Steelmaker Kardemir plans new blast furnace investment

Steelmaker Kardemir plans new blast furnace investment

Steelmaker Kardemir plans new blast furnace investment

Kardemir, one of Turkey’s largest steelmakers, has announced plans to establish a new blast furnace with an annual production capacity of 1 million tons.

“Within the scope of the 3.5 million ton steel production capacity target, as well as the performance increase and productivity, a new furnace has been decided to be established by the Board of Directors,” Kardemir said in a filing with Borsa Istanbul.

The company, however, did not provide the financial details, such as the estimated cost, of the new investment.

Kardemir fired up its fifth blast furnace four years ago, in 2015.

In the first half of this year, the company’s liquid steel output reached 1.16 million tons, slightly lower than the 1.2 million tons of production in the same period of 2018.

Its primary sales amounted to 1.19 million tons in January-July, up from 1.12 million tons a year ago.

Kardemir managed to increase its sales revenue to 3.28 billion Turkish Liras ($573 million) in the first half of this year from 2.55 billion liras a year earlier.

It posted a net income of 170 million liras for the first half versus 439 million liras of profit in January-June last year.

The company also produces billets, bloom, wire rods, rebar, profiles and round bars. It employs more than 4,000 people.

Founded in 1937, Kardemir is Turkey’s one and only rail producer.