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Ana Sayfa » Boru Dergisi'nden, News In English

Investment to Algeria amounting to 750 million, by Tosyalı Holding

Tosyalı Holding, the biggest iron and steel producer of Turkey’s private sector, and which follows its ambitions with an increasing manner abroad, after the investments it made in Turkey, opened and iron and steel plant in Algeria, with an investment amounting to 750 million dollars.

Tosyalı Holding, the biggest iron and steel producer of Turkey’s private sector, follows its ambitions with an increasing manner abroad, after the investments it made in Turkey. Tosyalı Holding, which purchased Zeljezara AD Niksic, one of the biggest steel production plants of Eastern Europe, located in Montenegro, last year, this time established the biggest iron and steel factory of Algeria, in the Oran city of Algeria, with a budget amounting to 750 million dollar, including working capital. As for the annual turnover target of the plant, which has the characteristic of being the biggest steel investment of Turkey abroad and provides employment to more than 1000 persons, it is 1 billion dollars. The official opening of Tosyalı Iron and Steel Algeria Production Plant, whose foundation was laid in the year 2011, and which reached production stage upon being completed in record time of just 19 months, despite all economic negativities experienced in the world, was carried out on June 5, 2013 at the Oran city of Algeria, by Prime Minister Recep Tayyip Erdoğan and Prime Minister of Algeria Abdelmalek Sellal. The opening ceremony, which was also participated by many  ministers and bureaucrats from Turkey and Algeria, was also attended by more than 500 industrialists and businessmen, particularly industrialists and businessmen who are members of MÜSİAD (Independent Industrialists’ and Businessmen’s Association)

1 MILLION 250 THOUSAND TONS LIQUID STEEL PRODUCTION CAPACITY

It became the biggest name of Algeria in iron and steel, with its 1 million 250 thousand tons liquid steel production capacity. At the Tosyalı Algeria Plant, which is the biggest iron and steel plant of the region, with its annual turnover target of 1 billion dollars and liquid steel production capacity of 1 million 250 thousand tons, the following items will be produced: ingot addressed towards production of coils of iron, high-strength weldable structural iron, ribbed coils of iron, flat and wire coils of iron for the production of wire mesh-nail-wire-galvanized wire-rope wire-screw-bolt-pre-stressed concrete wire (wire rod), and commercial profiles. Products, which will be produced through the use of high technology, will answer the needs of the developing and growing domestic market of Algeria. Tosyalı, which provides direct investment to 1018 persons in Algeria, aims to increase this number to 1.400 by the end of the year 2014, when its wire rod investment, whose foundation was recently laid, will be completed.

“WE ARE THE BIGGEST STEEL PIPE PRODUCER OF TURKEY’S PRIVATE SECTOR”

Chairperson of Tosyalı Holding’s Board of Directors Fuat Tosyalı, who gave a speech during the opening of Tosyalı Algeria Plant, spoke the following: “We are the biggest steel pipe producer of Turkey’s private sector, with our experience exceeding 60 years and our strong capital structure. Today is a historical day for our company and Turkish steel sector. Within the scope of our aim to grow in countries of the region, we make the biggest private sector investment of Algeria. Our adventure at Algeria, which has a common and close history with Turkey, and with which we share the same religion and the same culture, started with the commercial relations we established 30 years ago. We had the chance to get to know the country and its neighborhood very well and we examined its potential. Our trust and belief to Algeria, and its administrators, who supported us, also affected us, along with the developing economy, young and dynamic population of this beautiful country. It is the combination these mutual, potential and existing relations, our experience and entrepreneurial spirit, which initiated the process, which brought us to the present moment”.

MACHINERY AND EQUIPMENT FROM TURKEY, ARRIVED TO THE PLANT WITH 25 SHIPS

Fuat Tosyalı, stating that they completed the plant in 19 months, with a budget of 750 million dollars, including working capital, told the following: “This achievement is a project for which machinery and equipment brought from Turkey with 25 ships were used, for which more than 100 Algerian supplier gave support, whose completed first stage is established on 26 hectares, which will produce 1 million 250 thousand tons of liquid steel and 900 thousand tons of structural iron annually, is a project equipped with machinery and equipment, which were produced through the exclusive use of Turkish technology”. Tosyalı, stating that the plant will ensure the friendly relations between Turkey and Algeria to continue increasingly, expressed: “In addition to its contribution to Tosyalı Holding in the latter’s journey to become a global company, I also believe this plant will also add an immense dynamism to the development of Algeria”.

EXPORT CARRIED OUT TO MORE THAN 70 COUNTRIES IN 5 CONTINENTS
Tosyalı spoke as follows: “Today, I would like to express it proudly, we export high-technology iron and steel products, which are among the leading indicators of the development of a country’s industry, to more than 70 countries in 5 continents as Tosyalı Holding, in addition to the domestic market of Turkey. Tosçelik products are used in Asia to Americas, Europe to Africa, even in Australia. While our export increases its share within our total sales each passing day, we receive a 35 percent share from our total sales volume in the current situation. The target of our group in this field, is to increase its share in total sales to the 50 percent level, and to fulfill our responsibility in helping our country to achieve its targets for the year 2023”. Prime Minister Recep Tayyip Erdoğan, who went on with his official visits in Algeria, and Prime Minister of Algeria Abdelmalek Sellal, also laid the foundations of the Wire Rod plant, the second leg of the Algeria investment.

PROPERTIES OF THE PLANT
Products to be produced:
Ingot, structural iron, coils of iron, commercial profiles

Place of the investment: Algeria – City of Oran

Quantity of employment generated: During the investment period, for 19 months, more than 2000 personnel were employed at the construction site and during the construction stage. 1018 personnel are directly employed, and after the completion of wire rod investment, 350 more personnel will be directly employed. Indirect investment is provided to more than 10.000 persons

Market where the product will be sold: The entirety of the products to be produced is addressed towards import substitution, and will be sold to the Algerian domestic market.

Size of the Algeria factory: The plant, established on an area of 260 square meters, has the size of 62 football fields.

Products to be produced at the Algeria factory and their characteristics.: Ingot addressed towards the production of coils of iron and structural iron, high-strength weldable structural iron, ribbed coils of iron, flat and wire coils of iron for the production of wire mesh-nail-wire-galvanized wire-rope wire-screw-bolt-pre-stressed concrete wire (wire rod), commercial profiles.

Technological features of the Algeria factory: An Iron and Steel Production complex, along with all its auxiliary plants, was established, in an extremely compact structure, through the use of mini mill concept and state of the art technology. The raw material input of the plant consists of scrap, DRI and pig; the ferrous material, whose melting procedure is completed at Electric – Arc Furnace, is then transferred to the ladle furnace, which is the subsequent process, via ladles. The refining and alloying of the steel is performed in the ladle furnace, and the steel is brought with the desired mechanical and chemical properties. Liquid steel, which reaches the desired steel quality, is casted at continuous billet casters as billet and fed to rolling mill reheating furnaces through the hot charging method, and ingots, heated up to rolling mill temperature are transformed to final product on continuous structural iron and coils of iron production lines.

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