Kardemir Celik secures financing for rolling mill, solar projects

Turkish steel producer Kardemir Celik has secured financing for its rolling mill modernization and solar power projects as part of its plans to improve production efficiency and reduce energy costs.

The company received approval on November 9 for a EUR 22.35 mln (USD 24.8 mln) loan from China's state credit insurance company Sinosure to finance its Rolling Mill Modernization Project. The investment is expected to support sustainable production capacity, improve competitiveness and strengthen the company's cost structure and profitability over the medium and long term.

Separately, Kardemir Celik signed a EUR 13.99 mln (USD 15.5 mln) loan agreement with DZ Bank AG Deutsche on November 5 to finance a 28.11 MWp solar power plant project in the eastern Turkish provinces of Van and Muş. The financing is covered by Sinosure and has a repayment period of 9.5 years.

The solar projects are expected to be fully commissioned around seven months after the contract date. Kardemir Celik said the investment forms part of its strategy to reduce energy costs, increase profitability and support its sustainability targets.

Headquartered in Izmir, Kardemir Celik operates seven production facilities in Izmir and Denizli with a combined annual production capacity of approximately 2.5 mln tons. The company produces billet, wire rod, rebar, merchant bar and structural sections, including an annual billet production capacity of 1.2 mln tons, profile production capacity of 700,000 tons, and wire rod and rebar capacity of 600,000 tons.

1 USD / 0.9 EUR