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Turkish steel giant Kardemir plans $1.5B investment within 5 years

Turkish iron and steel giant Kardemir plans to invest $1.5 billion (TL 46.2 billion) in the next five years and targets increasing its crude steel production to 3.5 million metric tons from 2.5 million as a result, its chairperson said on Thursday.

Speaking to the journalists, the company’s chairperson Ismail Demir highlighted they have prepared strategic plans within the scope of their vision of contributing to industrial production, domestic and national production at a high level, and producing strategic and high-value-added products.

“Currently, our crude steel production is at the level of 2.5 million tons. We aim to increase this to 3.5 million tons in a very short term,” noted Demir. He also said Kardemir wanted to double production in areas with high added value within five years.

“Added value and profitability issues will be our priority. In this way, our profitability will enable new and innovative investments,” he said.

Furthermore, he pointed out they intend to take part in the new initiatives in the railway and transportation sector while introducing competitive products such as railway rails and wheels to the market. The company, however, wants to transfer a significant part of the energy needed for projects and activities to sustainable sources without fossil fuels, he said.

The sector is one of the areas exposed to the need to generate new investments to meet climate targets, as Europe is beginning to levy a border carbon tax on products such as steel from 2026, and investors are closely watching the company’s emissions reduction plans.

“Our company, based on the principles of a healthy environment and efficient production, considers being environmentally sensitive in production and investment activities as a fundamental principle. It has spent approximately $160 million from 2006 to the end of 2023 in this regard,” Demir said.

“For the year 2024, an approximately $40 million budget has been allocated for our environmental investments. Our environmentally friendly investments will continue to increase rapidly in the coming years.”

“We aim to reduce our carbon emissions by 15% by 2030 and become a carbon-neutral facility by 2053,” he noted.

He also noted that various energy investments, especially in solar energy, are continuing and said, “In the first plan, we aim to produce 250 megawatts of renewable energy by the end of 2026.”

Stating that they have a goal of opening up to new markets, Demir also conveyed the company’s aim to lift their market share from 9% to 12%.

Demir also said Kardemir is interested in port and railway management, as well as mining management.

“We will participate in the tender processes for port and railway management,” he said. “We are also interested in operating mining sites in Türkiye and abroad.”

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