Turkish steelmaker Tosyali Holding AS is pursuing the acquisition of a European producer to bolster its green steel operations, while advancing multi-bln-dollar projects in Saudi Arabia and Africa, Bloomberg reported.
“We are looking for companies similar to the one we acquired in Spain last year,” said Chairman Fuat Tosyali at the World Economic Forum in Davos, referencing the purchase of Baika Steel Tubular System. That deal increased Tosyali’s spiral steel pipe capacity from 150,000 to 240,000 tons annually. The new acquisition could cost up to USD 500 mln, Tosyali added.
European steelmakers reliant on coal face challenges due to strict carbon emission regulations. “We’re targeting companies struggling with raw material access and financing. Instead of selling finished products, we’ll channel semi-products to downstream producers, creating a value chain,” Tosyali explained.
Steelmakers in the US and Europe are also grappling with low demand, falling prices, and rising competition from cheap imports. ArcelorMittal SA, the largest producer in Western countries, recently lowered its consumption forecast outside China, reflecting global economic uncertainty.
Tosyali Holding’s annual steel output, including production in Turkey and Algeria, reached 15 mln tons as of early 2024. Turkey is among the world’s top 10 steelmakers, producing 33.7 mln tons annually.
Tosyali is investing USD 5 bln in a 4-mln-ton-a-year flat steel plant in Saudi Arabia’s Dammam region. The company recently secured 1.8 mln square meters of land for the project and plans to complete the plant within 36 months after receiving necessary permits.
In Libya, Tosyali is developing an 8.1-mln-ton-a-year DRI facility near Benghazi, starting with a USD 1.5 bln investment for an initial 2.7-mln-ton phase. In Angola, a USD 500 mln joint venture with state energy company Sonangol will establish iron ore operations and a steel plant.
As part of its green steel strategy, Tosyali aims to increase its solar energy capacity from 235 MW to 2,500 MW through a USD 1.5 bln investment, supporting its vision of sustainable steel production.
