Turkey’s Tosyali plans global expansion

Turkish steelmaker Tosyali Holding plans to invest $1.5-2 billion a year in global expansion, covering Africa and Saudi Arabia, as well as potential acquisitions and partnerships in Europe and America. This was announced in a conversation with Reuters by the company’s Chairman of the Board of Directors Fouat Tosyali.

Tosyali plans to increase its steelmaking capacity to 20 million tons from the current 14 million tons within five years.

The company, which has invested similar amounts in recent years, has production facilities in Algeria, Spain and Turkey, and owns iron ore mines in Angola. The group also intends to manage a special economic zone in Senegal, including the construction of its own steel plant. In addition, Tosyali plans to invest about $5 billion in an integrated steel mill in Saudi Arabia with a capacity of 4 million tons per year.

«While we are not actively seeking partnerships, we are keeping our options open for partnerships with local private/sovereign investors (in Saudi Arabia),» said Fouat Tosyali, adding that he expects to complete the investment within three years.

According to him, Tosyali is also looking for investment opportunities in Europe and America in line with its goal of becoming one of the world’s 30 largest iron and steel producers. According to WorldSteel, the company is currently ranked 77th.

Fouat Tosyali noted that investments in green production will also be a priority. The company may soon sign hydrogen deals in Europe and America.

«We are in talks with some European and American counterparts for partnerships in clean energy,» he said.

According to the chairman of the holding’s board, Tosyali mostly uses its own capital for investments, but seeks to attract alternative sources of financing.

«We want to issue our first green bond within one year for financing our green transformation and hydrogen investments. The size would be several hundred million dollars,» he explained.

As for the growth plans in Turkey, Tosyali is considering investing in electrical steel from scratch.

As GMK Center reported earlier, Fuat Tosyali believes that Turkey should leave a mark in green steel production. He sees the European Green Deal as an opportunity to turn the transition to a green economy into an economic and industrial capability.