainability

Bakırel emphasized that the project will enhance energy efficiency by adopting modern, environmentally friendly production technologies. These improvements are expected to lower production costs, reduce environmental impact, and align with international standards such as the European Green Deal. The investment will significantly reduce the company’s carbon and water footprints while providing an export advantage.

Boosting export capacity and market reach

The rolling mill investment will expand product diversity, enabling the production of high-quality and special alloy steels for sectors including automotive, defense, white goods, energy, and shipbuilding. Kardemir Çelik aims to strengthen its export capacity to both developed markets like Europe and the US - which require high-quality standards and certifications - and emerging regions such as Africa, the Middle East, and South America, where demand for affordable yet high-quality steel is growing. A 25 percent increase in export sales is anticipated as a result.


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