Dr. Veysel Yayan, general secretary of the Turkish Iron and Steel Producers' Association (DCUD), has spoken to SteelOrbis regarding media reports about certain incentives to be implemented by the Turkish government for various domestic industries including iron and steel, mining, machinery and motor land vehicles to invigorate the economy and reduce the current account deficit and regional disparities. Dr. Yayan stated that, while the provisions of the European Coal and Steel Community (ECSC) Treaty, restricting government aid, are still in effect, the amendments in the definition of steel by the
European Union have paved the way for government aid in the areas of
scrap, coal, ferroalloy and
iron ore.
Dr. Yayan also pointed out that providing incentives in raw material production or procurement might contribute to improving production facilities for the abovementioned input materials, as well as increasing low grade
iron ore use and domestic
scrap supply, considering that the Turkish iron and steel industry supplies most of its raw material requirements through imports. According to Dr. Yayan, establishing incentive mechanisms in the field of raw material will be compatible with
Turkey's Input Supply Strategy (GITES) goals.
Dr. Veysel Yayan underlined that the relevant provisions of ECSC should be adjusted so that the industry will be able to benefit from government aid. Although the Turkish steel industry cannot receive direct or indirect government aid under current circumstances, Yayan indicated that establishing incentive mechanisms for domestic input supply in industries such as automotive and machinery which use steel products intensively will positively affect the Turkish steel industry by supporting steel consumption in
Turkey.