"2023 was a very challenging year due to reasons such as the import of low-cost products from China becoming effective again after the pandemic measures were reduced, the negative effects of the Russia-Ukraine war, some countries entering the Turkish market with state-sponsored practices in a way that forced competition, increasing protective measures, energy prices remaining higher than expected, and the earthquake we experienced domestically in February. All these factors led us to experience negative results in terms of capacity utilization rates in the iron and steel sector and our exports beyond what was anticipated. At Tosyalı Holding, we continued our growth in 2023 despite these varying conditions."
Tosyalı underlined that they have completed the investment in Tosyalı Demir Çelik Sarıseki Facility in İskenderun, which is Türkiye's largest industrial investment and located right in the center of the earthquake, and started production in the first of the two Quantum furnaces and said, "We made our first export from here to Algeria. In Tosyalı Demir Çelik Sarıseki, we have added nearly 500 new products in different qualities and sizes to our portfolio. With this facility, we have made a very serious progress as Tosyalı, especially in qualified steel products used in the automotive and white goods sectors. In addition, with the additional employment we have created in our Sarıseki facility and our existing companies in the region, we have provided new employment for more than 2000 people in total."
"We will focus on Türkiye's border regions"
Commenting on his 2024 predictions, Tosyalı stated: "In 2024, it is predicted that the central banks of developed countries, especially the US central bank Fed, which is decisive in the global economy, will complete the monetary tightening process. In particular, there is an expectation that a partially relaxed monetary policy will be adopted in the second half of the year. We anticipate that this will bring the shrinking and postponed demand in global markets back to the surface. Based on this, we expect increases in both quantity and turnover in our main export markets next year. As Tosyalı Holding, we will strongly meet the demands in the domestic market with the contribution of the Tosyalı Demir Çelik Sarıseki facility. This facility will eliminate Türkiye's 4 million tons of flat steel imports and will be one of Türkiye's sample facilities in terms of value-added exports. With the strength we get from this facility, we will focus on exports to the EU, the USA, North Africa and nearby regions of Türkiye in 2024."
"Sustainability is our key topic"
Fuat Tosyalı emphasized that sustainability is our main agenda as Tosyalı Holding and said, "We have been investing in this issue for many years. We have already completed our preparations for the practices related to the EU Green Deal to a great extent. We have also received our Environmental Product Declaration (EPD) documents, which are very important in green steel production and show the carbon footprint. In addition, we have clean energy investments such as solar and hydrogen, and we want to further expand them in the coming period. Our goal is to exceed 2.5 GW in clean energy production. In line with this goal, we established Cebelibereket Erzin Energy Specialized Industrial Area in 2023.
We have started work on the establishment of solar power facilities on an area of approximately 25 million square meters in the Osmaniye Erzin region, which will meet the internal needs of our Tosyalı Holding group companies and are also suitable for storage. With a total installed capacity target of around 2 GW, we will finalize this project within 3 years. This year, we will increase our solar power plant capacity in our existing facilities to 235 MW. This way, we will become one of the world's cleanest and greenest steel production facilities by preventing approximately 171 million kg of carbon emissions. Additionally, we are building hydrogen-compatible plants both in Algeria and Türkiye. We are investing in technologies that will make the energy we obtain from solar power plants available for hydrogen production. As Tosyalı, we plan to invest approximately 300 million dollars in these technologies in the first phase. We are also starting geothermal energy-oriented investments, our target is 500 MW per year."
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