High Performance by OYAK Mining Metallurgy Group in 2017
05.02.2018

OYAK Mining Metallurgy Group, Turkey's largest integrated steel producer, has announced the financial results for 2017 Closing the 2017 FY with a high performance, the increase in production capacity, effective process management and sales strategy has been determinant in the Group's success. OYAK General Manager Süleyman Savaş Erdem stated that they will continue to act with determination in line with the interests of OYAK members and the country pursuant to the goal of "sustainable growth and profitability with efficiency".

Oyak Mining Metallurgy Group, consisted of locomotive organizations of the Turkish mining and metallurgy sector such as Erdemir, Isdemir, Ersem and Erdemir Maden, has announced the financial results for 2017. The Group had a successful year, and its efficient, sustainable and effective production processes and the increase in capacity utilization have also been reflected in the financial statements. The capacity utilization rate of the Group in 2017 was 97 percent, which is well over the world average of 72 percent. In addition to high capacity utilization, increasing the efficiency of the production stages has also been effective in the financial success.

 

1,2 million metric tons of export in 2017

According to the results for the year 2017, Group's sales were realized as 8,96 million metric tons and sales revenues were US$ 5,1 billion and EBITDA was US$ 1,5 billion respectively with an increase of 33 percent and 67 percent compared to the prior year period. The Group increased its exports by 10 percent compared to the prior year period and exported 1,2 million metric tons to 45 countries in a wide geography from South America to the Middle East and North Africa.

 

We are taking steps paving the way for domestic production

Evaluating the Group's successful financial and operational results, OYAK General Manager Süleyman Savaş Erdem said, "In addition to meeting the ever-increasing flat steel need of our country, we are taking steps paving the way for domestic production that will reduce the dependence of Turkish industry to foreign sources. We see the results of these steps both in the development of Turkish industry and in the financial results of our organization. Our balance sheet size has become US$ 7,5 billion with an increase of 12 percent compared to the prior year period. We are among the companies which have increased their market value the most in 2017. Aside from financial success, we are also proud for creating added value to our country's industry as the school of steel industry."

 

We are taking strength from our members

Stating that they responsibly manage all the savings of their members, Erdem continued, "We are one of the most powerful organizations of Turkey. It is the trust of our members that gives us this strength. It is our duty to make our best for the trust of 320.000 members of the Turkish Armed Forces. This duty is the biggest reason why we are so glad with our financial success. We will continue to act with determination in line with the interests of OYAK members and the country pursuant to the goal of "sustainable growth and profitability with efficiency"."

 

We will concentrate on high value-added steel production

Also giving the good news that they have accelerated the efforts on establishing a thermal treatment plant for the production of high value-added steels not produced in Turkey, Erdem said, "With this investment which is a first for the Turkish steel industry and scheduled to be launched within two years, OYAK Mining Metallurgy Group will be adding high strength and abrasion resistant steels to its product range. The plant to be established will complement the Turkey's first and only plate mill located in Erdemir, the flagship of our Group.

 

Change of Flag in the Group

Saying "We had a successful period with the power of being a family and with the excellent team spirit" for the 2017 FY of the Group, OYAK Mining Metallurgy Group Board Chairman Ömer M. Baktır has handed over his position, which he had taken over in January 2017, to OYAK General Manager Süleyman Savaş Erdem. Baktır said, "I am honored to hand over my position to our General Manager. I would like to express my gratitude to the entire OYAK family, including him. I will never forget the love and trust of this great family which I have always been proud of being a part of it." OYAK General Manager Süleyman Savaş Erdem thanked Baktır for his sincere commitment to OYAK, and said, "We will proudly follow the future achievements of Mr. Ömer Baktır. I recognize his efforts in OYAK Mining Metallurgy Group and I would like to thank him for these efforts."

 

Erdemir 2017 Financial Figures

  • Consolidated net asset: US$ 7,5 billion
  • Consolidated turnover: US$ 5,1 billion
  • Consolidated net profit for the period: US$ 1,0 billion
  • Return on equity: 21%