Turkish steel company Tosyalı Group has announced that it has abandoned its plans to acquire local steel plant Baştuğ Metalurji in Osmaniye, southern Turkey. The share transfer deal, which was expected to be completed on July 3, 2024, has been called off after deliberations between the two parties.
Baştuğ Metalurji, which specializes in the production of 130-200 mm square billets and rebar with a diameter of 8-63 mm, was previously reported to be facing financial difficulties. The company operates an electric arc furnace with a capacity of 2 million tons of steel per year and a rolling mill capable of producing 1.25 million tons of products annually.
Tosyalı Holding, with a current steelmaking capacity of 14 million tons per year, had planned to invest $1.5-2 billion annually in global expansion, including in Africa, Saudi Arabia, Europe, and the Americas. The company aimed to increase its total steelmaking capacity to 20 million tons within five years.
Turkey's steel production declined by 4% in 2023 compared to 2022, reaching 33.7 million tons. In 2022, the country's steel output decreased by 12.9% year-on-year to 35.1 million tons due to macroeconomic instability and high uncertainty in the domestic market.