Tosyalı Holding on Wednesday said it signed an agreement with Abu Dhabi Ports Group that, among others, foresees potential joint investments in new port facilities to support the export operations of one of Türkiye’s largest steel producers.
The Memorandum of Understanding (MoU) seeks to establish the framework for AD Ports Group to collaborate with Tosyalı on a broad range of shipping, logistics, ports and freight forwarding services and port management, a statement said.
The deal comes as Türkiye and the United Arab Emirates (UAE) have over the recent year expanded efforts and intensified talks and bilateral visits, seeking to build economic bridges after a yearlong rift.
Tosyalı runs 30 manufacturing plants, including associates and joint ventures in Türkiye, Algeria and Angola, and has an annual manufacturing capacity of more than 10 million tons of steel, with significant volumes shipped to markets around the world.
The company operates an organized industrial site at Iskenderun Port in the southern Turkish province of Hatay and is involved in the development of the new Erzin Port.
AD Ports Group said it expanded its shipping fleet and logistics operations in 2022 through a series of strategic acquisitions and joint ventures, which it says makes it an ideal partner for the fast-growing steel producer.
Ankara and Abu Dhabi have moved to put years of tense relations behind them, opening doors to a new phase in bilateral relations marked by deeper economic cooperation.
President Recep Tayyip Erdoğan paid a return visit last February after a trip by UAE President Sheikh Mohammed bin Zayed Al Nahyan (MBZ) to Ankara in late November 2021 that marked a significant move toward overcoming disputes.
Sheikh Mohammed, who had led the UAE for years as de facto ruler, became president last May.
The visit, which was Erdoğan’s first to the Gulf country since 2013, was marked by a score of agreements, including trade, industry, defense, health and medical sciences, land and marine transport and climate action.
The visit in November had yielded investment accords worth billions of dollars and was MBZ’s first official trip to Türkiye since 2012 and the highest-level visit by an Emirati official since relations between the two countries hit a low.
Executives say the collaboration between Tosyalı and AD Ports Group would contribute to the developing trade relations between the UAE and Türkiye, which saw non-oil trade between the two countries grow by 54% year-over-year in 2021 to AED 50.4 billion (around $13.72 billion).
"AD Ports Group is pleased to sign this agreement with Tosyalı, which is the leading steel company in Türkiye and the biggest steel producer in Africa," said Mohamed Juma Al Shamisi, managing director and CEO of AD Ports Group.
"Our integrated business offering enables us to provide a full suite of shipping, logistics and port services for customers like Tosyalı, supported by innovative digital technology. We are grateful for the support and guidance of the UAE leadership that enables us to pursue global agreements of this nature," Al Shamisi noted.
For his part, Fuat Tosyalı, chairperson of the Board of Directors of Tosyalı Holding, said they aim to deploy shipping and logistics facilities that can bring their products to market quickly and efficiently, and contribute to the growth of Türkiye’s exports. "We believe we have found a strong partner in AD Ports Group, which matches our international ambitions and provides a wide range of services and expertise supported by a world-class fleet," Tosyalı added.