Turkey’s Tosyali acquires Bastug Metallurgy steel plant

Turkish steel company Tosyalı Group has announced the acquisition of the local steel plant Bastug Metallurgy in Osmaniye, southern Turkey. The deal took place on July 3, 2024. This is reported by Kallanish with reference to Bastug data.

Earlier it was reported that the Russian company Novorosmetal was interested in acquiring the Turkish plant, which has been experiencing financial difficulties for some time, but the deal between the parties did not go through.

Bastug Metallurgy is equipped with an electric arc furnace with a capacity of 2 million tons of steel per year and a rolling mill capable of producing 1.25 million tons of products per year. The company’s main products are 130-200 mm square billets and rebar with a diameter of 8-63 mm.

Tosyali is a Turkish steel company with a steelmaking capacity of 10 million tons of steel per year.

Tosyali Holding plans to invest $1.5-2 billion a year in global expansion, including Africa and Saudi Arabia, as well as potential acquisitions and partnerships in Europe and the Americas. Within five years, the company plans to increase its steelmaking capacity to 20 million tons from the current 14 million tons.

In 2023, Turkey reduced steel production by 4% compared to 2022 to 33.7 million tons, and in 2022 – by 12.9% y/y, to 35.1 million tons. The decline in steel production in the country in 2022-2023 is due to macroeconomic instability, which has led to high uncertainty in the domestic market.

The country has 30 steelmaking plants, including 4 blast furnace plants and 26 electric arc furnaces. Their annual steelmaking capacity is estimated at about 60 million tons. In other words, in 2023, capacity utilization was 58.5%.