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Turkish steelmaker Tosyalı plans $1.5-2 billion annual global expansion: report

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Tosyalı Holding, a leading Turkish steelmaker, plans to invest $1.5-2.0 billion annually in a global expansion, including ventures in Africa and Saudi Arabia, as well as potential acquisitions and partnerships in Europe and the Americas, according to its chairman, who spoke to Reuters.

The company, expected to reach a $10 billion turnover this year, aims to increase its liquid steel production capacity from 14 million to 20 million metric tons within five years, chairman Fuat Tosyalı told Reuters.

Tosyalı Holding, which has been investing similar amounts in recent years, operates production facilities in Algeria, Spain and Turkey, and has iron ore mines in Angola. It plans to manage a special economic zone in Senegal, including a steel and rolling mill, and to invest around $5 billion in Saudi Arabia for a four million-ton capacity integrated steel mill.

While not actively seeking partnerships, Tosyalı is open to collaboration with local private and sovereign investors in Saudi Arabia, Tosyalı said, expecting to complete the investment in three years. The company is also exploring investment opportunities in Europe and the Americas to become one of the world’s top 30 iron and steel producers. It currently ranks 77th, according to the World Steel Producers Association.

Green production is a priority, and Tosyalı is in talks for partnerships in hydrogen with European and American counterparts. Following its acquisition of Spanish steel pipe manufacturer STS in January, Tosyalı operates 40 facilities across four countries, employing around 15,000 people.

Tosyalı is nearing the announcement of a steel mill investment in an unnamed African country, with a capacity of 4 million tons, 2 million of which will be realized immediately. The company will also invest $200 million in a steel and rolling mill in Senegal.

Mostly using its own equity for investments, Tosyalı plans to issue its first green bond within a year to finance its green transformation and hydrogen projects. The bond size would be several hundred million dollars.

In Turkey Tosyalı is considering a green-field investment in electrical steel. Its defense industry subsidiary, BMC—a joint venture with Qatar Armed Forces Industry Committee (QAFIC)—is investing in a tank factory, with the first tanks expected by August-September of next year.

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