|
Kardemir looks for investor(s), in part to develop sections business |
| Turkish
long products producer has been in talks with potential international
investors, who could also assist in expanding the mill's section
operations. The capital increase is intended to provide Kardemir with the cash it needs to cover its delayed and due short-term debts. The Turkish government agreed last month to reschedule the company's debts, amounting to 40 trillion Turkish lira ($28m). Another debt, worth $20m with French bank Société Générale was rescheduled earlier. Kardemir is, with Isdemir, the only integrated long products steel mill in the country. It has a production capacity of 1.2m t/y. Last year, it produced 875,000t of billets, blooms, bars and angles, most of which were sold to local producers. The company expects its production to reach 800,000t this year, and 1m tonnes in 2002. Kardemir has a 20% share of the Turkish market for long products, such as rebar and wire rod. Its main competitors are Isdemir, Icdas and Ekinciler. (However, Ekinciler is currently closed, and it is probable that Isdemir will be acquired by Eregli, and partially converted into a flat products' mill). In the profile business, Kardemir is the only producer on the domestic market. Turkish demand for profiles is currently filled by imports. The company's objective is to produce 345,000 t/y of sections, including high value added products such as profile bars and rails, instead of semi-finished products. The latter constitute 30% of its current sales. The mill's section rolling capacity, which today has a capacity of about 100,000-150,000 t/y would need to be upgraded to meet these targets. The production of profiles/sections would reinforce Kardemir's position on the domestic market as well as enable the company to develop its exports, mainly to North Africa, Iran and Iraq. |
| 20th Dec 2001 |
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