Turkish pipe manufacturer Borusan has announced a strategic investment initiative to upgrade its manufacturing infrastructure in Turkey, aligning with its long-term goals of sustainable growth, profitability, and operational efficiency, according to a stock exchange filing.
As part of the project, Borusan plans to relocate its welding and cold-drawn pipe production lines from the Istanbul Halkali facility, which caters to automotive, construction, and industrial sectors, along with equipment from its Bursa Service Center, primarily serving the automotive industry, to its existing plant in Gemlik.
The consolidation aims to streamline operations, enhance efficiency, reduce fixed costs, and improve capacity utilization. The move is expected to generate approximately USD 30 mln in working capital benefits.
The investment involves around USD 29 mln in capital expenditures (CAPEX) and USD 27 mln in one-time cash outflows for relocation, installation, and preparatory activities. The project will be funded through internal resources and/or external financing, depending on market conditions.
Once completed, the investment is expected to boost Borusan’s consolidated EBITDA margin by 50 to 100 basis points. The Gemlik site will serve as a strategic hub, integrating production for automotive, construction, and industrial customers, aiming to improve coordination, speed up decision-making, and create synergies.
The relocation marks more than a physical move; it represents a shift toward a more agile and efficient operational model that supports the company’s long-term competitiveness.
The project will be rolled out in phases over 24 months, with no disruption to ongoing production. Borusan also emphasized a smooth transition process for employees. Project estimates and timelines may be adjusted based on future developments.
Founded in 1958, Borusan Pipe is a global leader in welded steel pipe manufacturing, with 10 facilities across three continents and an annual production capacity of 1.7 mln tons. The company offers more than 4,000 product varieties and holds a prominent position in the global steel pipe market.