Aug. 2006 — Turkish steelmaker Borçelik, jointly controlled by Arcelor and Borusan, recently announced that it will create a new galvanizing line at its Gemlik facilities.

The investment, which is valued at 140 million euros, will make Borçelik the largest and most modern producer of galvanized steel in Turkey. It will boost Borçelik’s rolling capacity by 60% to 1.6 million tonnes, and will increase its galvanizing capacity to 900,000 tonnes. It will also allow Arcelor to increase its exposure to the Turkish market for high added value steel products.

Borçelik also announced that it will acquire Borusan subsidiary Kerim Çelik, a steel service center serving various industries.

Commenting, Michel Wurth, Arcelor’s Vice-CEO and Arcelor Mittal’s Senior Executive Vice President in charge of Flat Products Europe, said: “This investment will contribute to foster Borçelik’s leadership in Turkey’s high growth market for galvanized steel. The country offers high growth prospects for the steel industry, with steel consumption expected to grow by 6% per year over the next decade. Several of Arcelor's existing automotive clients are key players in Turkey.”

Borusan Holding CEO Agah Ugur expressed his confidence in the future of the Borusan–Arcelor partnership, saying: “As a leading and experienced group in the Turkish steel industry, Borusan’s partnership with the global steel giant Arcelor has contributed greatly to our sector and economy. This investment is a manifestation of the determination of Borusan and Arcelor to grow together in Turkey in flat steel production and to expand service centers activity.”

The new line is expected to open in the second half of 2008.

Arcelor, which is to merge with Mittal Steel following a recommended public tender offer, holds leadership positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. Arcelor employs 110,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility.

Arcelor has had an industrial presence in Turkey for more than 15 years. In addition to Borçelik, Arcelor has, in the flat products segment, a 75% stake in the Sollac Ambalaj joint venture with Erdemir (packaging solutions) and a 40% stake in Bamesa Çelik, a service center focusing on automotive applications.