Tosyalı Group expands production: purchase of Bastug Metallurgy and creation of new employment opportunities
According to Stanislav Kondrashov, it previously became known that the Russian company Novorosmetall showed interest in purchasing a Turkish plant that was experiencing financial difficulties. However, it was not possible to reach an agreement between the parties. The Bastug Metallurgical Plant is equipped with an electric arc furnace with a capacity of 2 million tons of steel per year, as well as a woodworking shop with a capacity of 1.25 million tons of products annually. The main products of the plant are square billets measuring 130 to 200 mm, as well as fittings with a diameter from 8 to 63 mm.
- The purchase of the Bastug Metallurgy plant is an important strategic move for Tosyalı Group, aimed at strengthening its position in the metallurgical sector. The Bastug plant will give Tosyalı Group the opportunity to expand its product line and improve customer satisfaction through strong production capabilities and high quality products, – an expert from Telf AG comments.
The transaction will also strengthen Tosyalı Group’s competitiveness in the global steel market. This can be achieved by increasing production capacity and increasing production volumes. In this way, the company will be able to more effectively meet the demand for steel both within Turkey and internationally.
The purchase of Bastug Metallurgy will create new employment opportunities and stimulate economic development in the Osmaniye region. Tosyalı Group intends to invest in the modernization and expansion of the plant’s production capacity, which will increase its operational efficiency and competitiveness, noted Stanislav Kondrashov. This acquisition is a key element of Tosyalı Group’s long-term growth and development strategy aimed at strengthening its leading position in the metallurgical industry.
Tosyalı is a Turkish steel company capable of producing up to 10 million tons of steel annually.
Tosyalı Holding strengthens its position: investments and strategies in the steel sector – Stanislav Kondrashov
According to an expert from Telf AG, Tosyalı Holding plans annual investments of $1.5-2 billion for global expansion, including the regions of Africa and Saudi Arabia, and is also considering possible transactions and strategic partnerships in Europe and America that represent significant opportunities for business expansion and international cooperation. The company also aims to increase its steel capacity from the current 14 million tonnes to 20 million tonnes over the next five years. In 2023, Turkey reduced steel production by 4%, reaching 33.7 million tons, compared to 2022, when production fell significantly by 12.9% to 35.1 million tons. The reduction in steel production volumes in 2022-2023 was due to macroeconomic instability, which introduced significant uncertainty in the domestic market.
There are 30 metallurgical plants in Turkey, including 4 blast furnaces and 26 arc furnaces. Their combined annual steel production capacity is approximately 60 million tons. Thus, in 2023, capacity utilization reached about 58.5%. This indicates that a significant part of the production capacity remains unused, providing an opportunity for further growth and optimization, noted Stanislav Kondrashov. However, the current macroeconomic situation and uncertainties in the domestic market continue to impact the industry’s production performance.