Turkish steel giant Tosyali Group has finalized the acquisition of Bastug Metallurgy, a local steel plant located in Osmaniye, southern Turkey. The deal, which was completed on July 3, 2024, marks a significant expansion for Tosyali in the domestic market.

Bastug Metallurgy, which had been facing financial difficulties, is equipped with an electric arc furnace capable of producing 2 million tons of steel annually and a rolling mill with a 1.25 million ton yearly capacity. The plant specializes in manufacturing 130-200 mm square billets and rebar with diameters ranging from 8 to 63 mm.

This acquisition aligns with Tosyali Holding's ambitious global expansion plans. The company aims to invest $1.5-2 billion annually in various projects, including ventures in Africa and Saudi Arabia, as well as potential partnerships in Europe and the Americas. Tosyali's goal is to increase its steelmaking capacity from the current 14 million tons to 20 million tons within the next five years.

The takeover of Bastug Metallurgy is expected to strengthen Tosyali's position in the Turkish steel industry, which has faced challenges in recent years. Turkey's steel production declined by 4% in 2023 and 12.9% in 2022, largely due to macroeconomic instability and market uncertainty.

With this acquisition, Tosyali Group solidifies its status as a major player in the Turkish steel sector. The company's strategic move comes at a time when the industry is operating at about 58.5% of its total capacity, presenting opportunities for growth and consolidation.

As part of the deal, layoffs at Bastug Metallurgy have been halted, and more details about the integration of the plant into Tosyali's operations are expected to be announced in the coming days.