Turkish steel pipe producer Erciyas Celik Boru Industry Inc. will temporarily suspend production at its Mersin plant by 30 June 2026 and consolidate manufacturing at its Duzce facility as part of measures to improve operational efficiency and reduce costs, according to the company’s stock exchange filing.
The company said the decision was driven by weak market conditions, ongoing geopolitical tensions, project postponements in key export markets and rising financing costs, which have resulted in lower capacity utilization at both production facilities.
Erciyas noted that wars in the region, uncertainties in logistics and supply chains, as well as renewed trade protection and customs measures adopted by various countries, have delayed energy and infrastructure projects in its main export markets, reducing demand for project-based steel pipe orders.
As a result, the Board concluded that continued operation of the Mersin plant no longer generated sufficient value under current economic conditions. The company will begin the required collective redundancy procedures with the Turkish Employment Agency (ISKUR) and other authorities in accordance with Turkish labor legislation.
The producer said all manufacturing will be transferred to its Duzce plant, whose existing production capacity is sufficient to meet customer demand. The company added that it does not expect any disruption to product supply or customer deliveries.
Erciyas also said it remains optimistic about the medium- to long-term outlook, citing growing concerns over energy security and the potential revival of major cross-border pipeline projects. However, it noted that such projects will require time to progress from planning to construction due to geopolitical, engineering and financing challenges.
The company disclosed that it had postponed announcing the decision while negotiations continued on several potential projects and tenders that could have materially affected its production plans. With the planned workforce reduction now becoming unavoidable, the company said public disclosure was required.
Erciyas Celik Boru, part of Erciyas Holding, specializes in steel line pipe production with diameters ranging from 273 mm to 4,064 mm and has annual production capacity of 600,000 tons at its facilities in Duzce and Mersin.