History of Erdemir & Isdemir, Turkey.

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History of Erdemir Group


The Erdemir Group is a leading steelmaking business. In 2019 the company produced almost 9 million tonnes of steel, making it the 46th largest steelmaker in the world.

The timeline below covers the history of the Group.

  • 1954: Discussion commences on need to establish a national iron and steel industry in Turkey.
  • 1956: Founders' Agreement signed for establishment of flat-rolled production plant.
  • 1960: Excavation work and plant construction works begins, taking 42 months to complete.
  • 1965: Turkish production of flat-rolled steel commences on 15 May 1965.
  • 1970: Works established to produce long steel products at Iskerendun.
  • 1978: Wire rod mill in Iskerendun begins operations with 80mm billets.
  • 1986: Trading of Erdemir stock commences, on establishment of Istanbul Stock Exchange.
  • 1995: Long product works separated from the Turkish Iron and Steel Works.
  • 1998: Black Sea Port of Erdemir commissioned in September 1998.
  • 1999: Turkish privatisation administration contemplates privatisation of Isdemir.
  • 2001: Erenco project management and consultancy firm established as a subsidiary.
  • 2001: Ersem service centre starts operations in Gebze (capacity of 150 kt/year).
  • 2002: Isdemir is incorporated into the Erdemir Group on February 1, 2002.
  • 2004: Erdemir acquires Maden iron ore mining operations.
  • 2005: Privatisation of Erdemir Group. Turkish Army Pension Fund is winning bidder.
  • 2008: Iskenderun plant begins production of flat rolled steel.
  • 2009: In discussions about sale of 9% ownership stake in Borcelik.
  • 2012: Erdemir commences $700 million iron ore project in Malatya.
  • 2013: ArcelorMittal sells $268m partial stake in Erdemir.
  • 2014: Erdemir opens first R&D Centre for the Turkish steel industry.
  • 2019: Oyak announces $1 billion investment plan at Eregli & Iskenderun.
  • 2019: Rumours suggest Erdemir planned takeover of bankrupt British Steel.
  • 2020: Oyak starts negotiations with Yildiz Holding to buy Kumas Manyezit Sanayi AS.
  • 2021: 1.2 mt/year vacuum degassing plant to be commissioned at Iskerendun in April 2021.
  • 2021: New 2.8 mt/year BF#1 project to be commissioned at Isdemir in May 2021.
  • 2022: 4th coke battery to be commissioned at Eregli Works in April 2022.

Notes
  • 1938: Etibank was set up in 1935 to make use of Turkey's mineral resources. It was intended that Etibank would produce metals, industrial raw materials and energy for Turkish industry, and also perform banking activities to raise capital for investment. Etibank started its iron ore mining activities when it first extracted iron ore in Divrigi in 1938. Iron ore mining was later transferred to the Turkish Iron and Steel Enterprise in 1955, with coal mining being transferred to the Turkish Coal Enterprise in 1957. The Divrigi iron ore operation later became known as Maden, and was transferred to Erdemir ownership in 2004.
  • 1965: At start-up, production capacity amounted to just 0.5 million tonnes of crude steel and 0.4 million tonnes of flat-rolled steel.
  • 1970: Initial design stage for the Iskenderun plant envisaged a facility with an annual capacity of 1.1 mt of cast blooms and associated long product rolling mills.
  • 1995: The spun-out long product business was later transformed into a joint-stock company renamed Isdemir (Iskenderun Demir ve Çelik A.S.).
  • 1998: The new Port of Erdemir was owned by the Turkish State Coal Mining Company. The port catered to the commercial requirements of Erdemir but also operated a number of military facilities.
  • 1999: These deliberations about the privatisation of Turkey's steel assets - undertaken in February 1999 - also extended to special steels producer Asil Celik - with both privatisations intended to take place after the elections in April 1999. In te event, Isdemir ownership was transferred to Erdemir, and the Erdemir Group was privatised as a whole in 2005. Asil Çelik was itself sold to the Diler Group in the year 2000.
  • 2001: Ersem is otherwise known as Erdemir Celik Servis Merkezi San ve Tic A.S.
  • 2002: Erdemir purchased the Iskenderun works from the Privatisation Administration in February 2002.
  • 2004: Maden operated under the name Demir Madenleri Isletmesi since its establishment in ~1940, running nine iron ore mines and one mangesnese ore mine. On transfer to Erdemir, the business was renamed Erdemir Madencilik Sanayi ve Ticaret A.S.
  • 2005: The Turkish armed forces pension fund OYAK made the highest bid for a 46.1% equity stake in Erdemir. The fund, which provides pension benefits to 200,000 serving officers and 25,000 pensioners, bid $2.77bn for the stake. Among the other bidders were Netherlands-based Mittal Steel, the world’s biggest steelmaker, and Luxembourg-based Arcelor, the second largest.
  • 2009: At the time, Borcelik was a Turkish flat-rolled steel producer, also owned by ArcelorMittal and Istanbul-based Borusan Holding.
  • 2012: The purpose of this project was to tap new iron ore reserves estimated at ~1 billion metric tons in the central province of Malatya. This is because other reserves to the north of Malatya would be depleted by 2017.
  • 2013: Immediately before this sale, ArcelorMittal owned ~655 million shares in Erdemir, representing approximately 18.7% of the firm's share capital. Following completion of the sale, ArcelorMittal held approximately 12.08% of the shares. Note that ArcelorMittal's ownership of Erdemir's equity peaked at 24.9% in June 2008 since which time the firm had gradually been reducing its involvement in ownership of the business.
  • 2019: According to press reports, the Oyak $1 billion investment plan was said to include investment in a coke batteries; investment in a sinter production plant; investment in a new blast furnace; port modernisation; as well as modernization of Erdemir's auto steel production lines to Industry 4.0 standards.
  • 2019: British Steel went into administration May 2019. Its new owner emerged as Jingye of China.
  • 2020: Kumas Magnesite has close to 20 percent of the world's magnesite ore and also produces refractory products mainly used in the iron, steel and cement industries. The mine was acquired by Yildiz in 2012. Kumas Manyezit itself was established in 1972 in Kutahya.


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