OYAK, the largest complementary occupational pension fund in Turkey, started negotiations with Yıldız Holding to acquire Kümaş Manyezit through its Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir).
OYAK General Chairman and Erdemir Board Chairman Süleyman Savaş Erdem said, “This step will be a significant integration with our companies in the iron and steel and cement industry and will reduce our costs. Kümaş is an important player in export and a value that will bring foreign currency to Turkey. We will conduct detailed examinations.”
With nearly 20 percent of the world's cryptocrystalline magnesite ore, Kümaş’s mines have a critical importance for lime and glass industries, including iron and steel, cement and copper.
Erdemir has started negotiations with Yıldız Holding to acquire Kümaş Manyezit, the world’s largest mine operator in the high-quality magnesite ore industry, the market leader in the refractory industry in Turkey and one of the favorites of foreign investors in terms of acquisition. Operating in partnership with Yıldız Holding and its venture capital firm Gözde Girişim, Kümaş produces refractory products, which are predominantly used in the iron and steel and cement industries, with around 20 percent of the world's cryptocrystalline magnesite ore. The company meets the needs of the domestic market and exports a significant amount.
Will review and place a bid
Conducting a comprehensive due diligence before the acquisition of Kümaş Manyezit A.Ş., which has been operating in Kütahya since 1972 and joined the Yıldız holding in 2012, Erdemir announced that they would place their bid following financial, legal and operational processes.
Erdem: “Both raw material procurement and export potential”
OYAK General Manager and Erdemir Board Chairman Süleyman Savaş Erdem stated that they want to achieve their goal of using Turkey's rich and valuable magnesite resources efficiently, achieving sustainable returns from these assets, contributing to the country's economy and using resources for international integration, and said, “By using our country's resources efficiently, we are making moves that will create synergy both in Turkey and abroad, contribute to the national economy, and placing our country in a strong position in the international platform. Kümaş attracts the attention of investors both in Turkey and in other countries where major refractory producers such as Austria, India and China are located due to their high-quality reserves. Adding this value to OYAK is important for our country and for national resources. We also plan to integrate our activities in the iron, steel and cement industries with this investment. With the advantage of rich reserves and raw materials, we aim to create opportunities for our local industrialists to procure raw materials and to take our country to a strategic position with export potential. OYAK will continue to be positioned in strategic industries and contribute to our country.”
Kümaş owns around 20 percent of the world’s reserves
Turkey is a country with rich areas of magnesite and dolomite mining regions and has strategic significance in this area. Kümaş Manyezit A.Ş. owns nearly 20 percent of the world’s high-quality magnesite ore and more than 40 percent of the total reserves in Turkey. Kümaş is the industry leader in refractory products, which are produced in integration with high-quality magnesite ore, and is a critical supplier for lime and glass industries, including iron and steel, cement and copper with its domestic and overseas sales.