Iron - Steel Sector
Iron - steel sector is one of the leading locomotive sectors of the industry and has a strategic importance for the country's economy by providing input to many sectors. Therefore, as in all the countries with a strong industry, a strong presence of steel sector is also essential for the economy and industry of Turkey.
The Covid-19 pandemic, which emerged in China last year and continues to impact globally today, continues to affect public health as well as the economies of the countries. Localization in production and sales, which has been seen in the global trade for the last few years and supported by the countries through trade measures, has accelerated with the spread of Covid-19 pandemic around the world. Localization of the supply chain, the willingness of countries to expand their regional and local trade volumes, and the stalling of international trade with various measures will be among the most prominent issues in the coming years.
Turkey is one of the leading countries in this industry in terms of both production and consumption. As the world's seventh largest steel producer, steel consumption in our country increased by 13 percent to 29.4 million tons year-on-year in 2020. Despite the new type of coronavirus pandemic, Turkish steel production increased by 6 percent to 35.8 million tons year-on-year.
Based on the productions in 2019, Mining Metallurgy Companies rank fourth among the EU-28 steel manufacturers, ninth in Europe and 46th in the world in terms of the 2019 production of raw steel produced by the World Steel Association (Worldsteel).
OYAK’s companies in the field of Mining Metallurgy are consisted of Erdemir, İsdemir, Erdemir Maden, Ersem, Erdemir Mühendislik, Erdemir Romania, Erdemir Asia Pacific, Erdemir Enerji and Ilgaz companies, and are among the sector organizations with highest employment in Turkey with approximately 11.548 employees. With 8,530 thousand tons of raw steel production, OYAK’s Mining Metallurgy Companies realized 24 percent of the total raw steel production of Turkey in 2020.
Erdemir is the first and largest integrated flat steel producer of Turkey. Producing hot-rolled steel products and long products (logs and spools), İsdemir is also the only integrated steel manufacturer that produces long and flat products at the same time. The shares of Erdemir, one of the largest publicly-traded companies in Turkey, have been traded on Borsa Istanbul since it was established in 1986, and the shares of İsdemir are traded in Borsa Istanbul since 2016.
Erdemir Maden produces pellet, intermediate product, pellet cake, magnetite, lump and powder iron ore at its mine sites. In addition to the concentration and pellet facilities at Sivas Divriği, the company is the largest iron mine owner and producer of Turkey with total 11 mine sites including nine iron sites, one coal site and one manganese site.
Ersem's Gebze, Ereğli, İskenderun and Manisa facilities meet the sized flat steel needs of many sectors such as automotive, white goods, panel-radiator, packaging, electronics, machinery manufacturing, pipe-profile, heating-cooling, agriculture and distribution with its annual slitting and cutting capacity of 1.95 million tons.
Erdemir Mühendislik provides project management, design, procurement, contract management and supervision services in the process from feasibility studies to commissioning of the investment projects of OYAK’ Mining Metallurgy field.
Erdemir Romania produces non-oriented electrical steel, the main input of all electro-technical application, electric motor, power transformer and generator manufacturing industries.
OYAK’s Mining Metallurgy Companies;
- Are Turkey's only integrated flat steel producers and constant leader of the sector.
- With 8,530 thousand tons of raw steel production in total, OYAK’s Mining Metallurgy Companies realized 24 percent of the total raw steel production of Turkey in 2020.
- In 2020, OYAK’s Mineral Metallurgy Companies produced 8,709,000 tons of liquid steel; while the production of flat finished products was 7,266,000 tons and the production of long finished products was 992,000 tons. OYAK's Mining Metallurgy Companies exported 1.4 million tons of finished products, including 1,333,000 tons of flat products and 69,000 tons of long products, and sold 7,489,000 tons of flat and 1,006,000 tons of long products. It exported to 41 countries for flat products and 15 for long products.
- Iron ore production amounted to 2,031,000 tons.
- Second Hot Rolling Mill Quality and Sustainability Investments were made in Erdemir during the year.
- In the Turkey’s Top 500 Industrial Enterprises List of the Istanbul Chamber of Industry for 2020, which was prepared based on the data from 2019, İsdemir ranked 8th, while Erdemir ranked 10th, Ersem 69th and Ermaden 168h.
Erdemir and İsdemir are listed in the BIST Sustainability Index and the Corporate Governance Index.
Mining Metallurgy Companies