After going on a hunt to acquire firms in Europe, Turkey's steel giants have now decided to transfer their competition to the United States. Turkey's steel giants initially looked to Europe for take-over possibilities such as the move made by Tosyalı Holding, which went and purchased Nagorno-Karabakh's Zeljezara Niksic, one of the largest steel factories remaining from the Yugoslavia era. Since then however it seems that the nation's steel and iron producers are now moving in the direction of the U.S. The Istanbul-based Ağır Haddecilik firm is now following in the steps of the Çolakoğlu, Özkan and Borusan steel companies by redirecting efforts towards the U.S. market.
Ağır Haddecilik, which has production facilities in both Düzce and Kocaeli, will soon be embarking on a joint venture with Miami-based steel manufacturers International Rebar LLC. Ağır Haddecilik not only intends to sell steel produced in Turkey throughout the North American continent, but will also be embarking on joint production at International Rebar's facilities. Ağır Haddecilik will be aiming to sell scrap steel products in the U.S. and will also be conducting sales to other nations on the continent.
Turkey's steel firms began focusing on the U.S. market six months ago with Çolakoğlu Metalurji, which has a three million ton production, forming a company by the name of Med Trade in Texas.
150 MILLION US DOLLARS FROM BORUSAN
At the end of last year, Borusan Mannesman also announced a new investment scheme focused on the U.S. market. Borusan's plan is to invest $150 million into setting up a new factory on a 500-square-meter plot of land in either Texas or Oklahoma.
Özkan Steel USA, which is also planning an investment venture in the United States, has begun working on establishing a new facility in Louisiana. In an announcement made to the American press, Özkan Steel USA Vice President for Investment and Strategic Development said that the facilities they will be establishing on the Mississippi River will begin production by 2015.
EXPORTS TO 85 NATIONS
Ağır Haddecilik entered the iron-steel sector in 1985, by opening its first 20,000 square meter facility in Akçakoca. In 2010, Ağır Haddecilik built their 35,000 square meter factory in the Dilovası district of İzmit where they began manufacturing 150,000 tons of designed sheet metal annually. According to the Istanbul Mineral and Metals Exporters' Association (İMMİB) 2010 report, the firm which sells to 85 nations, had become the sector's third largest importers.
This is a translation of an article originally written by Kerim Ülker.