Turkish Ekinciler invests $25.2 million to increase the capacity of the steel plant

Turkish steelmaker Ekinciler Demir ve Celik Sanayi intends to invest 461.17 million Turkish liras ($25.23 million) to increase the capacity of the plant in Iskenderun. SteelOrbis reports about it with the reference to the Turkish Ministry of Environment and Urbanization (OBOC).

The company’s project to increase capacity in the production of billets and rolled steel has already been approved by OBOC.

The company plans to increase billet production in the smelter, increase the capacity of the rebar mill, and install a second rolling mill to produce high quality wire rod and bars.

As a result of the project’s implementation, the annual capacity of steel production in the smelting shop will increase from 979 thousand tons to 2.04 million tons, and annual rebar production will increase from 883.7 thousand tons to 1.34 million tons. The second rolling mill will have an annual capacity of 494 thousand tons of wire rod and bars.

As GMK Center reported earlier, Turkish steel producers are trying to maintain their existing production capacity during a period of rising electricity tariffs and low demand, refusing to invest in new projects.

According to the Vice President of the Turkish Steel Exporters’ Association Ugur Dalbeler, if the country’s authorities do not take measures to curb electricity prices, steel plants will not be able to continue their activities, and unemployment will increase.

In mid-August 2022, Turkish steel plants announced possible stoppages of production due to low demand and high costs. Such plants cannot ensure an increase in prices neither on the domestic nor on the export markets. As a result, the steel production becomes unprofitable.

In addition, since September 2022, Turkiye has increased electricity and natural gas prices for industrial users by 50%.

Turkiye ranks seventh in the world in terms of steel production. In 2021, Turkish enterprises increased production of steel by 12.7% compared to 2020 – up to 40 million tons. This is a record indicator.