Pakistan, Turkey explore steel joint ventures
past two decades, which reflects its commitment to responding to evaluation in world steel markets. In the first seven months of 2011, Turkey achieved the biggest increase (21 percent) in output.. During this time, global output reached 886.8 million tonnes, up by 8.26 percent in the same period in 2010.
Growth of the Turkish steel sector has been driven by strong domestic consumption. Between 2005 and 2010, per capita crude steel consumption in Turkey increased to 340 kg and is expected to continue to grow in the medium and long term. In addition to the strong domestic demand and dynamic steel consuming industries, the geographical position of the country also supports exports which further encourage higher production.
Currently, Turkey has 23 electric arc furnace mills (EAF) and 3 induction furnaces, with a capacity range from 200,000 to 5 million tonnes; its 3 BOF plants have capacities ranging from 1.5 to 3.5 million tonnes.
Turkey’s total crude steel production reached 34.1 million tonnes in 2011 and is expected to reach to 38 million tonnes in 2012.
The potential areas for Turkish investment in Pakistan are: power, oil and gas, mining, textiles, agriculture and finance. According to Younis Meher, Senior Vice President LCCI, “It will help Pakistani businessmen gain access to European markets and enable Turkish counterparts to win Central Asian States and Afghanistan. The transfer of Turkish technology will further strengthen Pakistan’s steel sector, which is presently dominated by Indian technology.”
With its focus on Pakistan as a potential steel market, a high-powered delegation of steel exporters from Turkey has conducted assessment surveys in the country to obtain first-hand knowledge of available business and investment opportunities and to meet people from the industry to initiate joint ventures. This could be an opportune time for Pakistani commercial importers and industrial end-users to enter into trade relationships with reliable suppliers from Turkey.