Tosyali aims to build a green steel empire
TURKEY'S STEEL MOGUL IS PLANNING TO REVOLUTIONALIZE THE INDUSTRY WITH SUSTAINABLE PRODUCTION AND MASSIVE INVESTMENTS
INVESTMENT, GLOBALIZATION and sustainability are the key features on Tosyali Holding ’s road map that its chairman believes will transform the company into a global steel empire. Its story began in Iskenderun, a province on Turkey’s Eastern Mediterranean coast. It later expanded to nearby Osmaniye province and then internationally t Montenegro and to Algeria, where it opened the gates to the African continent. Now it is looking beyond West Africa to Senegal and Angola. “We are continuing to invest in Turkey and abroad at a breathless pace,” Tosyali says. E
The company’s $6 billion Tosyali Algerie investment ranks as its most significant. It was planned in four phases, of which the final phase was recently launched. The plant will be one of the largest Turkish investments abroad when completed. The plant posted a two billion dollar turnover and will reach $5 billion in five years with an annual production capacity of more than 8 million tonnes of steel, Tosyali says.
Its other facility in Montenegro, Toscelik Niksic Special Steel, was acquired in 2012 and received a renewal investment which was recently completed. Now, almost half of Tosyali Holding ’s turnover comes from its international subsidiaries, says the chairman.
ONE BILLION DOLLAR INVESTMENT
Established in 1952, Tosyali Holding has evolved to become Turkey’s global steel brand with 25 subsidiaries on three continents and 10,000 employees, notes Tosyali.
The steel holding posted a $4 billion turnover in 2019 and has an annual capacity of over 6 million tonnes. “•ur motto from the day the company opened has been to establish a global steel brand from Turkey,” Tosyali says.
More investment, more production and more employment are the main principles of Fuat Tosyali, who believes working towards the good of the country and society is the core of company policy.
Most of the steel in Turkey is manufactured from scrap iron, the majority of which comes from abroad, Tosyali notes. The holding plans to invest one billion dollars in a new iron ore processing facility in Turkey to supply the industry with quality raw materials, according to Tosyali.
The plant will be in the Iskenderun Second •rganized Industry Zone and the first phase of the investment will be conducted this year. When completed, the plant will replace one billion dollars in imports annually, Tosyali says, and create employment for 1,000 people. A similar investment is also planned, he adds, without elaborating further. “It will all limit raw material imports and at the same time increase value added exports of the industry in Turkey,” he says.
TRANSFORMATION
Turkish steel manufacturing capacity has increased by 50 percent over the past decade. The global annual steel manufacturing
capacity is over 1.8 billion tonnes, according to World Steel Union data. China and other Asian countries lead global manufacturing. However, Turkey is gaining in the race, says Tosyali. Turkey manufactures 37 million tonnes annually, ranking it 8th on the global list and is the second largest producer in Europe after Germany. The difference between Turkey and Germany is only five million tonnes. Still, domestic production has space to grow and great potential, Tosyali says, adding that he believes Turkey can become the leader in Europe
in a short span of time. To become a global leader, Turkey should embrace technological transformation, according to Tosyali. Significant transformation is taking place around the world, led by technology and innovation, he adds. The technological leaps, which reduce labor and other operational costs, have put industry back in the spotlight for developed countries, which are focusing once again on reviving their manufacturing sectors, Tosyali remarks.
He believes the transformation will increase the need for steel and the demand
will surge significantly going forward. Africa in particular will be an important market, Tosyali notes, adding that it offers growing opportunities for the Turkish steel industry.
The pandemic has raised questions about the Asian supply chain in global manufacturing, Tosyali says. Diversification has become a vital issue for companies and countries, he adds. Turkey could be a key beneficiary to any comprehensive transformation of the global supply chain. Its geographic location, quality
workforce, political stability, dynamic industrial and technological infrastructure makes Turkey a star not only in steel but in several other industries, Tosyali says.
If Turkish companies make investments and improve added value production in Turkey and abroad, they can have a significant role in the global industry, he adds.
“If we begin with the ambition to create global brands there is no power to challenge that, I believe. Yes there are difficulties but a determined stance, ambition and devotion to our country will help Turkish companies.”