OYAK takes high value-added steel step in mining metallurgy
Speaking at İsdemir's 56th anniversary events, OYAK General Manager Murat Yalçıntaş explained their high value-added steel production strategies and the carbon black facility in Hatay Payas that will zero out imports.
During the 56th anniversary of İskenderun Demir ve Çelik, OYAK's mining and metallurgy activities, value-added steel investments, and China's pricing policies in the market were discussed.
Mining and Metallurgy Activities
Mining and metallurgy companies within OYAK represent 45 percent of the holding's total operations. Erdemir, İsdemir, Erdemaden, Kümaş, Erdemir Romania, and Ersem are among the main actors in Turkey's production. The Ereğli and İsdemir facilities have an annual capacity to produce 10 million tons of liquid steel.
Value-Added Steel Production
Targeting high value-added products instead of standard ones, the institution produces ultra-low carbon steel with the vacuum degassing facility established at İsdemir. In the facilities in Romania, this material is converted into electrical steel. The value of standard hot-rolled coil can rise to 1,800 dollars through these processes.
Carbon Black Facility Investment
Realized in partnership with OYAK and CSRC in Hatay Payas, the facility will meet Turkey's carbon black needs. Established with an investment of approximately 415 million dollars, the facility will use Erdemir and İsdemir wastes as raw materials to zero out 419 million dollars in annual imports.
National Submarine Project Steel
Erdemir General Manager Şaban Yazıcı emphasized the strategic importance of HY-100 steel, specially produced for the National Submarine Project. Thanks to this domestically produced strategic steel, the navy has gained the capability to dive deeper safely.
Global Competition and the China Effect
China holds half of global steel production and applies aggressive pricing policies. As a result of this situation, imported products constitute 49 percent of the steel consumed in Turkey.