Turkiye’s Borusan announces $1.4 billion investment in the next three years

Turkiye’s Borusan Group will invest $1.4 billion (63 billion Turkish liras) in development over the next three years, $500 million of which is planned for the current year. This was announced by the group’s CEO Erkan Kafadar, Ses Kocaeli reports.

According to Kafadar, the largest share of these investments is aimed at increasing the capacity of the Borçelik plant in Gemlik. The company plans to invest 20.8 billion Turkish liras in new coated sheet production facilities (500 thousand tons per year), which are unique for Turkey. The move is aimed at serving the growing automotive and household appliance sectors and replacing imports. In addition, the investment in the plant will allow Borçelik to achieve modular growth with minimal additional investment in the future.

At the same time, a project will be implemented to modernize the plant’s production lines and increase their productivity. According to Kafadar, all the lines installed before 2000 will be updated.

Borusan Group also plans to provide approximately 6% of Turkiye’s wind energy production through investments in wind and solar energy.

The Borusan Group CEO also noted that in the near future, all companies of the group will give preference to “green” products from suppliers when purchasing. The company also aims to grow in the US and Europe (Romania). A Romanian plant specializing in automotive products will be commissioned in the first quarter of 2024, which will strengthen Borusan’s position in the European automotive pipe market.

As GMK Center reported earlier, Kardemir, a Turkish integrated steel producer, plans to invest $1.5 billion (TL 46.2 billion) over the next five years. Currently, the company’s steel production is at 2.5 million tons, and it aims to increase this figure to 3.5 million tons in a very short time.