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Isdemir returns to operating profit
2002 August 31

  
  Turkish steel producer Isdemir made its first operating profit in more than a decade during the first seven months of 2002 but will still post a year loss, company Deputy Chairman Yasar Turan told Reuters on Thursday.

Isdemir was merged with the largely state-owned Erdemir , Turkey's largest steelmaker, on February 1, 2002 after the Privatization Administration failed to attract bidders at a tender. Erdemir is 46.2 percent owned by the government.

"We had planned operational profits at Isdemir within 18 months but our operational profits totaled $1.1 million by the end of July," Turan said, attributing the turnaround to restructuring at the firm.

Isdemir sold 871,000 tons of product between February 1 and July 31 bringing net sales of $155 million, Erdemir said in a later statement to the Istanbul stock exchange (IMKB).

"We had forecast (Isdemir) losses of $25 million this year after losing $60 million in 2001, but this unexpected performance could narrow losses in 2002 to $3-5 million," Turan added.

Some $700 million will be invested in Isdemir during the next five years with most of that total dedicated to making Isdemir a leading producer of flat steel, Erdemir has said.

Erdemir itself sold a total of 1.633 million tons of steel in the first six months of the year, exporting 650,000 tons but its profits have suffered due to an economic slump sparked by financial crisis last year.

The Privatization Administration has pledged further sales this year for Erdemir, Turkey's only flat steel producer.

Erdemir made losses of TL 133.9 trillion ($100 million) in the first six months of the year compared to a profit of TL 63 trillion in the same period of 2000.
  		  

Turkish Erdemir investing in pickling operations.
2002 August 15
Turkish Erdemir, plans to replace pickling line No1 and to modernize pickling line No2.
A possible loan for this project, of abt 20 mio US$ will be discussed by the USA's EXIM board mid august.
This project should improve the quality and mix of hot rolled pickled products.
Capacity for pickled material would be in the range of 800 KT.
Even without Exim backing, Erdemir is reported to plan to proceed with their plans.
  

Turkey Kardemir debts to be rescheduled
2002 July 10
The Turkish development bank, might extend 20 mio us$ to Kardemir.
The government intends to reschedule Kardemir debts, to government owned enterprises up to 10 years, with a grace period of 3 years.
Also loans to banks are to be rescheduled.
Furthermore Kardemir would be allowed to buy base materials form government owned companies, against payment of 50% and balance within 12 months.
  

Why Long Products prices are still strong...
2002 July 5
-Billet prices, which went up in July to US$ 220 /T FOB, still hover around 205 US$/T.
-Spanish rebar imports, as well as Chinese and Middle East long products demand remains strong.
-Turkey, being exempted from US 201 action has healthy rebar and wire rod sales to USA.
-ASW (UK) closure increased demand for rebar and rod in UK.

Today's prices FOB Turkish ports would average:
-Wire rod (mesh quality): US$ 260-280/t
-Rebars: US$ 230/t
-Merchant Bars 250 US$/t
  

Japanese bank supports Turkey's steel industry
2002 June 27
The Japan Bank for International Cooperation (JBIC) has signed a loan agreement totaling US$14 million with Borcelik Celik Sanayii Ticaret AS, a steel mill in the Republic of Turkey.
The loan is co financed with ABN Amro Bank NV.
Borcelik, based in Bursa, south of Istanbul, is Turkey's only private steel mill and the country's second largest producer of steel sheets.
JBIC will provide a direct loan (buyer's credit) to finance the Japanese export of a complete set of reverse cold milling facilities to the mill.
The Japanese exporter is Itochu Corporation and the domestic manufacturer is Mitsubishi-Hitachi Metals Machinery.
In order to receive such loans, Turkish borrowers usually need to obtain guarantees from the Turkish government or else the loans have to be extended through the government itself.
This loan is the first to be given directly to a borrower, with the guarantee provided by a Turkish private-sector commercial bank - in this case, Yapi ve Kredi Bankasi AS.
Despite a growing domestic demand for steel, Turkey still depends on imports for steel sheets.
The expansion of this cold rolling mill will increase steel sheet production, and the additional output is expected to replace imports.
The Japan Bank for International Cooperation (JBIC), the result of the merger between the Export-Import Bank of Japan (JEXIM) and the Overseas Economic Cooperation Fund (OECF), was established on 1 October 1999.
With its capital fully subscribed by the Japanese Government, JBIC is the main institution responsible for Japan's official financing overseas.
  

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