Iron - steel sector is one of the leading locomotive sectors of the industry and constitutes a strategic importance for the country's economy by providing input to many sectors. Therefore, as in all the countries with a strong industry, a strong presence of steel sector is also essential for the economy and industry of Turkey. With the emergence of many risk factors limiting the global economic potential, especially trade wars which remained on the agenda throughout the year under the leadership of the USA, it has been a year with challenging conditions in the steel industry.
Constituting the main industry in metal industry, the iron - steel industry is the locomotive sector of the industry as it provides input to many sectors from construction to automotive and defense to electronics.
In 2019, global steel production and consumption increased by 3.4%, led by China which constitutes half of the world's steel production and consumption. In the Chinese economy growing with domestic demands as a result of the incentives provided, the steel production and consumption increased by 10%. In the rest of the world except China, in a year in which sector’s protectionism reached the highest level in history, both production and consumption decreased by about 2% compared to the previous year.
In 2019, Turkey's steel consumption was 26 million tons, with a 15% decrease compared to the previous year. Due to the contraction in domestic demand and challenging export conditions based on increasing protectionist measures, the steel production in Turkey decreased by 10% in 2019. Turkey remained eighth among top ten steel producer countries of the world with the production volume of 33.7 million tons.
OYAK Mining Metallurgy Group is consisted of Erdemir, İsdemir, Ermaden, Ersem, Erdemir Mühendislik, Erdemir Romania, Erdemir Asia Pacific, Erdemir Enerji and Ilgaz companies, and is among the sector organizations with highest employment in Turkey with approximately 12,000 employees. OYAK Mining Metallurgy Group realized 26% of total raw steel production of Turkey in 2019.
Erdemir is the largest integrated flat steel producer of Turkey. İsdemir manufactures hot rolled flat steel products and long products (billets and coils) at international quality standards. With its hot rolling capacity, the company is the only integrated steel producer that produces long and flat products simultaneously. Shares of both companies are traded on Borsa Istanbul.
Erdemir Maden produces pellet, intermediate product, pellet cake, magnetite, lump and powder iron ore at its mine sites. In addition to the concentration and pellet facilities at Sivas Divriği, the company is the largest iron mine owner and producer of Turkey with total 11 mine sites including nine iron sites, one coal site and one manganese site.
Ersem's Gebze, Ereğli, İskenderun and Manisa facilities meet the sized flat steel needs of many sectors such as automotive, white goods, panel-radiator, packaging, electronics, machinery manufacturing, pipe-profile, heating-cooling, agriculture and distribution with its annual slitting and cutting capacity of 1.95 million tons.
Erdemir Mühendislik provides project management, design, procurement, contract management and supervision services in the process from feasibility studies to commissioning of the investment projects of OYAK Mining Metallurgy Group.
Erdemir Romania produces non-oriented electrical steel, the main input of all electro-technical application, electric motor, power transformer and generator manufacturing industries.
OYAK Mining Metallurgy Group;