Turkish steel industry restructuring plan under EC review

In their last progress report in the framework of Turkey's European Union accession bid, the European Commission (EC) sought enhanced transparency regarding Turkish government aid to the steel sector, in line with the agreement signed between Turkey and the ECSC (European Coal and Steel Community) in 1996. In particular, the EC asked for improvements in the national steel industry restructuring plan and in the draft bills prepared for this purpose. Following this request, the Turkish steel industry prepared a restructuring plan, submitting it to the EC in early September for approval. An investment of around Euro 5.5 billion in the Turkish steel industry within the 2006-2010 period is envisioned for modernization purposes, environmental issues, research and development and consolidation. Essentially, the program is focused on balancing out Turkish long production and flat rolled production and on improving the competitiveness of the industry. With this proposed restructuring plan, Turkey's steel production, which was about 18.5 million tons in 2005, is expected to increase to around 29.2 million tons by 2010 and to approximately 33.5 million tons by 2013.