Turkish specialty steel producer Hascelik plans to invest approximately $240 million in expanding its operations and increasing sustainability. With new production plants, clean energy initiatives, and a focus on green steel production, the company aims to positively impact Turkey's economy while embracing environmentally-friendly practices.
Hascelik, a leading Turkish specialty steel producer, recently unveiled ambitious investment plans for 2024, aiming to both expand its production and contribute to Turkey’s economy. The CEO, Adnan Naci Faydasicok, announced an investment of approximately $240 million to establish two new production plants.
Slated for completion in the last quarter of 2024, the company will launch a new melting shop in Osmaneli, Bilecik, with an estimated investment cost of $180 million. This plant will have an annual capacity of 250,000 metric tons. Notably, Hascelik is set to install state-of-the-art technology to optimize production and energy efficiency, aiming for a greener future in steel production.
Furthermore, the company is dedicating around $42 million to a chrome-coated facility in Kocaeli. Expected to be operational by November of this year, this facility will create 200 jobs initially and aims to enhance the production of value-added products.
To reduce energy costs and elevate the usage of renewable energy sources, Hascelik is also investing about $26 million in solar power plants across three facilities. These plants will have a combined capacity of 35 MW. This move aligns with the company's objective to rely solely on clean energy by 2024.
Access to financing is becoming increasingly challenging, as pointed out by Faydasicok. The company aims to mitigate this issue by becoming a net exporter through these new investments. Despite the challenges, Hascelik plans to finance some of these ventures through equity capital while seeking external financing for others.
Hascelik is also looking beyond Turkey to sidestep issues such as export quotas and duties, which have significantly impacted the Turkish steel industry. The company is making strides in global investments, including in countries like the UK, Germany, and Mexico, aiming for overseas production in the coming years.
Having a total of five production plants and 12 steel service centers, three of which are abroad, Hascelik's vision is to lead the industry in innovation and sustainability. "Our focus is to lead our industry as an innovative company with the goal of being a sustainable economy," said Faydasicok.
Hascelik's planned investments mark a strategic shift towards green production and increased operational capacity. While these plans look promising, the challenges posed by financial constraints and global trade barriers remain. Nevertheless, the investments offer a glimpse of a more sustainable and expansive future for both the company and the Turkish steel industry at large.