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ArcelorMittal and Borusan to Build New Hot Strip Mill in Turkey

10/23/2007 - ArcelorMittal signs a Memorandum of Understanding with Borusan to form a 50/50 joint venture partnership to construct a new hot strip mill in Gemlik, Turkey.

ArcelorMittal has signed a Memorandum of Understanding with Borusan, one of Turkey’s leading steel producers, forming a 50/50 joint venture partnership to construct a new hot strip mill in Gemlik, Turkey.  
 
The 4.8-million tonne/year mill, a USD 500 million investment, will be located next to ArcelorMittal and Borusan’s jointly operated Borçelik plant in Gemlik, on the Marmara sea coast. Slabs will mainly be sourced from ArcelorMittal, which will ensure a regular supply of high quality products to better serve the booming Turkish steel market.
 
“The Turkish steel market is strong and expected to grow at a yearly rate of at least 6% over the next ten years,” said Michel Wurth, member of ArcelorMittal’s Group Management Board in charge of Flat Carbon Europe. “We at ArcelorMittal are very excited at the prospect of expanding our cooperation with our partner Borusan into the hot rolled coil business. This hot strip mill will offer high grade products, which we believe can be very successful on the Turkish market.”
 
Agah Ugur, CEO of Borusan Holding, said: “Borusan is an experienced and leading steelmaker on the Turkish market. Our cooperation with ArcelorMittal over the past years has much helped to develop the Turkish steel industry and economy.”
 
ArcelorMittal has been present on the Turkish market for more than 15 years, with, in addition to its Borçelik cold rolling and galvanizing joint venture, businesses in the packaging, distribution, steel service centers and stainless segments.
 
“Only in August last year did ArcelorMittal and Borusan decide to jointly build a galvanizing line, the third at our common Borçelik plant,” said Wurth. “Thanks to this cooperation, Borçelik is today the most modern galvanizing facility in Turkey and the leading supplier to the automotive industry.”
 
Implementation of the proposed joint venture is subject to customary regulatory clearances. The parties plant to have the mill come online in the first half of 2010.
 
ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
 
ArcelorMittal’s key pro forma financials for 2006 show combined revenues of USD 88.6 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.