Turkiye’s Kardemir plans to invest $1.5 billion in the next five years

The company also intends to increase steel production from 2.5 to 3.5 million tons in the short term

Turkish integrated steelmaker Kardemir plans to invest $1.5 billion (46.2 billion Turkish liras) over the next five years. This was announced by the company’s Chairman of the Board Ismail Demir, Daily Sabah reports.

Demir emphasized that they have prepared strategic plans as part of their vision to promote national production and the production of strategic products with high added value.

«Currently, our steel production is at 2.5 million tons. We aim to increase this figure to 3.5 million tons in a very short time,» he said.

In addition, according to the CEO, Kardemir intends to double its production in high value-added areas within five years.

«The issues of added value and profitability will be our priority. Thus, our profitability will allow us to make new investments,» said Ismail Demir.

The Turkish steelmaker also plans to participate in new initiatives in the rail and transportation sector, bringing competitive products such as rails and wheels to the market. According to Demir, the company wants to switch a significant portion of the energy consumption required for the company’s projects and ongoing operations to renewable sources without the use of fossil fuels.

«The company, based on the principles of a healthy environment and efficient production, considers environmental sensitivity in its production and investment activities to be a fundamental principle. From 2006 to the end of 2023, it has spent about $160 million for these purposes,» said Kardemir CEO.

He added that this year the company has allocated about $40 million for environmental investments. Kardemir aims to reduce carbon emissions by 15% by 2030 and become carbon neutral by 2053.

Stating that they aim to enter new markets, Demir also outlined the company’s goal to increase its share of the Turkish market from 9% to 12%. In addition, the company’s CEO said that Kardemir is interested in managing ports and railways, and will participate in relevant tenders.

«We are also interested in managing mining companies in Turkey and abroad,» said the CEO.

As GMK Center reported earlier, last fall, Kardemir’s General Manager Necdet Utkanlar said that the Turkish company intends to become a global producer. In 2022, the company broke the annual production record at its blast furnace No. 5, smelting 2.22 million tons of steel and producing 2.14 million tons of finished products.