Turkey’s Ekinciler Iron and Steel, which operates in the Iskenderun region plans to invest in the second stage of its expansion plan to produce higher value-added steel products.
The first stage investment was made in late H1 2020 and the mill reopened by June. The modernization cost the steelmaker around $25mn and while the size of the second investment was not disclosed, it is estimated at another $25-30mn per media reports.
Haluk Ekinci, chief executive officer of Ekinciler said the COVID-19 pandemic reduced the investment appetite throughout Turkey last year delaying the company’s ability to proceed with the second phase in 2020. However, the completion of the first stage helped the steelmaker expand its market share and add new customers in H2 2020 and H1 2021.
In the first stage, the company increased production capacity and allowed output with closed casting technology to produce billets for hot-drawn pipes and angles that incorporated more alloys with larger casting dimensions.
During this stage, billet casters capacity increased by about 30pc. The improvements allowed the production of low and high carbon wire rod used in manufacturing bolts, electrodes, fine wire, and mesh beyond the site’s previous construction steel capabilities.
Ekinciler is the first company in Turkey to produce earthquake-resistant steel.
The company plans to proceed with the second investment as soon as possible to add new products. Ekinci noted that Turkey’s steel production increased by 20pc in the first five months in 2021 compared to the same year-ago period, but Ekinciler increased its production by 50pc in the same period largely due to the new investment. He added that 50pc of the additional higher quality production is slated for export.